Project Presentation on Pepsico India Holding Pvt. Ltd.

Guided By: Prof. Shweta Patil

Presented By: Mandar Yelikar

Introduction
Indias largest food and beverage business, PepsiCo India offers consumers a wide-ranging portfolio of enjoyable and wholesome products. Indian headquarters: Gurgaon, Haryana Position: 3rd largest consumer Products Company in India Employment opportunities: Directly and indirectly employs about 150,000 people Facilities: 36 bottling plants (13 company-owned; 23 franchisee-owned) 3 food plants Chairman & CEO: Manu Anand

Mission
Our mission is to be the world's premier consumer Products Company focused on convenient foods and beverages. We seek to produce financial rewards to investors even 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.

Vision
PepsiCo's responsibility is to continually improve all aspects of the world in which we operate environmental, social, economic creating a better tomorrow than today.
Our vision is put into action through programmes and a focus on environmental stewardship, activities to benefit society and a commitment to build shareholder value by making PepsiCo a truly sustainable company.

Beverages
PepsiCo Indias expansive beverage portfolio includes:

Iconic refreshment beverages: Pepsi, 7UP, Nimbooz, Mirinda, Mountain Dew, Low-calorie options: Diet Pepsi, Pepsi Max

Hydrating and nutritional beverages: Aquafina (drinking water),

Gatorade (isotonic sports drink) Fruit juices: Tropicana100% Juice-based drinks: Tropicana Nectars, Tropicana Twister, Slice Local brands: Lehar Evervess Soda, Dukes Lemonade, Mangola

Pepsico India Holding Pvt. Ltd, Paithan

Spread across 52.1 Acre At MIDC Paithan 50 Km, from Aurangabad Green belt of 19.4 Acre Lines in march 2009 PET 200BPM march 2003 GRB 660 BPM : Commissioned in Jan 2004 Juice 100BPM April 2004 Expansion in April 2006 Juice 160BPM :Commissioned in may 2007 : Commissioned in : Commissioned in

Central point in country

Outside Octroi limits

Facts
This organization was established in 2003. It is the largest cold drink plant in Maharashtra. This plant is committed to produce & supply safe & quality products to consumer. Pepsi plant with a view to add value to cold drink product has established most modern processing plant. Operations are controlled by qualified & experienced food scientists & technologists & also well trained operating team.

Inventory Management
Inventory management simply means the methods you use to organize, store and replace inventory, to keep an adequate supply of goods while minimizing costs. Keeping an inventory, or stock of goods, is a necessity in FMCG, due to its high consumption rate. Inventory represents one of the most important assets that most businesses possess, because the turnover of inventory represents one of the primary sources of revenue generation and subsequent earnings for the company's shareholders/owners

Store Department in Pepsico

Stores duties have been divided in three major parts:

1. RM/PM (Raw material & Packing Material) 2. Engineering Stores 3. SAP/Documentation

Raw Materials
RM includes all the raw data which is PM includes all the raw data to make the required to make final product, i.e. outer body, i.e. Sugar Concentrate ( different for different products) Pulp ( different for different products) Dextrose CO2 Packing Materials Crown Preform Carton Closure Sleeves Label

Types of Stores in Pepsico

For different raw materials there are separate stores. 1. Engineering Stores 2. Warehouse I 3. Warehouse II 4. Warehouse III 5. Chemical Room 6. Sleeve Store

7. Sugar Godown
8. Cold Storage 9. Concentrate Room 10. Salt Room 11. MIDC Water Storage

Yield Calculation of Inventory in Pepsico

Inventory cant be used hundred percentages, so the head office provides Annual Operating Process (AOP) to each holding company. This AOP defines that what the minimum level of usage of inventory is. AOP differs with respect of the different types of the raw materials.

For calculating AOP we should have, AOP= Theoretical Consumption X 100 Actual Consumption Actual Consumption = {Total Opening Stock (main stock + production stock) + Receipt + Stock transfer in/out} {Closing Stock (main + prod)}

Theoretical Consumption = Standard consumption per unit case Lack of yield = AOP Current yield

Yield Calculation of Sugar

Months AOP Actual Consumption Theoretical Consumption Yield Diff.

JAN
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

98.90
98.90 98.90 98.90 98.90 98.90 98.90 98.90 98.90 98.90 98.90 98.90

0.00
7,82,010.02 11,13,331.62 13,81,344.58 10,92,492.30 3,24,517.76 2,13,829.94 2,59,207.75 3,90,772.25 5,02,427.22 5,83,005.81 4,44,532.97

26,06,271.60
7,75,344.08 11,03,118.09 8,49,949.29 10,80,379.89 3,02,219.65 2,11,598.77 2,57,279.23 3,86,463.11 4,96,245.56 5,73,755.00 4,35,014.55

0.00
99.15 99.08 61.53 98.89 93.13 98.96 99.26 98.90 98.77 98.41 97.86 0.25 0.18 -37.37 -0.01 -5.77 0.06 0.36 0.00 -0.13 -0.49 -1.04

Trend Graph of Sugar yield

120.00 100.00 99.08 98.89 93.13 98.96 99.26 98.90 98.77

98.41

97.86

80.00

61.53 60.00

AOP Yield

Linear (AOP)
Linear (AOP) 40.00

20.00

0.00
MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Findings
Store department is one of the most important functions in a company, as it helps in continuous running of production. The following findings have come to focus: Inventories should be dealt with high caution. As wrong handling may act as the increase in processing cost of the product. Safe and sound environment is maintained in Pepsico for all the inventories. LINEWISE STOCK KEEPING is a powerful way to keep all the inventories. Continuous flow of raw material to production is maintained very well by the company. SAP/excel and other documentation is been kept very well in Store department like SAP & excel is updated daily etc. At the end of each month when closing is done, entire raw material is carefully judged as per their monthly productivity.

Yield calculation is done at the end of each month by carefully observing all the SAP data and Excel stock. This indicates the exact consumption of raw materials. Yield Calculation helps in keeping raw material safe and consumption up to the mark. This decrease the wastage of inventories. Although the documents are maintained very carefully, but still there were some errors in documents, like the entries in the month of January & February 2011 where not up to the mark.

Suggestions
A specialized system (automated / technical) has to be managed wherein due maintenance of records are to be managed for future support, Accuracy is very necessary while calculating Yield, so the data should be maintained with due diligence, AOP is given on yearly basis, but it can be different for different month. As the difference is seen in the trend of yield in peak season. So, different AOP for different months should be provided. Pallets which carry the bottles are only used in two floors, as they are wooden. But metallic pallets and better carton can make a three floor storage, which will increase space by 125%. Write off is done with a very long process, which adversely affects the productivity of the organization. Like Pepsi Max Raw material is was keep for almost 2 year without any use. These useless materials occupy space. Sugar is a sensitive raw material so it should be kept carefully.

Thank you