GAUTAM BUDDHA UNIVERSITY

Summer Internship Report

SUBMITTED IN THE PARTIAL FULFILLMENT OF INTEGRATED MBA
PROGRAMME (2016-2021)

BY

SHYAMVEER

16/IMB/045

UNDER THE SUPERVISION OF

Dr. SWETA ANAND

SCHOOL OF MANAGEMENT
GAUTAM BUDDHA UNIVERSITY

GREATER NOIDA, UP (INDIA)

2019
 Declaration by Student

I am SHYAMVEER Roll No 16/IMB/045 hereby declare that this project work is the result of my own

research and no part of it has been presented for any other degree in this university or elsewhere. I am solely

responsible for any error found in this work.

Date: …………………….

Place: ……………………..

Student Signature: ………………………………….

 To Whomsoever It May Concern

This is to certify that SHYAMVEER student of Integrated MBA VIIth Semester at School of Management,

Gautam Buddha University, Greater Noida has done a project work entitled “……….TITLE OF THE

PROJECT……………..” at our organization from 24 MAY 2019 TO 06 07 2019.

Signature of Co-Supervisor

Name and Designation of the Co-Supervisor

 Certificate from the Faculty Guide

This is to certify that the project titled “……….TITLE OF THE PROJECT……………..” has been done

under my supervision by SHYAMVEER of Integrated MBA VII semester.

Name and Signature of the Faculty guide

Dr. SWETA ANAND

 ACKNOWLEDGEMENT

It is my proud privilege to express my deep gratitude and indeptness to all those who enabled me to
complete my project.

I would like to express my sincere gratitude and thanks to our beloved Mr. Pushpendra Uvana (Senior
Executive) for his constant encouragement and invaluable suggestions throughout the course.

My gratitude goes to my lovable faculty Dr. SWETA ANAND for the dedicated support and endless
guidance that she offered me throughout my project report process.

I am extremely grateful to my family, friends and all my well wishers, who have given me immense support
in completing the project successfully.
 TABLE OF CONTENTS

S.NO CONTENT

List of figures

Chapter -1 Organization overview

1.1 Introduction

1.2 Product portfolio

1.3 Company profile

1.5 Swot analysis of Honda

1.6 Purpose and importance of R&S in Honda

1.7 Need for study

 Chapter -1

ORGANIZATION OVERVIEW

INTRODUCTION

The beverage industry refers to the industry that produces drinks, in particular ready to drink beverages.
Beverage production can vary greatly depending on the beverage being made. Manufacturing
Drinks.com explains that, "bottling facilities differ in the types of bottling lines they operate and the
types of products they can run". Other bits of required information include the knowledge of if said
beverage is canned or bottled (plastic or glass), hot-fill or cold fill, and natural or conventional.
Innovations in the beverage industry, catalyzed by requests for non- alcoholic beverages, include:
beverage plants, beverage processing, and beverage packing.

Non- Alcoholic Beverage Industry:

The non-alcoholic beverage industry broadly includes soft drinks and hot drinks. Soft drinks contain
carbonated or non-carbonated water, a sweetener, and a flavor, and hot drinks include coffee and tea. The
soft drink category dominates the industry and includes carbonates, juice, bottled water, ready-to-drink tea
 and coffee, and sports and energy drinks. Soft drinks are sometimes referred to as liquid refreshment
beverages (LRBs).

The largest global players are:

1. The Coca-Cola Company
2. Nestle SA
3. PepsiCo
4. AB In Bev
5. SAB Miller

What’s soft drink made of?

Soft drinks contain water, nutritive or non-nutritive sweeteners and syrups. The primary nutritive
sweetener used is high-fructose corn syrup, form of sugar. Internationally, sucrose is the main nutritive
sweetener used in soft drinks. Soft drink makers also use non-nutritive or artificial sweeteners such as
aspartame, acesulfame potassium, saccharin, cyclamate and sucralose.

ABOUT PEPSICO INDIA

PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a product
portfolio that includes 22 brands that generate more than $1 billion each in annual retail sales. It took half
a decade of negotiating, 20 debates in Parliament and a monumental public relations campaign for Pepsi
to enter India. Not as Pepsi-Cola, but as Lehar Pepsi, a concession to the anti-foreign lobby. Christopher
Sinclair, the President of Pepsi-Cola International, called the company’s venture in India “A Historic
Agreement.” PepsiCo’s move into the Indian market was made possible by the company’s willingness to
take a 36.9% share in a conglomerate called “Pepsi Foods Private Limited” whose co-owners were Punjab
Agro Industries and Voltas, a subsidiary of Tata Group. (PepsiCo India, 2014)

ABOUT RJ CORP

The year 1991 witnessed the inception of RJ Corp, when Mr. Ravi Kant Jaipuria signed a licensed
agreement with Pepsi, under the operating company Varun Beverages Ltd., the group manufactures and
 markets carbonated and non-carbonated soft drinks and mineral water. With its humble beginnings from 1
bottling plant at Agra, the company today has 11 bottling plants and has further risen to encompass new
ventures in the varied fields of retail, food and beverages, education and real estate with operations in
India, Nepal, Sri Lanka, Mauritius, Uganda, Zambia and Thailand. The total turnover of the beverage
division is Rs. 1 billion and it enjoys a healthy market share of 52% vis-à-vis competition in the
geographical domains that the group operates. This is possible through rigorous & robust distribution set-
up & aggressive deployment in the market place. (RJ Corp, 2014)

Why do people crave soft drinks?

People crave soft drinks because they contain two stimulants-sugar and caffeine. Also, the water in soft
drinks hydrates. Soft drinks contain considerable amounts of sugar, which is a form of carbohydrate.
Consumption of excess sugar releases a hormone called dopamine, which induces pleasure in the brain.
The food processing industry in India has a total turnover of around USD 65 billion which includes value
added products of around USD 20.6 billion. Coca cola, Pepsi, and Nestle are the leading beverage brands
that have been ruling the Indian beverage market since past few decades. Among all the beverages, tea and
coffee are manufactured as well as exported heavily in the international markets succumbing to the
individual demands around the world.

About VBL
The second largest franchisee in the world (outside US) of carbonated soft drinks (“CSDs”) and non-
carbonated beverages (“NCBs”) sold under trademarks owned by PepsiCo and a key player in the beverage
industry. We produce and distribute a wide range of CSDs, as well as a large selection of NCBs, including
packaged drinking water. PepsiCo CSD brands sold by us include Pepsi, Diet Pepsi, Seven-Up, Mirinda
Orange, Mirinda Lemon, Mountain Dew, Seven-Up Nimbooz Masala Soda, Evervess Soda, Duke’s Soda
and Sting. PepsiCo NCB brands sold by us include Tropicana (100%, Essentials & Delight), Tropicana
Slice, Tropicana Frutz, Seven-Up Nimbooz, Gatorade and Quaker Oat Milk as well as packaged drinking
water under the brand Aquafina. In addition, we have also been granted the franchise for Ole brand of
Pepsico product in Sri Lanka. We have been associated with PepsiCo since the 1990s and have over two
and half decades consolidated our business association with PepsiCo, increasing the number of PepsiCo
licensed territories and sub-territories covered by us, producing and distributing a wider range of PepsiCo
beverages, introducing various SKUs in our portfolio, and expanding our distribution network. We have
been granted franchisees for various PepsiCo products spread across 27 States and 7 Union Territories
(except Jammu & Kashmir and Andhra Pradesh) in India. Our share of PepsiCo beverages volume sales
increased from ~ 26% in Fiscal 2011 to 80%+ now. Although, India is our largest market, we have also
been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco,
Zambia and Zimbabwe. VBL has 30 manufacturing plants in India. In addition, we have set up backward
integration facilities for production of preforms, crowns, corrugated boxes, plastic crates and shrink-wrap
films in certain of our production facilities to ensure operational efficiencies and quality standards.
We are part of the RJ Corp group, a diversified business conglomerate with interests in beverages, quick-
service restaurants, dairy and healthcare. Our Promoter and Chairman Mr. Ravi Kant Jaipuria has an
established reputation as an entrepreneur and business leader and is the only Indian to receive PepsiCo’s
International Bottler of the Year award, which was awarded in 1997.

The bottling plants in India and Nepal are located at the following sites:

1. Gr. Noida 1
2. Gr. Noida 2
3. Kosi
4. Sathariya 1
5. Sathariya 2
6. Bazpur
7. Bhiwadi & Jodhpur
8. Nuh & Panipat
9. Phillaur and Pathankot
10. Kolkata
11. Guwahati Unit 1 & 2
12. Goa
13. Mandideep
14. Bargarh & Cuttack
15. Jamshedpur
16. Bharuch
17. Mahul, Roha and Paithan
18. Nelamangala
19. Palakkad
20. Mamandur
21. Sangareddy
22. Sri City
6 Manufacturing plants in international geographies.
1. Two in Nepal
2. Sri Lanka,
3. Morocco,
4. Zambia
5. Zimbabwe
 VARUN BEVERAGES LIMITED

Panipat Plant

Bhiwadi Plant Bazpur Plant Jainpur,

Greater Noida
Kanpur Plant
(2 Units) Jodhpur Plant
Sathariya, Allahabad Plant
Kosi Jaipur Plant

(Beverages & Preforms) (Crowns) Guwahati Plant

Nuh Plant Alwar Plant

(Corrugation Unit)
Kolkata Plant

MAnufACturing
Units
Goa Plant
SWOT ANALYSIS OF THE COMPANY

STRENGTH:
 Strong brand image
 Broad product mix
 The visicooler (cooling equipment) system is distributed properly
 Extensive global distribution network
 VBL uses state art and fully automatic machines and technology for the production and bottling
of the soft drink.

WEAKNESS:
 No cost cutting program for the products.
 Promotional activities in the rural market are not up to the mark as compared to the urban
market.
 Lacking of communication with retailers.
 PEPSI has only one cola flavor where its competitor has Coca-Cola has Coke and Thump

 It’s one of the popular brands PEPSI in Cola flavor is lagging behind with its nearest
competitor only due to high sugar content and less thrilling taste.

OPPORTUNITIES:
 Business diversification
 Market penetration in many different states of India
 It should give more incentives to the dealers in the rural areas, where there is a huge market
potential.
 It should adopt automatic and computerized quality control system for its product.
 More lucrative schemes to be launched regularly, especially during off-season. So as to
attract more and more customers.
 Although in the cola market there are many competitors, Pepsi still has the
opportunity to enlarge.
 Rural market is relatively untouched with high growth potential.
 Its market share because the cola in the market is quite monotonic.
 New innovative idea for advertisement.
 THREATS:
 Aggressive competition
 Healthy lifestyles trend
 Environmentalism
 As to the threats, that Pepsi-Cola and Coca-Cola have the competition for about 80 year.
 There is another threat now a days, some local cold drinks such as Fruit bear, Parle and Sara’s
Dairy have taken their feet in the market.
 One of the in the cola segment has a very good market share due to its taste.

INNOVATIONS LED BY COMPANY

 Product Innovation: Product innovation involves creating new products or improved

versions of existing products that increase their uses. This innovation can be in the product's
own functionality, or it can take the form of new technology. However, we can't introduce just
any new product. This new product must solve an existing problem in a new and exciting
way. Or the product needs to solve a completely new problem that has arisen.
The part of product innovation has been covered by the company by launching the two new
products i.e. Pepsi Black & Sting. The reason behind launching the Pepsi Black was that in
today’s health conscious time, people have been started focusing more on their health, so
they don’t want to drink any manufactured beverage which has high sugar contents in it. SO
keeping this a main agenda company had conducted a survey for this and decided to launch
a new product which will have zero or very low sugar and not putting any extra calorie to a
tippler.

 Technical Innovation: In terms of technical innovation VBL has launched an application

called SAMNA i.e. Sales Automation for New Age. It is an application which allows PSRs
(Pre-Sales Represented) of the company to create the orders from retailers online instead of
writing the orders manually for reducing the ambiguity while taking orders.

 Training Innovation: For Salesforce, Customer Success is all about putting customers first.
It means actively working to increase customer happiness, engagement, productivity,
retention and ultimate success. Training is an important element of success at all
organizations. Whether it’s introducing someone to a new job or skill; rolling out a business
Training is an important element of success at all organizations. Whether it’s introducing
someone to a new job or skill; rolling out a business process change; or, rolling out a sales
incentive plan, employees must have a strong understanding of their responsibilities in order
to reach goals and drive results. After understanding the training need company started a
training program for its frontline employees (Pre Sales Representatives and Customer
Executives) called “Startup Saturday”.
Process called “8 step of a call” runs for PSRs of the company so as to increase the
communication with the customers (retailers).
This “8 step of a call” process includes the 8 steps which are as follows:
• Preparation.
• Greet the customer (retailers).
 • Store check.
• Merchandising.
• Determine the order.
• Side debriefing.
• Administration.

 Market Development: Market development is a growth strategy that identifies and develops
new market segments for current products. A market development strategy targets non-
buying customers in currently targeted segments. The goal of market development is to
expand into untapped markets. These potential customer groups may already be served by
competitors or may not be currently marketed to by anyone for the product.
VBL has expanded its business by developing new market. It has started selling its current
products in the newly acquired sale units in the state Madhya Pradesh and Odisha of India.
VBL has also started two manufacturing plants in these Indian states. Now the total number
of sales unites of VBL is thirteen and the number of manufacturing plants including these two
new plants is twenty.

SUSTAINABILITY INITIATIVES BY COMPANY

Sustainable Development is: “Development that meets the need of the present without
compromising the ability of future generations to meet their own needs”. The concept was first
introduced in the so-called Brundtland Report, entitled “Our Common Future”.
Sustainable development is a concept that refers to development where emphasis is shifted from
short term economic gains to a more long term approach where there is balance between economic,
social, and environmental considerations. Sustainable development requires an integrated
approach to decision-making linking the economy, the environment, and society rather than a
piecemeal approach. Development of this type is a complex process of interaction between public
authorities, civil society, and the private sector. Sustainability has similar meaning as sustainable
development, but is used when the focus is narrower, such as sustainability within companies or the
sustainability of specific projects. VBL is also focusing on sustainable initiatives for its long growth
and has started this by initiating some programs which are as follow:
CONSERVATION OF ENERGY AND TECHNOLOGY ABSORPTION
The details of conservation of energy, technology absorption, foreign exchange earnings and outgo
are as follows:

a) Conservation of energy

The steps taken or impact on A multi-pronged approach is deployed in plants as well as products to
infuse the concept of energy conservation. Some of the energy
Conservation of energy conservation measures adopted across the Company were:
Use of frequency drive in ammonia and air compressor
which saves electric energy.
Heat recovery from hot compressed gases and used for
heating water. Beverage filling at higher temperature leading
to power savings in refrigeration. Replacement of CFL/FTL
lamps with LED lamps. Replacement of low efficiency pump
with energy efficient pump.

The steps taken by the Company The Company has successfully replaced the usage of Furnace oil and
for utilizing Pet coke by environment friendly Briquettes prepared from
alternate sources of energy agricultural waste

The capital investment on energy Investment in power factor improvement through Power Capacitor
conservation equipment’s
Banks.Installation of Solar Street lighting in Nuh Plant. Air recovery
system in Blow Molding Machine. Green Oven for Bottle Blowing
machine.
 (b) Technology Absorption

The efforts made The Company has adapted the technology to develop Products
offering better value for money to consumers and also address the
towards technology absorption current issues in the global scenario for energy efficiency, eco
friendliness and global warming.
The benefits derived like The Company continues to focus on the rapid Technological
product improvement, cost changes and train the manpower accordingly to improve the
reduction, product development productivity and drive cost reduction.
or import substitution
The expenditure incurred on Due to the nature of its business, the Company is not initiating any
specific research and development activities.
Research and Development

CSR ACTIVITIES BY THE COMPANY:

The Corporate Social Responsibility (CSR) Committee of the Company has been re- constituted
on April 27, 2016, whose composition, role, functions and powers are in accordance with the
requirements of the Companies Act, 2013. Presently, the CSR Committee comprises of Mr. Ravi
Kant Jaipuria as Chairman, Mr. Raj Pal Gandhi (Whole-time Director) and Mr. Ravindra Dhariwal
(Independent Director) as members of the Committee.
The Company has identified promoting health, education of underprivileged children and
conservation of water (by undertaking the recharge to groundwater in such a way so as to exceed
the limits stipulated by the Central Ground Water Authority), as area of engagement. The Company
would also initiate need based initiatives in compliance with Schedule VII to the Act. The
Company’s CSR activities primarily focuses in the areas of healthcare and sanitation, education,
gender equality, women empowerment, benefiting armed forces, and promotion of sports. In 2016,
the Company spent a total of INR 10.69 million towards CSR activities.
PURCHASE REQUISITION

A purchase requisition is a document used as part of the accounting process to initiate merchandise or
supply purchase. By processing a purchase requisition, appropriate controls can monitor the legitimacy
of a purchase, as well as identify the business need for the products. Purchase requisitions are very
common within government agencies as they will issue a requisition to authorize purchases and
expenditures. Purchase requisitions are formal requests submitted to the procurement department
for specific goods or services. They usually go through an approvals process that depends on the cost
or nature of the request. The Purchase Requisition is the procedural method by which departments may
request the purchase of goods and/or services which require processing by Procurement Services,
usually because of the dollar value, the nature of the purchase, or the type of goods and services.

PROCESS FOR A PURCHASE REQUISITION

A need is identified

The necessary
information is
collected

A decision on the
purchase is made
P a g e | 21

PURCHASE REQUISITION DOCUMENT

SUMMARY OF PURCHASE REQUISITION

PURCHASE ORDER

A purchase order is the official confirmation of an order. It is a document sent from a purchaser to
a vendor that authorizes a purchase. Purchase Orders generally include the name of the company
purchasing the goods or services, date, the description and quantity of the goods or services, price,
a mailing address, payment information, invoice address, and a purchase order number.

Purchase orders are used for several reasons:

1. They set clear Expectations: - Purchase orders enable purchasers to clarify their exact needs to
vendors. Not only does this help ensure that you get off on the right foot, but both parties can use it as
a formal check in case orders are not delivered as expected.
2. They help manage orders: - Many businesses designate certain individuals to manage inventory,
which typically includes processing incoming orders. Purchase orders give these individuals official
documentation of incoming or pending deliveries, enabling them to track and manage orders more
effectively.
3. They help with budgeting: - Once a purchase order is created, purchasers can immediately factor
these costs into company budgets. Businesses benefit from having clear records of exactly how much
money is being spent and where it’s going.

PROCESS OF PURCHASE ORDER

1. Purchaser creates purchase requisition: The purchase order process starts with a
purchase requisition, a document that is created by the purchaser and submitted to the
department that controls finances. Consider this the part of the process where you get the
thumbs up to purchase the goods and services you want.

2. Purchaser issues purchase order: Once the purchasing or procurement department has
approved the purchase requisition, it issues a purchase order to the vendor. In essence,
POs place the order. Purchase orders are typically created using electronic purchasing
systems like Purchase Control, which enable businesses to track POs and submit them
electronically.

3. Vendor approves, rejects, or submits PO for discussion: The vendor will review the
purchase order thoroughly, paying close attention to quantities, prices, total amount due,
and terms and conditions. Once the vendor approves the purchase order (usually via email
or using an e-procurement software), they prepare the goods or services to be delivered. If
they do not have an item that is being purchased or if there are other concerns with the
order, it is flagged and sent back to the purchaser for further discussion.

4. Purchaser records purchase order: The final step in the purchase order process consists
of the purchaser recording the PO.
Once these steps in the purchase order process are complete, the goods or services are delivered and inspected.
Thereafter, the vendor issues an invoice to the purchaser, payment is made, and the transaction is complete.

Request to
requisition

Supplier Invoice Supplier

Payment Selection

Goods Purchase
Receipt Order

Fulfillment