Summer training sales & logistics (1)

SUMMER TRAINING PROJECT REPORTOn

”Understandin the Sales,Logistics and oher operations of Radico Khaitan Ltd”

IN

ACKNOWLEDGEMENT

My project dealing with “Understandin the sales,logistics and other

operations of Radico Khaitan Ltd” provide me an exposure in the real world of

business. I owe a heart-felt gratefulness to some of the people for being present all

the time whenever any help was required in completion of the report.

At the outset, I would like to thank Mr. K.P.SINGH (Director - Operations) &

Mr. S. Pande (AGM - HR) for giving me the approval to this project in the

organization. I wish to acknowledge the entire HR Team at Radico Khaitan Ltd.

Special appreciation extended to Mr. Ashish Kumar Singh (Executive - HR)

who helped me to shape the direction of my research work. This project would

not have been possible without his help.. and Mr. A RAHMAN[G.M. LOG.]

ASISH PANDY; Mr .ARUN CHAUDHARY

A heartfelt thanks to the respondents surveyed whose ideas, critical insights and

suggestions have been invaluable in the preparation of this report.

Last but not the least a very warm thanks to all the faculty members of Gurukul

Kangri vishvidwalya Haridwar. for providing me Guide lines in summer

training project.

PREFACE

As a part of the partial fulfillment of the MBA programme at Gurukul Kangri ,

Summer Training was undertaken with the RAMPUR DISTILLERY a unit of

RADICO KHAITAN Ltd. RAMPUR (U.P.).

Rampur distillery is one of the biggest distilleries in India and it has working on

SAP technology in the present scenario. And also trying to be a biggest industry

in the Asia. The company has now completed their 50years and now using new

technology day by day to improving the quality of the product.

The purpose of the training was to have the practical experience of working in a

Logistics Departmentand to have the exposure to the various management

practices in the field of working in Logistics Dept.

PART-1

COMPANY PROFILE

Radico Khaitan is one of India's oldest and largest liquor manufacturers. Formerly

known as Rampur Distillery, which was established in 1943. It was only in 1999,

that Radico decided to launch and market its own brands, thereby embarking on a

period of phenomenal growth. To further boost its production capacity of bottled

and branded products, the company has tied up with bottling units in various parts

of the country.

THE BRAND STORY

Radico Khaitan Ltd today has three millionaire brands in its portfolio. Radico's

flagship brand, 8 PM Whisky, launched in 1999, was a runaway success. In the

first year alone, it sold one million cases - a record for any Indian or foreign brand

operating in India. This also made it the first brand in the liquor industry to make

it to the Limca Book of Records.

Drinks International, the acclaimed international liquor magazine has rated 8 PM

whisky as the fastest growing whisky in the world in the regional category (2004-

05). The other millionaire brands are: Contessa Rum has won the prestigious

Monde Selection award for its overall quality for the past three executive years.

It has a large market share in the defense market... Old Admiral Brandy has also

been rated by Drinks International as the fastest growing Brandy in the world in

the regional category (2004-05 and 2005-06) also it has won the Monde Selection

award for its overall quality in 2004-05.

Today, Radico Khaitan has brands that straddle almost every market segment -

whisky, rum, brandy, vodka & gin - and price category. Our fine blends,

consistent quality, distinctive packaging and superior value have resonated with

customers.

THE INTERNATIONAL LINK

In a significant move aimed at catapulting the Indian liquor industry to

international standards, Radico Khaitan set up its international division - Radico

International - to distribute and market some of the world's best-known liquor

brands, including Wines from Ernest & Julio Gallo (makers of the world's largest-

selling wine, Carlo Rossi), Famous Grouse Whisky (from Highland Distillers).

STRONG FINANCIALS

Radico Khaitan is not just a company of great brands; it is a company of great

financials. The equity shares of the company are quoted on the Mumbai and

National Stock Exchanges, and the company has more than 35,000 shareholders.

It is the most profitable company in the domestic liquor industry.

VISION OF THE COMPANY

MISSION OF THE COMPANY

RADICO'S CORE VALUES

Radico's Core Values are aimed at developing a customer-focused, high-

performance organization, which creates value for all its stakeholders.

FOCUS ON CUSTOMER

Radico Khaitan believes that customer focus is very important. We give

importance to deliver both value & quality to the customer.

EXCELLENCE

Radico will strive for excellence in whatever we do. Radico will take the right

path to do whatever we do and excel in the same.

RESPECT FOR PEOPLE

Radico will value differences in individual perspectives. Radico want individuals

to dream, create and experiment in pursuit of opportunities and achieve leadership

through teamwork.

INNOVATION

Radico will constantly innovate and strive to better our processes, products,

services and management practices.

CORPORATE GOVERNANCE

Corporate Governance at Radico means the framework to encourage the efficient

use of resources and equally to require accountability for the stewardship of those

resources. The aim is to align as nearly as possible the interests of individuals,

corporations and society.

Ernst & Young are the internal auditors and strategic advisors and help to

improve its operational efficiencies and control procedures.

Board of Directors consisting of eminent independent professionals.

Strict adherence to the accounting standards lay down by the Institute of

Chartered Accountants of India.

Special attention being paid to the investors relations. Regular

communication to the investors about the business developments and

important vents impacting the operations.

Strict compliance with the requirement of Stock Exchanges, Securities and

Exchange Board of India and other statutory authorities.

Liberal disclosures in the balance sheet over and above those required by

the regulatory authorities.

CORPORATE SOCIAL RESPONSIBILITY PROGRAMME

HUNAR

In accordance with Radico's mission to work towards the up-liftment of local

artisans and to promote the UP handicraft, Zardozi and Chikan work it had

launched 'Radico- Chikankari Aur Zardozi Pratiyogita' in association with the

Indian Academy of Art & Culture, U.P.

The competition was organized to bring out the creativity of the artisans and to

look for young talent in the field of Chikankari & Zardozi. The event was

promoted through mobile vans, pamphlet distribution in the areas where the

artisans live. There were two levels of judging eminent personalities from

Lucknow judged the first level and in the second level Mrs. Jaya Prada, Mrs.

Kiran Khaitan, Mrs. Sucheta Merh & Mr. Swapan both designers from Kolkatta

judged the first three winners.

The artisans were awarded with cash prizes.

The artisans have been empanelled by Radico Khaitan Ltd to form a group called

"HUNAR”. To get employment for the artisans is the cause towards which the

group Hunar is working.

ENVIRONMENT FRIENDLY

Radico Khaitan Ltd is an environment friendly company and follows all the

norms for its production facility at Rampur. It has also been awarded the ISO

9001 certification for the Rampur distillery.

RAMPUR DISTILLERY

Rampur Distillery is one of the largest distilleries in India and a leading

manufacturer of Extra Neutral Alcohol (used in manufacturing Indian Made

foreign Liquor) it also manufacturers Rectified Spirit (used in manufacturing of

lower segments Country Liquor) and manufacturing of Anhydrous Alcohol or

Ethanol or Gasohol (used in Petrol Mixing) and the recent addition of grain

distillery . Today with a production capacity of 60 million liters p. a and with the

recent addition of the grain distillery which has taken the capacity up to 90

million lit p.a. it is one of the largest distilleries in the country The Unit has a

series of firsts to its credit:

It is the first Indian distillery to obtain ISO 9001:2000 certifications. It has

achieved capacity utilization of over 100% in the alcohol plant. It is the first

environment-friendly distillery in the country.

CAPACITY

Molasses Distillery 60 million liters per annum.

Grain Distillery 30 million liters per annum.

Malt Distillery 720 thousand liters per annum.

EFFLUENT TREATMENT PLANT

The effluent Treatment Facility in Rampur Distillery is unique in nature when

compared among and in the Industry. The Distillery complies with Zero

Discharge concept set up by CPCB. The treatment has varied by products, which

not only improves operational stability of the plants but also adds on to company's

profitability. Primary Treatment of the Effluent yields Bio Gas, which is used as

fuel in Cogen Boiler to generate steam and then Power through a backpressure

Turbine. The backpressure steam is used again in the Distillation Plant to produce

Extra Neutral Alcohol and Rectified Spirit.

ENVIRONMENTALLY FRIENDLY

Meeting out 100% Pollution Control norms, the Treated Effluent is not discharged

outside and in turn is mixed and cured with organic mass like Press Mud of Sugar

Mills and suitable organic manures to manufacture Bio Manure or Bio Compost, a

bio fertilizer used successfully in growing the crop of sugar canes etc.

COGENERATION PLANT

The cogeneration plant of Rampur Distillery consist of 26 MT capacity India's

first stand alone Bio Gas fired steam boiler and 2 MW Turbine Generator in

tandem to make Radico Khaitan self reliant on its requirement for power for its

normal operation.

BACKWARD INTEGRATION

The very first backward integration project has come in the form of setting up a

fully automatic 750 ml Kidney shape PET bottle manufacturing plant in low cost

and tax benefited area like Uttranchal. The unit started with production rate of 85

lacs bottle per year in October 2004 and is now geared up to produce 255 lacs

PET bottles to cater Radico's own captive consumption of approx. 150 lacs bottle

per year and rest is being sold to outside clients in similar businesses. The unit has

not only eliminated the pressure of PET bottle suppliers but has also provided a

kind of diversified manufacturing base for future business exploration.

OWN BOTTLING UNITS

Rampur Distillery has 14 state-of-the-art bottling lines, including those imported

from Italy, equipped with tunnel bottle washing, filling, sealing and labeling

machines with a capacity to produce 1500 cases (1 case = 12 bottles of 750 ml

each) of liquor in a single shift of operation. Line capacities vary from 750 cases

to 3,000 cases in a shift. To keep pace with the growing demand, Radico Khaitan

has significantly increased its bottling capacity by acquiring/setting up bottling

plants in the states of Rajasthan, Uttranchal and Andhra Pradesh.

Rampur Distillery, Rampur (Uttar Pradesh)

Whytehall (India) Ltd., Rampur (Uttar Pradesh)

Radico Khaitan Ltd., (Uttaranchal)

Radico Khaitan Ltd., Reengus (Rajasthan)

Radico Khaitan Ltd., Hyderabad (Andhra Pradesh)

STRATEGIC BOTTLING UNITS

Radico Khaitan Ltd is working continuously towards increasing its reach through the strategic bottling units across the country. The focus underlines comprehensive quality control and enhanced market penetration. Strategic Bottling Units through out India.

NORTH

N V Distilleries & Breweries Ltd., (Punjab)

Gwalior Distillers, Gwalior (Madhya Pradesh)

Patiala Distillers & Manufacturers Ltd., Baddi (Himachal Pradesh)

Oakland Bottlers (P) Ltd. (Jammu & Kashmir)

EAST

Goodhost Liquors (P) Ltd., Patna, (Bihar)

IFP Agro Industries Ltd., Kolkatta, (West Bengal)

Seven Sisters Trade & Distilleries (P) Ltd., Guwahati.(Assam)

Bacchus Bottling (P) Ltd., (Orissa)

United Brothers Distilleries (P) Ltd., (Arunachal Pradesh)

Gemini Distilleries (Jharkhand) (P) Ltd., Ranchi, (Jharkhand)

SOUTH

Kamal Wineries, Hyderabad (Andhra Pradesh)

Kapitan Distillery, Hyderabad (Andhra Pradesh)

Ravikumar Distilleries (Pondicherry)

United Distillery, Calicut, (Kerala)

Sri Venkateswara Distilleries, Bangalore, (Karnataka)

BT & FC (P) Ltd., Bangalore, (Karnataka)

Midas Golden, Chennai, (Tamil Nadu)

Devicolam Distilleries, Kochi, (Kerala)

WEST

Tilaknagar Industries Ltd, Tilaknagar, (Maharashtra)

Gemini Distilleries (P) Ltd. (Goa)

Ajantha Distilleries Ltd, Nagpur. (Maharashtra)

Welcome Distilleries, Bilaspur. (Chattisgarh)

Silverstar Distillery, (Daman)

HUMAN RESOURCES

Radico Khaitan believes that the growth of a company depends on the collective

efforts of its employees. The Human Resources Department seeks to create an

environment that fosters the emergence of empowered leaders. We hire people

who have the fire to grow, the potential to lead and the zeal to excel. All new

hires undergo a 7-day induction and familiarization program.

MARKETING

In the short span of time, Radico Khaitan has been able to make the transition

from being a manufacturer of Extra Neutral Alcohol to being a company with a

portfolio of hugely successful brands. Our understanding of market demands and

ability to satisfy consumer needs has been responsible for this. Consistently

superior quality, a wide range of products, innovative packaging, pricing to suit

all pockets, a nation-wide distribution network that covers 95% of retail points,

clubs and bars in the country, effective advertising, and popular events and

promotions. All these elements go to making up Radico Khaitan's winning

marketing mix.

SALES

Radico Khaitan’s young and enthusiastic sales force services retail outlets across

the country, understanding requirements and fulfilling them, thereby developing

enduring relationships. The Sales team comprises professionals with vast domain

expertise, years of experience in the liquor industry and a deep understanding of

varied markets.

ACCOUNTS FINANCE

Radico Khaitan Ltd has been continuously showing growth over previous years

and registering healthy profits. This has been made possible through the steps

taken by the Finance department like bringing down the cost of borrowings

substantially. The Efforts of the finance department has made Radico one of the

best prospects for timely repayment of debts and providing the highest safety of

funds for lenders. The department also has excellent financial management with

strong fundamentals in the short and medium term.

PRODUCTION

The Production Department is responsible for operations in Radico Khaitan's

bottling units. It works towards the smooth production and delivery of all the

Radico Khaitan brands as per market needs.

BRANDS

Radico made its foray into the International Market a few

years back and today Radico's brands are present in more than

30 countries. Radico has been consistently providing excellent

quality in terms of both product and packaging along with

outstanding service. Two of our brands 8 PM Whisky and Old

Admiral brandy featured in Drinks International Magazine as

the fastest growing brands in the world in the regional category. Three of our

brands, Contessa XXX Rum, 8 PM Bermuda White Rum and Old Admiral brandy

have won Silver Medal in prestigious Monde Selection for overall quality Our

brands have already attained the leadership position in many countries.

Radico Khaitan is now breaking into newer and sophisticated markets with liquor

brands developed to appeal to a wider palate.

SOME BRANDS OF THE COMPANY

BRANDS OF THE COMPANY

WHISKY

The base for Indian whisky is ENA. The other ingredients used are matured

Indian malt sprit, Scotch whisky concentrate, added flavors, and caramel & dm

water. All these ingredients are not added at a time but different stages.

1. Special appointment whisky

2. 8pm Royale whisky

3. Whitefield whisky

4. 8pm whisky

5. Radico gold supreme whisky

6. Radico gold whisky

7. Contessa deluxe whisky

8. Rampur no.1 whisky

BRANDY

Brandy is a Dutch word means (Brunt Wine). In India we make brandy by

blending with ENA, matured grape spirit, added flavoring.

1. Contessa Brandy

2. Old Admiral Brandy

3. White Field Brandy

4 8pm Excellency Brandy

RUM

Rum is distilled liquor made from sugarcane products, cane juice spirit along with

base ENA and flavoring.

1. Contessa rum

2. Largest Rum

3. 8pm Bermuda

4. Black Cat Rum

5. Rampur No.1

6. Big Hit Rum

7. Contessa White Rum

GIN

Gin is alcoholic liquor obtained by distilling grain mash or redistilling sprit with

botanicals such as juniper berries, angelica, lemon and orange peels, cassia bark,

coriander and cardamom.

1. Contessa Gene

2. Big Hit Gene

3. Magic Moment Gene

RAW MATERIAL

For the production of alcohol, materials containing sustaining amount of glucose

Content can be used as a raw material. But for commercial production, common

raw materials used are as follows:

1. Molasses

2. Cane Juice

3. Sweet Potato

4. Sugar Beet

5. Grain (Barley, Rice)FUNCTIONS

Purchasing of packing materials, engineering goods, and logistics etc.

function is done here.

The packing materials include carton, monochrome, bottles, and caps label

etc.

The procurement of packing materials is done on the basis of

1. Forecast from marketing department for the month.

2. Tentative planning based on last month.

3. Production schedule.

Packing material accounts for 80% of all other. Material and it is the main

requirement for distillery. Hence it is essential to have a proper stock of

the material as per the requirement.

Label is the most critical packing material as it involves different labels

for the different states as the rules and regulations are different in different

states.

For finalization the vendor for packing material purchase committee

where vendor is introduced and a vendor assessment from is made does it.

There are number of suppliers for packing material and purchasing is done

by share of business.

For the engineering material indenter raise the indent and the quotations

are called for the same. Then comparative is done and after that finalizing

the terms and conditions purchase order is released.

Logistics of country liquor is taken care of here. The procedure for

dispatch of country liquor is that the marketing department sends indent

according to the demand.

For the country liquor it is the policy of state govt. that distillers should

have their own depots and this depots will sell to retail vendors who will

sell called as CL2A.

Transportation annual rate contract is done and the documents that are to

be carried along with the CL includes excise pass PD25, invoice and

challan.

THE REPORTS ARE

1. Daily GPMRN register.

2. Daily statement for GPMRN sent for quality check.

3. Daily indent control registers.

4. Available stock item wise.

5. Complete item tracking.

6. Tracking of planning, scheduling and replenishment of inventory.

7. Item wise list of pending indents.

8. Analysis reports.

9. None / slow moving items analysis.

MOLASSES PROCUREMENT

For the purchase of molasses, final decision taken by molasses purchase committee,

Headed by Mr. K.P.Singh (DIRECTOR PRODUCTION), Mr. Ajay Agarwal

(Sr.VP Accounts & commercial), and Mr. J. Chaterjee (Sr. Mgr. Commercial).

There are 6 storage tanks of molasses in Rampur Distillery. The total storage

capacity is 6.35 lack Quintals. There is a requirement of 27 lakhs quintal/year of

molasses by Rampur Distillery.

Molasses is the mother liquor left after the crystallization of sugar usually contains

40 – 60 % sugar, which remains uncrystallized. It is the basic raw material used in a

distillery.

The department role is to have good coordination with all nearby sugar mills and

find out the best pricing to suit our requirement. The price variation in the molasses

affects both our alcohol sales price and production cost of IMFL and CL, hence

becomes focus point in reduction of production cost.

Molasses purchase committee is formed to negotiate and finalize on the rates.

Chemist are sent to the loading point to have check on the quality of the molasses

loaded and composite and separated collected samples are analyzed in the lab to

check TRS and other parameters:

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TRS standard set by the Rampur Distillery: -

In Nov, Dec, Jan – Not less than 44.4 %

In Feb, Mar, Apr – Not less than 43.0 %

In May, Jun, July – Not less than 41.0 %

In Aug, Sep, Oct – Not less than 40.0 %

Grades of Molasses: -

“A” Grade: - 50 % and above Molasses TRS.

“B” Grade: - 44 % to 49.9 % Molasses TRS.

“C” Grade: - 40 % to 43.9% Molasses TRS.

Below 40 % TRS is treated as Below Grade.

BLENDING

This department is headed by Mr.Anup Barikh (G.M. Blending) and assisted by

Mr. Rambir Singh (Dyt. Manager Blending) and Mr. Mukesh Sharma

In blending process ENA is reduced by mixing DM water and mixed with specific

ingredients including particular Synthetic Essences, Caramel, Special Spirit, Vetted

26

Malt Spirit, Matured Malt Spirit in specific volumes to produce a particular taste

and character concentration in order to prepare a particular characteristic liquor.

Caramel is standardized coloring matter (reddish brow to yellow) used to color the

liquors like Rum, Brandy, Whisky. It is prepared by controlling heat of sugar under

specified condition.

Fermentation And Distillation: -

This department is headed by Mr Devendra Singh,(VP Production)

Mr Rajeev Rahlan (Sr. Manager-prod.), Mr Ompal Singh (Manager).

Fermentation is the breakdown of glucose into ethyl alcohol and carbon-di-oxide

by enzymes in yeast, in the absence of oxygen. Fermentation works best if the yeast

and glucose solution are kept under control.

The fermentation system takes about 22-30 hours to complete in a batch process

with yeast culture.

Step 1: Yeast vessels are the vessels used for yeast culture build up under highly

acidic condition. These are closed vessels.

Step 2: Prefermenters are open, mild steel vessels, providing mild aerobic

conditions.

Step 3: Coil cooling is providing to the fermenters to maintain suitable temperature

to draw highest yeast activity.

Step 4: Fermented wash contains 15-18 % ethyl alcohol.

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COMPUTER DEPARTMENT

The computer department headed by Mr. Neeraj Srivastav – AGM-IT and assisted

by Mr. Vipin Agarwal – Dy. Mgr -IT

There are around 80 computers in Rampur Distillery and all are LAN connected

with Outlook expressed on desktop for exchanging mails. The management of the

company has taken a major IT initiative on 20th September 2002. For its Enterprise

Wide Information System the company has chosen world no. 1 package SAP

(SYSTEMS APPLICATION PRODUCT OF DATA PROCESSING) To power

the management of the business. All business units of Radico Khaitan Ltd.

Including HO Delhi, all tie up units, regional offices, warehouses etc. now powered

by SAP.

Right now out of 11 modules of SAP has been implemented in Rampur Distillery

in following department.

Finance Department

Accounts Department

Material Department

Sales & Distribution Department

Production & Planning Department

Human Resource Department

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QUALITY ASSURANCE DEPARTMENT

Quality assurance department headed Sandeep Kumar Lamba-Dyt. Manager QA.

Quality Assurance department is very important department because it keep

controls on the input (packing material) and the output (IMFL & CL)

Packing material go through from certain parameters finalized by higher authority,

consist following:

Bottles

Glass Bottle

Pet Bottle

Caps

Boxes

Monocartons

Labels

Glue

Packing Tape

Following parameters checked by QA Officers:

Bottles fully filled or not / Leakage

Any glass particles in bottles

Other foreign particles/ Color

Without caps/ Dirty bottles

Proper sealing or not

Labeling

Numbers of bottles in boxes

COMMERCIAL (ALCOHOL MARKETING)

29

This department in Rampur Distillery headed by Mr D.Satheesan (President

Alcohol) and Mr. Rajesh Singh (Dyt. Manager). This department deals with sales

of following types of alcohols to other units.

ENA – Extra Neutral Alcohol

RS – Rectified Spirit

SDS – Special Denatured Spirit

VMS – Vetted Malt Spirit

CJS – Cane Juice Spirit

MMS – Matured Malt Spirit

HBS – High Bouqut Spirit

MRS – Matured Rum Spirit

Different taxes and levels on sales of spirit levied by UP Excise as follows

SPIRIT TYPE INSIDE UP OUTSIDE UP

ENA Rs. 0.80 / BL Rs. 3.00 / BL

RS Rs. 0.80 / BL Rs. 2.50 / BL

SDS (With in the State)

Purchase Tax – Rs. 0.80 / BL

License Fee – Rs. 0.40 / BL

Denaturation Fee – Rs. 0.15 / BL (for maximum purchase of 10 lack BL

Spirit)

Process Of Sales: -

30

31

Enquiry (Generated by the

customer)

Consent Letter

NOC / Permit through concerned Excise officials

of custom

Application to Excise Commissioner, Allahabad

Allotment (Permit-duty)

Sales Done

Rampur Distillery enjoys the credit of one of the best suppliers of ENA & RS,

since it supplies consistently best quality spirit in India and overseas.

Our major customers for ENA, RS, & SDS are: -

Balbir Distillery Ltd – Solan

Bengali Chemical & Pharmaceuticals – Calcutta

Central Distillery & Breweries Ltd – Meerut

United spirit Ltd – Rosa

United spirit Ltd – Meerut

Mohan Meakin Ltd. – Ghaziabad

United spirit Ltd – Hyderabad

SBL Ltd. – Ghaziabad

Trident Alco – Chem Ltd. – Ludhiana

UB Group – Bangalore

United Distillery – Calicut

Ghaziabad Organics Ltd. – Ghaziabad

Indian Glycols Ltd. – Kashipur

VAM

This department is also responsible for washing and cleaning the tankers of the

customers for quality satisfaction and dispatch the order with in the time bound

frame.

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SALES DEPARTMENT

Mr. A Rehman, Joint G.M (logistics & dispatches), Mr.Alok Rastogi & Mr. Sanjay

Kumar saxena (Sr. comm.. officer) looks the sales department. This department

handles complete documentation, liasoning with excise officials & documentation,

invoice, chalan required for dispatch of IMFL –civil, grain and defense along with

several kind of spirits like ENA, ETHANOL, VMS etc. Container clearance and

stuffing for overseas export is also handled by it.

This department also looks into the operation of getting the manufactured goods i.e.

IMFL & CL, dispatched to the specific destination inside and outside of U.P. with

in time bound frame.

NAME OF PARTY IN UP

1)INDEX FOODS

2) AMETHYST TOWN PLANERS

3)FLORA AND FAUNA HOUSING

4)MAY FAIR

SAP MATERIAL CODE USING IN RAMPUR DISTILLERY

1001528

101389

101564

104145

104146 ETC.

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TRANSPORTERS WORKING FOR RAMPUR DISTILLERY

1) TIME AND SAPACE HAULERS PVT. LTD.DELHI

2) SARASWATI TRANSPORT CO. DELHI

3) S.P GOLDEN PVT. LTD. MUMBAI

4) COSMO CARRYING (PVT)LTD. HYDERABAD.

BILL USING IN RAMPUR DISTILLERY FOR IMFL , COUNTRY LIQUOR AND

STOCK TRANSFER

34

U.P.T.T : RR 0000377 Dt. 14.08.1967 PH. 0595-2353277

C.S.T : RR 5000435 Dt. 05.07.1957 DELIEVERY CHALLAN Gram: RADICOTIN NO 09260800001RAMPUR DISTILLERY CHALLAN NO 000003 Date : 03.06.2012(A UNIT OF RADICO KHAITAN LTD) E.C.ORDER NO. 5396 Date : 18.05.2012Regd Office & Works : RAMPUR (U.P.) EXP/FLB 11 PASS NO. 88 Date : 03.06.2012CONSIGNEE:- G.R.NO. 17747 Date : 03.06.2012VIJAY TRADERS FL1-7 Goods Delivered/Despatches Through:- BHOGAON NORTH M/S TASH- DELHISHOLA PUR From RAMPUR To SOLAPUR In Cases 412CST NO-27850601511 C TIN/LST NO-27850601511 V

P A R T I C U L A R ' SQTY. RATE AMOUNT(IN B.L.) RS. P.

MASTERSTROKE DW 42.8% 750ML MAHARASTRA 20 1302.89 26057.8MASTERSTROKE DW 42.8% 375ML MAHARASTRA 30 1452.36 43570.8MASTERSTROKE DW 42.8% 180ML MAHARASTRA 304 1400.07 425621.28MASTERSTROKE DW 42.8% 90MLPET MAHARASTRA 58 1350.73 78342.34 TOTAL C/S 412 573592.22 RS. FIVE LAC SEVENTY THREE THOUSAND FIVE HUNDRED T O T A L 573592.22NINTY TWO AND TWENTY TWO PAISA ROUNDING OFF +/- 0TRUCK NO-- UP22T-1427 GRAND TOTAL 573592.22

1. All disputes shall be subject to the jurisdiction at Rampur (U.P.).

2. Central Sales Tax charged @ 2% subject to the CST declaration form C/D.

3. In case C/D form is not furnished,addictional sales tax alongwith interest as applicable

in U.P. shall be charged.E.& O.E. FOR RAMPUR DISTILLERY

35

(A UNIT OF RADICO KHAITAN LTD) Prepared By Checked By AUTHORISED SIGNATORY

U.P.T.T : RR 0000377 Dt. 14.08.1967 PH. 0595-2353277

C.S.T : RR 5000435 Dt. 05.07.1957 DELIEVERY CHALLAN Gram: RADICOTIN NO 09260800001RAMPUR DISTILLERY CHALLAN NO 000003 Date : 03.01.09(A UNIT OF RADICO KHAITAN LTD) E.C.ORDER NO. 5396 Date : 18.12.08Regd Office & Works : RAMPUR (U.P.) EXP/FLB 11 PASS NO. 88 Date : 03.01.09CONSIGNEE:- G.R.NO. 17747 Date : 03.01.09VIJAY TRADERS FL1-7 Goods Delivered/Despatches Through:- BHOGAON NORTH M/S TASH- DELHISHOLA PUR From RAMPUR To SOLAPUR In Cases 412CST NO-27850601511 C TIN/LST NO-27850601511 V

P A R T I C U L A R ' SQTY. RATE AMOUNT(IN B.L.) RS. P.

MASTERSTROKE DW 42.8% 750ML MAHARASTRA 20 1302.89 26057.8MASTERSTROKE DW 42.8% 375ML MAHARASTRA 30 1452.36 43570.8MASTERSTROKE DW 42.8% 180ML MAHARASTRA 304 1400.07 425621.28MASTERSTROKE DW 42.8% 90MLPET MAHARASTRA 58 1350.73 78342.34

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TOTAL C/S 412 573592.22 RS. FIVE LAC SEVENTY THREE THOUSAND FIVE HUNDRED T O T A L 573592.22NINTY TWO AND TWENTY TWO PAISA ROUNDING OFF +/- 0TRUCK NO-- UP22T-1427 GRAND TOTAL 573592.22

1. All disputes shall be subject to the jurisdiction at Rampur (U.P.).

2. Central Sales Tax charged @ 2% subject to the CST declaration form C/D.

3. In case C/D form is not furnished,addictional sales tax alongwith interest as applicable

in U.P. shall be charged.E.& O.E. FOR RAMPUR DISTILLERY (A UNIT OF RADICO KHAITAN LTD) Prepared By Checked By AUTHORISED SIGNATORY

BOTTLING DEPARTMENT

Bottling department is the core department of the distillery. Rampur Distillery has

the best and automated bottling lines to produce potable liquor (IMFL & CL).

The bottling department headed by Mr. S K Bhatt (Sr.Mgr.- Mfg.), Mr Satendra

Pawar (Manager Production), and several other chemists. Bottling Maintenance

department is responsible for the proper maintt and functioning of the m/cs and this

department is supervised by Mr.G.B.Singh (Dy. Manager) .

There are three bottling hall serving for Civil & Defense Requirement.

Bottling Halls

Civil Bottling Hall Defense Bottling Hall New Bottling HallOr Rum Hall

New Bottling Hall: -

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This bottling hall has 4 lines and caters for Country Liquor requirement.

Line 1:

Type – Fully Automatic

Rated Speed – 240 bmp

Filling – 40 Heads

Sealing – 10 Heads

Labeling – 10 Heads

Line 2:




Sealing – 8 Heads


Line 3:

Type – Semi Automatic

Line 4:


Defense Bottling Hall: -

This bottling hall is also called as Rum House, because both 2 lines dedicated to

Rums i.e. Contessa & Black Cat Rum serving for Defense Requirement.

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Line 1:




Sealing – 8 Heads


Line 2:



Sealing – Semi Auto Sealing


Civil Bottling Hall: -

This bottling hall consists of 8 lines, Line 1 & 2 for Production of Country Liquor,

Line 3, 4, 5, & 6 for IMFL, and Line 7 & 8 dedicated fro 8 PM production in all

size.

Line 1 & 2:




Sealing – 10 Heads


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Line 3:



Sealing – 8 Heads

Labeling – Manual

Line 4:



Sealing – 8 Heads

Labeling – Automatic

Line 5 & 6:


Filling – In line 5 – 12 heads, in line 6 – 6 heads

Sealing – Manual

Labeling – Manual

Line 7 & 8:



Sealing – 5 Heads

Labeling – MultiMatic

There are five important steps in bottling house:

1. Rinsing

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2. Filling

3. Inspection: There are 2 visually inspection of the bottles. Firstly the

inspection before the filling and secondly after the sealing.

1st Stage:

Foreign particles in bottle

Dirty bottle

Crack in bottle

2nd Stage

Leakage

Proper sealing or not

Half filled or over filled

Without caps

Colour

4. Labeling: - After the inspection of Bottles the labeling are required for the

identity of the product such as:

Brand name, % of alcohol, Mrp, Batch no., Mfg date area of sale etc

5. Packaging: The last stage in the line is packaging. For packaging we use

cartons

STORE & PURCHASE DEPARTMENT

The store & purchase department headed by Mr. Ajay Sharma (GM Materials), Mr.

Sanjay Guru (Dy. Mgr. Mtrls.)

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Mr. Neeraj Agrawal (Asst. Mgr.-stores). The main function of this department is

Purchase, Storage, Availability of materials, Development of vendors and

continuous co-ordination with all other departments for minimum/ maximum

inventory level of storage.

Store is a place where all the materials is kept and then distributed to the concerned

department on requirement basis.

Purchase Department

Engineering Purchase Packing Material Purchase

Other than this the purchase department has a vital role in reducing the cost of

production by controlling minimum inventory levels, proper check on usage of

material issued to have control on wastages, development of best vendor nearby

and further reducing cost of transportation, Business allocations, Co-ordination

with accounts department for realization of bill in time.

Steps For Purchase: -

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1. Purchase Indent

From consumer department showing the urgency

and details of application of material.

2. Enquiry

Generated by stores department to know the rates

and availability of the material in the market.

3. QuotationVendors price rating.

4. Comparative Sheet

After receiving more than 4 quotations stores

prepare comparative sheet showing the details viz

rates, specifications and lowest vendor selection

list.

5. Call for Vendor

Looking at the comparative statement lowest and

genuine party is called for negotiations.

6. Purchase Order

Selection and placing of purchase order, which

mentions rates and terms and conditions of

supply.

Steps For Store Management: -

Receive the material at gate along with relevant challan / invoice

from supplier.

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Inform the concerned user / store personal about arrival of the

material.

After verification allow the vehicle to enter inside the premises.

Verify the quantity in challan of vendor against purchase order.

Prepare Material Receipt Note (MRP) and verify the nos.

If any damage is observed at the time record the remarks in MRN.

Inform the QA or concerned user department for verification of the

product.

If the material is found nonconforming due to quality or quantity

take appropriate action.

Transfer the material to designated location.

Send the original bill and challan to accounts and keep the records.

Receive the issue slip. Issue the material.

Insure adequate stock rotation First In First Out (FIFO) method.

GRAIN SPIRIT PLANT

GSP department is headed by VP Mr. Devendra Singh, assisted by Mr.Rajiv

Ralhan (Sr.Mgr.-prod.), Mr. Satish Kumar (Asst.Mgr – prod.) Mr. Satendra Panwar

( Manager-Botling & Prodn.)

In grain spirit plant the basic raw material is grains. Grains that are having the

starch are first converted into sugar then alcohol is produced by it.

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Alcohol produced by grains is of higher quality than the one which is produced by

molasses. The alcohol produced here is exported.

In the process, the grains are first grinded and the powder so obtained is mixed with

water, which forms slurry. This slurry is then put into the cooker for cooking where

the steam is passed at the rate of 8kg/cm square at 190 degree centigrade.

Now it is transferred in liquification tank where the temperature is maintained at

90 degree centigrade and the yeast (alpha-amylase) is added. Here we get dextrin.

Dextrin so obtained is transferred into saccrification tank where the yeast

(amyloglucoside) is added. This saccrified slurry is put for fermentation with baker

yeast and leave for about 50 hrs. Hence we get alcohol of 8 – 9 %.

Again the 8-9% alcohol obtained is put into amalyser added with steam and we get

45-50% of alcohol

.

GRAIN SPIRIT PLANT

The newly set up grain spirit plant where rectified spirit is extracted from grains through the process of liquefaction and scarification

Grain(starch) Sugar alcohol

Powder + water Cooking

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125 c

liquification90%

Scarification <-----------------------------------------------------------

Scarified slurry

Baker yeast

Fermentor +yeast

yeastMolasses + water fermented wash

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CONCEPT OF LOGISTICS ARRANGEMENTS

Logistics is the management of the flow of goods, information and other resources, including

energy and people, between the point of origin and the point of consumption in order to meet

the requirements of consumers (frequently, and originally, military organizations). Logistics

involve the integration of information, transportation, inventory, warehousing, material-

handling, and packaging.

The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word,

calculation, reason, speech, oration").

The logistics chain includes the owners (wholesalers & retailers), manufacturers, agents &

transportation channels, which an item passes through between initial manufacture & final

purchase by a consumer. At each stage, goods belong (as assets) to the seller until the buyer

accepts them.

Logistics management:

Logistics management is that part of the supply chain which plans, implements and controls

the efficient, effective forward and reverse flow and storage of goods, services and related

information between the point of origin and the point of consumption in order to meet

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customers' requirements. A professional working in the field of logistics management is

called a logistician.

Business logistics:

Logistics as a business concept evolved only in the 1950s. This was mainly due to the

increasing complexity of supplying one's business with materials and shipping out products in

an increasingly globalized supply chain, calling for experts in the field who are called Supply

Chain Logisticians. This can be defined as having the right item in the right quantity at the

right time at the right place for the right price and is the science of process and incorporates

all industry sectors. The goal of logistics work is to manage the fruition of project life cycles,

supply chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus

(outbound logistics) covering the flow and storage of materials from point of origin to point of

consumption (see supply chain management). The main functions of a qualified logistician

include inventory management, purchasing, transportation, warehousing, consultation and the

organizing and planning of these activities. Logisticians combine a professional knowledge of

each of these functions so that there is a coordination of resources in an organization. There

are two fundamentally different forms of logistics. One optimizes a steady flow of material

through a network of transport links and storage nodes. The other coordinates a sequence of

resources to carry out some project.

Production logistics:

The term is used for describing logistics processes within an industry. The purpose of

production logistics is to ensure that each machine and workstation is being fed with the right

product in the right quantity and quality at the right point in time.

The issue is not the transportation itself, but to streamline and control the flow through the

value adding processes and eliminates non-value adding ones. Production logistics can be

applied in existing as well as new plants. Manufacturing in an existing plant is a constantly

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changing process. Machines are exchanged and new ones added, which gives the opportunity

to improve the production logistics system accordingly. Production logistics provides the

means to achieve customer response and capital efficiency.

Production logistics is getting more and more important with the decreasing batch sizes. In

many industries (e.g. mobile phone) batch size one is the short term aim. This way, even a

single customer demand can be fulfilled in an efficient way. Track and tracing, which is an

essential part of production logistics - due to product safety and product reliability issues - is

also gaining importance especially in the automotive and the medical industry.

CONCEPT OF SUPPLY CHAIN MANAGEMENT

Supply chain management (SCM) is the process of planning, implementing and controlling

the operations of the supply chain as efficiently as possible. Supply Chain Management spans

all movement and storage of raw materials, work-in-process inventory, and finished goods

from point-of-origin to point-of-consumption.

The definition of Supply Chain Management encompasses the planning and management of

all activities involved in sourcing, procurement, conversion, and logistics management

activities. Importantly, it also includes coordination and collaboration with channel partners,

which can be suppliers, intermediaries, third-party service providers, and customers. In

essence, Supply Chain Management integrates supply and demand management within and

across companies. More recently, the loosely coupled, self-organizing network of businesses

that cooperates to provide product and service offerings has been called the Extended

Enterprise.

Supply chain management must address the following problems:

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Distribution Network Configuration: Number, location and network missions of

suppliers, production facilities, distribution centers, warehouses, cross-docks and

customers.

Distribution Strategy: Including questions of operating control (centralized,

decentralized or shared); delivery scheme (e.g., direct shipment, pool point shipping,

Cross docking, DSD (direct store delivery), closed loop shipping); mode of

transportation (e.g., motor carrier, including truckload, LTL, parcel; railroad;

intermodal, including TOFC and COFC; ocean freight; airfreight); replenishment

strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated,

private carrier, common carrier, contract carrier, or 3PL).

Information: Integration of and other processes through the supply chain to share

valuable information, including demand signals, forecasts, inventory, transportation,

and potential collaboration etc.

Inventory Management: Quantity and location of inventory including raw materials,

work-in-process and finished goods.

Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds

across entities within the supply chain.

Supply chain execution is managing and coordinating the movement of materials, information

and funds across the supply chain. The flow is bi-directional.

Activities/functions

Supply chain management is a cross-functional approach to managing the movement of raw

materials into an organization, certain aspects of the internal processing of materials into

finished goods, and then the movement of finished goods out of the organization toward the

end-consumer. As organizations strive to focus on core competencies and becoming more

flexible, they have reduced their ownership of raw materials sources and distribution

channels. These functions are increasingly being outsourced to other entities that can perform

the activities better or more cost effectively. The effect is to increase the number of

organizations involved in satisfying customer demand, while reducing management control of

daily logistics operations. Less control and more supply chain partners led to the creation of

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supply chain management concepts. The purpose of supply chain management is to improve

trust and collaboration among supply chain partners, thus improving inventory visibility and

improving inventory velocity.

The management components of SCM (Supply Chain Management)

The SCM components are the third element of the four-square circulation framework. The

level of integration and management of a business process link is a function of the number

and level, ranging from low to high, of components added to the link (Ellram and Cooper,

1990; Houlihan, 1985). Consequently, adding more management components or increasing

the level of each component can increase the level of integration of the business process link.

The literature on business process reengineering, buyer-supplier relationships and SCM

suggests various possible components that must receive managerial attention when managing

supply relationships. Lambert and Cooper (2000) identified the following components which

are:

Planning and control

Work structure

Organization structure

Product flow facility structure

Information flow facility structure

Management methods

Power and leadership structure

Risk and reward structure

Culture and attitude

Reverse Supply Chain Reverse Logistics is the process of planning, implementing and

controlling the efficient, effective in bound flow and storage of secondary goods and related

information opposite to the traditional supply chain direction for the purpose of recovering

value or proper disposal. Reverse logistics is also referred to as "Aftermarket Customer

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Services". In other words, anytime money is taken from a company's Warranty Reserve or

Service Logistics budget that is a Reverse Logistics operation.

Project Work Undertaken

Objectives of the Study

The major objective of the study were

Primary objective

To study logistic handling procedures.

To do a comparative market study of different brands

To study the main factors affecting the logistic services , communication

pattern between the two and in the dealer network, transport services

Secondary objectives

How should orders be handled? (Order Processing)

Where should stocks be located? (Warehousing)

How much stock should be held. (Inventory)

How should goods be shipped? (Transportation)

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LOGISTICS SERVICES:

Market Logistics

Physical distribution starts at the factory. Managers choose a set of warehouses (stocking

points) and transportation carriers that will deliver the goods to final destinations in the

desired time or at the lowest total cost. Physical distribution has now been expanded into the

broader concept of supply chain management (SCM). Supply chain management starts

before physical distribution: It involves procuring the right inputs (raw materials, components,

and capital equipment); converting them efficiently into finished products; and dispatching

them to the final destinations. The supply chain perspective can help a company identify

superior suppliers and distributors and help them improve productivity, which ultimately

brings down the company’s costs.

Mission of the Department

To make all Logistic arrangements with full compliance of law and procedures including

quality standards as laid down from time to time and to ensure full satisfaction of all

customers both internal with safe delivery.

INTERNAL WORKING MANUAL

The internal working of the Logistics Department can mainly be understood as:

1) Objective of the jobs:

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Objective of the jobs can be divided into its three defended categories. These

categories are as follows:

A) Receiving of goods: The receiving of finished goods (LIQUOR)

by the department includes following things.

Size / Pattern / Quality: Different types of size of case as 750ml, 375ml,

180ml,90ml different patterns and various types of brands, which are

manufactured by the company, are received by this logistics department.

(ii) Quantity: The quantities of finished goods i.e. liquor are measured in terms of number

of units.

Findings

PROCEDURES OF THE DEPARTMENT

Procedure Of Handling Logistic

[Headquarter sends weakly dispatch schedule]

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Headquarter

Logisti

cs

Production

[Warehouse located in the company]

[Under the company]

Comparative Study – LIQUER MARKET. 1-UB GROUP

2-SEGRAM CO.

Sales Channel of Replacement Market

Sales Channel of Replacement Market of RADICO follows a following pattern .:

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Raw

material

Finished Goods

Quality Checking

Warehouse

Export

Nepal Export

Road Transportation

Quality Control

Sales Depot

OEM

Rampur distillery

FL2 Agents Depots

Transportation Means

RAMPUR DISTILLARY Plant mostly uses trucks as transport means to deliver finished goods through depots to FL2 dealers.

Findings in Depot & Dealer Network

Dealers receives good concession/ discounts to get profit

An active supply chain is maintained between depots, C/F Agents and dealers to meet urgent requirements of end consumers

Dealers prefer unconditional warranty scheme goods as they are highly demanded in the market.

Dealers get goods from depots on credit basis through SAS scheme.

Dealers enjoy market reputation of R.D..

Market Position of RADICO

IN THE LIQUER MARKET OUR POSION IS VERY GOOD WE ARE ON SECOND NUMBER. AFTER U.B.GRUP

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RETAILERS

End Customers Sub - Dealers

Observations

Company is already maintaining the JIT (Just in time) delivery system with various

transportation arrangements. However due to resource constraints in transport

arrangements and other local hassle of road conditions. It is being met

with little higher cost.

Market requirement and original equipment requirement do fluctuate due to

there own reasons like production fluctuation, change in dispatch schedule. Due

to which the logistic arrangements are required for frequent review and arrangements.

The order schedule is given by the head office (Delhi). Due to some urgent order or

some specific requirements the dispatches are delayed.

Some time the consumption and a production cycle is not matched.

Unconditional warranty is favorable & convincing to the customer.

Dealers have active communication with RADICO management.

Replacement policy of RAMPUR PLANT is convincing to dealers.

Suggestions

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The company should give some special offers or discounts to the dealers which could

increase the sales of RADICO in the region, as dealers were found to have high

convincing power which could influence the buyer.

To avoid delay in dispatch RADICO RAMPUR plant should have provisions to fulfill

urgent & special requirements.

The company should take some efforts to make effective transportation arrangements.

Because it affect production pricing, on-time delivery performance and customer

satisfaction.

The company should centralized inventory in one place and use fast transportation to

fulfill orders. It reduces warehousing and inventory duplication cost.

The company should shorten the order-to-payment cycle i.e. elapsed time between

order’s receipt, delivery and payment.

The company should manage effective logistics information management because it

helps to link channel partners and share information to make better logistics decisions.

Information flows such as customer’s orders, billing, inventories labels and customer

data are closely linked with channel performance.

DAVENDRA VATSAL

MBA (B.E_)

GURUKUL KANGRI VISHVIDWALYA

HARIDWAR (U.K)

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Questionnaire

TO STUDY & ANALYSE DEALERS OF RADICO & LOGISTIC SERVICES

PROVIDED BY RAMPUR DISTILLERY TO THE DEALERS

59

This survey is conducted in order to study the main factors affecting the logistic services provided by R.D. to the

dealers through their depots / C &F Agents, communication pattern between the two and in the dealer net work ,

transport services and the after sales services of R.D.. Please give your valuable answer to the questionnaire

given below. The study is purely academic in nature and the information provided by you would be kept

confidential.

QUESTIONNAIRE:

1. Do you have an active communication with Radico management?

a) If yes, what is the mode of communication _________

b) If no, what mode of communication would you prefer?

2. The goods which are ordered are been timely arrived?

Yes No

3. The means of transport used?

4. Are there any damages due to transport?

Yes No

a) If yes, what type of damage is it ________

b) How often these types of damages occur. _________

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5. What is the cycle time of the goods i.e. the time after which the goods are next

ordered?

6. What is the no. of order cycles/ year i.e. the no. of times the ordered is been made?

7. Damaged goods are been timely replaced by radico brands? (End consumer, Retailer)

Yes No

8. How quickly does it take to respond to a change in demand to a customer?

< 1 week <2 week 2-4 weeks 1month

9. Is your urgent requirement is fulfilled by Radico on time? (stock availability)

10. Specify the product which are most demanded in the market.

11. Do you receive goods from other competitive firms too?

a) Name of the firms

b) Are you satisfied with pricing policy of Radico as compared to other firms?

12. How much discount do you get from the of each of the variants that you stock?

13. Suggestions which could help in increasing your profitability.

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Bibliography

Bibliography

Kotler Philip; Marketing Management; Prentice-Hall of India Private Limited; New

Delhi; 2001

Saxena Rajan; Marketing Management; Tata McGraw-Hill, New Delhi; 2002

Jhamb L.C.; Material and Logistics management; Everest Publishing House; Pune;

2000

Beri G.C.; Marketing Research; Tata McGraw-Hill, New Delhi; 2000

62

Nargundkar Rajendra; Marketing Research; Tata McGraw-Hill, New Delhi; 2004

RADICO World Web Site; www.radico.com

Website: www.indiainfoline.com

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http://www.jktyre.com/

Education

Summer training sales & logistics (1)