Report Beverage

8/2/2019 Report Beverage

http://slidepdf.com/reader/full/report-beverage 1/34

Report By: Er. Binod Pandey

www.binodpandey.wordpress.com

Table of Contents

A. RECOMMENDATION .................................................................. Error! Bookmark not defined.

B. ACKNOWLEDGEMNT ................................................................. Error! Bookmark not defined.

C. PREFACE ..................................................................................... Error! Bookmark not defined.

D. INTRODUCTION ........................................................................................................................ 2

I. Historical Background of beverage........................................................................................... 2

II. Types of beverages ............................................................................................................... 2

III. Scope of beverage industries; .............................................................................................. 4

IV. General objectives: ............................................................................................................... 5

E. METHODOLOGY ........................................................................................................................ 6

I. Search strategy ......................................................................................................................... 6

II. Information sources ............................................................................................................. 6

III. Objectives of project: ........................................................................................................... 6

IV. Primary and secondary data collection; ............................................................................... 7

V. Rational of study; .................................................................................................................. 7

F. ANALYSIS; ................................................................................................................................. 7

I. Specific objectives in Nepal. ..................................................................................................... 7

II. Production: status and issues ............................................................................................... 8

III. Demand: status and issues ................................................................................................. 12

IV. Supply: status and issues .................................................................................................... 12

V. Financial aspects. ................................................................................................................ 13

VI. Managerial aspects: status and issues ............................................................................... 18

VII. Engineering and technical aspects: .................................................................................... 19

VIII. Health and beverage products: .......................................................................................... 25

IX. Environmental and ecological aspects: .............................................................................. 26

X. Social aspects: ..................................................................................................................... 30

G. FINDINGS: ............................................................................................................................... 31

H. RECOMMENDATION: .............................................................................................................. 32

I. CONCLUSION: ......................................................................................................................... 33

J. REFERANCE ............................................................................................................................. 34



2

A. INTRODUCTION

I. Historical Background of beverage

Beverage has an ancient history. This concept was developed since the beginning of the

16th century. Human desires increases with increase in civilization and development. Man is

not satisfied with food he eats, but he desires some flavors and new taste. He desire

refreshment when he eat and drinks. This has given birth to the beverage products. Finally,

Beverage products have been a part of civilization in the human society.

II. Types of beverages

Beverage can broadly classified as

a. Non- Alcoholic and

b. Alcoholic

a. Alcoholic beverages

Alcoholic beverages that have lower alcohol content (beer and wine) are produced by

fermentation of sugar- or starch-containing plant material; beverages of higher alcohol content

(spirits) are produced by fermentation followed by distillation.

Beer

The process of making beer defines the finished product. Beer involves a short

(incomplete) fermentation process and a short aging process (a week or two), typically

resulting in an alcohol content of 4% – 6% ABV. Beer is a naturally carbonated beverage.

Wine

Wine involves a longer (complete) fermentation process, and a relatively long aging

process (months or years -- sometimes decades) resulting in an alcohol content between 7-



3

18%. Sparkling wine is generally made by adding a small amount of sugar before bottling,

which causes a secondary fermentation to continue in the bottle.

Spirits

Spirits contain at least 20% ABV. Liqueurs are characterized by the way in which their

flavors are infused and typically have high sugar content.

b. Non-Alcoholic beverages

Non-Alcoholic beverages that have nil alcohol content are produced by addition of

water as most efficient component

Carbonated soft drinks

A carbonated drink is a beverage that has carbon dioxide dissolved in it under certain

conditions. The content of carbon dioxide in carbonated drinks (times of volume at 20 degrees

Celsius) is no less than 2.0 times. This does not apply to drinks that produce carbon dioxide by

fermentation.

Bottled water

Bottled water are the most essential form of beverage that require less attention for

marketing but much attention for water treatment. There are various methods of water

treatment available, such as coagulation, ion-exchange, reverse osmosis, chlorination and

filtration. Coagulation is the most commonly used form of treatment but due to economies of

space and efforts to maintain an easily automated plant, ion-exchange is also showing itself to

be a very adaptable and popular process.

Tea and coffee

Tea and coffee is unnoticed sector of the beverage that has its base in the historic era. If

cared properly the industry can florist with its all effort and can even hold the good part of

Nepalese economy. Basically eastern part of Nepal is perfect for the tee and coffee production.

Tea and coffee can be used as the cash crop in Nepal. Sloped terrains that are unsuitable for

other crops can be used as the area for the production of tea and coffee. Thus, Tea and coffee

production have good scope in Nepal.



4

Fruit Juice

Fruit juice industry is the easiest industries from the production point of view as

component for production of juice arrive in Nepal in Powder form. Only thing done in Nepal is

mixing with water and packing in attractive packs or bottles. Juice industries’ major problem iswater purification and tight competition with rival industries.

III. Scope of beverage industries;

Beverage covers a wide range of liquor and drinks. so beverage industries is a big

industry associated directly with the public’s food and drinking habit.

Today’s consumers are more or less health conscious and equally needs the refreshment

in their daily life. Beverage products are basically for the refreshments and enjoyments from

the daily drinking habit. People also want their health upgrade or in proper condition while

they enjoy or refresh themselves by drinks. And many of the beverages have fulfilled this

demand though some alcoholic drinks are not good for health. So, beverage industries and their

products has been an inevitable essence of modern society.

Traditional drinks like tea, coffee and traditional wines are taken the symbols of human

civilization and they are being used in almost every society around the globe from the very

ancient periods. These drinks are the part of our daily drinking habit. Non alcoholic soft drinks

and alcoholic hard drinks are the modern concept of drinking habit which is used all over the

world in very wide range. These all type of drinks has been a civilization symbol today. This

signifies the scope of beverages industries and their product.

Fluid intake is very essential for health. Water makes up the 70% of body’s weight and

contributes towards many of the bodily function. Vitamins and minerals are equally important

for good health. The beverages like juices and soft drinks, mineral waters are designed to

upgrade the health of the consumers while providing the refreshment as they consist vitamins

and minerals. Hence these all symbolize the scope of beverage industries and their products.



5

IV. General objectives:

The general objectives of beverages industry can be as follows:

1. To provide refreshment without degrading the health of the consumers.

2. To provide flavor and taste while using the beverage products.

3. To provide clean, pure and hygienic products to the consumers.

4. To help in development of the economy of the country.



6

B. METHODOLOGY

I. Search strategy

Names and location of different beverage industries throughout the country were

collected from the department of industries, government of Nepal. Some of the industries

within the capital were visited to study their general status and issues.

II. Information sources

The basic information sources are;

1. Department of industries, government of Nepal.

2. Federation of Nepalese chamber of commerce and industries, teku.

3. Bottlers Nepal, balaju.

4. Varun beverage pvt. Ltd.

5. Aqua Nepal

6. Chaudhary group of industries, FUDCO complex, Bhaisepati, lalitpur.

7. Different websites.

III. Objectives of project:

The objectives of the given project are to get the knowledge about:

1. Demand, supply and production status of different beverage within the country.

2. The issues of different beverage industries within the country.

3. The level of consumer satisfaction due to beverage product in Nepal.

4. Engineering practice including safety engineering in the beverage industries in Nepal.

5. Environmental and ecological aspects of beverage industries in Nepal.

6. Social interaction status of beverage industries in Nepal.

7. Health and wellbeing consideration of beverage industries in Nepal

8. Public awareness about beverages in Nepal.

9. The governmental rules and policies regarding the beverage industries.



7

IV. Primary and secondary data collection;

Different beverage industries within the valley like bottlers Nepal, varun beverage,

Aqua Nepal and Chaudhary group of industries FUDCO complex were visited to get the direct

information about their status and issues.

Federation of Nepalese chamber of commerce and industries (FNCCI), Department of

industries government of Nepal, different libraries and websites are the other important sources

for secondary data collection during the course of preparation of this report.

V. Rational of study;

This report posses general status and issues of the beverage industries in Nepal. Due to

the lack of good information sources and easy access to them, the depths of subject matters are

limited to a general level. Anyway the report covers the objectives of our mini project as far as

possible. Some of the views and ideas are generated during the course of preparation. Many of

the practical procedures and organizational structures of beverage industries have been

understood during the course of study. These all has helped us to understand the beverage

industries and their status and issues in Nepal.

C. ANALYSIS;

I. Specific objectives in Nepal.

Beverage industries in Nepal have the following specific objectives to run the industry;

1. To meet the demand of different beverages within the country.

2. To mobilize the local resources during production.

3. To provide employment opportunities to the people.

4. To make profit and to gain goodwill of the company within the country.

5. To consider the issues of upgrading of health while providing the refreshment to the consumers

through the drinks.

6. To help in growth of country’s economy



8

II. Production: status and issues

Production refers to the creation of consumable beverages by processing the raw

materials. Production is based on the demand and supply status within the market boundary.

Production of carbonated soft drinks;

A carbonated soft drink is the beverage that has carbon dioxide dissolves in it under

certain conditions. Water is always the major ingredient and represents approximately 86% of

a carbonated drink. Soft drink ingredients can be divided into two categories:

1. Food substances such as fruit, fruit juice, sugars and starches, which can be used without

limit and do not have an E number.

2. Additives, for example a sweetener or a preservative. Additives are defined under the Nepal

food law and consumer protection acts.

The general procedures followed in preparation of soft drinks are as follows.

Water is pumped out of the bore well and then goes to raw water storage tank. The

water there is allowed for coagulation by adding some coagulating substances and then it is

filtered. Filtered water is passed through U.V. Rays to free it from germs. Then after by

polishing it, it is taken to the production plant. The production plant conducts the work of

making the water carbonated, mixing the carbonated water with the syrup, and then filling

the bottles after cleaning them. The filled bottles are also capped, leveled and dated by the

plants. Finally the bottles are cased and supplied out.

(With special reference to Bottlers Nepal pvt. ltd. and Varun beverage pvt.ltd.)

There are three soft drink manufacturing companies in Nepal. Varun beverage, bottlers

Nepal in Kathmandu and bottlers Nepal in terai. These all companies are multinational

companies.

Bottlers Nepal is a company which which has its factory setup in two parts of the

country. One is in the Kathmandu and the other is in the terai region. This company is working

under the coca cola company of USA. It holds the big market share about 80% in case of soft

drinks in Nepal. It brings its most of raw materials from Egypt. Its production rate is 430



9

bottles per minute for 200 ml small glass bottles and 100 bottles per minute for 1.5 litters big

plastic bottles. The major products of Bottlers Nepal are cocacola,fanta,.................. bottlers

Nepal has been the one of major industries in Nepal in term of production.

Varun beverage is the other major industry producing the soft drinks in nepal. It holdsabout remaining 20% market share of soft drinks. It has got a single factory setup in Nepal and

is located in Kathmandu. Varun beverage is also a multinational company and is working

under the pepsicola international of USA. It also brings its raw materials from outside the

country. It brinks mango pulp from the India for the production of its very popular fruit product

slice. The main products of varun beverage are Pepsi, mountain due,Miranda,slice,and soda

water. Its production rate is 15000 liters per hour. So it has also been the major industry in

production of soft drinks.

Production alcoholic hard drinks:

An alcoholic beverage is a drink containing ethanol, commonly known as alcohol.

Alcoholic beverages are divided into three general classes in accordance to their production

and the constituent substances: beers, wine, and sprits.

The names of some beverages are determined by the source of the material fermented.

In general, a beverage fermented from a starch-heavy source (grain or potato), in which the

starch must first be broken down into sugars (by malting, for example), will be called a beer. If

the mash is distilled, the end product is a sprit. Wine is made from fermented grapes. Brandy

and wine are made only from grapes. If an alcoholic beverage is made from another kind of

fruit, it is distinguished as fruit brandy or fruit wine. The variety of fruit must be specified, as

(for example) "cherry brandy" or "plum wine."

Beer is generally made from barley, but can sometimes contain a mix of other grains.

Whisky (or whiskey) is sometimes made from a blend of different grains, especially Irish

whisky which may contain several different grains. The style of whisk(e)y (Scotch, rye,Bourbon, corn) generally determines the primary grain used, with additional grains usually

added to the blend (most often barley, and sometimes oats). As far as American whiskey is



10

concerned, Bourbon (corn), and rye whiskey, must be at least 51% of respective constituent at

fermentation, while corn whiskey (as opposed to Bourbon) must be at least 81% .

Two common distilled beverages are Vodka and Gin. Vodka can be distilled from any

source of agricultural origin (Grains and Potatoes being the most common), but the maincharacteristic of vodka is that it is so thoroughly distilled as to exhibit less of the flavors

derived from its source material. Gin is a similar distillate which has been flavored by contact

with herbs and other plant products — especially juniper berries, but also including angel root,

licorice, cardamom, grains of paradise, Bulgarian rose petals, and many others.

Apple jack is an example of a drink originally made by freeze distillation, which is easy

to do in cold climates. Although both distillation and freeze distillation reduce the water

content, they are not equivalent, because freeze distillation concentrates poisonous higher

alcohols rather than reducing them like distillation.

(with special reference to Himalayan distillery pvt.ltd.)

The most successful hard drinks producing industries in Nepal like Himalayan distillery

uses the latest available technology. The industry has the setting of the most efficient

fermentation based alcohol production plants using different feed stocks. The fermentation unit

is based on the highly successful SSUPF (Simultaneous Saccharification Yeast Propagation &

Fermentation).This principle improves the fermentation efficiency by minimizing the chances

of contamination during the process.

The fermentation section has been designed to process various feeds, like grain, starch,

molasses, etc., to produce ethanol, with high fermentation efficiency and low concentration of

congeners.

The plant consists of a substrate preparation section where grain, molasses etc. are

treated suitably. Molasses is clarified to remove sludge, gums etc. to improve fermentation

efficiency and reduce fermentation time. Grain undergoes size reduction, cooking and

liquefaction processes converting the starch in grains to sugar, which is subsequently

fermented.



11

All the fomenters are made of top quality food grade Spanish stainless steel and all

critical equipment like Jet Cooker, Hammer Mill, Pumps, etc. have been sourced from the best

suppliers in the USA. The fermenters have been provided with a cooling system based on

Vapor Absorption Cycle to increase efficiency while simultaneously reducing congeners.

The distillation unit has been designed to produce the super neutral spirit of the highest

international standard. The plant consisting of thirteen columns has been designed to produce

best quality alcohol with high distillation efficiency and low percentage of impurities cut. The

plant is capable of producing 20,000 liters. of super silent spirit every day.

The plant design is based on the principle of Extractive Distillation, which is

universally accepted as the best method to produce most pure super silent spirit. Only selected

plants in the world have used this concept of design, and the technology is closely guarded.

The 13 columns continues distillation plant design is based on the valuable data gathered by

Mr. Vijay K. Shah, through research and experimentation over the years.

Himalayan Distillery Limited offers the largest range of premium alcoholic beverages.

Its collection includes instantly recognizable brands such as Royal Stag, Ultimate Gin, Russian

Vodka etc. complemented by a broad range of local, regional and specialty brands from around

the world.

Himalayan Distillery Limited has every kind of alcoholic products which suiteveryone's budget. It has premium brands, medium brands and cheaper brands of all varieties

like whisky, vodka, rum, brandy or gin.

While constructing this distillery, paramount important has been given to selecting the

best quality equipment with the sole aim of producing alcoholic beverages of superfine grade,

making them the benchmarks of quality in the market.

It has entered into a technical and marketing support agreement with The Seagram

Company Limited, which markets and distributes about 100 beverage alcohol brands

throughout more than 190 countries and territories. It has premium alcoholic beverages from

Seagram which are one of the most popular brands in the Nepalese market.

Production of other beverages



12

The other kinds of beverages produced in Nepal include Bottled mineral water and ice,

fruit juices, dairy beverages and Coffee and Tea. These products also consist a great part of

total beverage production in Nepal.

III. Demand: status and issues

The demand of beverage in Nepal is basically depends on the seasonal factors.

Beverages like soft drinks are very dependent on the seasons. The hot seasons are likely to be

favorable for the carbonated soft drinks. April may, and June is the month which covers 41%

of the total volume of production and the rest 59% in remaining 9 months. The alcoholic drinks

like hard drinks and beers are likely to have more demand in the coder seasons. Moreover the

soft drinks and alcoholic beverage also receives the higher demand in the festivals and the

occasions. The demand of mineral water and juices, tea and coffee is independent of the

seasons and they have higher demand independent of time as the population is growing higher.

According to the bottlers Nepal, for the current market, there is demand of about one

core cases of carbonated drinks per day if it is considered a average demand with in Nepal.

Demand of the almost all type of drinks depends on the place to place and its day to day

climate. We have higher demand of almost all type of beverage where the population is dense

and in most of the tourist area. Especially in different cities like Katmandu, Pokhara,

Biratnagar etc. The common beverage like tea, coffee has similar demand in almost all parts of the country. All the beverage companies are trying to create higher demand by the means of

advertising through adds in television, radio and newspaper. Also providing awareness about

their beverage products and there use throughout the country. Some company is also involved

in some social and public programs to interact with their consumers directly

And promoting their products during the interaction. Anyway the demand of all types

of beverages is growing higher day by day and the industries relating to the beverages are able

to meet this demand.

IV. Supply: status and issues

The supply of beverage is basically dependent on the demand and production of the

beverage products. The volume of supply is always greater when the demand is greater. The



13

common procedures followed by almost all the beverage industries in Nepal for the supply of

their products is as follows,

After the production, the products goes to the plant were house. From the plant

warehouse it is then supplied to the distributor warehouse. Again from the distributorwarehouse it is supplied to the retailer and finally from the retailer to the consumers.

Storage facilities, market centers, weighing facilities, and transport and communication

systems form the basic infrastructure essential to beverage industries. Inadequate infrastructure

has resulted in high transportation costs, high spoilage and wastage, and a lack of awareness,

and inability to exploit market opportunities.

The overall demand and supply relations of beverages can be judged on the basis of the

tree A. Availability, affordability, and accessibility. The most of the business and city centers

are the places where the availability of the beverage drinks is most. People living in these

places can afford for the price of beverage drinks. People are accessible to the any kinds of

beverage products at these place because of the good means of transportation. Advertisements

about the beverage products at places are easy. That’s why these place have the good demand

of the beverage products and the supply to these place seems to be higher. Consumers

affordability on the beverage products also depended on the economic conditions and social

and religious status of the general public’s. The supply of the beverage products is higher to the

consumers who are familiar with the products.

V. Financial aspects.

Nepal does not attract much foreign direct investment (FDI) in spite of policy. Reforms

initiated in the early 1990s to attract it. This is partly because a small, least developed,

landlocked, mountainous country has little to offer to investors. Nevertheless,

the investment on beverage industries seems to be in good condition. The investment

on the beverage industries in Nepal is both the local and foreign investments. The leading

industries relating to soft drink like Bottlers Nepal and varun beverage and industries

producing alcoholic drinks like Himalayan distilleries pvt.ltd are a part of multinational

companies operating in Nepal. These companies are based on the franchise operation of the



14

multinational companies. The industries like Aqua nepal,chaudhary group of industries etc.are

based on the local investment but many of them use the foreign technology.

The industries relating to the beverage products in Nepal has been a major part of

Nepalese economy. Linkages between foreign investors and the linked Nepalese enterprisesdealing with the beverage products have also been mutually beneficial. The former can benefit

from low-cost supply of inputs and specialization in the production of final beverage outputs.

The local suppliers receives an assured market within the country. This helps them increase

their output and employments. They are likely to receive technical advice from the foreign

investors, who have a strong interest in the high quality of the supplies they procure. In view of

the data limitations it is not possible to generalize about the extent to which linkages actually

exist between foreign-invested beverages related enterprises and the local suppliers or the kind

of benefits gained by them. There is, however, for the cases of all the beverage industries, the

linkage effect has been strongly positive for the Nepalese economy.

The contribution all the beverage industries for employment in Nepal are particularly

significant. For example, there are more than 500 workers in Bottlers Nepal and around 270

staffs in Varun beverages working in the factory only. There are many staffs working in the

marketing of the products of these companies. Similarly the big companies like Himalayan

beverage pvt.ltd and other small distilleries like aqua Nepal has given the employment

opportunities to the huge mass of the Nepalese people. The following table shows the

approximate data of the people employed directly in the beverage industries (in production site

or factories) in the year 063/064.

INDUSTRIAL PRODUCTS NO. OF INSDUSTRIES APPROXIMATE EMPLOYMENT

BEER 5 715

SOFT DRINKS 3 982

LIQUOR 8 6512

Source: Nepal and the world a statistical profile 2007.

The Industry Volatility refers to the year on year fluctuations which occur in industry

outputs of beverage products. The Globalization gives an indication of the extent to which the

industry is global based on factors such as the level of foreign ownership, the proportion of



15

demand accounted for by foreign operators and the volume of production conducted in other

countries.

Most foreign investors of beverage industries will wish to conclude agreements for the

transfer of technology in the production of beverages products as an integral part of theiroperations. These include agreements for the use of intellectual property for management,

marketing and other services from abroad. All such agreements require approval under

procedures through the Ministry of Industries. It is not clear what objectives the requirement

for government approval is meant to serve in cases of beverage industries. Perhaps one

objective is to protect local service providers and the local investors.

The principal taxes that impact on business are income tax, customs duties, excise and

value-added tax (VAT).All the beverage industries are bound to these taxes.

VAT is not incorporated in the analysis because a correctly administered VAT falls on

the consumer and is not a tax burden on business.

Commercial law. Company and allied laws are barely adequate for business purposes.

They do not compare with accepted international standards. For example, dissolution of

corporation can be affected in certain circumstances, but there are no provisions for

reorganization. Also absent are laws on secured transactions.

Accounting standards. Nepal has not adopted international accounting standards, and

these do not appear to be a requirement even for listed beverage companies. Many foreign

investors like Coca-Cola and Pepsi cola international will of course use international standards.

As and when Nepal enters the mainstream of international financial transactions, it may

become necessary to adopt international standards for all the beverage industries in Nepal.

There was less variety in the weaknesses with a large number of firms related with the

beverage industries. Weakest elements of Nepal’s beverage business environment were

political instability and the lack of security (both industrial and personal).But these conditions

are improving to better. Corruption, lack of clear governmental policy and guidelines and the

poor implementation of policy also have been the major disturbance in further investments and

broadening of the beverage industries. Nepal's legal framework was criticized by many



16

beverage related firms, with specific examples including Nepal's labor laws, its lack of

intellectual property rights legislation and unsystematic application of law. The tax framework

was also criticized by the industries and firms relating to beverages products.



17



18

VI. Managerial aspects: status and issues

Every beverage industry has got an appropriate system of management. The system

includes all the aspects that work form day to day operation of the industry to the future

planning and market research. The management pays its all attention to the demand, production

and supplies and the parameters related to these aspects. It governs and mobilizes the

manpower and resources efficiently and effectively.

Human resource management in beverage industries:

(Special reference to Bottlers Nepal pvt.ltd and Himalayan distillery pvt.ltd)

Basically, manpower in beverage industries has been found divided into four

categories. Highly skilled, skilled, semiskilled and non-skilled. The top level managing

committee and the engineers, researchers etc, are considered as the high skilled manpower. The

technicians and the highly trained personals (specialists) are categorized as the skilled

manpower. The general manpower that has got the knowledge and simple skills to assist the

day to day works are semiskilled manpower. And the manpower that can use only their

physical strength to conduct the various works in the factories (labors) is treated as the non-

skilled manpower.

Most of the beverage industries in Nepal have got the training provision to all almost

every manpower before they are executed to the definite work. This is done to increase

manpower efficiency and to make the workers familiar with the industrial safety. The work

divided to the each level is processed by the manpower in each unit or departments. The

division of working manpower is done accordance to the people plans executed by the

management committee. The upgrading and promotion of the workers are done with the

evaluation of key performance indicator (KPI).

The research and development unit:

The management recognizes and fully appreciates the role of in-house research and

development. Sophisticated laboratory facilities are being provided to carry out the required



19

analytical work for ensuing quality products and generate reliable data for future development.

So this is the other important aspects of management. Most of the beverages industry in Nepal

has got this unit.

Governmental policies for overall management of beverage industries in Nepal:

Government has made some of the policies for the better management of beverage

industries within the country. Some of the policies include EIA and IEE.

Industries requiring EIA report (Environmental impact assessment report);

Distillery works which include boiling and fermentation with the production rate capacity

of over 500,000 liters per day.

Brewery works which include boiling and fermentation with production capacity of over

500,000 liters per day.

Industries requiring IEE (Initial environmental examination) report:

Alcohol manufacturing by blending process and distillery works which include boiling

and fermentation with capacity up to 500,000 liters per day.

Brewery and wines works which include boiling and fermentation with the capacity up

to 500000 liters per day.

VII. Engineering and technical aspects:

Every industry has got its own technical aspects and procedures followed for the

production. The plant and equipments are the basis of any manufacturing industry like

beverage industries. The Technology and Systems section acknowledges the latest technology

and/or systems available to this industry within the country. Technology refers to machinery

and equipment and systems refers to methods of production that enable better and more

efficient production. Therefore engineering and technical aspects of the beverage industry is

the important part to understand the status and issues of the beverage industry.

The various units and the systems prevailed in Nepalese beverage industries are

discussed below:



20

Maintenance engineering in Beverage industries:

The most of beverage industries in Nepal are likely to follow the maintenance

engineering management procedures and system to keep their plants and equipments in the

industry in proper working condition. The company likes Bottlers Nepal pvt. Ltd is found toinvest almost 5% of their total budget in their regular repair and maintenance activities. All

types of maintenance system like preventive maintenance, predictive maintenance, protective

maintenance and reactive maintenance are followed in the Nepalese beverage industries. The

proper maintenance system is one of the good aspects of beverage industries in Nepal and has

resulted to maintain the productivity, Quality, reliability and maintainability in the beverage

products.

Most of the beverage industries in Nepal have their workshop and maintenancedepartment which actively participate in regular repair and maintenance. The maintenance

department is also like to have documentation about each plants and equipments and their

component. The documentation like plant/equipment records and history card has been used

for easy access to each plant and equipment for maintenance.

General tools and equipments:

Some of the plants, tools and equipments are found common in almost all the types of

beverage industries. The common parts or equipment are:

1. Conveyors

2. Wrapping machines

3. Drinks processing machinery

4. Cartooning machines

5. Roll plant

6. Mixers

7. Drinks labeling /marketing Machines

8. Bottling machines



21

9. Kedging plant

10. Strapping, banding and taping Machines

11. Depositors

The digital control system unit:

The units in many beverage industries boasts of an advanced Digital Control System,

wherein all critical parameters are constantly monitored by a computer based system. Latest

sophisticated control software is used to analyze the data and automatically generate suitable

control actions(s) as per requirement. Most of the beverage industries in Nepal are accessed to

these control system unit.

Safety engineering in beverage industries:

The priorities of health and safety in beverage industry:

Incidence rates that the number of reported injuries in beverage industries in Nepal

enables comparisons to be made with other industries. The brewing industry has consistently

had injury incidence, primarily because of the high level of manual handling but the overall

injuries rate in Nepalese beverage industries is found low.

The major cases of accidents likely to occur in the beverage industries are due to

following reasons:

(a) Manual handling - especially of casks, kegs, crates and heavy plant;

(b) Slips and trips - 90% of slips are on wet surfaces;

(c) People being struck by moving objects, including falls of articles - sometimes from

vehicles;

(d) Falls - especially from vehicles, stairs, ladders and work platforms;

(e) Vehicles - especially fork-lift trucks.

Manual handling injuries

About 85% of all handling injuries happen while the load is being handled manually.

This shows that using mechanical handling causes less injury.60% of manual handling injuries



22

are due to body overload from heavy loads, (compared to 6% from sharp edges and 7% for

crushing).48% of the injuries are caused by lifting and lowering loads (compared to 16% when

carrying and 12% when pulling loads).

The commonest specific cause of injury was stacking containers. This accounted for53% of manual handling injuries. Studies show that 75% of manual handling injuries are

preventable if taken reasonable precautions. Most manual handling injuries (70%) happened to

manual production workers. Other occupations at risk are drivers (6%), laborers (5%),

maintenance workers (3%), cleaners (1.6%) and caterers (1%).

Manual handling injuries are usually caused by lack of information or training, or by

unsafe working procedures. The most common situation is when someone loses control of a

load. They might end up holding a heavy article too far from their body, or it might fall on

someone.

Occupational ill health:

The accident reports do not include occupational ill health. But reality suggests that the

occupational health priorities are likely to be:

(a) Back injuries from heavy manual handling, e.g. of casks, kegs, crates and items of

plant;

(b) noise-induced hearing loss from noisy plant, e.g. packaging machinery (kedging,

bottling and canning lines), compressors, boilers and steam plant;

(c) Occupational lung disease from exposure to grain and malt dust.

Solution of risks of injuries:

Overall risk reduction plan.

There are specific solutions in the Industry specific guidance section. Basically

followed by almost all beverage industries in Nepal:

1. Consulting trade union safety representatives or employee representatives on any

changes. If they are involved early on, learning from their experience.



23

2. Health surveillance is important if risk cannot be eliminated and have to rely on

protective measures. Health surveillance should help to match the individual and

the task, to identify possible health problems early on and to monitor the overall

effectiveness of what was done.

3. A ‘cradle to grave’ approach can help control handling risks throughout the supply

chain, which might include supplying raw materials, production, distribution and

delivery. If suppliers and employers agree on how a product is supplied, handled

and distributed, they can use purpose-made handling solutions at every stage. Each

supplier in the chain has a legal duty to co-operate with others.

4. Employees’ training and information should cover what sort of injuries are likely

and what causes them, safe use of mechanical aids and safe manual handling

methods - especially posture, lifting techniques and methods of carrying.

5. Setting up an appropriate product safety organization and procedures and

safeguarding the risk sensitive tools and equipments.

6. Finally, check that your measures have made improvements. You can do this by

monitoring records of sickness absence and ill health, monitoring the use of

mechanical aids, etc.

Hygienic design of machines in beverage industry:

The need to consider hygienic design:

The need to consider hygienic design while purchasing and designing stages is now cru

face increasing potential problems from loss of product through spoilage, food safety fears and lo

confidence Their prime needs are ease of access and ease of cleaning .

Food safety hazards can arise from:

1. microbiological causes such as pathogens, spoilage organisms or toxins;

2. Chemicals such as cleaning agents, disinfecting agents and lubricants;

3. Foreign bodies such as raw materials, pests and materials used in the construction

of the machinery.

How is hygienic design approached?



24

A risk assessment is undertaken by the machine manufacturer at the design stage as

different products at different stages of processing give rise to different levels of food safety

risk and need different levels of regions in engineering the hygiene controls. Low-risk

product/process machinery may need only to partially conform to best engineering practice.

However, high-risk product/process machinery will need to fully conform to design

requirements set in Standards and operate within set heat, chemical or physical treatment limits

and require planned disassembly for cleaning. A categorization scheme is given in the draft

ISO Standard.

Hygienic risk factors considered by beverage industries are:

1. Purpose of the machine - is it intended for a single type of beverage?

2. Nature of the beverage - is it raw material or ready for consumption?

3. Stage of processing - will the machine only handle raw materials or produce the

final product?

4. Stage of the beverage - will it be consumed immediately or have a defined shelf

life?

5. Consumer of the beverage - is the beverage intended for vulnerable groups such as

children or the elderly?

6. Market - is the beverage intended for local or international markets?

7. Use of the machine - will it be used infrequently, or be in continuous use?

8. Cleaning and inspection - will this be done routinely during the day or once a week?

Every beverage industries in Nepal currently consider the main hygienic design

priorities to be any machinery, and it’s cleaning in- place (CIP) system, which is intended or

could be used for liquid filling.

Some general hygienic design pointers that are being used by the beverage industries

are:

1. Ensuring that the materials and surfaces beverage products will come into contact

with are suitable (e.g. corrosion resistant, non-absorbent, unpainted and easy to

clean) - such materials must not be likely to break, crack or fracture in normal use.



25

2. Ensuring surfaces where products will come into contact with are made of non-

toxic materials which will not transfer any odour, taint or taste to the product.

3. Ensuring that permanent joints are smooth where joints are in the same plane or

curved where they are not.

4. Ensuring dismountable joints have a true and hygienic fit.

5. Ensuring projections, edges and recesses are kept to a minimum.

6. Ensuring internal curves allow thorough cleaning and, where necessary,

disinfection.

7. Ensuring all fluids, including those from products raw material and cleaning the

machine, can be easily discharged from the machine.

8. Ensuring shafts and seals are self- or product lubricated or use food grade lubricants

– ensure they can be cleaned and, where necessary, disinfected.

9. Ensuring appropriate materials are used in the machine construction - there may be

a balance between ease of access for effective cleaning indicating ordinary steel

could be used and lack of such access (e.g. in enclosed plant) indicating stainless

steel could be used.

The beverage industries in Nepal have paid special attention in the hygienic designs of

plants layout and purchasing the plants and equipments to prevent the beverage safety hazards

and to make their products hygienic.

VIII. Health and beverage products:

The alcoholic beverage products have some type of alcohol. When it is consumed, it enters

into the bloodstream and may cause the consumers loss of will power, self control and judgment.

This may result in loss of moral sense and may cause problems in the society. Alcoholic

beverage may also results in the loss of emotional control. Excess of alcohol consumption may

cause the serious damage to the lever, kidney and heart and also may cause various other healthproblems.

The soft drinks are not harmful to the health of the consumers and are also assumed to be

not fruitful too as like the manufacturer claims. The fruit juices and mineral water are used as good



26

products for health within their date though some of them contain some of foreign chemical used

as sweeteners and flavors.

Different beverage products in the Nepalese market are also been found to have contain

some harmful chemicals, germs or foreign material sometime which may be hazardous to theconsumers health. Though the manufactures do not accept this complains, many facts have been

revealed.

IX. Environmental and ecological aspects:

Noise pollution:

Most beverages industries have processes which emit high noise levels exceeding the

85 dB(A) and 90 dB(A) Action Levels at which employers are required to take action .Typical

noise levels (measured in dB(A)) which have been recorded in beverage industries are as

follows:

1. Drinks Bottling halls : 85-95 db

2. Bottle filling/labeling :85-95 db

3. De-crating/washing : 85-96 db

4. Casing/kedging :85-100 db

5. Cooperage machines >95 db

Ways followed by beverage industries to reduce noise pollution and its effects to the

workers are as follows:

When considering the purchase of machinery or plant, noise data is obtained from the

manufacturer/supplier to inform decision that is taken to set and operate them. The data

specifies noise levels at the operator’s positions.

Noisy machinery/plant is tried to remove into areas where there are no workers, or few

workers (E.g. into an outbuilding or into a dedicated room).

Where machinery/plant has to remain in the working area, it is enclosed within a sound-

insulating Where enclosure is not possible, noise is reduced by other engineering means such

as:



27

- lining guards/panels with noise-dampening material;

- providing acoustic screens;

- lining the inside of hoppers with impact deadening material;

- fitting anti-vibration machine mountings;

- fitting silencers to exhaust systems;

- ensuring good maintenance to stop rattles and prevent noise from wear.

Where noise levels still exceed 90 dB (A) workers are ensured to wear hearing protection

(earplugs or earmuffs) within the designated and clearly marked zones.

Duration of exposure can be reduced by job rotation or providing a noise refuge.

The overall noise pollution due to beverage factories is not so high as compared with

the other factories related to metal processing and others. The noise pollution has its effect only

inside the factory or a small area near the factory. So the level of noise pollution due to

beverage industries is low.

Pollution due to disinfectants and chemicals:

Normally disinfectants identified as containing chemicals that are toxic by inhalation or

to the skin, or are classified as sensitizers, should be avoided (e.g. some aldehydes) unless the

sanitation programme identifies an absolute requirement. In such cases, strict safety measures

to control exposure will be required.

Disinfectants commonly used in the beverage industries include the following:

Surface active agents (surfactants) - these are detergents, some of which exhibit biocide

properties. These include the amphoterics (based on amyl alkyl glycines), the cationic and

biguanides/diguanides. Many of the amphoterics and cationic are classified as skin, eye and

respiratory irritants. Biguanides/diguanides are of low toxicity and irritancy and are useful skin

disinfectants.

Alcohols - these are used as skin cleaners as well as a transport medium for other active

ingredients, but nevertheless are irritant to eyes, nose and throat at high airborne concentrations

and can be a fire risk.



28

Aldehydes – glutaraldehyde is classified as a skin and respiratory sensitizer. Formaldehyde

is a strong respiratory irritant and is also classified as a category 3 carcinogen.

Peracetic acid is a powerful oxidizing agent used in the food and drink industries and is

also extremely corrosive.

Hypochlorite and organic chlorine-releasing compounds are corrosive in their concentrated

form and are classified as eye and skin irritants in their dilute form (5<10%).

Besides these chemicals, the waste products from the lubricating substances and oil

used in the plant and machinery also cause pollution.

These chemicals when comes in contact with the open environment may cause the

serious soil and water pollution which can have adverse effect on the ecological balance. So

the reputed and the bigger beverage industries like Bottlers Nepal pvt.ltd and Himalayan

Distillery pvt.ltd have paid special attention in the refining the wastes to the suitable condition

before they are discharged into the environment.

The and beverage and distillery effluent is taken to a treatment plant based on the

Anaerobic Digestion Technology from ADI System. The technology consist the best effluent

treatment plants for food and agro based industries. The anaerobic digester produces valuable

biogas, which is used in the boiler to supplement energy requirement. Bottlers Nepal Pvt.ltd

has tried to be an icon in waste management system by investing the cores of rupees in

installing the plant.

Disinfection policy in beverage industries:

To maximize effective and efficient use of disinfectants, the industries have produced a

disinfection policy. Primarily, this is be concerned with controlling microbial contamination,

ensuring that operatives are familiar with cleaning procedures and the chemicals to be used.

Producing a policy should produce cost savings by eliminating the unnecessary use of

disinfectants and by restricting the range available.



29

The bigger beverage industries are able to make these policies effective in their day to

day operation. But the smaller industries are found not so well in formulating and executing the

policies.

Hazards of disinfectants

Disinfectant suppliers use the material safety data sheet to set out the hazardous

properties of their products. It provides information about the health hazards, physical and

chemical characteristics, first aid, and how to use the chemical safely.

Control of substances hazardous to health regulation (COSHH) assessment:

The COSHH assessment that identifies the purpose of the disinfectants and eliminates

their use where appropriate, e.g. where cleaning alone is adequate or heat can be used. The

assessment of disinfectants which are required should include:

1. A list of all chemicals to be used;

2. Their hazards;

3. Measures provided to control operator exposure, covering

4. Safe storage.

5. Chemical compatibility.

6. Working concentrations and safe dilution procedures.

7. Application procedures and equipment.

8. Any air monitoring or health surveillance

9. Information and training requirements;

10. Provision of washing facilities;

11. An emergency action plan (e.g. for spillage);

12. Waste disposal - environmental considerations sheet (MSDS)

The assessment should be able to demonstrate that the measures provided to control

operator exposure are effective.

Besides some of the some smaller beverage industries, most of the beverage industries

in Nepal are likely to follow these assessments provided by the supplier. That’s why the risk of



30

ecological misbalances as well as risk of chemical injuries in Nepalese beverage industries is

found to be low.

Effect due to excessive use of underground water:

Water is the main component in every beverage industries. Most of the beverage

industries in Nepal are found using the underground water for the production .Because of this

reasons the large volume of underground water is drained out daily. This is creating a long-run

risk of the earth surface going down causing not only the adverse environmental and ecological

effect but also the huge destruction of life and property.

X. Social aspects:

The most of the beverage industries in Nepal are found to be responsible for the society

in the various sectors. Different beverage industries are lunched and participating in various

social activities. Bottlers Nepal Pvt.Ltd. has successfully completed the cleaning programme of

the base camp of the Mount Everest. It has also been involved in the various voluntary services

in different festivals inside and outside the valley. It has also been helping to some of the

orphanage homes and social schools. Similarly, other beverage industries are also involved in

Some of the beverage industries which are not involved in such social responsibility are

not so good in production and consist of less important market share. Involvement in social

responsibility has also provided the industries, a type of reputation and fame. There product

can be recognized as a part of social campaign. So many of the good industries are involved in

social activities.



31

D. FINDINGS:

The beverage industries have good scopes and market within the country. The existing

beverage industries in Nepal are therefore in good position relative to other types of industries. The

market of beverage industries in Nepal is day by day increasing. The investment on this sector is

also found to be increasing day by day. Most of the bigger and renowned beverage industries in

Nepal have foreign investment and are directly related to multinational company and these bigger

industries have good factory setup, good management, and well-known fame and goodwill of their

brands. These all factors have made them success to dominate the local beverage industries of

lower investment. In fact these factors have been the barriers to entry to the beverage industries.

Some of the companies are not able to give the quality and hygienic products to the

consumers because of their poor and classical technologies. So, they also face the consumer’s

criticism in media and are not able to make their goodwill. The government of Nepal has also tried

some rules like IEE and EIA to manage the beverage industries. Anyway the beverage industries in

Nepal have been an integral part of Nepalese economy.



32

E. RECOMMENDATION:

When asked what measures can be taken for the development of the beverage industries in

Nepal the following responses may be suitable:

1. Simplify investment and business establishment procedures;

2. Stop corruption in various sectors

3. More friendly FDI policy to attract more multinational companies;

4. Investors' rights should be the same for Nepali and for foreign companies;

5. Education should be more skills- and jobs-focused;

6. Establish free zones for beverage industry;

7. Simplify customs procedure for bringing raw-materials and tools and equipment;

8. The tax regime should be more transparent.

9. The beverage companies should be aware and attentive in the quality of the products.

10. Various products matching diffreent places and the seasons are to be focused.

11. Beverage industries should be able to develop and create the new taste and flavor

according to the desire of local market.

12. Government policies regarding to the beverage industries should be revised and update

from time to time to make it effective and efficient.



33

F. CONCLUSION:

From above we may conclude that Nepalese beverage industry is one very important

part of industrial sector. This industry is serving a huge mass of Nepalese consumers by

fulfilling their need of different types of beverage products. Therefore the beverage industries

in Nepal have been the important part of Nepalese economy.

Beverage industries in Nepal are found to be concerned with consumer’s health while

they focus on providing the refreshment to the consumers from their products expect some of

them. The overall management of the industry is found to be satisfactory. The many of the

industries are technically good and are therefore able to provide quality products to the

consumers. The reputed and renowned Beverage industries in Nepal are aware and attentive in

the management of wastes they produce. Most of the industries are also involved in different

social works.

The government is trying somehow to make more laws to make the industries more

managed and efficient to run. The beverage industries are also trying their best to provide the

large variety of taste and flavors of their consumers. They are always working for extending their

market boundary and increasing the volume of consumers. Consumers are also getting

approached to the different beverage products day by day. Therefore the beverage industries in

Nepal have good status though they have some smaller issues.



34

G. REFERANCE

1. Investment policy review Nepal. United nation conference on trade and

development.

2. Wikipedia, the free encyclopedia

3. The Business Environment and Manufacturing Performance in Nepal

(Tyler Biggs,John Nasir, Kiran Pandey and Lan Zhao)

4. Report of the APO Seminar on Development of Agribusiness

Enterprises

Indonesia, 20 –24 November 2000

(Edited by Mr. Robert Oliver, Consultant Editor,

Bangkok, Thailand.)

5. Marketing alcohol to young people:

Effects, responses, evaluations and prospects

Paper prepared for the WHO international technical meeting on

Marketing and Promotion of Alcohol to Young People,

Valencia, Spain, 7-9 May 2002

David H. Jernigan PhD

Institute for Health Care Research and Policy

6. Websites

www.yellopages.com

www.himalayandistillary.com

www.nepalnews.com

www.justchill.com

www.fudco.com

www.softdrink.com

http://www.yellopages.com/


http://www.himalayandistillary.com/


http://www.nepalnews.com/


http://www.justchill.com/


http://www.fudco.com/


http://www.softdrink.com/








Documents

Report Beverage