Gautam Buddha University: Submitted in The Partial Fulfillment of Integrated Mba
Gautam Buddha University: Submitted in The Partial Fulfillment of Integrated Mba
Gautam Buddha University: Submitted in The Partial Fulfillment of Integrated Mba
BY
ASHISH
16/IMB/008
SCHOOL OF MANAGEMENT
GAUTAM BUDDHA UNIVERSITY
2019
Declaration by Student
I am ASHISH Roll No 16/IMB/008 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
Date: …………………….
Place: ……………………..
This is to certify that ASHISHstudent of Integrated MBA VIIth Semester at School of Management, Gautam
Buddha University, Greater Noida has done a project work entitled “……….TITLE OF THE
Signature of Co-Supervisor
This is to certify that the project titled “……….TITLE OF THE PROJECT……………..” has been done
It is my proud privilege to express my deep gratitude and ineptness to all those who enabled me to complete
my project.
I would like to express my sincere gratitude and thanks to our beloved Mr SHIVANK GARG 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
1.1 Introduction
ORG. OVERVIEW
INTRODUCTION
The beverage industry refers to the industry that produces drinks, in particular ready to drink bev.
Beverage pdtion can vary greatly depending on the beverage being made. Mft Drinks.com explains that,
"bottling facilities differ in the types of bottling lines they operate and the types of pdts 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 bev, include: beverage plants, beverage processing, and
beverage packing.
The non-alcoholic beverage industry broadly includes soft drinks and hot drinks. Soft drinks contain crb
or non-crb 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 bev (LRBs).
PepsiCo is a global food and beverage leader with net revenues of more than $65 billion and a pdt 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 VBL, the group manufactures and markets crb and
non-crb 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 bev, 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)
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 pdts 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 bev, tea and coffee are
manufactured as well as exported heavily in the international markets succumbing to the individual
demands around the world.
Product Portfolio
Our portfolio of beverage pdts includes some of the best recognized PepsiCo trademarks in the world. Our pdt
portfolio includes CSDs and NCBs.
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
Our Mission
Being a Global, Growth Oriented and Profitable Org. by:
Offering best quality & refreshing pdt to every customer & consumer.
Being a preferred employer providing consistent growth path, respect & empowerment.
Creating value for our stakeholders by driving excellence in our operations.
Being responsible towards environment & society.
Our Values
We hold strong values in business and fully respect our customers, associates and community.
Our diversity and unity brings creativity to our relationships within our group, and to our associates.
We continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all
stakeholders by making economic value additions in all corporate functions.
STRENGTH:
Strong brand image
Broad pdt 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 pdtion and bottling of
the soft drink.
WEAKNESS:
No cost cutting program for the pdts.
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 pdt.
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
Pdt Innovation: Pdt innovation involves creating new pdts or improved versions of existing
pdts that increase their uses. This innovation can be in the pdt's own functionality, or it can
take the form of new technology. However, we can't introduce just any new pdt. This new pdt
must solve an existing problem in a new and exciting way. Or the pdt needs to solve a
completely new problem that has arisen.
The part of pdt innovation has been covered by the company by launching the two new pdts
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
pdt which will have zero or very low sugar and not putting any extra calorie to a tippler.
Training Innovation: For Salesforce, Customer Success is all about putting customers first.
It means actively working to increase customer happiness, engagement, pdtivity, retention
and ultimate success. Training is an imp element of success at all Org.s. Whether it’s
introducing someone to a new job or skill; rolling out a business Training is an imp element
of success at all Org.s. 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 Dev: Market Dev is a growth strategy that identifies and develops new market
segments for current pdts. A market Dev strategy targets non-buying customers in
currently targeted segments. The goal of market Dev 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 pdt.
VBL has expanded its business by developing new market. It has started selling its current
pdts in the newly acquired sale units in the state Madhya Pradesh and Odisha of India. VBL
has also started two Mft plants in these Indian states. Now the total number of sales unites
of VBL is thirteen and the number of Mft plants including these two new plants is twenty.
SUSTAINABILITY INITIATIVES BY COMPANY
Sustainable Dev is: “Dev 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 Dev is a concept that refers to Dev 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 Dev requires an integrated approach to decision-making
linking the economy, the environment, and society rather than a piecemeal approach. Dev of this
type is a complex process of interaction between public authorities, civil society, and the private
sector. Sustainability has similar meaning as sustainable Dev, 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:
a) Conservation of energy
The steps taken or impact on A multi-pronged approach is deployed in plants as well as pdts 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 Pdts offering
better value for money to consumers and also address the current
towards technology absorption issues in the global scenario for energy efficiency, eco friendliness
and global warming.
The benefits derived like pdt The Company continues to focus on the rapid Technological
improvement, cost reduction, changes and train the manpower accordingly to improve the pdtivity
pdt Dev or import substitution and drive cost reduction.
The expenditure incurred on Due to the nature of its business, the Company is not initiating any
specific research and Dev activities.
Research and Dev
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 pdts. 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
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.
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.
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
Goods Purchase
Receipt Order
Fulfillment
SALES AND MARKETING HIERARCHY OF
PEPSICO INDIA.
MUM
UM UM
TDM MDM
ADC MDC
CE ME
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
Org.s including operations, logistics, sales and distribution, marketing. The Unit Manager
reports to the MUM.
TDM - Territory Dev 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 pdts and incentives for salespersons. He is also responsible for cost
effectiveness, profit generation and profit maximization within the territory.
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 imp asset for the company as they are the ones who sell the pdts, 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 pdt 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.
PDTI ON PROCESS
The process of manufacture of Aerated water (soft drink) like Pepsi brand pdt is divided
into mainly five parts such as:-
1. Water Treatment
2. Syrup Making
3. Bottle Washing
4. Filling
5. Testing of Pdt
3. Bottle Washing: Bottle washing is an imp 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 wi t h
ci rcul ar c h a i n t o carr y t h e bottles. Caustic s o d a T r i -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 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. Filling: - 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 pdts are coded by a coding machine and
inspected properly by inspection light while passing through the conveyor where
finished pdt are accumulated enters to carat washer machine and it is washed
moves through the conveyor where finished pdt are accumulated. Then the pdts 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. Testing of pdt:- Finally the finished syrup during bottle is tested in laboratory
to meet the parameters and also to get a standard and quality pdts to maintain the
standard and information and uniformity in pdts the sugar contents and carbonation
in the bottle are checked in regular intervals by Brix- hydrometers, Refractometer
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 pdt and water used in syrup making and pdtion are also
done to ensure that the pdt is free from any bacteriologi cal c ont am i n at i on . To
conduct t he micro t est 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 draw electricity for the State Electricity Board the transformer is
used.
Thestepsinvolvedinthepdtionprocessare:-
First the fork lift supplies the empty bottles which are collected from the distributions.
Then Depalletizing 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 = Flavor
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 imp 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 amigo 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 (Systems, Applications, Pdts)
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.
Hierarchy of sap:-
Unite office
TDM territory
C.E area
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 pdt 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 cannot receive the out dated pdt and material.
Sap is a package which also contains aging, movement, order, accounting and payment and
closings. It also analysis the report.
MAJOR LEARNINGS
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. 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.
CONCLUSION
Completing this project as a part of integrated 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 found that it is not a glamorous job but still
it is a challenging job.
ABBREVIATIONS MEANING
Org Organization
Dev Development
Imp Imp
e.g. Example
Etc. Etcetera
Intro introduction
Mft Manufacturing
crb Carbonated
pdt product
bev Beverages
pdtion Production
REFERENCES
http://www.pepsico.com
http://www.google.com
http://pepsizone.yahoo.com
https://varunpepsi.com/overview/
www.wikipedia.com
MAGAZINES
BOOKS