summer training report on finance

SUMMER TRAINING REPORT ON

ROLE OF FINANACE IN DEPO

FOR

PEPSICO INDIA HOLDING PVT LTD.

BY

ASHUTOSH TRIVEDI

B-13

In partial fulfilment for the award of the degree

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

2009-11

NEW DELHI INSTITUTION OF MANAGEMENT

F-13, OKHLA PHASE – 1, NEW DELHI, PIN: 110020


ROLE OF FINANCE IN DIPO

FOR

PEPSICO INDIA HOLDINGS PVT LTD.

KANPUR

UNDER THE SUPERVISION

OF

MR. NEEERAJ MEHROTRA

Submitted By - Submitted to -

Ashutosh Trivedi NEERAJ MEHROTRA

Role Number B-13

DECLARATION NEW DELHI INSTITUTION OF MANAGEMENT

I , ASHUTOSH TRIVEDI, STUDENT OF NEW DELHI INSTITUTION OF MANAGEMENT BATCH(2009-11) DECLARE THAT EVERY PART OF THE PROJECT REPORT “ROLE OF FINANCE IN DIPO” THAT I HAVE SUBMITTED IS ORIGINAL.

I WAS IN REGULAR CONTACT WITH THE NOMINATED GUIDE AND CONTACTED 08 TIMES FOR DISCUSSING THE PROJECT.

DATE OF THE PROJECT SUBMISSION:

(ASHUTOSH TRIVEDI)

FUCULTY COMMENT :

ACKNOWLEDGEMENT


Its gives me great pleasure in acknowledging the invaluable assistance extended to me by various person in the successful completion of the project.

I express my sense of independence gratitude to the T.D.M. Mr. Prakhar kasak, A.D.C. Mr. Vivek johari and assistant manager (commercial) Mr. Neeraj Mahrotra and other accounting force in PepsiCo company, who

guided and encourage me from time to time for the successful completion of this project report.

I express our thanks to Aradhana beverages Ltd for granting me the permission to work with the esteem organization. I am also thankful to MR. Neeraj mehrotra(CAC), Aradhana beverages Ltd, Kanpur who guided and helped us in all possible ways they could, at every stage of the project.

My humble thanks to my internal mentor miss. Monika for guiding me during the two months training as my training mentor.

I would also like to thank all the Executives & staff of Kanpur area who provided us all the relevant information and their kind support, on the basis of which this report has been prepared.

(ASHUTOSDH TRIVEDI)

TABLE OF CONTENTS NEW DELHI INSTITUTION OF MANAGEMENT

EXECUTIVE SUMMARY INTRODUCTION COMPANY PROFILE HIERARCHY OF THE ORGANIGATION PRODUCTION PROCESS INVENTORY MANAGMENT RETAIL ACCOUNTING SAP VISION MISSION & CARRIAR OPPURTUNITY SWOT ANALYSIS MARKETING STRATEGIES MAJOR LEARNING RECOMMENDATION CONCLUSION BIBLIOGRAPHY


EXECUTIVE SUMMARY

Pepsi is a global company that was originally founded more than 100 years

ago and has ballooned into a global power in the food and beverage industry.

Pepsi merged with Frito-Lay in 1965. Tropicana was acquired in 1998 and

Pepsi merged with The Quaker Oats Company, including Gatorade, in 2001.

Pepsi offers product choices to meet a broad variety of needs and preference

from fun-for-you items to product choices that contribute to healthier

lifestyles.

This project examines the company as a whole and explores Pepsi’s mission

and goals, its diverse product portfolio, employment structure and hiring

procedures, and market share and profit dynamics. Also touched upon are

key factors to the company’s success as well as weaknesses in the global

economy. How technology is being used in the production and marketing

departments is also explored and defined. An information business model has

also been created modeled after Pepsi’s practices and explained how it works

for Pepsi as a whole. Pepsi strives to be the world's premier consumer

products company focusing on convenient foods and beverages. While doing

this Pepsi seeks to produce healthy financial rewards to investors as while

providing Opportunities for growth and enrichment for employees, business

partners and the communities in which it operates.


PepsiCo entered India in 1989 and in the span of a little more than a

decade, has grown to become the country’s largest selling food and beverage

companies. One of the largest multinational investors in the country, PepsiCo

has established a business, which aims to serve the long term dynamic needs

of consumers in India. The group has built an expansive beverage, snack food

and exports business and to support the operations are the group’s 37 bottling

plants in India, of which 16 are company owned and 21 are franchisee owned.

In addition to this, PepsiCo’s Frito Lay snack division has three state of the art

plants.

PepsiCo’s business is based on its sustainability vision of making

tomorrow better than today.

PepsiCo Cares: Providing consumers with balance and choice. PepsiCo

India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7

Up, Slice, Mirinda and Mountain Dew, in addition to low calorie options –

Diet Pepsi and 7Up.

Isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice

based drinks – Tropicana and Slice. Lehar Everess Soda, Aquafina drinking

water complete our diverse spectrum of brands.


PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato

chip market and was amongst the first companies to eliminate the use of trans

fats and ‘msg’ in its products

PepsiCo manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle

Chips and traditional namkeen snacks under the Kurkure and Lehar brands.

Quaker Oats, Lehar Lites, low fat and roasted snack options enhance the

choices available to the growing health and wellness needs of our consumers


Partnership with farmers through its major agri-initiatives in Punjab,

Maharashtra, UP and West Bengal .PepsiCo has laid down the groundwork

for the long-term economic and social prosperity for farmers in the country.

PepsiCo is pioneering contract-farming initiatives across the country and

expansive citrus nursery in Punjab has generated sourcing tie-ups with

farmers and introduced them to new technologies in citrus farming.

The initiatives have led to better price realization for thousands of farmers

across the country, improved the prices and enhanced the quality of their

crops, which include basmati rice, tomatoes, chili, potatoes, peanuts and corn.

PepsiCo India generates exports of more than Rs.2, 600 corers annually

making it one of the largest MNC exporters in India. Its export business

consists of three categories – agri business, commodities and Pepsi system

sales.


ABOUT PEPSICO

International

Pepsi Company is a large conglomerate with interests in manufacturing, marketing and selling a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and grain-based snacks, and other foods. PepsiCo is a world leader in convenient snacks, foods and beverages, with revenues of more than $39 billion and over 185,000 employees.

PepsiCo International (PI)

PI includes all PepsiCo businesses in the United Kingdom, Europe, Asia, Middle East and Africa.

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New York Stock Exchange in the United States. The company is also listed on the Chicago and Swiss 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 sustainability vision which states: “PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic -- creating a better tomorrow than today.”

Our vision is put into action through programs and a focus on environmental stewardship, activities to benefit society, and a commitment to build shareholder value by making PepsiCo a truly sustainable company.


PepsiCo Headquarters

PepsiCo World Headquarters is located in Purchase, New York, approximately 45 minutes from New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world- acclaimed sculpture collection in a garden setting.

Company leadership

PepsiCo's History Timeline

PepsiCo, Inc. is founded by Donald M. Kendall, President and Chief Executive Officer of Pepsi-Cola and Herman W. Lay, Chairman and Chief Executive Officer of Frito-Lay, through the merger of the two companies. NEW DELHI INSTITUTION OF MANAGEMENT

Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, N.C. pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W.Lay, also in 1932. Herman Lay is chairman of the Board of Directors of the new company; Donald M. Kendall is president and chief executive officer. The new company reports sales of $510 million and has 19,000 employees.

PepsiCo brands are available in nearly 200 countries and generate sales at the retail level of more than $98 billion. Some of PepsiCo's brand names are more than 100-years-old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998 and PepsiCo merged with The Quaker Oats Company, including Gatorade, in 2001 Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, NY, The Pepsi Cola Company began in 1898, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998 and Quaker Oats in 2001.PepsiCo’s mission is “To be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”

The company consists of

PepsiCo Americas Foods (PAF)

PAF includes Frito-Lay North America, Quaker Foods North America and all Latin America food and snack businesses, including Sabritas and Gamesa businesses in Mexico.


Frito-Lay and Pepsi Join

In February 1965, the Board of Directors for Frito-lay, Inc. and Pepsi-Cola announced a plan for the merger of the two companies. On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company was approved by shareholders of both companies, and a new company called PepsiCo, Inc. was formed. At the time of the merger, Frito-Lay owned 46 manufacturing plants nationwide, had more than 150 distribution centers across the United States, and was listed on the New York Stock Exchange.

Frito-Lay North America and Frito-Lay International

PepsiCo's snack food operations had their start in 1932 when two separate events took place. In San Antonio, Texas, Elmer Doolin bought the recipe for an unknown food product – a corn chip – and started an entirely new industry. The product was Fritos brand corn chips, and his firm became the Frito Company.

That same year in Nashville, Tennessee, Herman W. Lay started his own business distributing potato chips. Mr. Lay later bought the company that supplied him with product and changed its name to H.W. Lay Company. The Frito Company and H.W. Lay Company merged in 1961 to become Frito-Lay, Inc.

Today, Frito-Lay brands account more than half of the U.S. snack chip industry.

PepsiCo began its international snack food operations in 1966. Today, with operations in more than 40 countries, it is the leading multinational snack chip company, accounting for more than one quarter of international retail snack chip sales. Products are available in some 120 countries. Frito-Lay North America includes Canada and the United States. Major Frito-Lay International markets include Australia, Brazil, Mexico, the Netherlands, South Africa, the United Kingdom and Spain.

Often Frito-Lay products are known by local names. These names include Matutano in Spain, Sabritas and Gamesa in Mexico, Elma Chips in Brazil, Walkers in the United Kingdom and others. The company markets Frito-Lay brands on a global level, and introduces unique products for local tastes. NEW DELHI INSTITUTION OF MANAGEMENT

Major Frito-Lay products include Ruffles, Lay's and Doritos brands snack chips. Other major brands include Cheetos cheese flavored snacks, Tostitos tortilla chips, Santitas tortilla chips, Rold Gold pretzels and SunChips multigrain snacks. Frito-Lay also sells a variety of snack dips and cookies, nuts and crackers.

Quaker Foods North America

The Quaker Oats Company was formed in 1901 when several American pioneers in oat milling came together to incorporate. In Ravenna, Ohio, Henry D. Seymour and William Heston had established the Quaker Mill Company and registered the now famous trademark. Seymour wanted his product to be a symbol of honesty, integrity and strength. The figures of a man in Quaker clothes became the first registered trademark for breakfast cereal and remain the hallmark for Quaker Oats today. In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their partner, George Douglas, operated the largest cereal mill of the time. Ferdinand Schumacher, known as "The Oatmeal King," had founded German Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and Schumacher businesses brought together the top oats milling expertise in the country as The Quaker Oats Company. The first major acquisition of the company was Aunt Jemina Mills Company in 1926, which is today the leading manufacturer of pancake mixes and syrup.

In 1986, The Quaker Oats Company acquired the Golden Grain Company, producers of Rice-A-Roni.


PepsiCo merged with The Quaker Oats Company in 2001. Its products still have the eminence of wholesome, good-for-you food, as envisioned by the company over a century ago.

PepsiCo Americas Beverages (PAB)

PAB includes PepsiCo Beverages North America and all Latin American beverage businesses.

Pepsi-Cola North America and PepsiCo Beverages International

Caleb Bradham, a New Bern, North Carolina druggist, who first formulated Pepsi-Cola, founded PepsiCo’s beverage business at the turn of the century. Today consumers spend about $33 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice, Sierra Mist and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $60 billion.

Pepsi-Cola also offers a variety of non-carbonated beverages, including Aquafina bottled water, Fruitworks and All Sport.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States. NEW DELHI INSTITUTION OF MANAGEMENT

Pepsi-Cola also markets Frappuccino ready-to-drink coffee through a partnership with Starbucks.

In 2001 SoBe became a part of Pepsi-Cola. SoBe manufactures and markets an innovative line of beverages including fruit blends, energy drinks, dairy-based drinks, exotic teas and other beverages with herbal ingredients.

Outside the United States, Pepsi-Cola soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries and territories.

Pepsi-Cola began selling its products internationally in 1934 with its operations in Canada. Operations grew rapidly beginning in the 1950s. In addition to brands marketed in the United States, major products include Mirinda and Pepsi Max. Pepsi-Cola North America includes the United States and Canada. Key international markets include Argentina, Brazil, China, India, Mexico, Philippines, Saudi Arabia, Spain, Thailand and the United Kingdom. PepsiCo Beverages International also produces, sells and distributes Gatorade sports drinks as well as Tropicana and other juices internationally.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most-recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

Gatorade/Tropicana North America


Anthony Rossi as a Florida fruit packaging business founded Tropicana in 1947. The company entered the concentrate orange juice business in 1949, registering Tropicana as a trademark.

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-serve package. The juice, Tropicana Pure Premium, became the company’s flagship product.

In 1957 the name of the company was changed to Tropicana Products, headquartered in Bradenton, Florida. The company went public in 1957, was purchased by Beatrice Foods Co. in 1978, acquired by Kohlberg Kravis & Roberts in 1986 and sold to The Seagram Company Ltd. in 1988. Seagram purchased the Dole global juice business in 1995. PepsiCo acquired Tropicana, including the Dole juice business, in August 1998.

Today the Tropicana brand is available in 63 countries. Principal brands in North America are Tropicana Pure Premium, Tropicana Season’s Best, Dole Juices and Tropicana Twister. Internationally, principal brands include Tropicana Pure Premium and Dole juices along with Frui'Vita, Loóza and Copella. Tropicana Pure Premium is the third largest brand of all food products sold in grocery stores in the United States.

Gatorade sports drinks were 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

Vision of PepsiCo

PepsiCo Mission

"To be the world's premier consumer Products Company focused on convenience foods and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity."

PepsiCo in India

PepsiCo is a world leader in convenience foods and beverages, with 2007 revenues of more than $39 billion and more than 185,000 employees across the world. Its world renowned brands are available in nearly 200 countries and territories. PepsiCo gained entry to India in 1989 by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited. This joint venture marketed and sold Lehar Pepsi until 1991, when the use of foreign brands was allowed; PepsiCo bought out its partners and ended the joint venture in 1994. Firstly NEW DELHI INSTITUTION OF MANAGEMENT

Pepsi was banned from import in India, in 1970, for having refused to release the list of its ingredients and in 1993, the ban was lifted, with Pepsi arriving on the market shortly afterwards.

PepsiCo has grown to become the country’s largest selling food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S. $700 million since the company was established in the country in 1989. In India, PepsiCo provides direct employment to 4,000 people and indirect employment to 60,000 people including suppliers and distributors.

The group has built an expansive beverage, snack food and exports business and to support the operations are the group’s 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCo’s Frito Lay snack division has 3 state of the art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. Our commitment to living by this vision every day is visible in our contribution to our country, consumers, farmers and our people.

PepsiCo India’s expansive portfolio

Refreshment beverages

Sports drinks

100% natural fruit juices and juice based drinks NEW DELHI INSTITUTION OF MANAGEMENT

Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options– Diet Pepsi and 7Up Light; hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, and 100% natural fruit juices and juice based drinks – Tropicana, Tropicana Twister and Slice. Our local brands – Lehar Evervess Soda, Dukes Lemonade and Mangola complete our diverse spectrum of brand

PepsiCo’s snack food company

PepsiCo’s snack food company, Frito-Lay, is the leader in the branded potato chip market and was amongst the first companies to eliminate the use of trans fats and MSG in its products. It manufactures Lay’s Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional namkeen snacks under the NEW DELHI INSTITUTION OF MANAGEMENT

Kurkure and Lehar brands. The company’s high fiber breakfast cereal, Quaker Oats, along with Lehar Lites, low fat and roasted snack options enhance the choices available to the growing health and wellness needs of our consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labeling on their packets.

PepsiCo SKU’s


SALES AND MARKETING HIERARCHY OF

PEPSICO INDIA.

MUM

UM UM

TDM MDM

ADC MDC

CE ME

SALESPERSONSMARKETING

ASSISTANTS


MUM – Marketing Unit Manager:

In charge of specific zones (e.g. north, south, east, west) and report to the corporate

office.

UM - Unit Manager:

In charge of day to day operations and supervision of all the functions within the

organizations including operations, logistics, sales and distribution, marketing. The Unit

Manager reports to the MUM.

TDM - Territory Development Manager:

TDM is the in charge of the sales and distribution network of a particular territory within

a zone. Responsible for the daily, monthly and annual sales within the territory decides

the daily schemes for products and incentives for salespersons. He is also responsible for

cost effectiveness, profit generation and profit maximization within the territory.

MDM - Marketing Development Manager:

MDM is responsible for all the marketing activities and their effectiveness within a

territory. Decides the format and time frame of the marketing and promotional activities

and the incentives given to the retailers.

ADC - Area Development Coordinator:

Reports to the TDM, and is in charge of a C & F center and the distributor point in the

area. He is directly responsible for any issues in the area and is supposed to ensure the

smooth functioning of the entire sales and distribution network in the area. ADC is

responsible for timely disposal of any issue faced by the retailers. He decides and

approves the boards, displays and hoardings in the area.


MDC - Marketing Development Coordinator:

Reports to MDM, and is in charge of carrying out all the marketing activities in the area.

He is responsible for the execution and success of marketing and promotional activities.

Coordinates with the outside agencies for displays, boards, checks conducted in the

market. He is also responsible to keep a check on the expenditure of the marketing

activities in the market.

CE - Customer Executive:

Reports to the ADC and is in charge of the salespersons. He is required to visit the market

and accompany every salesperson as frequently as possible. He is the first person to get

information about the market / area and is the first contact if the salespersons or retailers

face issue. Responsible for assigning and achieving daily sales target given to the

salespersons.

ME - Marketing Executive:

Reports to the MDC and is responsible for the daily functioning of the marketing

activities in the including awareness of promotions in the market and the response in the

market

Salesperson:

They are the most important asset for the company as they are the ones who sell the

products, are responsible for acquiring new customers, and retain the old ones. Their

work also includes informing the retailers about the promotions and any new scheme

launched. They are also required to push for the sale of any new product launched in the


market and make sure that the retailers are following the company guidelines regarding

the launch and the maintenance of Vizicoolers. They report to the CE.

PRO DUCTI O N PROC ES S

The process of manufacture of Aerated water (soft drink) like Pepsi

brand product is divided into mainly five parts such as

1. Water Treatment

2. Syrup Making

3. Bottle Washing

4. Filling

5. Testing of Product

(1)W ater T r eatment: - Water treatment is very essential in soft drinks

plants as the nature and quality of water varies from place to place.

To set uniform and standard water the process of treatment is carried

on. The water taken out from bore well by the help of motor pump

and pipe line are collected in storage tank where is pre chlorinated

by chlorinators and by the help of pipe lines comes to treatment tank

called coagulation tank where to this water solutions of different

strength of bleaching powder, ferrous sulphate, hydrated lime are

added through dosing pump to reduce alkalinity, hardness, kill the

bacteria .


The chemical are mixed by mechanical stripper and then the

suspend mattress settle down as sludge and clear water passes to

retention tank. From this tank, the water passes through sand filter

containing fine sand and pebbles and carbon filter containing granular

carbon and finely through water polisher, micron filter, and UV lamp

to ensure clear and sanitary water for use. Further water used in

bottle washer and boiler need softening .

for this purpose ,the water from storage tank ,after passing through

two filter beds contain fine sand and granular carbon respectively

comes to pass through bad resin were it is softened .this soft water is

essential to use in and bottle washer to reduce scale formation inside

the machines.


(2) Sy r up M aking : - For syrup making of particular brand, calculate

quantity of sugar water activated carbon and high flow super cell known as

filter aid taken in to sugar to enter steam and also filled by a motor with

agitator. Sugar syrup called raw-syrup is prepared by dissolving the sugar

with continuous stirring and heating by steam supplied by fired boiler. This

hot syrup by the help of pump is filtered through a filter press attached

with a series of quality filter paper to separate out carbon particles. Clear

hot syrup by the help of SS pipe lines passes through water P.H.E. for

cooling and the then another P.H.E. circulated by glycol for further cooling.

The chilled syrup comes to a mixing tank to use calculating of sugar

quantity by Brix Hydrometer, concentrate added and mix thoroughly by a

mechanical Stirrer fitted to the tank. This syrup is now finished syrup ready

for use. The concentrate mainly, the liquid part are kept in a cold

store, the temperature of finished syrup is also maintained by air-

conditioner. All the containers used for syrup making are cleaned and

sanitized by Soda-Bi-Crab, strong chlorine solution and hot caustic soda

solution.

(3) B ottle W a s hing: Bottle washing is an important part in soft drink

plant. The empty durable and returnable bottle used are returned

from market in plastic carats are fed to a bottle washing machine

(washer). The machine has double end system with circular chain

to carry the bottles. Caustic soda Tri-Sodium Phosphate,

Sodium Glausonate is adding to the caustic by the supplied. The

Caustic tank filled in with water heated by steam supplied by the NEW DELHI INSTITUTION OF MANAGEMENT

boiler. The empty bottles enter to the hot Caustic tank in one end

and after being cleaned by hot Caustic solution and finally washed

with water through spray jets fitted are discharged in other end.

The washed bottle proper inspections are SU 319 and SU 853 used

for conveyor cleaned and smooth running of chain carrying bottles.

SU 260 and SU 773 is used for bottle cleaning, shining, and mold

removing.


(4) F illin g : - Finished syrup and treated water lime are commixed to

a dosing pump which mixes syrup and water with ratio of 1:5 and

the syrup mixed with water enters to carbonator tank to mix CO2

gas, which is preserved in cylinder for use. The cylinders are

connected through CO2 manifold to tank to use requisite

quantity of gas. To control CO2 pressure and temperature of liquid;

we used recording control (Taylor). The syrup passed through a

P.H.E. which is called itself by circulation of chilled glycol supplied

chilling F-22 gas used. The syrup being chilled easily mixed with

CO2 gas and enters to filter for bottling. The filter is connected

with filling valves and lift cylinders. The lift cylinder functions by

pressure of air supplied by an air composer. The syrup is known as

beverage in this stage is filled in the cleaned bottles which are

durable in nature and returnable by buyer filling machine (filter) by

a counter pressure of carbon dioxide gas. After beverage filled in

bottle it goes to the crowner where with the help of crown crocks the

bottles are sealed (crowned) to project the carbonation, flavor,

outside contamination and spoilage. The finished products are coded

by a coding machine and inspected properly by inspection light while

passing through the conveyor where finished product are

accumulated enters to carat washer machine and it is washed moves

through the conveyor where finished product are accumulated.

Then the products are kept in plastic carats which are durable in


nature and returnable by buyer, put on palates and sent to shipping

for shipment. The entire container in contact with syrup are properly

cleaned and sanitized by Soda-Bi- Carbonate, hot water, caustic soda

solution and strong chlorine does.

(5) T e s ting o f p r oduct : - Finally the finished syrup during bottle is tested

in laboratory to meet the parameters and also to get a standard and quality

products to maintain the standard and information and uniformity in

products the sugar contents and carbonation in the bottle are checked in

regular intervals by Brix- hydrometers, Refrectometer and pressure gauge.

The dead weight tested is used to calculate pressure gauge to know the

correct pressure. TA & Ph are tested by digital Ph meter. Electronic

digital balanced is used to weight chemical to conduct test in lab. The

purity of CO2 is checked by CO2 purity tester. The chlorine

comparators. The microbiology test of the product and water used in syrup

making and production are also done to ensure that the product is free from

any bacteriological contamination. To conduct the micro test hot

sterilizer incubator, autoclave, pads filter membranes, media are produced

and used.

The Diesel generator is operated in case of electricity failure

for smooth operation of the plant. To drawn electricity for the State

Electricity Board the transformer is used.


The s teps i nvo l ved i n the product i on proce s s are:-

First the fork lift supplies the empty bottles which are collected from the

distributions.

Then depalletising is done i.e. separating cases filled or empty bottles from

the wooden planks.Uncasing is done by separating empty bottles from the

cases/carats.

Empty bottles are then fed into the bottle washer where stream with some

chemical is used for washing. Washed bottles are then send to the filler

where premix (Composed of syrup, treated water bulk CO2) is filled in it.The

whole concentrated is chilled with glycol before filling and then

crowning is done.The filled bottles are passed through inkjet coder for

printing price and date.Then again the filled bottles are send for final light

inspection and from there they are collected on a table.Lastly the filled

bottles are arranged in the crates (casing) and then palletizing is done for

storing it in the warehouse.

PREPARATION OF SYRUP

Treated water + Sugar = Flavour


INVENTORY MANAGMENT

There are so many departments to control the office work but in my view the first and the most important department is “shipping department”.

The shipping department plays the most essential role in warehouse. Because the most important work of warehouse to control the inventory. In small ways we can say the finance in warehouse is just retail accounting but in broader ways we can say it is in all the departments. when we work on inventory management then so many things we have to remember in our mind like which inventory come first and how much inventory is in the warehouse and how much is needed and also what inventory is needed.

So the management of the inventory involve the work of the shipping in charge in the direction of financial manager. Shipping in charge take care of the inventory and all the responsibilities on the same person. in his control in charge applies the “fifo” and “lifo” methods those the accounting concepts. In the following I am going to describe the methods.

FIFO METHOD

The fifo method mean “first in first out”. When we work on the inventory management then first and the most important point is fifo method because if manager will not do work on the fifo method then he/she cannot be able to handle the inventory.

Fifo method applies for the inventory which has come first it means that we have to out the inventory which have come first . for example if there is inventory of four (4) days like 15th, 16th, 17th and 18th Of June then first we have to send or dispatch the material at the date of 15th because the manufacturing date of that material will be oldest and if that material will be not send then that may be expire and outlet holder will refuse to accept.


But the question rises in a big warehouse it is very difficult to maintain the fifo method it means that if there is so much stock then how can you find out that this stock from which date. For answering this question there are some boards which help to find out the stock in serial. There are four kinds of boards :

1) Green2) Orange3) Blue4) Yellow

Green says :- mera no. Aa Gaya hai.

Orange says:- mera no. Aane wala hai.

Blue says:- mera no. Kab aayega.

Yellow says:- mera no. Kabhi nahi aayega

And these sign board are putted in the respective materials so that they can easily find out the materials. So the main target of the supervisor clear-cut inventory management.

LIFO METHOD

Same as the fifo method inventory incharge uses the lifo method. Lifo means last in and first out . it is uses when we find any material which is oldest then first we have to out that material first. So it works same as fifo method.


Other works in the shipping department

Besides the applying the methods like fifo and lifo there are some other works which shipping department does. Like receiving the material which comes from the plant and gate pass cum load sheet. In following there is each explanation .

When inventory comes from the plant then first it records in security that at what time it reaches at the warehouse then the transporter gives the documents which contains delivery challan and invoice it goes to the shipping incharge and he counts the inventory and find out the leakage and breakage and mention that what exactly the fine material is and delivery chalan contains that this is two way or one way it means if it is two way then empty bottle have to send via same transport .

The delivery challan have only inventory in quantity and in invoice have only in rupees and also invoice have written over there the transportation charges and afterwards the invoice will be send to the head office lucknow and it also have the manufacturing date.

After all the process, the incharge provides a load sheet to the transporter it contains the total .


RETAIL ACCOUNTING

When we do any business or involve in any business then we have to maintain all the information about the business. Then we calculate and maintain in our accounts books and other books . but in this modern world we calculate or maintain in books as well as computer so we maintain in computer.

Retail accounting is also one of the important part of the business because your main data will be on that. so as a finance manager, this is our responsibility to take care of that.

In retail accounting card accounts, scheme and other accountings like secondary maintenance and day to day recording of the data like migo and bills all are part of the retail accounting.

When we do accounts then we have to take care of the all the data so there could be a final and fresh news which help for inventory management.

All the retail accounting is done on a software called “asdos” . in retail accounting we considered not only the direct route but also the distributers those are playing a big part in sales. the maintenance of the distributers account is little bit tough but not so.

SAP


It is a core accounting package. It is defined to make easy the work of accounting and now a days it is the biggest and costly package for retail accounting. Its scope is very high . About every bank is using this software and other big and small business houses are also using this.

Sap is stands for “special accounting package”.

Hierarchy of sap:-

1) unite office

2) TDM territory

3) C.E area

4) customer wise

This shows that there is a particular structure for doing work. It means there is different code for different users. for example, if our TDM wants to look on the sale on their territory then he/ she has to login their system. Company has provided a separate password for separate person.

Sap is a tremendous software which has some unique features which are followings:-

1. it is itself generate the report . for example, you have to send the product at that unite where it is needed.

2. It manages any other software and packages. For example, if any person is doing work on the asdos then he/she can convert the data on sap.

3. In this software tax is also defined. There is no need to calculate separately.

4. Sap can not receive the out dated product and material .

Sap is a package which also contains aging, movement, order, accounting and payment and closings. It also analysis the report.

VISION OF THE COMPANY NEW DELHI INSTITUTION OF MANAGEMENT

Satisfying the end consumer, and provide value to each penny he is spending in buying cold drink.

MISSION OF THE COMPANY:

To provide quality soft drink to the consumer or market.

PEPSI-COLA COMPANY, HEADQUARTERED IN

NEW YORK IS THE GLOBAL BEVERAGE DIVISION OF PEPSICO. INC. Pepsi-Cola was founded at the turn of the century by Caleb Bradham, a New Bern, N.C. druggist who first formulated the beverage. Today, Brand Pepsi and other Pepsi-Cola North America products – including Diet Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands – account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $56 billion. Pepsi-Cola beverages are available in about 170 countries.

Pepsi-Cola North America also makes and markets ready-to-drink iced teas and

coffees, respectively, via joint ventures with Lipton and Starbucks.

PepsiCo. Inc. is among the most successful consumer products company in the world, with 1998 revenues of over $22 billion and 151,000 employees. The company consists of:

Pepsi-Cola Company, the world's second-largest beverage company

Frito-Lay Company, the world's largest manufacturer and distributor of snack chips

Tropicana Products, Inc., the world's largest marketer and producer of branded juices


PepsiCo. Mission Statement:

PepsiCo's overall mission is to increase the value of our shareholder's investment. We do this through sales growth, cost controls and wise investment of resources. We believe our commercial success depends upon offering quality and value to our consumers and customers; providing products that are safe, wholesome, economically efficient and environmentally sound; and providing a fair return to our investors while adhering to the highest standards of integrity.

Environmental Commitment

Pepsico. Inc. serves consumers in two major businesses: beverages and snack foods. The company consists of Pepsi-Cola Company, the world’s second largest beverage company, Tropicana Products, Inc. the world’s largest marketer and producer of branded juices and Frito-Lay Company, the world’s largest manufacturer and distributor of snack chips. Pepsico. brand names are among the best known and our operations reach every corner of the world.

As a consumer products company, Pepsico. does not have the major environmental problems of heavy industry. Our biggest environ-mental challenge is packaging generated by our products. Packaging is important to public health and a critical component of the distribu-tion system that delivers products to consumers and commercial establishments. To meet both consumer demand and safeguard the environment, we recycle, reuse and reduce packaging wherever possible. Each business is also committed to responsible use of resources required in manufacturing our products.

Pepsico. is proud of our environmental record. Each of our divisions and facilities is empowered to find solutions to its unique environ-mental challenges. This report addresses the environmental prin-ciples presented in our Code of Conduct and examines our progress.


CORPORATE OVERVIEW:

Pepsico. Inc. is among the most successful consumer products company in the world, with 1999 revenues of over $20 billion and 116,000 employees. The company consists of: Frito-Lay Company, the largest manufacturer and distributor of snack chips; Pepsi-Cola Company, the second largest soft drink business and Tropicana Products, the largest marketer and producer of branded juice. Pepsico. brands are among the best known and most respected in the world and are available in about 190 countries and territories.

Some of Pepsico.'s brand names are 100 years old, but the corporation is relatively young. Pepsico. Inc. was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998.

Pepsico.'s success is the result of superior products, high standards of performance, distinctive competitive strategies and the high integrity of our people.

Our overriding objective is to increase the value of our shareholders' investment through integrated operating, investing and financing activities. Our strategy is to concentrate our resources on growing our businesses, both through internal growth and carefully selected acquisitions. Our strategy is continually fine-tuned to address the opportunities and risks of the global marketplace. The corporation's

success reflects our continuing commitment to growth and a focus on those businesses where we can drive our own growth and create opportunities.

PEPSICO. HEADQUARTERS:

Pepsico. Inc. World Headquarters is located in New York City. The seven-building headquarters complex was designed by Edward Durrell Stone, one of


America's foremost architects. The building occupies 10 acres of a 144-acre complex that includes the Donald M. Kendall Sculpture Gardens, a world acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and features works by masters such as Auguste Rodin, Henri Laurens, Henry Moore, Alexander Calder, Alberto Giacometti, Arnaldo Pomodoro and Claes Oldenberg. The gardens were originally designed by the world famous garden planner, Russell Page. The grounds are open to the public, and a visitor's booth is in operation during the spring and summer.

BEVERAGES

Pepsi-Cola Company:

Pepsico.'s beverage business was founded at the turn of the century by Caleb Bradham, a New Bern, NC druggist who first formulated Pepsi-Cola. Today consumers spend about $32 billion on Pepsi-Cola beverages. Brand Pepsi and other Pepsi-Cola products - including Diet Pepsi, Pepsi-One, Mountain Dew, Slice and Mug brands - account for nearly one-third of total soft drink sales in the United States, a consumer market totaling about $58 billion.

In 1992 Pepsi-Cola formed a partnership with Thomas J. Lipton Co. Today Lipton is the biggest selling ready-to-drink tea brand in the United States.


Outside the United States, Pepsi-Cola Company's soft drink operations include the business of Seven-Up International. Pepsi-Cola beverages are available in about 160 countries.

Pepsi-Cola provides advertising, marketing, sales and promotional support to Pepsi-Cola bottlers and food service customers. This includes some of the world's best-loved and most recognized advertising. New advertising and exciting promotions keep Pepsi-Cola brands young.

The company manufactures and sells soft drink concentrate to Pepsi-Cola bottlers. The company also provides fountain beverage products.

PepsiCo. Products:

PepsiCo. has hundreds of brands. These are some of the best known.


Pepsi-Cola Brands

Pepsi-Cola

Diet Pepsi

Mirinda

Mountain Dew

Lipton Teas (Partnership)

Aquafina Water 7 Up (outside USA)

Slice

CAREER OPPORTUNITIES AT

PEPSICO. WORLDWIDE HEADQUARTERS:


PepsiCo., Inc. is a worldwide leader in vast and growing markets: beverages, snack foods and juices. Our company's brands, which include Pepsi-Cola, Frito-Lay and Tropicana, are among the best known and most successful in the world.

Our continued growth has created outstanding career opportunities for talented professionals in a variety of specialized fields at our corporate world headquarters, located in NEW YORK. We are always looking for good people in the areas of:

Information Technology Treasury Tax Human Resources Law Accounting Public Affairs Audit all successful applicants share a commitment to PepsiCo’s goals

and an ability to thrive in a fast-paced, results-oriented environment. In exchange, we offer a highly competitive co m pen s ation and benefits package.


SWOT ANALYSIS

STRENGTHS:

Company belongs to the FMCG sector so the demand will never die.

A large and strong distribution network. (In comparison to the other

competitive brand Pepsi is having better reach to the market.)

Professional and dedicated manpower. (Starting from the higher-level management to the sales-man Pepsi’s employees is having great degree of dedication and professional attitude towards selling the products. On the other hand companies’ operational staff always try their maximum strength to meet the demand and utilize the recourses to maximum.)

More emphasis on market penetration (Companies efforts of providing the Pepsi and other products to the customer’s doorstep are working vis-à-vis wherever the transportation is not possible dealers are appointed).

In comparison to Coca-Cola’s red colour, which is brighter and have more visibility Pepsi’s blue color provide sense of relax in the bright sunny day.

In the rural areas and outskirts of the city where there is maximum population is illiterate, Pepsi is having an edge. (As compared to Coca-Cola, pronouncing Pepsi is lot more easy reason for more demand of the Pepsi and its brands.)

More popularity among the kids and female youth. (Because of the sweetened taste Pepsi and its other brands attracts the kids and female more. Miranda is found more popular among kids.).

Retain ability of the T.V. advertisements of Pepsi is far more in comparison to Coca-Cola. (Pepsi’s T.V. advertisement in which Sachin Tendulkar whistles at the end has maximum retain ability. Other than this world cup 2003 advertisement campaign that comprises of Sachin Tendulkar, Shane Warne and Carl Hooper, advertisement campaign which comprises of Amitabh Bachhan, Karina Kapoor and Adnan Sami and latest advertisements of Pepsi and Mountain Dew (Do the Dew) are very famous. On the other hand Coca-Cola’s advertisement campaign of


“thanda matlab Coca-Cola” and Amir Khan’s five rupees ad have the maximum retain ability.


WEAKNESS:

Coca-Cola’s red color has more visibility than Pepsi’s blue color. (Because of the bright color of Coca-Cola it is more visible even from the distance as compared to Pepsi)

Pepsi’s singes are far more scattered as compared to Coca-Cola. (Because of this at some places it looks that the market is captured by Coca-Cola.).

Low plant capacity because of which company is not able to meet its demand during the peak season (Varun Beverages India Ltd., Pepsi’s Greater Noida plant has one continuous assembly line for preparing tetra and four continuous assembly lines’ which are filling around 15,000 bottle/day, which is insufficient to complete the demand during the peak seasons.).

Lesser plant utilization during the off-peak seasons (During the winter season as the demand is very low, plant and resource utilization goes down.)

Lack of automaton in the administrative department in the plant, which results in wastage of time and sometimes in resources also.


OPPORTUNITIES:

Demand is more than the production. (Because of the heat the demand of the soft drink raised drastically which is the good opportunity for the company a the rival brands are also finding it difficult to complete the demand. Therefore PepsiCo.. has to increase the production.)

In the rural areas PepsiCo’s distribution network is far stronger vis-à-vis to any of the competitor. Therefore it is viable to make it more stronger, as this can restrict the entry of the other brands in the rural market.

Kids demand for the Miranda more as compared to any other orange flavour soft drink brand.

With the launch of slice tetra PepsiCo. has entered in to one more segment o soft drink beverages, which was more or less captured by the “Frooti” till now.

THREATS:

Not able to meet the market demand during the peak season. (As the plant capacity is very low the company is not able to meet the existing demand during the peak seasons).

There is lot of complaints are coming up about the impurities or leakage of gas or leakage of carbonated water. (Within the last 30 days I met around 50 such complaints because of which retailers were very angry with the company).

There is no proper policy of distributing the merchandising assets of the company to the retailers. (Many of the retailers have so many things though their sales are low but few of them don’t have anything inspite of large sales.).


MARKETING STRATEGIES

1) Pepsi sales club:

This club is for the retailers. In this approach retailers are given some points once in a month depending upon how they are using the display material provided by the company to them. This material consists of Fridges, DPS Boards, Glow Sign Boards, Display Bottles (500ml. 1lt. 2lt, Commodity Packs, Stands, Posters etc. Depending upon these points retailers are rewarded by certain gifts from the company.

The retailers are participating in these schemes curiously. But few of the retailers found furious and angry because they had lost the points because of miscommunication or lack of guidance. Therefore they need some kind of guidance from the company. It would be a better idea that our salesman who are distributing the beverages to the retailers can be equipped by the appropriate training so that they can guide the retailers about how to use their display material to 100% of their strength and able to tell about the new schemes convincingly.

2) Schemes:

Pepsi Beverages India comes out with the schemes on their different products many times in a year. Most of these schemes are made to benefit the retailers. Some of the schemes are as follows:

1 bottle of 2lt. free with one 2lt bottle pet.

2 bottles of 500ml free with one 500ml bottle pet

2 tetra packets of tetra slice mango free with one tetra 24 pieces of slice mango.


These schemes keep on changing depending upon the stock. Beverages companies are giving these schemes despite of acute shortage of soft drink in every segment to meet the competition, to make sure the availability their brands and sometimes to satisfy and benefit the retailers and the end consumers.

3) Advertising:

Through the consumers survey it has been proved that the T.V. commercials and singes affect the consumer buying behavior by approximately 70%. May be only PepsiCo. is investing huge finances in the T.V. commercials and other singes, big names of Indian film industries and sports hero’s are being proposed to become the brand promoters and brand ambassadors. Sachin Tendulkar, Amitabh Bachhan, Karina Kapoor and more are being offered huge amount for carrying out the promotions. Pepsi’s T.V. advertisement in which Sachin Tendulkar whistles at the end has maximum recall value. Other than this world cup 2003 advertisement campaign that comprises of Sachin Tendulkar, Shane Warne and Carl Hooper, advertisement campaign which comprises of Amitabh Bachhan, Karina Kapoor and Adnan Sami and latest advertisements of Pepsi and Mountain Dew (Do the Dew) are very famous. Few of the areas through which advertising is being done are as follows:

Television commercials Posters DPS boards Glow Sign boards Date calendars Food and fizz Space clube

4) Promotion through restaurants and cinema hall

holdings:

Pepsi co. is tying up with different chains of restaurants and fast food centers like Pizza Hut to promote the Pepsi and its other brands like Mirinda, Mountain Dew etc. these restaurants are authorized to keep and use the merchandising assets of Pepsi. Usually these kinds of restaurants and fast


food chains are in contract with the Pepsi Co., so that they cannot promote any other brand.

5) Merchandising assets:

Pepsi Co. also try to promote their brands by providing their retailers and dealers some display items. Some of such items are as follows:

1. Fridges

2. Pepsi/mountain due stands

3. Display bottles

4. Posters

Pepsi Co. provide the above things to the retailers to use them in promoting companies brands and products, and provide refrigerators to the retailers in the hope that these retailers only use these assets in promoting the Pepsi’s products

and they will chill the Pepsi’s products so that its products will always be

available to the end consumers. But it is not true in most of the cases. Retailers usually use the merchandising asset of one company in such a way that it benefits another company. Sometime they do it unknowingly, sometimes they do it knowingly and sometimes because of the deficiencies of the company itself. These deficiencies are as follows: -

1. Irregularity of the salesman to the retailers shop.

2. Shortage of the different products and different packages.

3. Sometimes because of the rude behaviour of the salesman.

6) Strengthen distribution network and promotions through word of mouth through sales man:

Unlike the rival brand Coca-Cola, Pepsi Co. Basically depends upon its sales man for promoting and launching the new as well as old brands because instead of doing the business through dealer’s network like Coca-Cola, PepsiCo. believes in making and maintaining relations with retailers directly. Therefore salesman is the very important part of PepsiCo. marketing strategy.


MAJOR LEARNINGS

Understanding the way business is carried out in beverage industry.

Understanding the distribution infrastructure, price structure and different

channels.

The project helped in gaining practical experience in market research.

Learning how to control a huge data .

Project also provides the opportunity to experience how we can maintain

a huge inventory.

Though I was primarily dealing with traditional trade I also gain some

knowledge in modern trade.

Sap is an important part of core accounting through this i learn the

modern way of accounting.

Working with such a superior management itself provided a great

experience.


RECOMMENDATIONS

Pepsi the choice of generation next is not providing the first choice of young generation. A young generation wants something strong in cold drinks & thus prefers Thumsup. Pepsi should come out some extra strong taste to catch up maximum young generation & to become exactly Generation next drink.

Leakage & breakage should be reduce by providing fare services.

Wastage can be reduce by better packaging like bottles should be

Credit facility of retailers should be provided.

Company should try to give some credit facility to the distributors so that they get motivated.


CONCLUSIONCONCLUSION

Completing this project as a part of MBA curriculum has been a great

experience for me. The project gave me the opportunity to work in real life

situation which cannot be simulated in the classroom. The learning which I have

will be an asset throughout my life.

In this project i learn the whole work of finance in warehouse and how a

manager control over the inventory and expenses. In this process i fond that it is

not a glamorous job but still it is a challenging job.

My project title as “Role of finance in warehouse” I tried my best to increase

my knowledge about finance in PepsiCo in which I learnt about the retail

accounting and inventory management.

Lastly some points are very necessary I analyse in the project time period. Give

the respect other person, effective communication, find the solution of problems

related to stock delivery and inventory management.


BIBLIOGRAPHY

Name of the books used for the reference and their authors.

1. Financial management - I. M. pandey

2. Research Methodology - Kothari C.R.

Websites Referredhttp://www.pepsico.comhttp://www.google.comhttp://pepsizone.yahoo.com

MAGAZINES

4 PSTime Education Magazine Times of India Business India


http://pepsizone.yahoo.com/

http://www.google.com/

http://www.pepsico.com/

summer training report on finance

Documents