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PEPSICO INDIA HOLDINGS PRIVATE LIMITED SUBMITTED BY: PURVESH J KANSARA GTU ENROLLEMENT NO.: 097710592005
SUBMITTED TO: SHRI M.H. KADAKIA INSTITUTE OF MANAGEMENT AND COMPUTER STUDIES (MBA PROGRAMME), ANKLESHWAR. AFFILIATED TO: GUJARAT TECHNOLOGICAL UNIVERSITY, ABAD GUIDED BY: MS. RASHMI GHAMAWALA, ASSISSTANT PROFESSOR, KIMCOS. FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION BATCH: 2009-2011
EXECUTIVE SUMMARY
In 1983, Caleb Bradham, a young pharmacist from New Bern, North Carolina begins experimenting with many different soft drink concoctions. Like many pharmacists at the turn of century he had a soda fountain in his drugstore where he served his customers refreshing drinks, which he created himself his most popular beverage was something he called Brads Drink made of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts. PepsiCo India is striding ahead rapidly towards enabling the global vision to be the worlds premier consumer products company focused on convenience foods and beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it provide opportunities of growth and enrichment to its employees, business partners and the communities in which it operates. PepsiCo is one of the multinational company having more than 500 brands in 200 countries. In India PepsiCo having 43 bottling Plants. At Jhagadia Pepsi has started its GRB plant in 1997, PET line in 2001, Aquafina in 2003, and PepsiCo has recently started its Slice line in 2010. In PepsiCo I have visited Human Resource Department, Finance Department, Production Department, Quality Control, and Dispatch and Logistic Departments. The companys Marketing Office is at Ahmedabad. I have selected the topic Comprehensive Study of Inventory Management as my special topic of Finance Department on which I have prepared a mini project including raw material inventories, work-in-process inventories, and finished goods inventories. This project gives the knowledge about inventory management and for that I have use different method like analysis of different techniques of inventory, analysis of inventories management system and control practice, practices of significant material usage, security system. This project gives the idea or knowledge about inventory management system of the organisation how they are keeping inventory, how they are dealing with the system. Ratio analysis of the company shows the financial position of the company of particular years. This way the project gives the theoretical knowledge about the inventory position of the organisation and overall condition of company in the history. Interpretation of various ratios related to inventory and operating cycle of the company are described hereunder in the report.
After going in the depth of the study I found that companys Inventory Management system is good and it enhance the companys overall wealth which fulfil Organization objective. This way the project gives the theoretical knowledge about the inventory position of the organisation and overall condition of company in the history.
TABLE OF CONTENT
PARTICULARS
A. ABOUT THE COMPANY 1) MISSION & VISSION 2) ORGANIZATIONAL VALUE 3) COMPANY HISTORY 4) COMPANY PROFILE IN INDIA 5) COMPANY BRANDS IN INDIA 6) MILESTONES B. DEPARTMENTAL STUDY C. ABOUT THE TOPIC D. MINI PROJECT TOPIC 1) SUBJCET OF THE STUDY 2) OBJECTIVE OF THE STUDY 3) TOOLS OF ANALYSIS 4) SCOPE OF THE STUDY 5) RESEARH METHOD E. FINDINGS & CONCLUSION F. LIMITATIONS G. SUGGESTIONS H. BIBLIOGRAPHY
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With increase expected in tourism, distribution and a changing lifestyle, bottled water is the one to watch in near future, with expected CAGR of 15% in trade volume sales growth.
Policy of the Company: Quality Policy: We shall deliver the best product in the: Market place. Highest quality. Biggest testing. Safety Policy:
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We shall design, construct, maintain & safe operate our plant so that they are safe for: The people working in the company. The assets of the company. The environment in & around.
2) ORGANIZATIONAL VALUES:
Our commitment is to deliver sustained growth, through empowered people, acting with responsibility and building trust.
Guiding Principles: This is how we carry out our commitment. We must always strive to: Care for customers, consumers and the world we live in.: We are driven by an intense, competitive spirit in the marketplace, but we direct this spirit towards the solution that achieves a win for each of our constituents as well as a win for the corporation. Our success depends on a thorough understanding of our customers, consumers and communities.
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Caring means going the extra mile. Essentially, this is a spirit of growing rather than taking. Sell only products we can be proud of. : The test of our standards is that we must be able to personally endorse our products without reservation and consume them ourselves. This principle extends to every part of the business, from the purchasing of ingredients to the point where our products reach the consumers hands. Speck with truth and candor. : We speak up, telling the whole picture, not just what is convenient to achieving individual goals. In addition to being clear, honest and accurate, we take responsibility to ensure our communications are understood. Balance short term and long term.: We make decisions that hold both short-term and long-term risks and benefits in balance over time. Without this balance, we cannot achieve the goal of sustainable growth. Win with diversity and inclusion. : We leverage a work environment that embraces people with diverse backgrounds, traits and different ways of thinking. This leads to innovation, the ability to identify new market opportunities, all of which helps develop new products and drives our ability to sustain our commitments to growth through empowered people. Respect others and succeed together. : This company is built on
individual excellence and personal accountability but no one can achieve our goals by acting alone. We need great people who also have the capability of working together, whether in structured teams or informal collaboration. Mutual success is absolutely dependent on treating everyone who touches the business with respect, inside and outside the company. A spirit of fun, our respect for others and the value we put on teamwork make us a company people enjoy being part of, and this enables us to deliver world-class performance.
3) COMPANY HISTORY:
PepsiCo India is striding ahead rapidly towards enabling the global vision to be the worlds premier consumer products company focused on convenience foods and beverages. PepsiCo India seeks to produce healthy financial rewards for investors as it provide opportunities of growth and enrichment to its employees, business partners and the communities in which it operates. Founder Mr. Caleb Bradham Year of foundation 1890 It was originally founded as a cure for Dyspepsia & now, its name PepsiCo soft drink. 1st plant setup in the year 1905 at America. In 1936 company earn $2 billion profit. Today its business is spread in more than 190 countries with 500 brands. In Gujarat PepsiCo has 1 plant. Pepsico India Holdings Pvt. Ltd. Plot No. 27, Gidc Estate Jhagadia, Dist. Bharuch-399110 Phone: (02645) 226139, 226140 Fax: (02645) 226138 1st company of PepsiCo in India was started at Jaipur (Raj.). In Jhagadia PepsiCo started first plant in 1997 with GRB (Glass Refilling Bottle). In 2001 PET (Poly Ethylene Tetracycline) was started. In 2003 AQUAFINA plant was started in Jhagadia. In 2010 SLICE separate plant was started in Jhagadia.
Establishment and Amendment: In 1983, Caleb Bradham, a young pharmacist from New Bern, North
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Carolina begins experimenting with many different soft drink concoctions. Like many pharmacists at the turn of century he had a soda fountain in his drugstore where he served his customers refreshing drinks, which he created himself his most popular beverage was something he called Brads Drink made of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts. One of Calebs formulations, known as Brads Drink, created in summer of 1893, was later renamed Pepsi Cola after the pepsin and cola nuts used in recipe. In 1898 Caleb Bradham wisely bought the trade name Pep Cola for $100 from a competitor from Newark, New Jersey that had gone broken. The new name was trademarked on June 16th 1903. Bradhams neighbour, an artist designed Pepsi logo and ninety-seven Shares of stock for Bradhams new company were issued. Investment: PepsiCo India and its partners have invested more than USD1 billion since the company was established in the country.
Employment: PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors.
PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as AquaFina drinking water, isotonic sports drinks Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.
PepsiCos foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat. It manufactures Lays Potato Chips; Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The companys high fiber breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, 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.
The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 43 bottling plants in India, of which 15 are company owned and 28 are franchisee owned. In addition to this, PepsiCos Frito Lay foods division has 3 state-of-the-art plants. PepsiCos business is based on its sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.
sustainability vision of making tomorrow better than today. PepsiCos commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers. Beverages PepsiCo Indias expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks Gatorade, Tropicana100% fruit juices, and juice based drinks Tropicana Nectars, Tropicana Twister and Slice. Local brands Lehar Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands.
Foods
PepsiCos food division, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of transfat and MSG. It manufactures Lays Potato Chips, Cheetos extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. The companys high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lays core products, Lays, 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.
6) MILESTONES:
In the year 1999 it wins Quality Assurance IQ award. In the year 2000 it wins award for 1 million hours without loss time accident. In the year 2000 it wins award for zero loss time accident. In the year 2000 it wins Pepsi Cola International Bronze Quality award. In the year 2001 it wins Pepsi Cola Beverages International Bronze Quality award. In the year 2001 it wins award for zero loss time accident.
Plant Detail: Location Plant Site Nearest City Year of Start up and Expansion Total Area of Plot Total Built up Area Max Coverage Allowed Green Blet Area : : : : : : : : 90 Kms from Baroda GIDC Mega Estate Ankleswar -12km from Plant GRE 1997 PET 2000 AF 2003 75766Sq Mtrs (18.7 Acres) 9570 Sq Mtrs 35336 Sq Mtrs 24529 Sq Mtrs
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Organizational structure:
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Company Head Detail: Mr. Chetan Thakkar (Plant Manager) Mr. Yashpal Jajodia (Finance Manager) Mr. Nilesh Borisa (Purchase Executive) Ms. Yamini Sinha (HR Manager) Mr. Zubair Shaikh (HR Executive) Mr. Chetan Panchal (Quality Head) Mr. Prashant Mujbaile (Manufacturing Manager) Mr. Amit Raina, Manish Fosi (Manufacturing executive) Mr. Anil Satpute (Shipping Head) Mr. Gaurav Rathod (Shipping Executive)
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B. DEPARTMENTAL STUDY
(1) PRODUCTION DEPARTMENT:
Structure of the department:
Manufacture Manager Maintenance Executive Utility Associate Production Executive Production Associate
Production department has to plan the production schedule as per the sales. Implementation of the item. Achieve the production target. Maintain quality with goodwill. Safety of machine. Organize the training programme.
Raw Material Used The used raw-materials are water, Sugar, Preform, Concentrate, CO2, Crown/closures, and Label.
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Product Specification Pepsi Colour Black Mirinda Colour Orange Mountain Dew Colour Off Green 7up Colour Like Water (No Colour) Aquafina Colour Water Slice Colour Mango Lehar Colour Like Water (No Colour)
Types of Material Handling Equipments Used Fork lift truck o 2 for shipping o 2 for production o 2 for sugar godown Chain conveyer (GRB LINE) Belt conveyer (PET LINE) Plastic chain conveyer (PET LINE) Air conveyer (PET LINE) Pumps (WATER TREATMENT) Roller conveyer (GRB & PET LINE)
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Function: picking the empty bottles & placing to some other place. Made By: kettner (Germany) Capacity: 39000 bph. Bottle Washer:
Function: bottle washing through 7 stages. Made By: kettner (Germany) Capacity: 39000 bph. Filler (GRB):
Function: picking bottles from conveyer & filling beverages into the bottles & also fitting crowns on bottles. Made By: kettner (Germany) Capacity: 36000 bph.
PROCESS Production process starts from unloading of the empty bottles from the trucks. These bottles are taken by fork lift trucks which send in the plant line. Carats from fork lift are put down on the surface area & than workers put on the roller conveyer.
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carats.
Uncaser Machine
Uncaser Machine keeps the bottle on the automatic conveyer belt from the
At once it pick up the 48 bottles from the 4 carats, on this belt 2 chips neck inspection points are set in order to remove any damage bottle after inspection are do going the further bottle process.
Bottle washer: (max-43000 bph) PreTank Jettin g Det.-1 Det.-2 WW-1 WW-2 CW Fresh
Caustic (%) Pressure (Kg) Temperature Internal Jets (No's) External Jets (No,s) Capacity (liters)
0.2 1.3 40
1 1.6 60-63
1.7 AMB
1 300
14600
1 21800
2 700
1 700
1 700
1 -
After bottle inspected bottles are goes to bottle washer. Prejeking: At this point the bottle is entering into the washer machine. At this time bottle is inwarded into bottles by the jobs. The dust washed in the prejecting 400 C temperature is maintaining the capacity.
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Detergent 1: In this stage the tank is filled with washer & this water contains detergent. At this stage minor dust or oiliness remove. Detergent 2: Bottles are passed through detergent-1 to detergent-2 tank. The capacity of detergent-2 tank is 21800 liters. Warm Water: The bottles are washed by the warm water at the temperature of 600-630. Here, bottles are sterilized & almost all microbes & bacterias are killed by warm water. Cold water: At this stage bottles are washed with cold water of 300-350 C. At this stage the temperature of the bottles is bought down to normal temperature.
Refilling Bottles:
Empty bottles are refilled, which are passed through bottles. Bottles come from 4 inspection stages, the GRB capacity is 36000 bph. 80 valves in the filling bowl. The capacity of the machine is 36000 bottles per hour. The empty bottles are picked up by the filling bowl & filling automatically. Then bottles forwarded for sealing machine, the bottles are sealed with the crown. After the bottles are sealed & crowned they pass through printing machine. Printing machine print the manufacturing date, time, price after this steps the bottles are ready to final inspection. In inspection identified: o Half fill o Full fill o Dirty bottles o Different crown
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Caser Machine:
Caser machine picked up 96 bottles & put into the carats then through conveyer belt; the carats are arranged into the pallets & then are arranged for fork lift truck into the finished goods godown.
PET LINE: Blow Moludar: Function: converting plastic performs into bottles of different size & shape. Made By: Sidel (France) Capacity: 10400 bph. Unscrambler: Function: picking bottles & placing it on air conveyer in upright position. Made By: Ianfranchi (Italy) Capacity: 500ml. (24000 bph) 1.5ml. (14000 bph) Filler (PET): 52 valves machine. Function: picking bottles from conveyer & filling beverage into it & also fitting crown on bottles. Made By: Krones (Germany)
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Capacity: 500 ml. (18000 bph) 1.5 liters (12000 bph) Labeler: Function: fixing labels bottles according to their size & type of beverage. Made By: Trine (New York) Capacity: 500 ml. (300 bph) 1.5 liters (250 bph) Carton Erector: Function: making cartoon boxes from sheets. Made By: Sermax (France) Capacity: 20 bph.
PROCESS PET line is a line of plastic bottle & its maximum capacity for 500ml. bottle is 18000 bph, for 1.5 litters its capacity is 12000 bph, and for 2 litters it is 9000 bph. The entire machine on PET line is imported & is purchased from the reputed foreign companies like: Sidel (FRANCE) Linker (POLAND) Para mix (GERMANY) Krones (GERMANY)
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Blow Moludar:
In blow moludar machine preforms are converted into PET bottles, capacity of this machine is 10400 bph. This machine is made by the Sidel (France Company) & price of this machine is 7 to 8 crore. Preforms are brought in HOPPER from to Blow Moludar machine through conveyer. The computer controlling the machine automatically and decides the temperature of oven. For controlling the temperature, sensor cameras are installed which measures the temperature. Camera checking is done after every 50 preforms. 8 models are set in blow moludar & converted into expected shape. Bottles are send to unscramble by air conveyer.
Unscrambler:
Main function is to store the bottle from BLOW MOLUDAR. Bottles are stored because it has two reasons: It needs large amount of PET bottles continually; PET bottles are stored in unscrambler machine. Blow moludar is a very high energy consumption machine, so electricity, cooling energy & continually air is required the unscrambler machine arranges the bottle on conveyer. Air conveyer takes the bottles into filling hall. The bottles are washed for one time because some dust is their.
Filler Bowl:
There are 54 valves in Pet filler bowl. Valves pick the bottle automatically. Syrup and CO2 are filled up automatically, stop automatically and after. This crown sealed done on the bottles.
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Warmer:
The bottle comes out from the filling halls which are very cold if these cold bottles are forwarded to the labeler then the label can not be fixed properly. The temperature of bottles is brought up to 200 to 250 C from 40 to 50 C.
This label is fixed in particular machine label. Machine has automatic of 250 bph for 500 ml. & 200 bph for 1.5 litres & 150 bph for 2.0 litres.
Different sized pet bottles are packed into different size boxes. 96 valves-500ml 48 valves-1.5litres 27 valves-2litres
Packaging Boxes:
The boxes are forward through conveyer & boxes are going towards boxes sealing station. Here boxes are sealing automatically & arranged into godown by the fork lift truck operator.
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Present Product Mix: Brand Name Pepsi Mirinda(orange) Mirinda(lemon) Slice 7up Lehar Aquafina Mountain dew 200ml. 300ml. 600ml. 1liter 1.5liter 2liter
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Anil Satpute (Head of Department) Dipak Trivedi (Co-ordinator) Guarang Rathod (Executive) Associates (3) Tusar Thakor (Executive) Associates (3)