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BAIKUNTHI DEVI KANYA MAHAVIDYALAYA AGRA

INDUSTRIAL VISIT PROJECT REPORT ON “VARUN BEVERAGE”

AT KOSI

S UBMITTED BY

AYUSHI GUPTA

ROLL NO:-110045070002

B.B.A. IIIrd SEMESTER

SESSION (2012- 2013)

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF BACHELOR OF BUSINESS ADMINISTRATION (B.B.A.) PROGRAM OF

DR. BHIM RAO AMBEDKAR UNIVERSITY, AGRA

CONTENTS

S.no. Particulars

1. Acknowledgements

2. Certificate

3. Objective of the Study

4. Research Methodology

5. About the Company

6. Live and Learning Experience

7. Conclusion

8. Bibliography

AcknowledgementsI would like to express my thanks to people for collective effort, who have given their full support and valuable suggestions.

I can’t begin without you dear GOD. Thank you for being with me.

In my thanks list are my friends, teachers, colleuges who really showered constructive feedback and suggestions without which this report would not have been in present form.

Now, its time to convey regards to those people who have helped me in this report. Dr. Ranjana Mehrotra, Head of BBA Deptt. who praise me for this project; I acknowledge all the teachers especially Mrs. Rachna Solanki for guiding us on every pin-point of this report; Mr. Ajeet Singh, HR Manager of Varun Beverages, who guide us and acquaint us with all the information about the processes, turnover of Varun Beverages, and so forth.

Finally I must say thanks to my parents. They were like praising, encouraging me and gave right direction in the preparation. They are the reason and real force behind my writing.

-Ayushi Gupta

Objectives of the studybjective of the study is to learn and experience significant contribution of theoretical aspects of business administration in business world. Any organisation either public or private

comes under industry of commerce follow the basic concepts of business administration and they have to plan organise direct control and coordinate different activities at different grounds.

OThe study is undertaken the following specific objectives:-

To learn and experience the current business world.

To analyse the present organisational behaviour and business environment.

To analyse the effect of the ethics and values in enhancing effectiveness of the organisation.

To analyse various measures necessary for gearing up of business

About the CompanyAbout the CompanyHISTORY OF THE VARUN BEVERAGES LTD.

Varun Beverages Ltd. is situated in Tahsil Chhata of Mathura district. Pepsi has given VBL franchise and profit generated by the Co. is totally

participated by itself.

Earlier, Agra Beverages Ltd. was situated in the city of Taj, Agra in 1970. It was set up for Coca Cola but due to political movement Coca Cola went out from the country. They started filling Limca, Double Seven by 10th April 1986 and then afterwards Parle Products. In 1991 the company

started filling of Pepsi brands. At present Agra Beverages Ltd. is converted into Varun Beverages Ltd. established in March 1999, situated in

Kosikalan, Mathura.

Varun Beverages Ltd. is a private limited company to which franchise is given by Pepsi Food Ltd. for bottling of the various Pepsi brands.

Managing Director of the company is Mr. Ravi Kumar Jaipuria, leading top businessman (In Soft drink Market) in India.

PEPSI GUIDELINES:

PEPSI LANGUAGE:

A district is a geographical area, which includes a number of accounts or

outlets.

A route is a set of outlet called on by a sales man per day.

A sub route is a set of outlet called on by a sales man on a specific day.

A route day is a specific day of week during which is sub route is served.

Call frequency is the number of times; an outlet is a schedule to be

called on by a salesman in a week.

Selling is defined as the active attempt of a salesman to sell the product

to the consumer.

VISION OF THE ORGANIZATION

The future description of something (an organization corporate

culture, a business, a technology, an activity) in the future.

Varun Beverages define its vision statement as follows:

“Varun Beverages Ltd. enters next few years with the confidence of a learning knowledge based and happy organization”.

We will establish ourselves as a supplier of choice by delighting our customers with our service and our products. In the coming decade, we will become the most cost competitive Beverages Plant and so serve the

community and the nation.

Market Survey:

Marketing survey is an assessment, which can help executive to raise

the level of their subordinates. Survey collects recorded and analyze

the data about marketing problems to facilitate decision-making.

Varun Beverages Ltd. is one of the bottlers representing PEPSI. Varun

Beverages has provided its total market potential ranging U.P.,

RAJASTHAN, HARYANA, M.P., GOA, NEPAL, due to piracity of time,

market survey was operated only in Vrindavan city.

Soft drink is a consumer’s good market has divided the consumer’s

good into three categories:-

(a)Convenience goods

(b)Shopping goods &

(c)Special goods

Soft drink falls in the categories of convenience goods. These products,

which a consumer buy frequently, immediately, regularly and with

minimum shopping efforts. The distribution of these products should

be available for the convenient location to facilitate consumer. Soft

drink completely fits into the definition, simply because soft drink are

impulse item purchased on the spur of the moment without much

through & consideration. Hence V.B.L. does its best effort to make soft

drink available with in easy reach of consumers.

Different marketing activities are adopted to ensure proper discharge

at marketing functioning three folds: -

(1)Anticipation and recognition at demand.

(2)Stimulation of demand

(3)Satisfaction of demand

PROMOTION FACILITIES :

The company in order to enhance its sales gives certain Promotional

concessions to the dealers and retailers

DISTRIBUTORS:

The company owns the advertisement costs Expenditure On lifting

schemes are given. The company owns umbrellas, Chains and paintings

etc.

RETAILERS: Free painting.

Glow signboard.

Refrigerators are provided (on certain terms and conditions).

Umbrellas and chains are provides by the company, conditions

being good gathering and publicity etc. market schemes are given.

MARKETING CONCEPT:

Marketing boasts a rich array of concept and tools. We will start

by defining marketing, and than describe its major concept and tools.

Marketing is a societal process by which individuals and Group

obtain what they need and want through creating, Offering, and freely

exchange products and services of Value with others.

The marketing concept hold that key to achieving its

Organizational goals consists of the company being more effective than

competitor in creating, delivering, and communication customer value

to its chosen target market. The marketing concept takes an outside in

prospective. It starts with a well-defined market, focuses on customer

needs, coordinates all the activities that will affect customer and

produces profits by satisfying customers.

MISSION STATEMENT:

“Consistent with the values of the Varun Beverages . Pvt. Ltd and strives to strengthen India’s industrial base through the effective utilization of men and materials.”

The means envisaged to achieve this are high technology and productivity,

consistent with modern management practices. Overall, the company seeks to

scale the heights of excellence in all that it does in all atmospheres free from fear and

thereby reaffirms the faith in democratic values.

PHILOSOPHY

The Philosophy of Varun Beverages Ltd. Establishes the value, believes &

guidelines for the manner in which the Varun Beverages Ltd. Is going to

conduct its business. Usually the officers of the Varun Beverages Ltd. Lay

down the corporate Philosophy, which an organization follows in its

strategic and operational activities. Such a Philosophy may not be

consciously and formally stated but may gradually evolve due to the

officer’s actions.

Generally an officer has a perception of the type of organization that he wants

his company to be the executive committees of Varun Beverages Ltd.

Discuss and decide on a corporate philosophy to be followed for strategic

management. Consultants may also be called upon to make an in depth

analysis of the organization to suggest an appropriate Philosophy

statement.

STRUCTURE OF THE ORGANIZATION

1. STRUCTURE OF PRODUCTION DEPARTMENT

Plant. Managers

Plant Accountant

Production Manager

Shipping Head

Supply Executive Shipping In charge

CHAIRMAN

MANAGING DIRECTOR

PRODUCTION FINANCE PERSONNEL MARKETING

ASSISTANT ASSISTANT ASSISTANT AREA SALES

2. STRUCTURE OF SALES DEPARTMENT IN V.B.L.

M.U.M. - MARKETING UNIT HEAD, Mr. Prakash Chopra

U.M. - UNIT MANAGER, Mr. Deepak Bhalla

T.D.M. - TERRITORY DEVELOPMENT MANAGER, Mr. Ajay Saigal

A.D.C. - ACCOUNTS DEVELOPMENT CO-ORDINATOR, Mr. Amit Gupta

C.E. - CUSTOMER EXECUTIVE, Mr. Sachin Dixit

M.E. - MARKETING EXECUTIVE, Mr. Ashish Agrawal

M.U.M.

U.M.

T.D.M. T.D.M.T.D.M. T.D.M.

A.D.C. A.D.C.A.D.C.A.D.C.

C.E. C.E. C.E. C.E.

SALES

MAN

SALES

MAN

SALES

MAN

SALES

MAN

SALES

MAN

3. STRUCTURE OF ACCOUNTS DEPARTMENT:

Unit Head

Sales Account Head

Accounts Executive Accounts Executive Accounts Executive

4. STRUCTURE OF PERSONNEL DEPARTMENT:

Unit Manager -- Mr. Anoop Channa.

H R Manager - A Raziq Malik

TDM -- Mr. K.M. Sharma.

ADC -- Mr. Ravi Jain.

CE -- Mr. Rajeev Tandon.

5. STRUCTURE OF PURCHASE DEPARTMENT:

Purchase Manager

Purchase Executive Purchase Executive

CORPORATE SOCIAL RESPONSIBILITIES

Under the guidance of its chairperson, the company had consistently backed on

numerous occasions’ awards for quality assurance and productivity. The company’s

highly sophisticated plant and quality control laboratory along with the dedication

and enterprise of its employees is more than evenly matched by the management’s

sense of understanding and compassion that insured the company’s progress with

every passing day.

Currently despite having a sale of more than 24 million bottles and paying

handsomely to the state of and national exchequer by way of statutory duties and

company enable to meet the growing demand of its products and consequently a

plan to establish a second production line with enhanced capacity is on the anvil.

MAJOR COMPETITORSThe Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in 1886, our Company is the world's leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. Our corporate headquarters are in Atlanta, with local operations in over 200 countries around the world.

The product range of COCA-COLA Consists of: -

COLA ORANGE LIME LIME MANGO M.WATER

COKE FANTA LIMCA SPRITE MAAZA KINLEY

SWOT ANALYSIS

Strengths :- Varun Beverages are franchisee owned Bottle Operation (FOBO) of world’s most famous

soft drinks giant PepsiCo.

Varun Beverages uses state of the art and fully automatic machines and technology for the

product and bottling of soft drinks.

It has a very strong distribution network and well built market and currently holds almost

all the parts of the state.

Weakness :-

Purity & Quality of the products are estimated manually.

Promotional activities in the rural market are not up to the mark as compared to the

urban market.

It’s one of the popular brands PEPSI in Cola flavor is lagging behind with its nearest

competitor only due to high sugar content and less thrilling taste.

More emphasis is given to the large dealers.

PEPSI has only one cola flavor where its competitor has Coca-cola has Coke and

Thumps-Up.

Opportunities :-

It should give more incentives to the dealers in the rural areas, where there is a

huge market potential.

It should adopt automatic and computerized quality control system for its product.

More lucrative schemes to be launched regularly, especially during off-season. So

as to attract more and more customers.

Apart from sponsoring films, cricket and music it should also Spencer to different

fashion shows, quizzes and debates in schools and colleges.

The consumption rate is higher in Mathura

As it is a international brand, it is easy to capture market.

Rural market is relatively untouched with high growth potential.

Enhancement of township will enhance its sells.

The present supply is not sufficient to fulfill the demand, which may be trapped.

Threats :- One of the products of their competitor in the cola segment has a very good market share due to its

taste.

Coca-cola is now spending more and more to boost up the sale, so Varun Beverages should also

have to go a head and think about it.

The frequent article in news paper about harmful effects of carbonated soft drinks.

The entry of new local lemon flavor fruits juices.

Sprite is expanding its market in rural area

The strong brand image & advertising style may harm the sells in future

The following table shows the internal and external factors affecting the market opportunities for PepsiCo & its products.

Internal Factors Strengths Weaknesses

Management Experienced, broad base of interests and knowledge

Large size may lead to conflicting interests

Product Line Unique, tastes good, competitive price, and convenient

Generic brands can make similar drinks - cheaper

Marketing Diverse, and global awareness Culture differences

Personnel International, diverse positions Possible conflicts due to so many people, possible trouble staying focused

Finance High sales revenue, high sale growth, large capital base

High expenses, may have trouble balancing cash-flows of such a large operation

Manufacturing Low costs and liabilities due to outsourcing of bottling and distributing.

Lose control and quality standards

Research & Development

Continuous efforts to research trends and reinforce creativity

May concentrate too much on existing products, intrapreneuralship may not be

welcomed

External

Factors

Opportunities Threats

Consumer/Social Highest per capita consumption rate of carbonated beverages in the world. Often a substitute for water.

Traditional sodas & fruit juice have a strong brand loyalty due to pesticide finding.

Competitive Lower entry barriers due to presence of highly distribution system for other Pepsi products

Not entirely patentable, constant replicability by competitors

Technological Internet promotion such as banner ads and keywords can increase their sales, and more computerized manufacturing and ordering processes can increase their efficiency

Computer breakdowns, viruses and hackers can reduce efficiency, and must constantly update products or other competitors will be more advanced

Economic Consumer income is high, more tend to eat out, convenience is important

Very elastic demand, almost pure competition

PRODUCT PROFILE

The products manufactured by Varun Beverages Pvt. Ltd, are very limited in range as it is not independent to diversify its products when required. This is because it is a unit of PEPSI FOODS LIMITED, which supplies the concentrates for different brands of soft drink. These are:-

PEPSI (cola flavour)

MIRINDA (orange, apple & lemon flavour)

7 UP (Clean lemon flavour)

SLICE (Mango flavour, having concentration of ALPHANSO, TOTAPURI Mango

30:70)

SODA EVERNESS

MOUNTAIN DEW

PEPSI BLUE

The chief consumers are young masses. Beside direct consumer, hoteliers,

restaurants owners and various other soft drinks peddlers also use them. Thus it can

be said that these are the product for mass consumption.

SOFT DRINKS BRANDS:

Brands available in 200 ml.

Treta Slice Mango.

Treta Slice Orange.

Brand available in 250 ml.

Slice

Brands available in 300 ml.

Pepsi

Mirinda orange

Mirinda Lemon

7 Up

Mountain Dew.

Soda

Brands available in 600 ml

Pepsi

Mirinda Orange

Mirinda Lemon

7 Up

Mountain Dew

Soda

Brands available in 1000 ml.

Pepsi

Mirinda Orange

Brands available in 2000 ml.

Pepsi

Mirinda Orange

Mirinda Lemon

7 Up

Mountain Dew

Mineral Water

Aquafina

Available in 1000 ml. Bottle.

Prices of Pepsi Products:

Soft Drink Bottles in Crait Price

300 ml Brand 24 260

600 ml Brand 24 498

2000 ml Brand 09 510

PRODUCTION PROCESS

Water Treatment Plants:

Water in the Varun

Beverages Ltd, Before

ensuring production, raw

water is being treated in

the water treatment plant.

In this stage hard water is

converted into soft water

by the demineralization

for the soft drink base. The

process of Osmosis does the conversion of hard water. The process

involved is known as coagulation process. Main chemicals used are

Ferrous Sulphate (FeSo4), Calcium Hydroxide (CaOH), & Chlorine (CI).

Initially water is treated with all these chemicals in the treatment tank and

becomes turbid. All impurities get settled at the base and remove the

turgidity. Then it sent to the Carbon Tank where all the microorganisms

and chlorine’s are removed. The water so obtained is completely free from

any kind of impurities and can be used in further processing. The maximum

alkalinity maintained until as much as 50ppm

FUNCTION OF EQUIPMENT INVOLVED IN WATER TREATMENT PLANT:

1. SAND FILTER:

It filters the water with help of sand. It is cleaned Monthly by water &

yearly sand changed.

2. ACF (Actified Carbon Filter):

It removes chlorine from water. It is cleaned monthly by steam & yearly

it is replaced

3. SF (Softener Filters):

It removes hardness. It is changed by 10% brine solution and cleaned

by reverse water flow.

4. DMF (Dual Media Filter):

It removes suspended particles. It is cleaned weekly by Sodium hypochlorite

solution.

5. DOSING SYSTEM:

Removal of chlorine.

6. MICRO FILTER:

It removes micro size particles. It is cleaned by Chlorine Solution

7. REVERSE OSMOSIS:

It cleans water on the principal of reverse osmosis

8. U.V.LIGHT: It removes all remaining harmful bacteria

Bottle Washing Plant:

Used bottles returning from the market are stealthy. It is completely an auto-process

which takes place within a machine called washer machine. The machine has three

compartments. Bottle for washing are placed on the conveyer come inside the

machine and get successive treatment. Bottles are treated with 4% caustic soda in

the first compartmental a temperature 100-150 F. Next these were conveyed to the

second compartmental, where bottles are again treated with 2% caustic soda at a

temperature of 120F, in the third compartment bottles are treated with soft water.

Time duration in each compartment is 10 minutes. Bottles are then sent through the

inspection center, where these are watched against strong light.

Syrup Room: Syrup room is situated on the first floor. Here syrup is prepared

from filtered water, sugar and the concentration. The room is well equipped with

several tanks and filter press.

water under pressure in definite proportion. Inspected bottles gradually come under

the “Filtration Machine”. Carbonated syrup by this time fills the filler machine. From

this machine, syrup is poured into the Calculated amount of syrup along with

concentrate and water are being heated up to 85 degree C. Thus a saturated solution

is being prepared. Next it is sent through a machine called “Filter Press” syrup is

filtered here.

Filtered syrup is next passed through a para flow cooler, when by recycling and glycol

method, the temperature of the syrup is cooled down to 20-25 degree C cooled

syrup is than stored in the syrup tanks. Syrup comes to the Traumatic machine. Here

syrup is mixed with carbonated bottles in calculated amount. Meanwhile, crowner

machine helps in closing the bottle mouth with helps of the caps completely air tight.

Ready bottles are again sent through an inspection center for through examination

on conveyer. Next they were carried on a round table from where they are collected.

These are the pictures of placing the cartoons full of cold-drinks which

are ready to sell to Retailers, Consumers, etc.:

For placing the cold-drink or mineral water bottles to the lorry, a Robot is being used:

Research methodologyThis section includes Primary and Secondary data.

Primary data: These are the datas which are being collected by own self, not by others.

We have visited the Varun Beverages and got all the information about the processes, machines which are assembled in the processing of

bottle and filling of Soft Drink. Photos were also taken out there.

SECONDARY DATA: means the data which have already been collected and analysed by someone else for its own use. The photos of various types of processes engaged in soft-drink factory are reffered from the internet.

LIVE AND LEARNING EXPERIENCE

Back from our industrial visit. It was certainly a great experience and highly surprising to see all the theories we study in our commerce books being put to

practical use. We went for a visit to a soft-drink factory. That was totally exciting, educational and demonstrative too. I mean I could never imagine so many

processes are involved in the production of a soft drink.

Before entering there, they provide us the cap made from thin cloth (used mainly while working into the factory) which would provide us the protection from the

harmful gases emitted from the machines.

The Varun Beverages Ltd. deals in Soft-drink factory. Wherein, we have seen many machines like fillers, etc. Bottle washing by various machines, which was the

first process in the factory. Mr. Ajeet Singh told us :

Turnover= Rs. 2000 Crore annually;

Sale= 200 countries;

Bottles= 24000 per day.

CONCLUSION As we have been there we have experienced and gained the

knowledge about the proper industry. In books we acquire only

theoretical knowledge, but in actual, the pragmatic implementation

of the same, can be grasped only by visiting an industry, which varun

beverage has provided to us.

We have learned that how managers are able to manage an industry

at a large scale.

We come to know that how we implement our ideas in practical

way.

The workers of varun beverage are very friendly and adjusting, they

give us a chance to learn more about their machine.

BIBLIOGRAPHY

Website:

www.rjcorp.com

www.google.co.in

www.21food.com

Photographs at site of different units.