mba 13010025

THE STUDY ON SUPPLY CHAIN MANAGEMENT AT NECTAR

BEVERAGES PVT LTD.

DVHIMSR, Dharwad Page 1

Dr. D. Veerendra Heggade

Institute of Management Studies and Research

Vidyagiri, Dharwad 580 004

Approved by AICTE, New Delhi & Affiliated to Karnataka University, Dharwad

Report on Summer In-plant Training

At

NECTAR BEVERAGES PVT LTD

By

Mr. DEEPAK S KOTRASHETTY

Reg. Number: MBA13010025

MBA II Semester

Submitted in partial fulfillment of the requirements for the degree of

Master of Business Administration.

INTERNAL GUIDE EXTERNAL GUIDE

Prof. Manish Kothari Ms. Kruthika Tikare

Asst. Professor MIS Analyst

NBPL Dharwad

AUGUST 2014


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DECLARATION

I here by declare that this Report on Summer In-plant Training titled A

STUDY ON SUPPLY CHAIN MANAGEMENT AT NECTAR

BEVERAGES PVT LTD conducted at NECTAR BEVERAGES PVT

LTD, DHARWAD, submitted by me to Karnatak University, Dharwad, is a

record of an original and independent study undertaken between June and

August 2014 under the guidance and supervision of Ms. Krutika Tikare, MIS

Analyst, Nectar Beverages Pvt Ltd, Dharwad & Prof. Manish Kothari,

Assistant Professor at Dr. D Veerendra Heggade Institute of Management

Studies and Research, Vidyagiri, Dharwad.

I further declare that this project has not formed the basis for award of any

other degree/ diploma of other University/ Institution.

Date:

Place: Dharwad Deepak S Kotrashetty


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ACKNOWLEDGEMENT

At the outset, I would like to take this opportunity to acknowledge the

support and cooperation of all those who enabled successful completion of

this Summer In-plant Training.

I have immense pleasure in expressing my deepest gratitude to our

Honorable Director Dr. C. S. Rajagopal, for his guidance, which goes a long

way to set my future career.

I wish to express my thanks to Ms. Krutika Tikare, Marketing Dept MIS

Analyst, Nectar beverages Pvt Ltd for giving me an opportunity to do my

project work. I express my heartfelt thanks to other members of Marketing

Dept for their cooperation and guidance.

I extend my thanks to Prof. Manish Kothari, Assistant Professor, Dr. Anil

Yaragatti, Academic Dean and other faculty members of our Institute for

extending valuable advice and support during the project period.

Last but not the least there were so many who shared valuable information

that helped in successful completion of this project all of whom I also wish

to thank.

Deepak S Kotrashetty


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CONTENTS

SL .NO TITLE PAGE.

NO

1.

EXECUTIVE SUMMARY

2. INTRODUCTION.

3. ORGANIZATIONAL STUDY

4. THEORETICAL BACKGROUND

5. RESEARCH DESIGN

6. ANALYSIS, INTERPRETATION AND FINDINGS.

7. RECOMMENDATIONS

8. CONCLUSION

9. BIBLIOGRAPHY

10. ANNEXURE

EXECUTIVE SUMMARY

A supply chain of Nectar Beverage Pvt. Ltd. is dynamic and involves the constant flow of

information, products and funds between different stages. The term supply chain conjures

up images of product or supply moving from suppliers to manufacturers to distributers to

retailers to customers along a chain.


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The competitive strategy of Pepsi Co. (Nectar Beverages Pvt. Ltd.) is that it has its

presence all over the world i.e. to make their products available throughout the country by

having their plants in different parts of world.

The supply chain strategy is that it has many plants across India in different states and to

cater the market in entire North Karnataka it has its plant Nectar Beverage Pvt. Ltd.

Dharwad. By its competitive and supply chain strategy the company is able to meet its

demand on time by having different plants. The efficiency of supply chain is achieved

through outsourcing most of its processes, cost and risk involved in performing the same

in-house is eliminated.

The company uses push strategy in marketing the products as it manufactures the

products and market them through distributors to retailers and then to final customers. It

is not based on the customer order. Company gives extra incentives to the distributors

with high sales.

The Company faces a lot of problem particularly a breakage of bottles and thus the

spillover happens. The company being engaged into food and beverages business as to

maintain its quality to the best standards therefore it is recommended to the company to

change the material of bottle manufacturing and at the same time bring them attractive

shapes of bottles to increase the visibility. In case of movement of the goods there are

chances of breaking up of bottles hence the company needs to maintain a proper packing

system so that the goods are reached safe.

The Company is engaged into business of beverages whose demand is fluctuating

throughout the year, hence the company needs to analysis the movement of the goods

based on season and keep a track on production planning and product sales as a their

demand is fluctuating

All the supply chain drivers are studied in brief w.r.t Nectar Beverage Pvt. Ltd. Dharwad.


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INDUSTRY OVERVIEW

India is the 7th largest country in the world with a population of 1000 million people and

an area of 3.29million sq.kms. Out of its about 1000 million people, approximately 250

million people are affluent middle and upper middle class sections of society with a good

purchasing power. According to the World Bank statistics released recently in

largest economy in terms of purchasing power

parity (PPP) next to only U.S., China, Japan and Germany.

India is the country that offers the greatest potential, even more so than China. Right now,

India accounts for approximately 10% of global beverage consumption. That makes

beverage consumption in India the third largest in the world, after the United States and

China. And when it comes to carbonated soft drinks, the market has not even been

properly tapped. The situation is similar in the case of bottled and packaged juices and

water and PET packaging. Given its size, the Indian market is still in its infancy. For the

future, beverage manufacturers must invest in plants and equipment "drink technology

India" is the perfect place for them to prepare for and initiate those investments.

The country has broadly two seasons, hot and cold. The hot season can befurther divided

into two parts, summer (April May) and rainy (June September). The cold season

consists of autumn (October November and winter (December March). The

consumption of soft drinks is generally high in the hot season, although there is also

steady consumption in the cold season particularly at the time of marriages and parties.

ustrial policy of 1991

and multinational companies can enter India with an equity of 51% or even up to 100%

with the special permission of the Foreign Investment Promotion Board (FIPB). Two

multinational namely, Coca Cola holding of Atlanta USA (Coke) and PepsiCo (Pepsi)

also of USA entered the country with special permission from the FIPB.

PepsiCo took over a hundred year company of Bombay called Duke and Sons Pvt. Ltd.

which had popular Soda, Lemonade and Mango Brands with a 25% share of the market in


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western India. PepsiCo also acquired a majority share of 91,4% in Punjab Agro Industries

Ltd by share holdings of Voltas Ltd of the Tata group.

In December 1998 Coca Cola took over the largely non-cola multinational Cadbury

Schweppes soft drink brand in India because he invented the beverage known around the

world as Pepsi Cola.

The summer of 1898, as usual, was hot and humid in New Bern, NorthCarolina. So a

young pharmacist named Caleb Bradham began experimenting withcombinations of

spices, juices and syrups trying to create a refreshing new drink toserve his customers. He

succeeded beyond all expectations.

MEANING OF SOFT DRINK

A soft drink (widely referred to as soda, pop, or soda pop) is a drinkthat typically

contains no alcohol, though may contain trace amounts(typically lessthan 0.5% by

volume) and is usually referred to as a sugary drink. Soft drinks are often carbonated and

commonly consumed while cold and or room temperature. Some of the most common

soft drinks include cola, flavored water, sparkling water, iced tea, sweet tea, sparkling

lemonade (or other lemon-lime soft drinks), squash, fruit punch, root beer, orange soda,

grape soda, cream soda, and ginger ale.

The term "soft" is employed in opposition to "hard", i.e. drinks withhigh alcoholic content

by volume. Generally it is also implied that the drink does not contain milk or other dairy

products. Hot chocolate, hot tea, coffee, tap water, juice and milkshakes also do not fall

into this classification. Many carbonated soft drinks are optionally available in versions

sweetened with sugars or with non-caloric sweeteners, such as diet soda.

Soft drinks are non-alcoholic beverages, which quench thirst and with different tastes.

Soft drinks can be divided into

1. Carbonated: Carbonated drinks are those, which contain Carbon Di-Oxide.

Examples: Cola, Miranda (Lemon & Oranges).

2. Non-Carbonated -

Oxide.


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Example: Mango drinks

The world beverage market is expected to see growth slow to a rate of less than 2% a year

between 2010 and 2015 to surpass $1,900 billion by the end of 5 years period, according

to the market research from MarketLine. Over the last 4 years period, the global beverage

industry experienced consumption volumes expand at over 2% annually to surpass 245

billion kilograms by 2010.

The main beverage products across the global include: bottled water, juice, sparkling and

still drinks, syrups, nectars, ready-to-drink and regular teas and coffees, dairy drinks,

energy drinks, sports drinks, fruit powders, and alcoholic drinks such as beer, wine, cider

and spirits.

As global food and beverage industry accelerates its production speed and increase

output, which also lowers costs; the beverage industry continues to become increasingly

streamlined and efficient over the recent years, and thus to boost its expansion.

GLOBAL BEVERAGE MARKET (HIGHLIGHTS BY SEGMENT):

As reported by MarketLine, the global beer market, including flavoured alcoholic drinks

and cider, gained sales worth over $585 billion in 2010, while the consumption of beer

exceeded 196 billion liters in 2010.Market growth is expected to remain steady at an an

annual rate of about 1.5% till 2015, when the market value is to reach $630 billion.

The global spirits market expanded more than 3% in 2010 to reach around $263 billion.

It is expected the market will exceed $306 billion by 2015, which will be a 17% increase

in 5 years. In 2010, the spirits market grew 2% to exceed 19 billion liters, and it is

expected to top over 21 billion liters by 2015, an 11% increase over the 5 year period.

Whiskey is now the leading segment of the spirits market, accounting over 27% of the

overall market. The EU currently represents about half of the global spirits sales, on

which Diageo is the leading company in the market with over 5% market share.

The global fruit and vegetable juice market is set to reach almost 65 billion liters by

2015, reported by Global Industry Analysts.
http://www.businessvibes.com/blog/facts-and-figures-global-food-and-beverage-industry


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In the short period of time, the market is believed to recover from the global financial

crisis, attributed to particularly dynamic segments such fortified juices and natural juices.

These healthy beverages, along with regular fruit and vegetable juices, are increasingly

popular the health-conscious demand is getting higher among consumers.

Natural beverages, made without preservatives or additives, are leading the market of

fruit and vegetable juice. More and more manufacturers are adapting to this demands by

using organic ingredients and fortifying their products with ingredients including natural

fibres, probiotics, sterols, vitamins and minerals. Diet drinks is another dynamic market

segment meeting the demand created by consumers concerned by health issues such as

diabetes and obesity. Some leading players on the market include Del Monte Foods,

Cadbury, Ocean Spray and Tropicana.

The world soft drinks market was worth almost $504 billion in 2010, and market

expansion is expected to exceed 3% a year by 2015 to almost $586 billion. Carbonates are

in leading position in this market segment, with sales over $204 billion in 2010, which

represents over 40% of the overall market.

Major market share by region

US coffee sales reached almost $38 billion in 2011, up by 10% from 2010. The market is

boosted by popularity of global coffee chains such as Starbucks and single cup coffee

brewers. Major market players apart from Starbucks include Kraft Foods, Green

It seems the US tea market has fared the global recession well as the market growth in

2011 has been strong, with double digital growth from refrigerated tea in particular. The

tea market is driven by the adoption of tea by fast food chains, and specialty retailers.

Currently, European Union is the biggest market for the global fruit and vegetable juice

products, followed by the US, reported by Global Industry Analysts. Asia-Pacific is going

to show the most rapid growth, expanding at more than 4.5% a year through 2015.

In the prospective view, Growth across all sectors of the beverage industry will partly

depend on the demand of from consumer health concerns as the new industry trend.


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Companies will put more attention on diversifing their product portfolios to offer diet,

organic and fortified drinks for the health-concerned consumers. A shift in the consumer

demographics profile will continue to see growing demand in developing countries such

as India, Russia and China.

The Global Food and Beverages (F&B) sector, which comprises farming, food

production, distribution, retail and catering, has surpassed the value of $5.7 trillion USD

since 2009. The industry is one of the major contributors to growth of all economies and

has historically witnessed consistent growth, and the industry is expected to increase at a

CAGR of 3.5 percent to $7 trillion by 2014.

The Food and Beverage Industry has always had one of the biggest industry portals on

BusinessVibes as there are over 3 thousand member companies from all over the world

involving in food and beverageproduction, trading, distribution etc sectors, as well as

hundreds of event organisers presenting all kinds of exhibitions and tradeshows in

food and beverage industry.

According to the Food and Beverage Industry Global Report conducted by IMAP, here

are some highlighted facts and figures about this industry in recent years:

global F&B industry was valued at $5.7 trillion USD in 2008 and is expected to

increase to more than $7 trillion USD by 2014, witnessing a CAGR of 3.5 percent.

food products industry, which consists of agricultural products and

packaged foods, generated revenues of $3.2 trillion USD in 2008. This is expected to

increase at a CAGR of 4.6 percent to $4 trillion USD by 2013

beverage industry, which consists of soft drinks, beers, ciders, spirits and

wines, was valued at $1.4 trillion USD in 2008 and is expected to rise at a CAGR of

2.6 percent to $1.6 trillion USD by 2013

Europe accounts for the largest share in the global F&B industry, generating revenues

of $1.4 trillion USD in 2007 and employing 4 million workers; the US held $1 trillion

USD of this market in the same year.


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-Pacific is emerging as a major contributor of raw materials to the F&B industry.

Food purchases are shifting from staple foods rich in carbohydrates to more expensive

foods such as meat and dairy products.

2007-

processing sector increased from $44 billion USD in 2007 to $50 billion USD in 2008

production capacities. China increased its

wheat production capacity by 26 percent in 2003-07, while Russia raised its capacity

by 45 percent. Over the same period, wheat production in the US decreased by 12.5

percent.

ent of produced food is consumed by developing

countries (majority of the increase in global population from 6.6 billion in 2008 to 9

billion in 2050 is expected to come from developing countries). This is expected to

climb to 72 percent by 2050 supported

population currently lives in China and India.

Food Retail industry earned revenues of $3.9 trillion USD in 2008 at a CAGR of 6

percent in 2004-08 and is expected to increase at a CAGR of 4.8 percent between

2008 and 2013 to reach $5 trillion USD in value.

total food consumed, with developed countries

such as the US, Japan and EU, accounting for more than half of global sales of

packaged products. However, raw products, which need to be processed before

becoming edible, account for a large proportion of retail sales in developing countries.

Nevertheless, with rising income levels, consumption in developing countries is also

shifting towards packaged food products

w cost countries are also becoming a sourcing hub for global retailers. For example,

Wal-Mart and Carrefour are now sourcing processed foods from emerging economies

such as India

India is the world's second largest producer of food next to China and has the potential of

being the biggest, backed by its food and agricultural sector. The total food production in


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estimated to reach US$ 258 billion by 2015.

With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast

emerging as a sourcing hub for processed food. The Indian food processing industry

The food industry in India has been attracting a lot of attention from foreign investors as

the country is close to the markets of Middle East, Africa and South East Asia. The

Ministry of Food Processing Industries (MOFPI) is making all efforts to encourage

investments in the sector, incentives for cold chain development and also grant-in-aid for

setting up laboratories that are equipped for testing food products.

Key Players

Coca-Cola plans to foray into India's dairy segment in the coming season with its

milk-based drink 'Maaza Milky Delite'. The beverage made from milk and mango

pulp will now be rolled across the country in 200 ml tetra packs.

Everest Spices plans to set up spices processing units in the East African country

Zanzibar at an investment of about Rs 100 crore (US$ 16.73 million), said

MrSanjeev Shah, Executive Director, Everest Spices. The firm has entered into a

memorandum of understanding (MoU) with the Government of Zanzibar for the

same.

Cadbury brand owner Mondelez International is investing heavily in sales and

route-to-market expansion in India. The company has increased sales

infrastructure with one lakh Visicoolers in the market and it took big strides by

expanding into rural India and reaching seven states in 2013.

Capri-Sun AG has entered into a franchise agreement with SDU Beverages, an

Indian beverages firm that currently produces packaged water and soda under the

Kingfisher brand and RC Cola.


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Hardcastle Restaurants, master franchise for west and south India operations of

McDonald's Restaurants, plans to bring its coffee retail format McCafe to India.

More than 150 McCafes are expected to be set up in the next five years.


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Beverages

The Indian non-alcoholic beverages market is currently growing at 15 per cent

year-on-year (Y-O- packaged drinks,

consumption of non-alcoholic beverages in India is expected to increase by 16.5

for Research on International Economic Relations (ICRIER) and the Indian

Beverage Association (IBA).

Within the beverages market, packaged juice has charted a high growth trajectory.

As of March 2013, the Indian packaged juices market is valued at Rs 1100 crore

(US$ 183.89 million) and is projected to grow at a compound annual growth rate

(CAGR) of 15 per cent over the next three years. Dabur India Ltd is the

established leader with a market share of 54 per cent with its brands Real and Real

Active. PepsiCo India is the second largest player with a 25 30 per cent share

through its Tropicana juice brand.

Milk and tea could also witness rapid growth, as foreign firms have started

packaged milk segment would grow from US$ 7.76 billion to US$ 32.9 billion

and register an annual growth of eight per cent by 2030. The top ten companies in

India account for 65 per cent of the hot beverage market.

Government Initiatives

The Government of India has allowed FDI up to 100 per cent in food processing

sector through automatic route. For promotion and development of the food

processing sector, it has allocated a sum of Rs 5,990 crore (US$ 1 billion) under

various schemes of the food processing industries ministry during the 12th Five

Year Plan.


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and international, with regard to their queries, and guide them particularly at the

initial stage of setting up their units.

The Ministry has launched a Centrally Sponsored Scheme namely, National

Mission on Food Processing (NMFP) during the 12th Plan. A sum of Rs 204.85

crore (US$ 34.23 million) has been released to States/ Union Territories (UT)

under the scheme during FY 13 and FY 14 (up to January 31).

The Ministry is implementing a scheme for Human Resource Development

(HRD) in the food processing sector on developing technologists, managers,

entrepreneurs and manpower for quality management in the sector. The annual

manpower requirement in the industry is estimated at about 5.3 lakhs persons.

With the objective of providing incentive to create integrated cold chain and

preservation infrastructure facilities in the country, the Ministry is implementing

the Scheme of Integrated Cold Chain, Value Addition and Preservation

Infrastructure.

Road Ahead

The revival of the agriculture sector is expected to open up a plethora of

opportunities for players having strong linkages in the agri value chain. The food

processing industry is expected to be one of the biggest beneficiaries of this

process. Significant investment opportunities are yet to be tapped in the areas of

supply chain management (SCM), cold storages, financing, retailing and exports.

The MOFPI has formulated a Vision 2015 Action Plan that includes trebling the

size of the food processing industry, raising the level of processing of perishables

from 6 per cent to 20 per cent, increasing value addition from 20 per cent to 35 per

cent, and enhancing India's share in global food trade from 1.5 per cent to 3 per

cent.


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COMPANY PROFILE

About the Pepsi-Cola Company

The summer of 1898, as usual, was hot and humid in New Bern, North Carolina. So a

young pharmacist named Caleb Braham began experimenting with combinations of

spices, juices and syrups trying to create a refreshing new drink to serve his customers.

He succeeded beyond all expectations because he invented the beverage known around

the world as Pepsi Cola.

Figure no.2.1 (Caleb Braham)

Caleb Braham knew that to keep people returning to his pharmacy, he would have to turn it into a

gathering place. He did so by concocting his own special beverage, soft drink. His creation, a

unique mixture of cola nut extract, vanilla and rare oils, became so popular his customers named

it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink.

In 1902, he launched the Company in the back room of his pharmacy, and applied to the U.S.

patent office for a trademark. At first, he mixed the syrup himself and sold it exclusively through

soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so

that people could drink it anywhere.


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The business began to grow and on June 16, 1903, "Pepsi-Cola" was officially registered with the

U.S. patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line

"Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to

independent investors, whose number grew from just two in 1905, in the cities of Charlotte and

Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there

were Pepsi-Cola franchises in 24 states.

Figure no.2.2:First franchise of Pepsi Cola

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back

room of Caleb's pharmacy.

Building a strong franchise system was one of Caleb's greatest achievements. Local Pepsi-Cola

bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy

foundation. They were the corner stone of the Pepsi-Cola enterprise Growth was phenomenal, and

in 1909 Caleb erected a headquarters sospectacular that the town of new berm pictured it on a

postcard.

The previous year, Pepsi had been one of the first companies in the United States to switch from

horse-drawn transport to motor vehicles and Caleb's business expertise captured widespread

attention. He was even mentioned as a possible candidate for Governor. A 1913 editorial in the

Greensboro Patriot praised him for his "keen and energetic business sense."


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Fig no. 2.3 Pepsi logo


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Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now promoted Pepsi sales with

the slogan, "Drink Pepsi-Cola. It will satisfy you." Then after World War I, the cost of

doing business increased drastically. Sugar prices see sawed between record highs and

disastrous lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a

series of business gambles just to survive, until finally, after three exhausting years, his

luck ran out and he was bankrupted.

It wasn't until a successful candy manufacturer, Charles G. Guth, appeared on the scene

that the future of Pepsi-Cola was assured. Guth was president of Loft Incorporated, a

large chain of candy stores and soda fountains along the eastern seaboard. He saw Pepsi-

Cola as an opportunity to discontinue an unsatisfactory business relationship with the

Coca-Cola Company, and at the same time to add an attractive drawing card to Loft's

soda fountains. He was right. After five owners and15 unprofitable years, Pepsi-Cola was

once again a thriving national brand.

PepsiCo Inc. is best known for its soft drink Pepsi and Mountain dew and yet, over the

years it has also created logo items, such as T-shirts, hats and duffel bags with the Pepsi

globe design. These are part of its marketing strategy to promote the drinks in the minds

of the people making the drink a part of the life of their life. But that sort of marketing has

its limitations. These items can be taken to the beach but they are not a 'brand'. In today's

lifestyle a brand name is what is needed to succeed. It is the brand name that Grabs the

attention of the consumer and retains their loyalty as price, quality etc. become associated

with the name accordingly. So the logo accessories that were promoted by Pepsi may

have been used but they did not create an awareness of Pepsi in any market other than that

of soft drinks.The Indian Carbonated Beverage Industry is a very dynamic industry. The

soft drinks are the life style brads and are closely related with the consumers. The passion

for cricket in the country makes it a unique market. The Indian Carbonated Beverage

Industry is worth Rs.1000crore, which is equal to 270millon cases i.e. 6480millon bottled.

The current growth rate of industry is 8%. Among the total Cola product 62% is of soft

drinks and 36% is an orange, cloudy lime, clear lime and mango juices.


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The Group's principal activities are to manufacture market and sell salty, sweet and grain-

based snacks, carbonated and non-carbonated beverages and foods. The Group operates in

four divisions: Frito-Lay North America manufactures markets and sells branded snacks,

which includes Lay's potato chips, Doritos flavored tortilla chips and Cheetos cheese

flavored snacks. PepsiCo Beverages North America manufactures beverage concentrates,

fountain syrups and finished goods for Pepsi, Diet Pepsi, Pepsi One, Mountain Dew, Mug

etc. PepsiCo International manufactures a variety of salty and sweet snack brands

including Sabritas, Gamesa and Alegro.Quaker Foods North America manufactures,

markets and sells cereals, rice, pasta and other branded products, which includes Quaker

oatmeal, Cap'n Crunch and Life ready-to-eat cereals, Rice-A-Roni, etc. On 28-Feb-2005,

the Group acquired Snack Ventures Europe, on 02-Jan-2006, Star Foods and on 12-Jan-

2006, Stacy's Pita Chip Company.

Pepsi Cola Pepsi Cola beverage business was founded at turn of the century by Caleb

Bradham a New Bern N.C druggist who formulated Pepsi Cola. Pepsi Cola Company

now produces and markets nearly 200 refreshment beverages to retail, restaurants and

food service customers in more then 190 countries and territories around the world and

generates revenue of over 18 billion dollars. Although Pepsi holdings over the years have

become diverse in such fields as the snack industry and restaurants industry this portfolio

will discuss its core business and its highly successful business of beverages. The soft

drink industry customer base is probably the widest and deepest base in a world that is

flooded with some many categories. According to Beverage Digest the customer base for

soft drinks is a whopping 95% of regular users in the United States.

This represents a large field of potential customers for Pepsi Cola. Yet although Pepsi

could just use the majority fallacy to market their product, Pepsi prefers to segment itself


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marketers refer to as Generation X. The Generation X consumer is profiled to be between

the ages of 18 to 29. They have high expectations in life andare very mobile and active.

They adopt a lifestyle of living for today and not worryingabout long term goals. Those

afocus on the 12 to 18 year old

market. Pepsi believes if they can get this market to adopt their product then they could

establish a loyal customer for life. Pepsi Cola is situated in an industry that is dominated

by two competitors, Coca-Cola and of course themselves. Although Pepsi and Coke

basically go after all consumers who purchasesoft drink beverages Coca-Cola targets its

products at the head of household. This isevident in many of the advertisements.

SHARE HOLDERS

PepsiCo shares are traded principally on the New York Stock Exchange in the United States. The

company is also listed on the Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo

has consistently paid cash dividends since the corporation was founded.

CORPORATE CITIZENSHIP

At PepsiCo, we believe that as a corporate citizen, we have a responsibility to contribute

to the quality of life in our communities. This philosophy is expressed in our

all

aspects of the world in which we operate environment, social, economic creating a

on environmental stewardship, activities to benefit society and a commitment to build

shareholder value by making PepsiCo a truly sustainable company.

Carolina druggist, who first formulated Pepsi-Cola. Today Brand Pepsi is part of a

portfolio of beverage brands that includes carbonated soft drinks, juices and juice drinks,

ready-to-drink teas and coffee drinks, isotonic sports drinks, bottled water and enhanced

waters. PBNA has well known brand such as Mountain Dew, Diet Pepsi, Gatorade,

Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana juice drinks,


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Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. In 1954

Rossi pioneered a pasteurization process for orange juice. For the first time, consumers

could enjoy the fresh taste of pure not-from-concentrate 100% Florida orange juice in a

ready-to-

flagship product. PepsiCo acquired Tropicana, including the Dole juice business.

Gatorade thirst quencher sport drink was acquired by The Quaker Oats Company in 1983

and became a part of PepsiCo with the merger in 2001. Gatorade is the first isotonic

sports drink. Created in 1965 by researchers at the University of Florida for the school's

football team, "The Gators," Gatorade is now the world's leading sports drink. PepsiCo

Beverages North America includes the United States and Canada.

PEPSICO INTERNATIONAL

Pepsi-Cola began selling its products outside the United States and Canada in the mid-

1930s, opening in the United Kingdom in 1936. Operations grew rapidly beginning in the

1950s. Today, PepsiCo beverages are available in more than 170 countries and territories.

Brands include Aquafina, Gatorade and Tropicana. In addition to brands marketed in the

United States, PepsiCo International brands include Mirinda, Seven-Up and many local

brands. PepsiCo began its international snack food operations in 1966. Today, products

are available in nearly 200 countries. Often PepsiCo snack food products are known by

local names. These names include Gamesa and Sabritas in Mexico, Walkers in the United

Kingdom, Smiths in Australia, Matutano in Spain, Elma Chips in Brazil, and others. The

company markets Frito-Lay brands on a global level, and introduces unique products for

local tastes.

Pepsi in India

After Coco-cola was asked to leave India, Pepsi began to lay plans to enter this huge

market. Pepsi worked with an Indian business group to seek government approved for its

entry over the objections of both domestic soft drinks companies and anti-multinational

legislators. Pepsi saw the solution to lie in making an offer that the Indian Government

would find hard to refuse. Pepsi offered to help India export some of its agricultural

products in volume that would more than cover the cost of importing soft- drink


BEVERAGES PVT LTD.


concentrate. Pepsi also promised to focus considerable selling efforts on rural areas to

help in their economic development. Pepsi further offered to transfer food processing,

packaging and water - treatment technology to India.

Pepsi Foods Limited (India) Started its operations in 1989 and has three business division

namely Beverages, Exports and foods. It has set up a fully integrated operation in India -

Manufacturing, R&D, Marketing, Distribution, and franchising - covering vegetable

processing exports, snack foods, beverage & restaurants. In the beverage line it has set up

a holding company to further accelerate growth in future through new initiatives, joint

ventures and acquisitions. Pepsi has also taken the capital intensive route to owning and

running its own bottling factories alongside of its franchises.

Pepsi entered India and became a major company. Today Pepsi in India is a Major Player

in soft drinks industry and it is known for its marketing efforts.

PROFILE

COCA COLA

Overview:

The Coca-

operating revenues in 2004. The Coca- -five soft-

drink brands Coca-Cola, diet Coke, Sprite and Fanta. Our beverage offerings encompass nearly

400 brands, including coffees and teas, juices and juice drinks, sports drinks and waters, as well as

carbonated soft drinks.

With operations in more than 200 countries, we have a diverse workforce of approximately

50,000 individuals. Together with our subsidiaries and bottling partners, we strive to be an

integral and contributing member of each of the communities where we operate.

Competition faced by Pepsi:

When speaking about the corporate sector, the main competition is from the coca cola. It is not

only in India but throughout the world both the companies are to increase their market share.


BEVERAGES PVT LTD.


From the recent survey conducted by the advertising and marketing journal, it is stated that coco

cola is performing better than Pepsi.

The major competitor is Coca-Cola along with local/unorganized sector.

Figure No: 2.4: Pepsi and Coca-Cola as rivals in this image

Pepsi and Coca cola are the major companies in the soft drink industry throughout the world. The

total worth is Rs.4200 crore rupees of BSD industry is perfect duopoly with the two usual global

giants.


BEVERAGES PVT LTD.


NECTAR BEVERAGES PVT LTD DHARWAD

Figure No 2.5: Nectar Beverages in Dharwad

A .Background and Inception of the company:

Necessity is the mother of invention. Late ShriModhubabTimblo, Prominent industrialist

and business entrepreneur of Goa, found that the soft drinks in northern part of Karnataka

are being supplied from outside the State. Hence he found the need of producing soft

drinks for people of Karnataka from the land of Karnataka and from the water of

Karnataka itself. Accordingly the dream of modern manufacturing plant came into reality

in 1984 and Nectar Beverages Pvt. Ltd., a beverages plant was commissioned on the out

skirts of Dharwad, on the N.H. NO.4.

Nectar Beverages, belongs to big house of Goa, under the banner of Formento Group. The

group deals in Hotel, Soft drinks, and 100% E.O.Us of Mining in Goa, Karnataka and

Andhra. All the employees work as partners in progress and growth of the company.

Nectar Beverages is headed by Mr. PrashantTimblo, the ideal son of the illustrious father

late Mr.Modhubab.Nectar Beverages has carved a special niche in the map of soft drinks

in the country, thus enjoys the highest reputation in the soft drinks market for quality

products of international brand such as Pepsi, 7 Up, Mirinda (Orange), Mirinda (Lemon),

Everest Soda, and Slice etc. Utmost care is being taken from the beginning of collection

of the raw water till it turns into a sophisticated flavor drink.


BEVERAGES PVT LTD.


Figure No 2.6: Marketing department of Pepsi Company at Dharwad

Mahakoshal is a Sales and Marketing department of Pepsi Company, at Dharwad Bottling

unit. It was started in the year 1996. Mahakoshal is located in 10 acres of land. The

department consists of 25 employees covering 13 districts and 70 stockists. The districts

namely Chittradurga, Shimoga, Hassan, Haveri, Davengere, Hospet, Gadag are the target

markets of N.B.P.L.

The other departments like Production and Administration line consists of 50 permanent

workers, 100 seasonal workers and 30 Staff Executives. The organization provides

festival offers to the employees. Every year the organization provides two sets of

uniforms including shoes and caps to the workers. The organization financially takes care

of its employees by providing them various loans like Housing loan, festival loan etc. The

wages are being paid to the workers on Monthly basis irrespective of them being

permanent or seasonal. The annual turnover of Mahakoshal is 12 - 15 crores.

The organization has fully fledged transport facility assisted with 100 small and big

vehicles employed on contract basis. There are two Distributors each in Hubli who takes

care of distributing the products to respective retailers with the help of Customer

Executives.


BEVERAGES PVT LTD.


Nature of the business carried:

Nectar Beverages Private Limited (NBPL) is bottling process of PEPSICOproducts.

Refilling the collected empty bottles from 13 districts of north Karnataka and also the pets

(the plastic bottles) are prepared in the plant itself and beverage is filled in different

quantities like-600ml, 1liter & 2liter.

The plant is operating with two types of business viz.

1. Two way business (Re-cycle)

2. One way business (pets and tetra pack)

NBPL is the target based company i.e. AOP (Annual operation planning) in

Mumbai or Delhi in the month of November or December Minimum 40 lk cases of all all

types of soft drinks on priority bases will be assigned to each plant.

Chart No 1 Showing the Period of business

1 Jan

2 Feb 20% (Mini season)

3 Mar

4 April

5 May 60% (Peak season)

6 Jun

7 July

8 Aug 5% (Weak season)

9 Sept

10 Oct

11 Nov 15 %( Transit season)

12 Dec


BEVERAGES PVT LTD.


Vision, Mission & Quality Policy:

Vision:

1 - Create commonality of interests.

2 - Reduce daily monotony.

3 - Provides opportunities & challenges

Mission:

Company is Committed to produce and deliver top quality product to our consumer.

Every incoming raw material is checked for quality by the Quality Assurance

Department.

They use only high-grade sugar.

Apart from this, on line and final product checks are carried out at regular

intervals.

They purchase raw materials only from approved sources, approved by

independent laboratories of international repute.

The entire ranges of equipments are made out of superior grade Stainless steel

Material.

Special attention is given to,

Personnel Hygiene and Sanitation

House keeping

Good manufacturing process

Special attention is also given to keep the Factory Surroundings Clean and Green

by growing Lawn.

Quality Policy:


BEVERAGES PVT LTD.


Nectar Beverages soft drinks meet the local Indian standards (Health Ministry Standards

for carbonated beverages notified July 15, 2004) which compare to the best in- class and

most stringent international standards being followed anywhere in the world.

The products comply with the Prevention of Food Adulteration Act (PFA) directive on

the use of water in the preparation of soft drinks. The company also complies with Bureau

of Indian Standards (BIS) for packaged drinking water. It uses a six-stage water

purification process to deliver this standard consistently.

Nectar Beverages has a long-standing commitment to protecting the consumers whose

trust and confidence in its products is the bedrock of its success. In order to ensure that

consumers stay informed about the global quality of all Nectar Beverages products sold in

India, Nectar Beverag

beverages.


BEVERAGES PVT LTD.


PRODUCTS PROFILE:

Main Brands of the company:

Pepsi

Glass bottle 200ml

Glass bottle 300ml

Tin 250ml

PET bottle 600ml

PET Bottle 2 litres

MIRINDA LEMON

Glass bottle 200ml

Glass bottle 300ml

Tin 250ml

PET bottle 600ml

PET Bottle 2 litres


BEVERAGES PVT LTD.


MOUNTAIN DEW

Glass bottle 200ml

Glass bottle 300ml

Tin 250ml

PET bottle 600ml

PET Bottle 2 litres

SLice

Glass bottle 200ml

Glass bottle 250ml

PET bottle 500ml

PET Bottle 1.2litres


BEVERAGES PVT LTD.


7UP

Glass bottle 200ml

Glass bottle 300ml

TIN 250ml

PET bottle 600ml

PET Bottle 2litres

MIRINDA

Glass bottle 200ml

Glass bottle 300ml

TIN 250ml

PET bottle 600ml

PET Bottle 2litres

AQUAFINA

PET bottle 500 ml

PET bottle 1 Litres

PET Bottle 2Litres


BEVERAGES PVT LTD.


VARIOUS PRODUCTS OF NBPL:

1. Pepsi: It is a carbonated drink with the ingredients such as phosphoric acid, fructose

corn syrup, carbohydrates, caffeine, sugar and color.

2. Mirinda (Orange): It is a fruit drink with the ingredients like sugar, orange flavor and

color. It is orange flavored and is mostly preferred in the summer season. The

promotion of this product is done by highlighting the orange fruit.

3. Mirinda (Lemon): It is a fruit drink with the ingredients like sugar, lemon flavor,

citric acid, sodium bicarbonate.

4. Slice: It is a noncarbonated fruit drink with the ingredients like mango pulps, coloring

agents, sugar etc and it is the well known brand among the Pepsi products with the

unique taste and has been most successful in attracting the customers.

5. Lehar Soda: It is a carbonated drink with the ingredients such as phosphoric acid,

caffeine, phosphoric acid etc and this is the soda product and is most preferred in bars.

6. 7-Up: It is a carbonated drink with the ingredients such as carbonic acid, citric acid,

sugar etc.

7. Mountain Dew: It is carbonated drink this is basically promoted for the youngsters.

8. Aquafina: They will buy from outside for sale.

9. Nimbooz by 7up:It is a noncarbonated fruit drink with the ingredients like lemon sugar

etc and it is the well known brand among the Pepsi products with the unique taste and

has been most successful in attracting the customers. The pets brought from main

production plant.

AREAS OF OPERATION:North Karnataka bottling, distribution & marketing is done

by Mahakoshal NBPL. NBPL has its registered office in Dharwad and they are operating

in most part of the North Karnataka Districts. They are supplying these products to 13

districts which are listed below.


BEVERAGES PVT LTD.


THE NBPL IS OPERATING REGIONALLY IN 13 DISTRICT VIZ

1. Dharwad

2. Gadag

3. Haveri

4. Davanagere

5. Belgaum

6. Bagalkot

7. Hassan

8. Shimoga

9. Chikkamagalur

10. Bijapur

11. Bellary

12. Chitradurga

13. Karwar

Ownership Pattern:

Company is registered under companies Act of 1956 in the registrar office of

Karnataka, Bangalore. Company was incorporated on 28th May 1984. It is basically

private limited company. PEPSICO has out sourced bottling and marketing of its products

in North Karnataka to Nectar Beverages Private Limited TheJaipuria groups of Goa own

it.

Infrastructural Facilities:

Nectar Beverages Pvt. Ltd is located in outskirts of Dharwad, near to Agricultural

University. It is having 5.25 acres area, with good transportation facility. Company is

having suitable buildings for Production & Administration. Production building also has

Quality Control Department & Administration building has different Departments like

H.R, Finance, and Sales & Marketing.


BEVERAGES PVT LTD.


And also which provides sufficient and good facilities for the employers such as big

manufacturing plant and other facilities such as,

Loading and unloading with well equipped or with help of lift trucks.

Rest room for workers.

Canteen facility

Free medical facility and visiting doctor.

Good building

Online requisition or Online orders are accepted.

Water purifying plant and that water is used for garden.

Self power generation as well as from KPTCL.

Sufficient stock facility

System

System refers to the formal process and procedure used to manage the

organization, including the management control systems, performance management

measurement and record systems, performance measurement and reward systems,

planning, budgeting resource allocation systems information system and distribution

systems.

a) Sales forecasting system:

In Nectar Beverages, there are 3-territory developments managers given different

areas,

b) Order receiving system:

In order receiving system the customer executives will take a major part they will

go to each distributor in various areas and take the order form the distributor. The

collected orders will be shown to the area sales manager and area sales manager will give

indent to the marketing manager of Dharwad, the area sales manager will take care the

crates which will be sent back to the plant for refilling.


BEVERAGES PVT LTD.


Chart No: 2.1:

c) Order execution system:

When territory development manager receives order for different territory it will

send to the production department. The stock that is there in production department will

be loaded to the truck and order is executed to the distributor of different areas.

d) Logistic system:

There is not so big logistic system in Nectar Beverages. The stock will be just

interchanged between the near district places. The indent given by the distributor will be

delivered within 2-3 days of indent received.


BEVERAGES PVT LTD.


Chart No.2.2:ChartShowing Production Work Flow Model

Raw materials

Syrup Preparation

Sweetening agent

Co2 &

carbonation

Bottle washing

Concentrates

Filling bottles

Effluent treatment

plant Bottle line Quality Assurance

Store


BEVERAGES PVT LTD.


1. WATER AND WATER TREATMENT

Pure water is tasteless, colourless and odourless. Water as it occurs in nature,

whatever the source, always contains impurities in solution or in suspension. The

determination of these impurities makes water analysis necessary and the control of

these impurities makes water conditioning essential.

The various sources of water can be classified as Rainwater, surface water, ground

water. Irrespective of the source of water, the water has to be tested and treated before

raking into the production.

Testing and Treatment procedure adopted at M/s. Nectar BeveragesPvt.Ltd.,

Dharwad. The source of water at Nectar Beverages Pvt.Ltd. is ground water. The

water is tested on various parameters like, Hardness, Alkalinity,Suspended Impurities

and Microorganisms.

Treatment Procedure:

There are two types of water treatment adopted at Nectar Beverages Pvt.Ltd.

1) Chemical Batch Treatment: This water is used for beverage purpose.

2) Ion Exchange: This water is used for Boiler Feed water, Cooling tower, D.G.Sets,

Condenser, Heat Exchanger & Bottle washer.

Chemical Batch treatment process:

Here, the raw water is collected in storage tanks and dosages for chemical treatment given

according to the characteristics of the raw water. The source of raw water is bore well. At

preset; we are holding three water treatment storage tanks, out of which two tanks are of

3, 00000 liters. Capacity and one is 4, 00000 liters capacity.

Raw water is collected from the bore wells in the storage treatment tanks and analyzed the

characteristics of raw water viz. P-alkalinity, M-alkalinity, temporary hardness and

calcium hardness, afterwards chemical dosages are fixed. After addition of chemicals,

mechanical agitator stirs the water, and 3 hours contact period is given before taking the

water for production.


BEVERAGES PVT LTD.


Treated water passed through sand filter to remove and floc carry over, then an activated

carbon filter, which removes chlorine, and off tasted/odor causing impurities.

Finally it goes through 5 Micron pore size polishing filters to remove and carbon that may

have been carried out over from the carbon purifier, and then through ultraviolet. Chlorine

concentration is maintained at 6 to 8 PPM level before carbon filter and 2 hours contact

time prior to de-chlorination.

Details of Chemicals used:

1. Lime: Added to remove alkaline compounds from water to an acceptable level and

to reduce temporary hardness.

2. Bleaching powder: Added for chlorination to oxidize microorganism.

3. Ferrous sulphate: Added for coagulation and flocculation i.e., to remove the

suspended solids and also insoluble materials created by chlorination and

alkalinity reduction is removed. The sludge is drained and the treatment tanks

cleaned with water after every treatment and then fresh raw water is taken for

fresh treatment.

2. SWEETENING AGENT AND SYRUP PREPERATION:

Sweetening agents are that subsistence, which when blended with flavor, acid, etc., will

provide satisfactory sweet taste in the finished beverage. They also furnish body, which

helps to carry or transits the flavor. They also give energy or food value to the beverage.

Sugar is the sweetening agent, which is used in our industry. Sugar is color less or white

when pure and derived from sugar cane.

Syrup Preparation:

The preparation of the syrup is certainly one of the most important operations in the

beverage plant, both from the standpoint of sanitation and control of concentration. The

object in syrup making is to prepare satisfactorily bended and finished syrup from which

uniforms beverages of high quality can be produced.


BEVERAGES PVT LTD.


Normally required quantity of sugar of high quality is added to treated water and heated

to 850C, in a high grade stainless steel double jock vessel.

Filter paper and Hyflosupercel are used as filter aid. The temperature of the clear syrup

thus obtained

syrup is completely prepared by the addition and blending of all flavoring ingredients it is

process.

3. CO2 AND CARBONATION

The phenomenal of acceptance of carbonated beverage as a form of refreshment is done

in part to a unique taste, Zest, and sparkle imparted to the beverage by Carbon Di-Oxide.

It also adds to the life of the beverage. The CO2 used for Beverage purpose are 99.9%

pure, free from moisture, air, oil, grease and other impurities.

The amount of CO2 dissolved in solution is called as volumes. The number of volumes of

gas in the finished beverages has a definite relationship to the taste of the beverage.

Correct carbonation means a sparkling, stimulating, thirst quenching beverage that

completely refreshes and satisfies the consumer. Since there is definite relationship

between taste and carbonation, it is extremely important to determine and maintain the

carbonation, which has proved most acceptable through experience in consumer section.

The technique adopted at M/s. N.B.P.L. For carbonating the beverage is as under:

The ready syrup, which is prepared and stored in ready syrup tanks, is taken to the

automatically diluted with treated water to the required level. Once it is diluted it is sent

to the carbonator for carbonation. For carbonating the beverage a mechanical device

top of the body of the carbonator.


BEVERAGES PVT LTD.


The dome as well as the body of the carbonator is filled with gas. Syrup is sprayed into

the carbonators from the top, which flows down through the baffle plates provided inside

the carbonator.

4. CONCENTRATES

Flavoring Materials used in making carbonated beverages are primarily are alcoholic

extracts, emulsions, alcoholic solutions or fruit juices. Concentrates or nonalcoholic

beverage bases are supplied by our principal company from Channo (Punjab) having

international standards. On addition of Concentrate to the simple syrup we get respective

finished syrup ready for further process to bottle beverages.

Figure No 2.7: Concentrating Filling

5. BOTTLE WASHING AND BOTTLE INSPECTON

One of the most important aspects of the bottling operation is the cleaning of the reusable

bottle when it returns to the bottling plant. In order to be reused the bottle must be sterile,

of acceptable appearance, rinsed free of any detergent or sterilizing agent, and of good

mechanical strength.


BEVERAGES PVT LTD.


The object of bottle washing is to product both a clean bottle and sterile one. The fact that

the bottle looks clean does not indicate it is sterile, and on the other hand, a dirty looking

bottle may be a sterile one. The present day bottle washer is designed to both clean and

sterilize bottle before sending them to the filling line.

Bottle Washing Compounds:

Members of the alkali family of chemicals make up the basis of most bottle washing

compounds. Caustic soda is the principle ingredient because it has by far the germicidal

properties.

They also add certain chemicals to caustic solution to improve the detergent action of the

solution. Three factors are crucial in the germicidal efficiency of the washer. These are:

contact time, caustic strength and temperature.

Operations of the Bottle Washer:

1. The first step in the operation precedes the washer. When the cases of empties return to

the bottling plant, they must be sorted and culled to remove especially dirty bottles, or

ones contaminated with paint, tar, etc., or chipped or broken bottles. This operation is

often done by hand.

2. The inspected bottles are feed into the bottle washing machine, automatically. The

bottles are turned upside down to drain any contents and given a pre rinse spray wash

both internally and externally with plain water with certain pressure. This operation is

called pre rinse operation. Then the bottles are moved to pre wash compartment, where

the bottles are spray washed both internally and externally with 1 to 1.5% caustic

solutions at 450C to 550C temperature.

3. Bottles are then, moved into a tank in the bottle washing machine, where the bottles are

soaked with caustic solution of 3 to 3.5% at 750C temperature. To get these best


BEVERAGES PVT LTD.


results that bottles are to be soaked in this compartment for a minimum of 7 minutes at

the caustic strength & temperature given as above. This operation cleans and sterilizes

the bottle.

bottles are given spray wash both internally and externally with 1 to 1.5% caustic wash

at 50 to 550C.

5. Bottles are moved to a compartment called pre-final compartment where again the

bottles are given spray wash with soft water to remove the caustic traces. Here the

temperature is maintained around 40 to 450C.

Finally bottles free from caustic moved to a compartment called final rinse compartment

where the bottles are again, water sprayed both inside and outside with soft water to

deliver clean and sanitary bottles to the conveyor enrooted to filler at ambient

temperature. Before the bottles moved through the conveyor, the bottles are subjected to

methylene blue test to ensure the bottles are free from mold and as also tests are carried

out to determine whether the bottles are free from caustic traces. These tests are done at

random, finally the inspection is been done.

Bottle Inspection:

The clean bottles undergo inspection after they leave the washer and before they

arrive at the filler. Inspection can be done visually by an individual. It is a job

requiring a great deal of concentration and no individual can be efficient for long

stretches at time. Provision should be made for changing inspectors frequently, and

adequate bring diffused light should be provided which illuminates all parts of

thebottle effectively, but does hot glare in the operators eyes.

A receptacle should be provided, convenient to the inspector for non-usable bottles,

and cases should be handy to accumulate unclean bottlers for rewashing. Those


BEVERAGES PVT LTD.


bottles found acceptable to the empty bottle inspector are sent for filling and

crowning.

6. FILLING AND BOTTLING LINE

Figure No 2.8: Filling and bottling line

The bottles, on a suitable conveyor line arrive at the rotary filler, which is equipped with

filing heads. The beverages filling unit includes a filling tank, whichreceives beverage

from the carbonator. The tank is also connected to the gas chamber of the carbonator.

This connection insures balanced pressure and a proper beverage level in the tank.


BEVERAGES PVT LTD.


When the proper level of beverage in the bottle is reached, the supply is cut off and the

top gas pressure in the bottle is shifted to the atmosphere. Once the top pressure has been

released, the bottle is removed from the valve and passes to the crowner. The crowning

unit consists of the hopper for holding the crown supply, a crown chute and the crowning

mechanism. The crowned bottle then moves from the crowner on to the out feed

conveyor.

Final Inspection Point:

Then the sealed bottles are moved on a conveyor line and it is subjected to a final

inspection, where the inspector checks for UN crowned bottles over/under filled bottles,

foreign matter (if any), and for any other visual defects. Once the inspector satisfies with

the quality of product and package, he allows moving the bottles, further to the collecting

table, where the bottles are manually collected and put in the crates of 24 bottles and

moved further for warehousing, and awaiting shipment.

7. PLANT SANITATION

The most scrupulous sanitation practices are essential in soft drink plant. The highest

standard of cleanliness for premises, personnel and equipment is obviously necessary due

to the type of operation involved that of manufacturing a food product. Sanitation is

necessary to insure the keeping qualities, proper appearance and full flavor of any soft

drink. When the equipment becomes contaminated, yeast, bacteria or mold

microorganisms begin to appear in the finished beverage. Increased number of these

microorganisms will cause the development of undesirable tastes and odors and ultimate

spoilage of the product. Nothing will kill the demand for a beverage any quicker than off-

tastes and odors or product spoilage. Hence sanitation, good plant housekeeping and good

manufacturing practice are strictly implemented at N.B.P.L.


BEVERAGES PVT LTD.


8. QUALITY ASSSURANCE:

Figure No. 2.9: Quality Assurance Department Lab

Perhaps the most important activities in a bottling plant are those concerned with the

maintenance of the standards of purity and uniformity set for the beverages produced.

These activities can be grouped together under the heading of Quality Assurance.

To get the top most quality of finished product, all the ingredients such as water, sugar,

Co2, concentrate are strictly inspected and analyzed by our Quality Assurance

Department. Apart from raw materials, on line sampling, finished products are also tested.

Samples of beverages produced are picked up from the market for testing by independent

laboratories of international repute.


BEVERAGES PVT LTD.


9. EFFLUENT TREATMENT PLANT

The effluent water charged by N.B.P.L is properly treated and neutralized to maintain a

value of C.O.D., B.O.D., pH and T.D.S in water as per the guidelines prescribed by the

Water Pollution Board of Karnataka. For this N.B.P.L has full fledged effluent treatment

plant.

PRODUCTION DEPARTMENT

Chart No. 2.3:Showing Hierarchy of the Production Department

EXECUTIVE

PRODUCTION

EXECUTIVE QUALITY

CONTROL

CHEMIST

GM

(PLANT)

SHOPPING

EXECUTIVE

STORE EXECUTIVE MANAGER

PRODUCTION

QUALITY

CONTROL


BEVERAGES PVT LTD.


Future growth and prospects

the market share. Since its inception it has grown

too many folds, which is the result of the hard working and dedicated employees and

and confidence in our products. This attributes to the fact that the unit has registered more

the 45% growth consistently.

In order to meet the increasing demand for soft drinks in Karnataka enhanced production

capacity has been installed. To overcome the chronic problem of electricity failure the

company has installed a generator with enhanced power capacity of 320 KVA.


BEVERAGES PVT LTD.


Mckinse

The McKinsey 7S model can be applied to elements of a team or a project as well. The

alignment issues apply, regardless of how you decide to define the scope of the areas you

study. Let's look at each of the elements specifically.

Figure No: 2.10:McKinsey

1. STRUCTURE

Organization structure gives concrete shape to the organization. The structure

specifies division of work activities and shows how different function or activities are

shows its reporting relationships. It provides the stability and continuity that allow the

organization to survive the comings and goings of individuals and to coordinate its

dealings with the environment.


BEVERAGES PVT LTD.


An organization structure can be viewed as accomplishing four different distinct

functions:

Dividing work into manageable segments,

Recombining work in a logical and efficient manner(work teams, departments,

etc)

Distributing power (authoritative)to direct or coordinate work.

Establishing channels of commutation and the directive or non directive nature of

information flow. In present case nectar beverage has a typical organization

structure as shown below:


BEVERAGES PVT LTD.


Chart No. 2.4: Organizational Chart

Director operation

Plant

Manager

Deputy general

manager(account

and finance

Manager (HRD) Unit

manager(sales

and marketing)

HOS (Head of

sales)

TDM,MDM

MEM(territory

development

manager

ADC(area

development

counsellor)

Customer

executive

Trainee

Deputy

Manager

Senior

executive (HR

admin)

Assistant

manager

Security officer

cum vigilance

officer

Security Time office

Clerk

Executive (HR

admin)

Manager accounts

Assistant manager

(excise tax)

Executive

accounts

Account

Assistants

Deputy

Manager

productions

Production

supervisor

Production

executives

Workers

Supervisor

Executive

(shipping)

Manager

(Shipping &

logistics)

Maintainance

manager

Engineer

Executive

(Maintenance)

Worker

Chief Manager

(quality control)

Assistant manager

(QC)

Deputy

manager(QC)

Executives Staff, billing

clerks Staff chemistry

SCE (senior

customer

executives

Assistant

manager (acc

&finance


BEVERAGES PVT LTD.


2. SKILLS

Human skill plays significant role for the progress and proper functioning of the

organization. Training is one of the essential act of increasing the knowledge and skill

of an employee for doing a particular job. So training is imparted to employees to and

utilizing a systematic and organized procedure by which employees learn technical

knowledge and skills for a definite purpose.

behavior and aptitude towards the requirements of the job and the organization. So,

trained employees would be a valuable asset to an organization. As organizational

efficiency, productivity, progress and development to a greater extent depend on

training.

Organizational objectives like viability, stability and growth can also be achieved

through training. It is important as it constitutes a significant part of management

control.

Training enhances 4Cs viz

Competence

Commitment

Creativity

Contribution for the organization

Nectar beverage prefers and impart on the job training to training to their employees.

So here are the steps taken to impart necessary skills on the job training. The training

programmers commonly used to train operative and supervisory personnel discussed

are discussed below

ON JOB TRAINING METHODS:

This type of training also known as job instruction training is the most commonly

used method. Under this method, the individuals is placed on a regular job and taught

the skill necessary to perform that job. The trainee learns how to perform a job, he is

also a regular worker rendering the service for which he is paid.


BEVERAGES PVT LTD.


The problem of transfer of trine is also minimized as the person learns on-the-job. The

emphasis is placed on rendering services in the most effective manner rather than learning

how to perform the job.

So on job training methods include:

Coaching

Job instruction/training through step by step

3. STYLE:

Top down

At Nectar beverage, the style that is followed in the working of the organization is top

down. All the rules and regulation orders and decision are given by the top

management people namely board of directors, or the precedent which flows down to

the other members of the organization.

Line relationship:

The relationship existing between two managers due to delegation of authority and

responsibility and giving or receiving instructions or orders is called line relationship.

The line relationship generally exists between a superior & a subordinate. Line refers

to those positions of an organization which have responsibility, authority & are

accountable for accomplishment of primary objectives.

Managers identified as line are not subject to command by staff position. In case of

disagreement between line & staff, the line manager has the right to make final

operating decisions. Line authority represents uninterrupted series of authority &

responsibility delegating down the management hierarchy.

o the managing directors who inturn

delegates a part of his authority to the General Manager. The general manager in turn

delegates a part of his authority to different departmental heads & through them to the

supervisors. However the line managers are completely responsible & accountable for

the results achieved by the employees of the respective departments & sections.


BEVERAGES PVT LTD.


4. STRATEGY:

the direction and scope of the

company. It also includes the integrated vision and direction of the company, its

purpose, mission, objectives and goals and policies.

Price strategies

The price of all Pepsi products is fixed by its parent company, Pepsi India ltd. If any

changes in the price setting are required then NBPL can send a resolution to the parent

company. Sometime price can be fixed depending upon the competitor activity.

Basically Prices are fixed taking factors such as

Bottle charges

Tax rate

Transit cost to distributors.

AOP Strategy

Annual Operation planning is carried out every year where all the managers of various

franchisees meet at one place to decide on various aspects like pricing, Marketing

Promotions, Additional Coolers, and about the targets for the next year.

Promotional activities of NBPL

The company generally sells product directly to retail stores and outlets by their

employees. Over the past few years, product creation has slowed down. The company

has stopped concentrating so much on creating so many new products, and has turned

their concentration to attaining new franchises and advertising. The acquisition of

contacts with smaller franchises is important in order to continue growing revenue.

The advertising concentration has become necessary as a defensive maneuver to deal

with competitors.


BEVERAGES PVT LTD.


Brand recognition is the significant factor

brand mane is known well throughout 90% of the world today. The primary concern over

the past few years has been to get this name brand to be even better known.

Packaging changes have also affected sales and industry positioning, but in general, the

public has tended not to be affected by anew products. The primary competitor of the

Pepsi Company is Coco-Cola Company. Pepsi and Coca-Cola make up anywhere from

75% to90% of the market where they operate.

Advertising Sources

Different Media used for advertisement are

1. Press advertisement.

2. Television by parent company.

3. Glow Signs.

4. Sign Boards.

5. Wall paintings.

6. Dealer Boards.

7. Sponsoring of Tournaments.

8. Banners.

9. News papers and posters.


BEVERAGES PVT LTD.


Promotional Strategy

NBPL to increase its sales has come out with various promotional schemes some of

them are:

Bar men Scheme: Under this scheme waiter in the bar have to collect 500 Pepsi

crowns for which a surprise gift is awarded to them. And if they collect 250

crowns a Pepsi T-Shirts is given to them.

Under the Crown Scheme: This is the Promotional scheme for the retailers where

they have to check out the numbers under the crown and the said numbers is

converted in to cash and is paid to them.

Eatery Scheme: It is a special scheme for all eating points such as bakeries, hotels,

convenience points, where the waiters have to promote and influence the

representatives by visiting these points as a customers and verifying the progress.

Road Shows: Various road shows are carried out the company representatives as

promotional activities.

National Scheme or Space Club Scheme: It is a special scheme for the retailers

where they have to display the Pepsi products in their outlet and attract more

customers. The scheme is audited by hired agencies and is awarded based on the

findings.

Benefit Scheme: It is a scheme where the retailer is given 1 or 2 cases for free for

purchase of more than 10 cases.

Cash Discount: If a retailer purchases in a bulk quantity then a cash discount of

100 or 200 is given to them.

Quantity Purchase Scheme: Under this scheme if retailers purchase 100-200 Or

300 cases then items such as Bike, T.V, or a Fridge is awarded to them.


BEVERAGES PVT LTD.


5. SYSTEM:

The system of McKinsey 7S framework includes all process and information flows

that links the organization together.

The company has 100% management information system. it helps the company very

much in their day to day business administration. It also help to conduct , review and

sales position periodically and to plain for better management of the organization.

6. STAFF:

The staff of McKinsey 7S framework includes the human resource management, rewards

and recognition.


BEVERAGES PVT LTD.


DEPARTMENTS AT NBPL, DHARWD

From the organization structure shown above we can observe that the Department is done

on the basis of standard functions of the management.

1) HR DEPARTMENT

2) MARKETING AND SALES DEPARTMENT

3) PRODUCTION DEPARTMENT

4) FINANCE DEPARTMENT

1. HUMAN RESOURCE DEPARTMENT:

Human Resource Management (HRM) is the function within an organization that focuses

on recruitment of, management of, and providing direction for the people who work in the

organization. Human Resource Management can also be performed by line managers.

Duties and Responsibilities of HR Manager in Nectar Beverages are

To implement provisions such as standing orders of the company factories act etc

to meet the statutory requirement.

To delegate the responsibility to workers, assessing the need of imparting training

to workers.

To ensure safe working conditions for the employee


BEVERAGES PVT LTD.


B) RECRUITMENT PROCESS IN NECTAR BEVERAGES:

The recruitment policy adopted by the organization has influence on its employees

and on the efficiency of the company. So the recruitment policy adopted by the

company should aim at right kind of potential candidates to ensure right kind

candidate have been stimulated for the job.

The recruitment policy adopted by the Nectar Beverages Pvt Ltd is as follows:

The recruitment policy in the company begins with receiving the information

about the vacancy from the concerned department.

The plant manager and the HR Manager and other departmental heads discuss the

necessity of the job and take the decisions accordingly.

The HR Manager develops the job description and job specification

The next step is giving the advertisement for the requirement of the candidates for

required job.

SELECTION PROCEDURE IN NBPL:

A nectar beverage has the simple selection procedure, as it is the franchisee unit. The

company follows the following procedure for selection.

1) Application banks

2) Preliminary interview

3) Tests

4) Final interview


BEVERAGES PVT LTD.


The total manpower strength of the company is distributed across major categories as

under:

BOARD OF DIRECTORS OF NECTAR BEVERAGES

1. Mr. S. K. Jaipuria

2. Mr. R. K. Jaipuria

3. Mr. Gandhi

4. Mr. P. U. Devasai

HEAD OF DEPARTMENT OF NECTAR BEVERAGES

1. Human Resource Department: Mr. R. A. Baakale

2. Sales and Marketing Department:

3. Finance Department: Mr. K. Chetan

4. Production Department: Mr. M. A. Pritviraj

TOTAL EMPLOYMENT OF NBPL:

CEO 01

H.O.D 27

Executives 34

Staff 51

Trainee 21

Workers 114

Append Trainee 1

Permanent 116


BEVERAGES PVT LTD.


Chart No. 2.5:Hierarchy

SALES AND MARKETING DEPARTMENT

Marketing is a viewpoint, which looks at the business process as a highly integrated effort to

discover, create, arouse and satisfy consumer needs.

ROLES AND RESPONSIBILITIES OF SALES DEPARTMENT:

a. Sales Department is having the rounding system to every retail outlets in the local

markets once in a week. In case the retailers are finished with stocks they contact

through phones then the stocks are sent to them.

b. After collecting the order from the retailers the sale department orders the

production department to prepare the required stock to be sent on the mentioned

date.

c. Details of the payment procedures, transportation procedure, delivery dates, etc

are also handled by the sales departments.

d. Sales team settles down the deal with the retailers and takes the invoice agreement

and then documentation process is carried.

e. The sales dept. sends the invoice copy to the shipping department which carries

the work of transforming the mentioned goods to the vehicle from the stock room,

and inform back to the sales department with the acknowledgement.

mba 13010025

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