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Seshadripuram Institute of Management Studies 1

AN INTERNSHIP REPORT TITLED

ORGANISATION STUDY

AT

NECTAR BEVERAGES PVT. LTD.

ADJ.G.T.C Belgaum Road, P.B. No 205, KC Park, Dharwad580008. India

Submitted in Partial Fulfillment of the Requirements of

Bangalore University for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

For the academic year 2010-2012

SUBMITTED BY

Vinod Raj C.U.M

Reg. No: 10DKCMA109

Under the guidance of

Mrs. Akhila R Udupa

SESHADRIPURAM INSTITUTE OF MANAGEMNENT STUDIES

#26, YELAHANKA NEW TOWN,

BANGALORE-560106

2010-2012

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STUDENT DECLARATION

This is to declare that this Internship Project entitled An

Organizational Study conducted at NECTAR BEVERAGES PVT.

LTD. Dharwad is an original and bonafide work carried out by me in

partial fulfillment of the requirement for the award of Masters Degree in

Business Administration (MBA) course ofBangalore University, under the

guidance ofMrs. Akhila R Udupa, lecturer ofSeshadripuram Institute

of Management Studies, Yelahanka, Bangalore.

Place: Bangalore Signature of the Student

Date: Reg No: 10DKCMA109

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GUIDE CERTIFICATE

This is to certify that Mr. Vinod Raj C.U.M (Reg. No. 10DKCMA109)

has completed Internship Project entitled An Organizational Study

conducted

At NECTAR BEVERAGES PVT. LTD. Dharwad.

This is an original and bonafide work carried out by the candidate

under my guidance and does not form basis for the award of any other

Degree/Diploma of Bangalore University or any other University.

Place: Bangalore Signature of guide

Date:

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Acknowledgement

It gives me immense pleasure in submitting this report on

organization study to Bangalore University Bangalore, for fulfilling partial

requirement of MBA course.Firstly, I take this opportunity to express my

sincere thanks to Dr. M .Prakash Principle, Seshadripuram First Grade

College, Yelahanka, Bangalore and Dr. D.K. Murhty, Director and all the

faculty members of MBA Department, who have constantly motivated and

guided through this fruitful endeavor. I extend my sincere thanks to Mr.

R.A Bakale, external guide for showing interest in my study & guiding me

tirelessly. I also express my deep sense of gratitude to my guide Mrs.

Akhila R Udupa, for his valuable guidance during my internship project. I

also extend words of thanks to my family members and friends for theirsupport and wishes.

Place: Bangalore Vinod Raj C.U.M

Date: Reg No: 10DKCMA109

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CONTENTS

CHAPTER LIST OF CONTENTS PAGE NO.

1 Economics scenario 1-7

2 Industry analysis 8-10

3 Company analysis 11-35

4 Functional Analysis

Production Department

Marketing Department

Human Resource Department

Finance Department

36-53

54-61

62-69

70-76

SWOT Analysis 77-78

Summary of Finding,

Suggestion & Conclusions

79

80-81

Student Learning experience 82

BIBLIOGRAPHY 83

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1. ECONOMIC SCENARIO OF INDIA

Overview

Social democratic policies governed India's economy from 1947 to

1991. The economy was characterized by extensive regulation,

protectionism,public ownership, pervasive corruption and slow growth.

Since 1991, continuing economic liberalization has moved the country

towards a market-based economy. A revival of economic reforms and better

economic policy in first decade of the 21st century accelerated India's

economic growth rate. In recent years, Indian cities have continued to

liberalize business regulations. By 2008, India had established itself as the

world's second-fastest growing major economy.

However, as a result of the financial crisis of 20072010, coupled

with a poor monsoon, India's gross domestic product (GDP) growth rate

significantly slowed to 6.7% in 200809, but subsequently recovered to

7.4% in 200910, while the fiscal deficit rose from 5.9% to a high 6.5%

during the same period. Indias current account deficit surged to 4.1% of

GDP during Q2 FY11 against 3.2% the previous quarter. Theunemployment rate for 20092010, according to the state Labour Bureau,

was 9.4% nationwide, rising to 10.1% in rural areas, where two-thirds of the

1.2 billion populations live.

India's large service industry accounts for 57.2% of the country's GDP

while the industrial and agricultural sectors contribute 28.6% and 14.6%

respectively. Agriculture is the predominant occupation in India, accounting
http://en.wikipedia.org/wiki/Social_democratichttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Public_ownershiphttp://en.wikipedia.org/wiki/Economic_liberalisation_in_Indiahttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Economic_development_in_Indiahttp://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/Fiscal_deficithttp://en.wikipedia.org/wiki/Current_account_deficithttp://en.wikipedia.org/wiki/Current_account_deficithttp://en.wikipedia.org/wiki/Fiscal_deficithttp://en.wikipedia.org/wiki/Financial_crisis_of_2007%E2%80%932010http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(real)_growth_ratehttp://en.wikipedia.org/wiki/Economic_development_in_Indiahttp://en.wikipedia.org/wiki/Market_economyhttp://en.wikipedia.org/wiki/Economic_liberalisation_in_Indiahttp://en.wikipedia.org/wiki/Public_ownershiphttp://en.wikipedia.org/wiki/Protectionismhttp://en.wikipedia.org/wiki/Social_democratic

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for about 52% of employment. The service sector makes up a further 34%,

and industrial sector around 14%. However, statistics from a 2009-10

government survey, which used a smaller sample size than earlier surveys,

suggested that the share of agriculture in employment had dropped to45.5%.

Major industries include telecommunications, textiles, chemicals,

food processing, steel, transportation equipment, cement, mining,

petroleum, machinery, information technology-enabled services and

pharmaceuticals. The labour force totals 500 million workers. Major

agricultural products include rice, wheat, oilseed, cotton, jute, tea,

sugarcane, potatoes, cattle, sheep, goats, poultry and fish. In 2009-2010,

India's top five trading partners are United Arab Emirates, China, United

States, Saudi Arabia and Germany.

Previously a closed economy, India's trade and business sector has

grown fast. India currently accounts for 1.5% of world trade as of 2007

according to the World Trade Statistics of the WTO in 2006, which valued

India's total merchandise trade (counting exports and imports) at $294

billion and India's services trade at $143 billion. Thus, India's global

economic engagement in 2006 covering both merchandise and services

trade was of the order of $437 billion, up by a record 72% from a level of

$253 billion in 2004. India's total trade in goods and services has reached a

share of 43% of GDP in 200506, up from 16% in 199091. India's total

merchandise trade (counting exports and imports) stands at $ 606.7 billion

and is currently the 11th largest in the world.

The overall growth of Gross Domestic Product (GDP) at factor

cost at constant prices, as per Advance Estimates, was 8.6 per cent in 2010-

11 representing an increase from the revised growth of 8.0 per cent during
http://en.wikipedia.org/wiki/Service_(economics)http://en.wikipedia.org/wiki/Industrial_sectorhttp://en.wikipedia.org/wiki/Sample_sizehttp://en.wikipedia.org/wiki/Labour_forcehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_Indiahttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/Tradehttp://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_Indiahttp://en.wikipedia.org/wiki/Oilseedhttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Labour_forcehttp://en.wikipedia.org/wiki/Sample_sizehttp://en.wikipedia.org/wiki/Industrial_sectorhttp://en.wikipedia.org/wiki/Service_(economics)

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2009-10, according to the Advance Estimate (AE) of Central Statistics

Office (CSO). Overall growth in the Index of Industrial Production (IIP)

was 3.6 per cent during February 2011. During April-February 2010-11, IIP

growth was 7.8 per cent.

The six core industries (comprising crude oil, petroleum refinery products,

coal, electricity, cement and finished carbon steel) grew by 6.8 per cent in

February 2011 as compared to the growth of 4.2 per cent in February 2010.

During April-February 2010-11, these sectors grew by 5.7 per cent as

compared to 5.4 per cent during April-February 2009-10. In addition,

exports, in US dollar terms increased by 49.7 per cent and imports increased

by 21.2 per cent, during February 2011.

Indian economy is now attracting the attention of the people

from all over the world. The financial condition of the country has shown

significant development in the last few months and has become much stable

these days. The Indian economic outlook 2011 also indicates that the

financial condition of the country has become more stable in the recent

years, yet inflation has been a significant problem. As per the reports, policy

makers of the country have given a significant boost to the financial state of

the country. They have brought development in the countrys financial state

in exchange of the risks related to macro stability which resulted in the

inflation.

Inflation Rate in India

According to the financial experts, the economic condition of the

country has become stable and the GDP has also improved in the last few

quarters. However, the high inflation rate has overshadowed the growth of

the economy and that is the reason why many are considering that the

economic condition of India is still unstable. As per the reports of Indian

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inflation rate 2011, the non-food inflation has come down to 7 percent this

year. It was around 11 percent previously. Reports indicate that inflation

rate has become a major cause of concern these days among the common

men of the country. It has also raised the eyebrows of investors, too.

Rising Rate of Unemployment in India

Financial experts have implemented different measures for bringing

stability in the inflationary condition of the country. They have also

designed programs for boosting the overall economy of the country. As per

the reports, the Indian unemployment rate 2011 has also remained a causeof concern among the people. The latest reports indicate that the

unemployment rate of the country is at 9.4 percent this year which is quite

high. According to the reports, forty million people are still unemployed in

the country and more employment opportunities are required for balancing

the condition.

Indias GDP growth Rate

Reports state that several industries have been developed in the

country in the past few years and many have been included in the five years

development plan for stabilizing the condition. With more financial

stabilization plans introduced in the recent years, the overall economy of the

country has received a boost. The Indian GDP growth at present is 9.1

percent which is also quite appreciating. Even though the gross domestic

product has made a significant growth in the past months, the country needs

to maintain a strict growth for emerging as an advanced economy.

Recent performance:

Real GDP growth slowed to 8.2% y/y in Q4-10, bringing overall

growth in 2010 to 8.6%. On a seasonally adjusted basis however, real GDP

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fell 2.1% an annualized rate from 15.5% in Q3.Despite a greater

contribution from net trade, a decline in government spending and a sharp

slowdown in investment took the momentum out of the Indian economy.

Across sectors, the slowdown was widespread, with only agriculture andfinance showing a pick-up in growth. Industrial activity stood at a near

standstill in Q4, rising 0.2% q/q, as spending on capital goods and

intermediate goods fell. Consumption spending rose slightly but remains

well below potential, expanding 0.4% q/q.

Fiscal policy:

Plagued by various scandals, the government presented a budget

for FY2011/2012 that is weak on reforms and consolidation. At the same

time, the government has maintained or increased a number of populist

measures, such as price subsidies on sensitive items as well as the rural

workers guaranteed employment program. The forecasted improvements

over the next 2 years rely on optimistic growth assumptions and

improvements in tax collection, as well as the capacity to contain spending

within the allocated budget. On the positive side, the budget reinforces the

governments commitment to infrastructure and education development and

highlights some progress in key changes in the tax systems (direct and

consumer taxes), both of which are impediments to unlocking Indias

growth potential. As a share of GDP, the

Central government deficit is expected to reach 4.6% of GDP in

FY2011/2012 (excluding off-budget food, fuel and fertilizer price subsidies

and the deficits of state governments), from 5.1% in FY2010/2011.

Monetary policy:

After a lull in Q4, inflationary pressures picked up again early in 2011,

pushing the Reserve Bank of India (RBI, the central bank) to return to a

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tightening stance, raising interest rates by 25 basis points for the repo and

reverse repo early in 2011. The move was prompted not only by resilient

inflation pressures, with inflation remaining stubbornly high at 8.2% for

both the CPI and WPI in January, but also strong demand for credit, whichaccelerated to 22.5% y/y in December from 18.2% in November. While the

increase in prices is partly driven by food shortages, the ramping up of M2

growth and non-food inflation since are also of concerns. As such,

additional tightening is expected early in the year.

External sector:

Despite strong export growth and remittances inflows, the current

account balance continued to expand as a share of GDP in Q3, rising to

4.3%. In Q4 however, the trade surplus shrank to US$21.3 billion in Q4,

after averaging over US$30 billion in the first 3 quarters of the year, driven

by resurging exports, up 28.4% y/y, and a sharp slowdown in imports, up

1.8% y/y, a sign of the slowing economy. With rising oil prices and the

capital account vulnerable to outflows, the balance of payment and rupee

are expected to weaken in 2011. However, the level of foreign exchange

reserves remains stable at US$274 billion, up from US$254 billion in May

2010, and sufficient to cover 7 months of current account debit.

Outlook:

The lagged impact of monetary tightening and the pullout of fiscal

stimulus will slow real GDP growth to 8.2% in 2011 from 8.6% last year.

While infrastructure spending will accelerate, tighter credit conditions will

result in a slowdown of private sector activity. Of concern for the medium-

long term business environment are the current corruption scandals, such as

those of the Commonwealth Games and the 2G licenses, that have engulfed

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the Indian Parliament, putting the reform agenda on the sideline for the

moment.

Indian economic and policy highlights

Domestic car sales in India declined 16% (y-o-y) in Jul11 the

sharpest decline since Nov08 in the midst of the global financial

crisis. The decline is attributed to higher interest rates and fuel prices.

However, the industry body expects a revival from this month, driven

by a flurry of new car launches and resumption of full production atMaruti Suzuki.

Indias industrial output grew by 8.8% (y-o-y) in June11 primarily

on account of a huge 37.7% (y-o-y) growth in capital goods

production (which is known for its lumpiness). However, excluding

this sector, the industrial growth has weakened to 4.0% (y-o-y) in

June11 partly reflecting the impact of sustained monetary tighteningon consumer goods growth that has slowed to 1.6% (y-o-y) this

month.

Indias gross direct tax collections were up by 26.63% (y-o-y), during

April-July, 2011 to Rs 1,325.42 bln on account of healthy collections

from both corporate and personal income taxes.

Indias exports have registered a growth of 81.8% (y-o-y) during

Jul11 to USD 29.3 bln, on account of good performance by sectors

like petrochemical products, gems & jewelers and electronics.

The FDI into India rose over four times in June11 to reach USD 5.65

bln versus USD 1.38 bln a year ago. The FDI into India is expected to

cross USD 35 bln in FY12 as against USD 19.4 bln in the previous

year on account of major deals between the Reliance group and

British Petroleum.

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Indian Banking Industrys Non-Food Credit grew by Rs 571.14 bln

over end- March11 until July 29th, reflecting a slight moderation in

y-o-y growth to 18.2%..

2. INDUSTRY PROFILE

A. INTRODUCTION

When we feel thirst we feel like drinking water and we drink it. Based on

this concept some developments were taken in beverages industries i.e.,

Coffee, Tea, Soft drinks, etc., all come under beverage industry. Now, we

will look towards the meaning of the soft drink, growth of soft drink and

major players of soft drink.

Meaning of soft Drink:

Soft drink (also referred to as soda, pop, soda pop, coke or fizzy drink)' is anon-alcoholic beverage typically containing water and a flavoring agent.

Soft drink can be mainly divided into two groups namely:

1. Carbonated: Carbonated drinks are those, which contain Carbon Di -

Oxide.

Examples: Cola, Mirinda, 7 -Up, Sprite, Thumps up etc.

2. Non-carbonated: Non Carbonated drinks are those, which don't contain

Carbon di-Oxide.

Examples: Mango drinks (Slice, Maaza etc)

The soft drink is known by various names in different countries with

different meaning such as in US it is called as soda, cola, and coke. In

Florida, mid west California is known as Soda. In Atlanta it is known as

coke. In UK, it's called as fizzy drink, pop

B. HISTORY:

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Soft drinks trace their history back to the mineral waters found in

natural springs. Ancient societies believed that bathing in natural springs

and/or drinking mineral waters could cure many diseases.

The earliest soft drinks were sherbets developed by Arabic chemists andoriginally served in the medieval Near East. "Alkaline Substances", "A kind

of Saltwort" from which soda is obtained, probably from Arabic suwwad,

the name of a variety of saltwort exported from North Africa to Sicily in the

Middle Ages, related to sawed "black," the color of the plant. These were

juiced soft drinks made of crushed fruit, herbs, or flower. From around

1265, a popular drink known as Dandelion & Burdock appeared in England,

made from fermented dandelion (Taraxacum officinal) and burdock

(Actium lappa) roots, and is naturally carbonated. The drink (similar to

sarsaparilla) is still available today, but is made with flavorings and

carbonated water, since the safrole in the original recipe was found to be

carcinogenic.

The first marketed soft drinks (non-carbonated) in the Western

world appeared in the 17th century. They were made from water and lemon

juice sweetened with honey. In 1676, the Compagnie des Limonadiers of

Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors

carried tanks of lemonade on their backs and dispensed cups of the soft

drink to thirsty Parisians.

C. MAJOR PLAYER & MARKET SHARE

Market segment of soft drink on the basis of types of product: Market share

of Carbonated & Non Carbonated Soft drinks:

Type Market Share Example

Carbonated 55.2% Pepsi, Coca- Cola, Thumps Up

Non carbonated 44.8% Orange, Cloudy Lime Clear Lir

Major players of soft drinks:

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1. Pepsi company

2. Coca cola company

3. Cadbury Schweppes

Market Share of soft drink industry in India.

S.NO COMPANY PERCENTAGE

1 Coke 43.5

2 Pepsi 31.9

3 Cadbury Schweppes 14.6

4 local manufactures 10

Major soft drinks in the Indian Market.

PEPSI CO. COKE CO.

1. Pepsi 1. Coca Cola

2. 7 up 2. Thumps up

3. Slice 3. Maaza

4. Mirinda (Orange) 4. Fanta

5. Mirinda (lemon) 5. Limca

6. Lehar soda 6. Kinley (water)

7. Teem Soda 7. Sprite

8. Mountain dew

9. Aquafina (water)

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3. COMPANYANALYSIS

ORIGIN OF PEPSICO

The business began to grow, and on 16th June, 1903, "PEPSICOLA", was

officially registered with the U.S. patent office. That year, Caleb sold 7,968

gallons of syrups, using the line "Exhilarating, Invigorating, Aids Deletion".

He also began awarding franchise to bottle to Pepsi to independent

investors, whose number grew from just two in 1905 in the cities of

Charlotte and Durham, North Carolina, then 15 the following year, and 40

by 1910, there were Pepsi-cola Building a strong franchise system was one

of Caleb's greatest achievements. Local Pepsi-cola bottles, entrepreneurial

in spirit and dedicated to the products success, provided a study foundation.

They were the cornerstones of the Pepsi-Cola enterprise. By 1907, the new

company was selling more than 100,000 gallons of syrups per year.

Growth was phenomenal, and in 1909 Caleb established a head

quarter that the town of New Bern pictured it on a postcard. Famous racing

car driver Barney Old-field endorsed Pepsi in newspapers ads as "A Bully

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Drink refreshing, invigorating, a fine bracer a race"

The previous year, Pepsi had been one of the first companies in the

United States to switch from Horse-Drawn transport to motor vehicles, and

Caleb's business expertise captured widespread attention. He was evenmentioned as a possible candidate for governor in 1913 editorial in the

Greensboro Patriot praised him for his "keen and energetic business

sense". Pepsi cola's first bottling line resulted from some less than

sophisticated engineering in the back room of Caleb's pharmacy. After five

owners and 15 unprofitable years, Pepsi-Cola was once again a thriving

national band.

Pepsi-Colas first bottling line resulted from some less-than-sophisticated

engineering in the back room of Calebs pharmacy.

GROWTH OF PEPSICO:

Times were tough and five cents was a lot to pay for a soft drink. So

Guth decided to make Pepsi-Cola an even more attractive value for hard-

pressed consumers. In Baltimore, Pepsi began selling a 12-ounce bottle of

cola for just a nickel twice as much refreshment as soft drinks, for the same

price.

Consumers responded immediately, and Guth expanded the idea

throughout the Pepsi-Cola system. Very shortly, Pepsi-Cola was once again

a healthy company, growing more strongly than ever. During the 1930's

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international expansion began in earnest. The trademark was registered in

Latin America and the Soviet Union, and franchises were awarded in

Canada.

PepsiCo India

PepsiCo entered India in 1989 and has grown to become one of the

country's leading food and beverage companies. One of the largest

multinational investors in the country, PepsiCo has established a business

which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since

the company was established in the country. PepsiCo provides direct and

indirect employment to 150,000 people including suppliers and

distributors.

PepsiCo nourishes consumers with a range of products from treats to

healthy eats that deliver joy as well as nutrition and always, good taste.

PepsiCo India's expansive portfolio includes iconic refreshment beverages

Pepsi, 7UP, Mirinda and Mountain Dew, in addition to low calorie options

such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina

drinking water, isotonic sports drinks - Gatorade, Tropicana100% fruit

juices, and juice based drinks Tropicana Nectars, Tropicana Twister and

Slice. Local brands - Lehar Evervess Soda, Dukes Lemonade and Mangola

add to the diverse range of brands.

PepsiCo's foods company, Frito-Lay, is the leader in the branded

salty snack market & all Frito Lay products are free of fat & MSG. It

manufactures Lay's Potato Chips; Cheetos extruded snacks, Uncle Chips &

traditional snacks under the Kurkure & Lehar brands. The company's high

fibre breakfast cereal, Quaker Oats, & low fat & roasted snack options

enhance the healthful choices available to consumers. Frito Lay's core

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products, Lay's, Kurkure, Uncle Chips & Cheetos are cooked in Rice Bran

Oil to significantly reduce saturated fats & all of its products contain

voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. Tosupport its operations, PepsiCo has 43 bottling plants in India, of which 15

are company owned and 28 are franchisee owned. In addition to this,

PepsiCo's Frito Lay foods division has 3 state-of-the-art plants. PepsiCo's

business is based on its sustainability vision of making tomorrow better

than today. PepsiCo's commitment to living by this vision every day is

visible in its contribution to the country, consumers and farmers.

About the Pepsi-Cola Company:

The summer of 1898, as usual, was hot and humid in New Bern, North

Carolina. So a young pharmacist named Caleb Bradham began

experimenting with combinations of spices, juices, and syrups trying to

create a refreshing new drink to serve his customers. He succeeded beyond

all expectations because he invented the beverage known around the world

as Pepsi-Cola.

Pepsi-Cola was so popular that Caleb Bradham could hardly take time

away from his soda fountain customers to pose for this picture.

CALEB BRADHAM

Caleb Braham knew that to keep people returning to his pharmacy, he

would have to turn it into a gathering place. He did so by concocting his

own special beverage, soft drink. His creation, a unique mixture of kola nut

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extract, vanilla and rare oils, became so popular his customers named it

"Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his

new soft drink.

In 1902, he launched the Pepsi-Cola Company in the back room of hispharmacy, and applied to the U.S. Patent Office for a trademark. At first, he

mixed the syrup himself and sold it exclusively through soda fountains. But

soon Caleb recognized that a greater opportunity existed to bottle Pepsi so

that people could drink it anywhere. The business began to grow, and on

June 16, 1903, "Pepsi-Cola" was officially steered with the U.S. Patent

Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line

"Exhilarating, Invigorating, Aids Digestion." He also began awarding

franchises to bottle Pepsi to independent investors, whose number grew

from just two in 1905, in the cities of Charlotte and Durham, North

Carolina, to 15 the following year, and 40 by 1907. By the end of 1910,

there were Pepsi-Cola franchises in 24 states.

Pepsi-Co la's first bottling line resulted from some less-than-sophisticated

engineering in the back room of Caleb's pharmacy.

Building a strong franchise system was one of Caleb's greatest

achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and

dedicated to the product's success, provided a sturdy foundation. They were

the cornerstone of the Pepsi-Cola enterprise. Growth was phenomenal, and

in 1909 Caleb erected a headquarters so spectacular that the town of New

Bern- pictured it on a postcard. Famous racing car driver Barney Oldfield

endorsed Pepsi in newspaper ads as "A bully drink refreshing, invigorating,

and a fine bracer before a race.

The previous year, Pepsi had been one of the first companies in the

United States to switch from horse-drawn transport to motor vehicles, and

Caleb's business expertise captured widespread attention. He was even

mentioned as a possible candidate for Governor. A 1913 editorial in the

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Greensboro Patriot praised him for his energetic business sense.

Pepsi-Cola enjoyed 17 unbroken years of success. Caleb now

promoted Pepsi sales with the slogan, "Drink Pepsi-Cola. It will satisfy

you." Then came World War I, and the cost of doing business increaseddrastically. Sugar prices see sawed between record highs and disastrous

lows, and so did the price of producing Pepsi-Cola. Caleb was forced into a

series of business gambles just to survive, until finally, after three

exhaustion; luck ran out and he was bankrupted. By 1921, only two plants

It wasn't until a successful candy manufacturer, Charles G. Guth,

appeared on the scene that the future of Pepsi-Cola was assured. Guth was

president of Loft Incorporated, a large chain of candy stores and soda

fountains along the eastern seaboard. He saw Pepsi-Cola as an opportunity

to discontinue

an unsatisfactory business relationship with the Coca-Cola Company,

and at the same time to add an attractive drawing card to Loft's soda

fountains. He was right. After five owners and 15 unprofitable years, Pepsi-

Cola was once again a thriving national brand.

PepsiCo Mission:

PepsiCo's overall mission is to increase the value of our shareholder's

investment. We do this trough sales growth, cost control and wise

investment of resources. We believe our commercial success depends upon

offering quality and value to our consumers and customers; providing

products that are safe, wholesome, economically efficient and

environmentally sound; and providing a fair return to our investors while

adhering to the highest standards of integrity.

This page focuses on the soft drink industry, and two of its major

competitors; Pepsi and Coca-cola. This page will take an in depth view at

the structure these two companies have and how they are influenced by each

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other.

Pepsi-Cola Beverages:

PepsiCo's beverage business was founded 1898 by Caleb Bradham, a

New Bern, Noijth Carolina druggist, who first formulated Pepsi-Cola.

Today, Brand Pepsi is part of a portfolio of beverage brands that

includes carbonated soft drinks, juices and juice drinks, ready-to-drink teas

and coffee drinks, isotonic sports drinks, bottled water and enhanced waters.

PBNA has well-known brand such as Mountain Dew, Diet Pepsi, Gatorade,

Tropicana Pure Premium, Aquafina water, Sierra Mist, Mug, Tropicana

juice drinks, Propel, So be, Slice, Dole, Tropicana Twister and Tropicana

Season's Best. PBNA manufactures and sells concentrate for some of these

brands to licensed bottlers, who sell .the branded products to independent

distributors and retailers. PBNA provides advertising, marketing, sales and

promotional support for its brands. This includes some of the world's best-

loved and most-recognized advertising.

In 1992 PBNA formed a partnership with Thomas J. Lipton Co. to

selling ready-to- drink tea brands in the United States. Pepsi-Cola also

markets Frappuccino ready-to-drink coffee through a partnership with

Starbucks.

Gatorade & Tropicana:

Tropicana was founded in 1947 by Anthony Rossi as a Florida fruit

packaging business. In 1954 Rossi pioneered a pasteurization process for

orange juice. For the first time, consumers could enjoy the fresh taste of

pure not-from-concentrate 100% Florida orange juice in a ready-to-serve

package. The juice, Tropicana Pure Premium, became the; company's

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flagship product. PepsiCo acquired Tropicana, including the Dole juice

business, in August 1998.

So be became a part of PBNA in 2001. So be manufactures and

markets an innovative line of beverages including fruit blends, energydrinks, dairy-based drinks, exotic teas and other beverages with herbal

ingredients.

Gatorade thirst quencher sport drinks were acquired by The Quaker

Oats Company in 1983 and became a part of PepsiCo with the merger in

2001. Gatorade is the first isotonic sports drink. Created in 1965 by

researchers at the University of Florida for the school's football team, "The

Gators," Gatorade is now the world's leading sport's drink.

PepsiCo Beverages North America includes the United States and Canada

Pepsi-Cola began selling its products outside the United States and

Canada in the midl-1930s, opening in the United Kingdom in 1936.

Operations grew rapidly beginning in the 1950s. Today, PepsiCo,

beverages are available in more than 170 countries and territories. Brands

include Aquafina, Gatorade and Tropicana.

In addition to brands marketed in the United States, PepsiCo

International brands include Mirinda, Seven-Up and many local brands.

PepsiCo began its international snack food operations in 1966. Today,

products are available in nearly 170 countries. Often PepsiCo snack food

products are known by local names.

Quaker Foods:

The Quaker Oats Company was formed in 1901 when several

American pioneers in oat milling came together to incorporate. In Ravenna,

Ohio, Henry D. Seymour and William Heston had established the Quaker

Mill Company. The figure in Quaker clothes became the first registered

trademark for breakfast cereal and remains the hallmark for Quaker Oats

today.

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In Cedar Rapids, Iowa, John Stuart and his son, Robert, and their

partner, George Douglas, operated the largest cereal mill of the time.

Ferdinand Schumacher, known as "The Oatmeal King," had founded

Gennan Mills American Oatmeal Company in 1856.

Combining The Quaker Mill Company with the Stuart and

Schumacher businesses brought together the top oats milling expertise in

the country as The Quaker Oats Company.

The first major acquisition of the company was Aunt Jemima Mills

Company in 1926, which is today the leading manufacturer of pancake

mixes and syrup. Gatorade was acquired in 1983.

In 1986, The Quaker Oats Company acquired the Golden Grain Company;

pi Rice-A. Roni.

PepsiCo merged with The Quaker Oats Company in 2001.

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Brands: Pepsi brands

Year of Introduction

Pepsi-Cola Pepsi-Cola 1898

7 up 7up 1929

Squirt 7up 1938

Wink 7up 1947

Mug root beer Pepsi-Cola 1950

Diet squirt 7 up 1961

Patio Pepsi-Cola 1963Teem Pepsi-Cola 1963

Diet Pepsi Pepsi-Cola 1964

Mountain Dew Pepsi-Cola 1964

Diet 7 up 7up 1970

Pepsi Light Pepsi-Cola 1975

Diet Pepsi free Pepsi-Cola 1982Slice Pepsi-Cola 1984

Cherry Pepsi (Canada) Pepsi-Cola 1985

Cherry Cola Slice Pepsi-Cola 1986

Diet Cherry Cola Shce Pepsi-Cola 1986

Citrus7 7 up 1986

Cherry 7 up 7 up 1987Caffeine free Pepsi Pepsi-Cola 1987

7 up Gold 7 up 1988

Pepsi AM Pepsi-Cola 1989

Pepsi's Wild Bunch Pepsi-Cola 1991

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PYASS HAl BADI

YE DIL MANGE MORE

HAVE A PEPSI DAY

THE GENERATION NEXPEPSI NOTHING OFFICIAL ABOUT IT

THE CHOICE OF NEW GENERATION

YOU GOT THE RIGHT ONE BABY

A GENERATION AHEAD

NOTHING ELSE IS A PEPSI

NOTHING OFFICIAL ABOUT IT

CHANGE THE GAME

YAANGISTAN

A tale of PepsiCo's Strategy and Structure:

Pepsi Co. And the coca-cola Company is to of the largest and

oldest archrivals in the carbonated soft drinks industry. The war between the

soda giants, also known as the "cola wars", initiated in the 1960s when

Coca-Cola dominance was being increasingly challenged by Pepsi-Cola.

The competitive environment between the rivals was intense and well

publicized, forcing the Pepsi Company to continuously establish and

implement strategic changes as a means to create a competitive advantage.

Furthermore both Pepsi and coke offered a limited number of products that

"looked the same, tasted the same, and bubble into foam the same "thus,

questioning whether further substantial growth in sales was possible.

Rather than succumbing to the impending maturation of its domestic

market, the Pepsi company as a leader, fostered by the competitive

intensity, launched new strategies, such as product modifications, new

forms - of pricing and promotion, and fundamental changes in its

distribution system, that have led to rapid and continued expansion of the

company's domestic sales. By forecasting and responding to changes in the

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economic, political, social, and technological environment, Pepsi has

successfully innovated in marketing, distribution, and product development.

The soda rivalry also initiated Pepsi Company to seek international markets

and diversification strategies in order to increase its sales growth."To be the World's Premier Consumer Products Company focused of

convenient foods and beverages. In everything we do we strive for honesty

fairness and integrity".

PepsiCo is a world leader in convenient foods and beverages, with

2004 revenues of more than $29 billion and 153,000 employees. The

company consists of Frito-Lay North America, PepsiCo Beverages North

America, PepsiCo international and Quaker Foods North Ame11ca.

PepsiCo brands are available in nearly 200 countries and territories and

generate sales at the retail level of about $78 billion

Many of PepsiCo's brand names are more than 100-years-old, but the

corporation is relatively young. PepsiCo was founded in 1965 through the

merger of Pepsi-Cola and Frito-Lay, Tropicana was acquired in 1998 and

PepsiCo merged with the Quaker oats company, including Gatorade, in

2001.

PepsiCo offers product choices to meet a broad variety of needs and

preference from fun for-you items to product choices that contribute to

healthier life styles.

PepsiCo is among the world's largest food and beverage

companies. Our businesses include: Frito-Lay, the world's largest

manufacturer and distributor of snack Pepsi-Cola, the world's second largest

beverage company; Tropicana, the world's largest marketer and producer of

branded juices; Gatorade, the world's leading sports drink and Quaker, a

leading manufacturer and marketer of cereals, rice and pasta and other grain

based products. PepsiCo brand names are among the best known and our

operations reach every comer of the world. As a consumer products

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company, and important environmental challenge facing all our divisions is

the packing generated by our products, packaging is important to public

health and safety and is critical component of the destitution system that

delivers products to consumers and commercial establishments. To meetthese needs and safeguard-the environment, we follow the Environmental

Protection Agency's (EPA) approach of Reduce, reuse and recycle.

Each business also strives to be responsible in its use of resources in

manufacturing and distributing our products. This report covers our

environmental commitment, the principles we follow, and progress at each

of our businesses.

PepsiCo's Environmental commitment

PepsiCo is committed to providing safe and healthy work

environments and to being an environmentally responsible corporate citizen.

It is our policy to comply with all applicable environmental, safety and

health laws and regulations.

We believe that protecting the environment is an important part of

good corporate citizenship. We are committed to minimizing the impact of

our businesses on the environment with methods that are socially

responsible, scientifically based and economically sound. We encourage

conservation, recycling and energy use programs that promote clean air and

water and reduce land fill waste. PepsiCo World Wide code of conduct.

Shareholders:

PepsiCo (symbol: PEP) shares are traded principally of the New York

stock exchange in the United States. The company is also listed on the

Amsterdam, Chicago, Swiss and Tokyo stock exchanges. PepsiCo has

consistently paid cash dividends since the corporation was founded.

Corporate Citizenship:

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At PepsiCo, we believe that as a corporate citizen, we have a

responsibility to contribute to the quality of life in our communities. This

philosophy is expressed in our sustainability vision which states: "PepsiCo's

responsibility is to continually improve all aspects of the world in which weoperate- environment, social, economic-creating a better tomorrow than

today".

Our vision is put into action through programs and a focus on

environmental stewardship, activities to benefit society, and commitment to

builds shareholder value by making PepsiCo a truly sustainable company.

PepsiCo Headquarters:

PepsiCo world headquarter is located in New York City. Edward

Durrell Stone, one of America's foremost architects, designed the seven-

building headquarters complex. The building occupies 10 acres of a 144

acre complex that includes: he Donald M. Kendall sculpture Gardens, a

world-acclaimed sculpture collection in a garden setting.

The collection of works is focused on major twentieth century art, and

features works by masters such as Augusta Robin, Henri Laurens, Henry

Moore, Alexander Calder, Albelio Giacometti, Arnaldo Pomodoro and claes

Oldenburg, the gardens originally were designed by the world famous

garden planner, Russell Page, and have been extended by Francois Goff net.

The grounds are open to the public, and a visitor's booth is in operation

during the spring and summer.

Recycle:

All Pepsi-Cola containers are designed for easy recycling and more than

half recycled, making soft drink containers the most recycled packaging

in the United States.

Pepsi-Cola is working with suppliers and bottlers to develop a PET (poly

eth eneterephthalate) bottle that contains 10% recycled content. Pepsi-

Cola PE plastic bottles will include 10% recycled content by 2010. We

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are current!; conducting tests with suppliers on the safety of 20 ounce

and 2 liter plastic bottle containing various recycled resins. We are

developing a sensory protocol fcj Pepsi-Cola bottles containing recycled

plastics. In the United States, 48 million Pepsi-Cola aluminum cans are recycled

each day] In Canada, over 50% of soft drink containers are recycled', and

this continues I rise.

Over the years Pepsi-Cola has made the plastic PET bottles more easily

recyclable in the United States, Canada Europe and elsewhere. Pepsi-

Col] eliminated base cups in most markets, switched to polypropylenecaps instead (aluminum metal caps, and paper contamination.

In U.S. and Canadian bottling plants, packages damaged during filling

collected and recycled glass, plastic and aluminum. Many plants also

recycle] used packaging from incoming materials corrugated packages,

straps front pallets, etc. This has reduced plant waste by 50%-75%

avoiding disposal costs and land filling.

Pepsi-Cola established one of the first programs in the country to

collect and recycle the plastic ring connectors from six packs. Since then the

company has established similar programs with its supplier, Hircine, at over

10,000 schools across the country. Many of the Pepsi-Cola bottling partners

have established programs to recycle ring connectors collected after filling

vending machines with cans. And if some consumers do litter, North

American ring connectors are photo degradable and have a "breakaway"

pull tab so they can be easily separated, minimizing any impact on wildlife.

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ORGANIZATION STRUCTURE

CLASSIFICATION OF EMPLOYEES

The company human resources, which includes the manpower available in

the entire organization.

The company (NBPL) divided its human resource in to:

1. Technical Staff:

Company classifies employees working in production department

where many activities related to technical are done. Such as filling and

making of pet bottle section.

2. Non - Technical staff:

Company also has non - technical staff in security department,

dispatch section and workers in garden etc.

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3. Administrative staff:

Nectar Beverages also have the staff to administrate the company.

Every department has the head of the department; the H.O.D Staff makes

decision in the company after having discussion with the subordinates.

Total Manpower of Nectar Beverages Pvt. Ltd:

CEO 01

Managers 05

Executives 32

Staff 09

Permanent workers 169

Temporary workers (season) 70

Company also takes temporary workers during the season that is

summer season it takes up to 120 workers and during non-season it recruits

only 30 workers to meet manpower requirement.

RECRUITMENT

Recruitment is nothing but searching and obtaining potential

candidates in sufficient number and quality and stimulates them to apply for

job, so that organization can select the most appropriate people to fill its job

needed. There are two sources of recruitment namely internal and external

sources of recruitment it only follows externals recruitment, such as

1. Casual callers:

2. Placement Consultants:

3. Employment Exchanges officers: 4. News Paper Advertisement:

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PROMOTER OF NECTAR BEVERAGES:

1. Shri. S. K. Jaipuria

2. Shri R. K. Jaipurai

3. Shri. Gandhi4. Shri. P. U. Devasai

INDRA NOOYI

CEO, PEPSICOLA, INDIA

SIZE OF LAND & BUILDING:

(7).INFRASTRUCTURAL FACILITIES:

Nectar Beverages Pvt. Ltd. is located in outskirts of Dharwad, near to

Agricultural University. It is having 2.65 acres area, with good

transportation facility. Company is having suitable buildings for Production

& Administration. Production building also has Quality Control Department

& Administration building has different

Departments like H.R, Finance, Sales & Marketing.

As there is no water supply at correct & constant time they have their

own water plant which supplies clean water which is also treated for safety

thereafter.

They have much machinery made up of stainless steel which provides

good quality products.

In order to meet the increasing demand for soft drinks in Karnataka

enhanced production capacity has been installed.

To overcome the chronic problem of electricity failure the company

has installed a generator with enhanced power capacity of 320 KVA.

The company is geared up with all necessary changes as suggested by

the principal's technical and quality team to fall in line with the international

standards.

In case the unit has already received a green signal for manufacturing

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International Brands of Pepsi Cola in the said plant.

BRANCHES OF N.B.PVT.LTD. : No branches

PRODUCTS PRODUCED AT N.B.PVT.LTD. :

1. PEPSIIt is a carbonated drink with the ingredients such as phosphoric acid,

fructose corn syrup, carbohydrates, caffeine, sugar and color.

2. MIRINDA (orange)It is a fruit drink with the ingredients like sugar, orange flavor and color.

3. MIRINDA (Lemon)

It is a fruit drink with the ingredients like sugar, lemon flavor, citric acid,

sodium bicarbonate.

4. SLICE

It is a noncarbonated fruit drink with the ingredients like mango pulps,

coloring agents, sugar etc.

5. LEHAR SODA

It is a carbonated drink with the ingredients such as phosphoric acid,

caffeine, phosphoric acid etc.

6. 7-Up

It is a carbonated drink with the ingredients such as carbonic acid, citric

acid, sugar etc.

7. MOUNTAIN DUE

It is a carbonated drink.

8. AQUAFINA

It is a mineral water

9. TROPICANA

10. TWISTERIt is a fruit based drinks

MARKET SHARE:

Market segment of soft drink on the basis of types of product: Market share

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of Carbonated & Non Carbonated Soft drinks:

Type Market Share Example

Carbonated 55.2% Pepsi, Coca- Cola, Thumps Up

Non carbonated 44.8% Orange, Cloudy Lime Clear Lir

Major players of soft drinks:

4. Pepsi company

5. Coca cola company

6. Cadbury Schweppes

Market Share of soft drink industry in India.S.NO COMPANY PERCENTAGE

1 Coke 43.5

2 Pepsi 31.9

3 Cadbury Schweppes 14.6

4 local manufactures 10

Major soft drinks in the Indian Market.PEPSI CO. COKE CO.

1. Pepsi 1. Coca Cola

2. 7 up 2. Thumps up

3. Slice 3. Maaza

4. Mirinda (Orange) 4. Fanta

5. Mirinda (lemon) 5. Limca

6. Lehar soda 6. Kinley (water)

7. Teem Soda 7. Sprite

8. Mountain dew

9. Aquafina (water)

Area of operation:

NBPL has its registered office in Dharwad and they are operating

in most part of the North Karnataka Districts. They are supplying their

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Supplies to 12 districts which are listed below.

1. Dharwad 8. Bellary

2. Gadag 9. Koppal

3. Haveri 10. Chidradurga4. Davangere 11. Karwar

5. Belgaum 12.Chikkamagalur

6. Bijapur 13. Shimoga

7. Bagalkot

Competitors:The major competitor is Coca-Cola along with local/ unorganized sector.

Pepsi Co. Brands Coca-Cola's Brands

Pepsi, Coca-Cola

7up Sprite

Mountain Dew Thumbs Up

Mirinda lemon LimcaMirinda orange Fanta

Slice Maaza

Nimbooz Nimbupani

Aquafina (Water) Kinley (Water)

BANKERS AND FINANCIAL INSTITUTIONS: Bank of IndiaTRANSPORTERS: Out Sourced to Pvt. Company

SWOT Analysis of Pepsi Company

PepsiCo Strengths Branding - One of PepsiCo's top brands is of course Pepsi, one of the

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most recognized brands of the world, ranked according to Interbred.

As of 2008 it ranked 26th amongst top 100 global brands. Pepsi

generates more than $15,000 million of annual sales. Pepsi is joined

in broad. recognition by such PepsiCo brands as Diet Pepsi, Gatorade

Mountain Dew, Thirst Quencher, Lay's Potato Chips, Lipton Teas

(PepsiCo/Unilever Partnership), Tropicana Beverages, Fritos Corn,

Tostitos Tortilla Chips, Doritos Tortilla Chips, Aquafma Bottled

Water, Cheetos Cheese Flavored Snacks, Quaker Foods and Snacks,

Ruffles Potato Chips, Mirinda, Tostitos Tortilla

The strength of these brands is evident in PepsiCo's presence in over

200 countries. The company has the largest market share in the US

beverage at 39%, and snack food market at 25%. Such brand

dominance insures loyalty and repetitive sales which contributes to

over $15 million in annual sales for the company.

Diversification - PepsiCo's diversification is obvious in that the fact

that each of its top 18 brands ge:p.erates annual sales of over $1,000

million. PepsiCo's arsenal also includes ready-to-drink teas, juice

drinks, bottled water, as well as breakfast cereals, cakes and cake

mixes. This broad product base plus a multi-channel distribution

system serve to help insulate PepsiCo from shifting business climates.

Distribution - The Company delivers its products directly from

manufacturing plants and warehouses to customer warehouses and

retail stores. This is part of a three pronged approach which also

includes employees making direct store deliveries of snacks and

beverages and the use of third party distribution services.

Weaknesses

Overdependence on Wal-Mart- Sales to Wal-Mart represent

approximately 12% of PepsiCo's total net revenue. Wal-Mart is

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PepsiCo's largest customer in USA. As a result PepsiCo's fortunes are

influenced by the business strategy of Wal-Mart specifically its emphasis

on private-label sales which produce a higher profit margin than national

brands. Wal-Mart's low price themes put pressure on PepsiCo to holddown prices.

Overdependence on US Markets - Despite its international presence,

52% of its revenues originate in the US. This concentration does leave

PepsiCo somewhat vulnerable to the impact of changing economic

conditions, and labor strikes. Large US customers could exploit

PepsiCo's lack of bargaining power and negatively impact its revenues.

Low Productivity - In 2008 PepsiCo had approximately 198,000

employees. Its revenue per employee was $219,439, which was lower

that its competitors. This may indicate comparatively low productivity

on the part of PepsiCo employees.

Image Damage Due to Product Recall- Recently (2008) salmonella

contamination forced PepsiCo to pull Aunt Jemima pancake and waffle

mix from retail shelves. This followed incidents of exploding Diet Pepsi

cans in 2007. Such occurrences damage company image and reduce

consumer confidence in PepsiCo products.

Opportunities

Broadening of Product Base - PepsiCo is seeking to address one of its

potential weaknesses; dependency on US markets by acquiring

Russia's leading Juice Company, Lebedyansky, and V Water in the

United Kingdom. It continues to broaden its product base by

introducing True North Nut Snacks and increasing its Lipton Tea

venture with Unilever. These recent initiatives will enable PepsiCo to

adjust to the changing lifestyles of its consumers.

International Expansion - PepsiCo is in the midst of making a $1, 000

million investment in China, and a $500 million investment in India.

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Both initiatives are part of its expansion into international markets

and a lessening of its dependence on US sales. In addition the

company plans on major capital initiatives in Brazil and Mexico.

Growing Savory Snack and Bottled Water market in US - PepsiCo is

positioned well to capitalize on the growing bottle water market

which is projected to be worth over $24 million by 2012. Products

such as Aquafina, and Propel are well established products and in a

position to ride the upward PepsiCo products such as, Doritos tortilla

chips, Cheetos cheese flavored snacks, Tostitos tortilla chips, Fritos

corn chips, Ruffles potato chips, Sun Chips multigrain snacks, Rold

Gold pretzels, Santitas are also benefiting from a growing savory

snack market which is projected to grow as much as 27% by 2013,

representing an increase of$28 million.

Threats

Decline in Carbonated Drink Sales - Soft drink sales are projected to

decline by as much as 2.7% by 2012, down $ 63,459 million in value.

PepsiCo is in the process of diversification, but is likely to feel the

impact of the projected decline.

Potential Negative Impact of Government Regulations - It is anticipated

that government initiatives related to environmental, health and safety

may have the potential to negatively impact PepsiCo. For example,

manufacturing, marketing, and distribution of food products may be

altered as a result of state, federal or local dictates. Preliminary studies

on acryl amide seem to suggest that it may cause cancer in laboratory

animals when consumed in significant amounts. If the company has to

comply with a related regulation and add warning labels or place

warnings in certain locations where its products are sold, a negative

impact may result for PepsiCo.

Intense Competition - The Coca-Cola Company is PepsiCo's primary

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competitors. But others include Nestle, Grouped DANONE and Kraft

Foods. Intense competition may influence pricing, advertising, sales

promotion initiatives undertaken by PepsiCo. Recently Coca-Cola

passed PepsiCo in Juice sales. Potential Disruption Due to Labor Unrest - Based upon recent history,

PepsiCo may be vulnerable to strikes and other labor disputes. In 2008 a

strike in India shut down production for nearly an entire month. This

disrupted both manufacturing and distribution.

PepsiCo is a world leader in convenient snacks, foods and beverages

with revenues of more than $43 billion and over 198,000 employees.

Take a journey through our past and see the key milestones that define

PepsiCo.

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FUNCTIONAL ANALYSIS

1. PRODUCTION DEPARTMENT

2. MARKETING DEPARTMENT

3. HUMAN RESOURCE DEPARTMENT

4. FINANCE DEPARTMENT

PRODUCTION DEPARTMENT

PRODUCTS PRODUCED AT NBPL:

1. PEPSI


fructose corn syrup, carbohydrates, caffeine, sugar and color.

2. MIRINDA (orange)

It is a fruit drink with the ingredients like sugar, orange flavor and color.

3. MIRINDA (Lemon)

It is a fruit drink with the ingredients like sugar, lemon flavor, citric acid,sodium bicarbonate.

4. SLICE

It is a noncarbonated fruit drink with the ingredients like mango pulps,

coloring agents, sugar etc.

5. LEHAR SODA


caffeine, phosphoric acid etc.

6. 7-Up

It is a carbonated drink with the ingredients such as carbonic acid, citric

acid, sugar etc.

7. MOUNTAIN DUE

It is a carbonated drink.

8. AQUAFINA

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It is a mineral water

9. TROPICANA

10. TWISTER

It is a fruit based drinksRaw Materials Used and Product Mix:

Companys Flavor concentrates, which make up less than 1% of the

finished beverages, also are diligently controlled.

Each supplier must submit written verification that each lot of ingredient

shipped to companies to water, sugar, and flavor testing, other

ingredients, including non agricultural have been analyzed by outsidelaboratories.

All ingredients including flavors, emulsifiers, preservatives, colors,

acidulate, approved by global food standards like the JECFA/CODEX,

USFDA and EU Scientific Committee for Foods. All ingredients used

also conform to standards laid out by the prevention of Food

Adulteration Act under the health ministry

Sugar:

Sugar accounts for 10 to 13% of a soft drink.

Sugar must meet high standards of quality, which are uniform for all

of the Pepsi beverage plants across the globe. All of the company's

sugar manufacturers must undergo the same supplier qualification

process.

To add to our already high quality standards, all of our plants in India

further purify sugar with hot activated carbon and fine filtration.

Carbon Dioxide:

The CO2 in each bottle of Pepsi surpasses that recognized for

medical applications.

The company achieves this by subjecting each supplier to a rigorous

supplier qualification process, which includes a complete audit of

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refineries and testing from approved international laboratories.

Further, each batch carries certificates of analysis and compliance.

Once the CO2 reaches a bottling plant, it undergoes further

purification;

QUALITY CONTROL:

Quality Control and policy department:

Make Sell and Deliver the Beverages to the consumer has it was

designed, in order to drive brand preference.

Safety Principles in the Company:We believe that safety health and environmental excellence is

fundamental to demonstrating the values of the right side up company in all

our operations.

Through a fully empowered Pepsi-Cola organization, it is the job of

every individual at Pepsi-Cola to be conscious of and strive towards

protection of safety, health and the environment in our operating procedures

and in the design of our facilities and equipment. We will rely on an

integrated process that places value on individuals, exceeds performer and

customer expectation and increases the value of our company.

We intend to sustain safety health and environmental process that will

prevent injury and property damage, protect against loss by fire and provide

security for our assets. It is the obligation of everyone at Pepsi-Cola to

comply with all applicable safety health and environmental laws.

Ongoing monitoring of these activities will take place in order to

ensure that we hold our self accountable for safety, health and

environmental excellence.

Quality Control:

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Soft drink manufacturers adhere to strict water quality standards for

allowable dissolved solids, alkalinity, chlorides, sulfates, iron, and

aluminum. Not only is it in the interest of public health, but clean water also

facilitates the production process and maintains consistency in flavor, color,and body. Microbiological and other testing occur regularly. The National

Soft Drink Association and other agencies set standards for regulating the

quality of sugar and other ingredients. If soft drinks are produced with low-

quality sugar, particles in the beverage will spoil it, creating floc. To prevent

such spoilage, sugar must be carefully handled in dry, sanitized

environments.

It is crucial for soft drink manufacturers to inspect raw materials

before they are mixed with other ingredients, because preservatives may not

kill all bacteria. All tanks, pumps, and containers are thoroughly sterilized

and continuously monitored. Cans, made of aluminum alloy or tin-coated

low-carbon steel, are lacquered internally to seal the metal and prevent

corrosion from contact with the beverage. Soft drink manufacturers also

recommend specific storage conditions to retailers to insure that the

beverages do not spoil. The shelf life of soft drinks is generally at least one

year.

Quality Assurance:

Perhaps the most important in a bottling plant are those concerned

with the maintenance of the standards of purity and uniformity set for the

beverages produced. Those activities can be grouped together under the

heading of quality assurance.

To get the top most quality of the product, all the ingredients such as

water, CO2, concentrate; are strictly inspected and analyzed by our quality

assurance department. Apart from raw material, online sampling finished

products are also tested.

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Samples of beverages produced are picked item the market for testing

by independent laboratories of international repute.

Major Players and Market Shares:The two global majors Pepsi and Coca-cola, Which had winded up its

India operations during the introduction of the FERA regime, reentered

India 16 years later in 1993, dominate the soft drink market in India. Coca-

cola acquired a major chunk of the soft drink market buying out local

brands thumps up, Limca and gold spot from Parle beverages. Coca cola has

also acquired Cadbury Schweppes soft drinks brands crush, Canada dry and

sport Cola in early 1999.Pepsi although started a couple of years before

Coca-Cola in 1991,has a lower market share today. It has bought over

Mumbai based duke's rang of soft drink brands both the cola manufacturers

come up with their own market share figures and claim to have increased

their share.

Segmentation:

The soft drink market can be segmented on the basis of place of

consumption or on the basis of type or products.

The segmentation on the basis of place of consumption divides the market

into

Parts.

On-premise -80% of the consumption of the soft drinks is on premise

i.e. restaurants, sweet marts, railway station, cinema theaters etc.

At home-the rest of 20%of the market comprises of the soft drinks

purchased for consumption at home.

The market can also be segmented 0 the basis of types of products

into cola products and non-cola products.

Cola products account for nearly 62-65% of the total soft drinks

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market. The brands that fall in this category are Pepsi, coca-cola,

thumps up, diet coke, diet Pepsi etc.

Non-cola segment, which constitutes 36%, can be divided into four

categories based on the types of flavors available, namely: Orange,Cloudy Lime, Clear Lime, and Mango.

Orange flavor based soft drinks constitute around 17% of the market.

The segment is largely dominated by national brands like Fanta of coca-cola

and Mirinda orange of Pepsi Co, which collectively form 15% of the

market, rest of the market is in hands of smaller brands like crush, Gold

Spot etc.Cloudy Lime flavors constitutes of 14% of the market and is largely

dominated by Limca of coca-cola and Mirinda Lemon of Pepsi Co, Limca is

the market leader with around 0-75% of the market followed by Mirinda

Lemon. Clear lime: this segment of the market witnessed good growth

initially with all the players launching their brands in the segment.

Mango: this flavor segment constitutes 2% of the total soft drinks market

and it directly it completes with mango based fruit drinks like Frooti. The

leading brands in these segments are: Maaza of coca-cola, and slice of

Pepsi.

PROCESS INVOLVED IN MANUFACTURING OF PRODUCT:

Raw Materials:

Carbonated water constitutes up to 94% of a soft drink. Carbon

dioxide adds that special sparkle and bites to the beverage and also acts as a

mild preservative. Carbon dioxide is a uniquely suitable gas for soft drinks

because it is inert, non-toxic, and relatively inexpensive and easy to liquefy.

The second main ingredient is sugar, which makes up 7-12% of a soft drink.

Used in either dry or liquid form, sugar adds sweetness and body to the

beverage, enhancing the "mouth feel," an important component for

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consumer enjoyment of a soft drink. Sugar also balances flavors and acids.

Sugar-free soft drinks stemmed from a sugar scarcity during World

War II. Soft drink manufacturers turned to high-intensity sweeteners,

mainly saccharin, which was phased out in the 1970s when it was declared apotential carcinogen. Other sugar substitutes were introduced more

successfully, notably aspartame, or Nutria-Sweet, which was widely used

throughout the 1980s and

1990s for diet soft drinks. Because some high-intensity sweeteners do

not

Provide the desired mouth-feel and aftertaste of sugar; they often are

combined with sugar and other sweeteners and flavors to improve the

beverage.

The overall flavor of a soft drink depends on an intricate balance of

sweetness, tartness, and acidity (pH). Acids add sharpness to the

background taste and enhance the thirst-quenching experience by

stimulating saliva flow. The most common acid in soft drinks is citric

acid, which has a lemony flavor. Acids also reduce pH levels, mildly

preserving the beverage.

Very small quantities of other additives enhance taste, mouth-feel,

aroma, and appearance of the beverage. There is an endless range of

flavorings; they may be natural, natural identical (chemically synthesized

imitations), or artificial (chemically unrelated to natural flavors). Emulsions

are added to soft drinks primarily to enhance "eye appeal" by serving as

clouding agents. Emulsions are mixtures of liquids that are generally

incompatible. They consist of water-based elements, such as gums, pectin's,

and preservatives; and oil-based liquids, such as flavors, colors, and

weighing agents. Saponins enhance the foamy head of certain soft drinks,

like cream soda and ginger beer. To impede the growth of microorganisms

and prevent deterioration, preservatives are added to soft drinks. Anti-

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oxidants, such as BHA and ascorbic acid, maintain color and flavor.

Beginning in the 1980s, soft drink manufacturers opted for natural additives

increasing health concerns of the public.

Impurities in the water are removed through a process of coagulation,filtration, and chlorination. Coagulation involves mixing folk into the water

to absorb suspended particles. The water is then poured through a sand filter

to remove fine particles of Roc. To sterilize the water, small amounts of

chlorine are added to the water and filtered out.

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The Manufacturing Process:

Most soft drinks are made at local bottling and canning

Brand name grant licenses to bottlers to mix the soft drinks in strict

accordance to their secret formulas and their required manufacturing

procedures.

Clarifying the water:

The quality of water is crucial to the success of a soft drink.

Impurities, such as suspended particles, organic matter, and bacteria, may

degrade taste and color. They are generally removed through the traditional

process of a series of coagulation, filtration, and chlorination. Coagulation

involves mixing a gelatinous precipitate, or floc (ferric sulphate or

aluminum sulphate), into the water. The floc absorbs suspended particles,

making them larger and more easily trapped by filters. During the

clarification process, alkalinity must be adjusted with an addition of lime to

reach the desired pH level.

Filtering, sterilizing, and dechlorinating the water:

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The clarified water is poured through a sand filter to remove fine

particles of folk. The water passes through a layer of sand and courser

beds of gravel to capture the particles.

Sterilization is necessary to destroy bacteria and organic compoundsthat might spoil the water's taste or color. The water is pumped into a

storage tank and is dosed with a small amount of tree chlorine. The

chlorinated water remains in the storage tank for about two hours

until the reaction is complete.

4 Next, an activated carbon filter dechlorinates the water and removes

residua\ organic matter, much like the sand filter. A vacuum pumpde-aerates the water before it passes into a dosing station.

Mixing the ingredients:

The dissolved sugar and flavor concentrates are pumped into the dosing

station in a predetermined sequence according to their compatibility. The

ingredients are conveyed into batch tanks where they are carefully

mixed; too much agitation can cause unwanted aeration. The syrup may

be sterilized while in the tanks, using ultraviolet radiation or flash

pasteurization, which involves quickly heating and cooling the mixture.

Fruit based syrups generally must be pasteurized.

The water and syrup are carefully combined by sophisticated machines,

called proportioners, which regulate the flow rates and ratios of the

liquids. The vessels are pressurized with carbon dioxide to prevent

aeration of the mixture.

Carbonating the beverage:

Carbonation is generally added to the finished product, though it may

be mixed into the water at an earlier stage. The temperature of the liquid

must be carefully controlled since carbon dioxide solubility increases as the

liquid temperature decreases. Many carbonators are equipped with their

own cooling systems. The amount of carbon dioxide pressure used depends

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on the type of soft drink. For instance, fruit drinks require far less

carbonation than mixer drinks, such as tonics, which are meant to be diluted

with other liquids. The beverage is slightly over-pressured with carbon

dioxide to facilitate the movement into storage tanks and ultimately to thefiller machine.

Filling and packaging:

The finished product is transferred into bottles or cans at extremely high

flow rates. The containers are immediately sealed with pressure-resistant

closures, either tinplate or steel crowns with corrugated edges, twist off,

or pull tabs. Because soft drinks are generally cooled during the manufacturing

process, they must be brought to room temperature before labeling to

prevent condensation from ruining the labels. This is usually achieved by

spraying the containers with warm water and drying them. Labels are

then affixed to bottles to provide information about the brand,

ingredients, shelf life, and safe use of the product. Most labels are made

of paper though some are made of a plastic film. Cans are generally pre-

printed with product information before the filling stage.

Finally, containers are packed into cartons or trays which are then

shipped in larger pallets or crates to distributors.

Manufacturing Process of Carbonated Drink:

Water and Water Treatment:

Pure water is taste less, color less and odor less. Water as it occurs in

nature, whatever the source, always contains impurities in solution are in

suspension. The determination of these impurities makes water analysis

necessary and the control of these impurities makes water conditioning

essential.

The various sources of water can be classified as rain water, surface

water and ground water. Irrespective of the source of the water, the water

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has to be tested and treated before taking in to the production.

Testing and Treatment Procedure Adopted At MIS. Nectar Beverges

Pvt. Ltd. Dharwad:

The source of water at Nectar Beverages Pvt. Ltd. is ground water.The water is tested for various parameters like, hardness, alkalinity,

suspended impurities, and micro organisms.

Treatment Procedure:

There are two types of water treatment adopted at nectar beverages Pvt. Ltd,

Chemical batch treatment: This water is used for beverage purpose.

Ion exchange: This water is used for boiler feed water, cooling tower,D.G. sets, condenser, heat exchanger and bottle washer.

1. Chemical Batch Treatment Process:

Here the raw water is collected in storage tanks and dosages for

chemical treatment are given according to the characteristics of the raw

water. The source of raw water is bore wells.

At present N .B.P.L. is holding three water treatment storage tanks,

out of which two tanks are of3,00,000 liters capacity and one is 4,00,000

liters capacity.

Raw water is collected from bore wells in the storage treatment tanks

and analyzed the characteristics of raw water such has P-alkalinity, M-

alkalinity, temporary hardness and calcium hardness, afterwards chemical

dosages are fixed. After addition of chemicals, the water is stirred by

mechanical agitator, and three hours contact period is given before taking

the water for production.

Treated water passed through the sand filter to remove any floe

carryover, then an activated carbon filter which removes chlorine and off

taste/ odor causing impurities. Finally it goes through 5 micron pore size

polishing filters to remove any carbon that may have been carried out over

from the carbon purifier, and then through ultra-violet. Chlorine

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concentration is maintained at 6-8 PPM level before carbon filter and 2

hours contact time prior to dechlorination.

Details of Chemicals Used:

Lime: Added to remove alkaline compounds from water to anacceptable level and to reduce temporary hardness.

Bleaching Powder: Added for chlorination to oxidize

microorganisms.

Ferrous Sulphate: Added for coagulation and flocculation i.e., to

remove the suspended solids and also insoluble materials created by

chlorination and alkalinity reduction is removed.The sludge is drained and the treatment tanks cleaned with water after

every treatment and fresh raw water is taken for fresh treatment.

Sweetening Agent and Syrup Preparation:

Sweetening agents are those subsistence's, which when blended with

flavor, acid etc. will provide satisfactory sweet taste in the finished

beverages. They also furnished body, which helps to carry or transits the

flavor. They also give energy or food value to the beverage.

Syrup Preparation:

The preparation of the syrup is certainly one of the most important

operations in the beverage plant, both from the stand point of sanitation and

control of concentration.

The object in syrup making is to prepare satisfactorily bended and

finished syrup from which uniform beverages of high quality can be

produced.

Normally required quantity of sugar of high quality is added to

treated water and heated to 85 C, in a high grade stainless steel double jack

vessel. Activated carbon is added to this to remove impurities. Impurities

along with activated carbon added to the sugar are separated form the sugar

solution by filtering the sugar syrup. Filter paper and Hyflo Supercel are

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used as filter aid. The temperature of the clear syrup thus obtained is

brought down to 20 C and stored is called "Simple" syrup. When the syrup

is completely prepared by the addition and blending of all flavoring

ingredients it is called as "Ready"/ "Finished" / Flavored The syrup is readyfor use in production process,

CO2 and Carbonation:

The.C02 used for beverage purpose are 99.9% pure, free from

moisture, air, oil, grease and other impurities.

The amount of CO2 dissolved in solution is called as volumes. The

number of volumes of gas in the finished beverage has a definite

relationship to the taste of the beverage. Correct carbonation means a

sparkling, stimulating, thirst quenching beverage that completely refreshes

and satisfies the consumer. Since there is definite relationship between taste

and carbonation, it is extremely important to determine and maintain the

carbonation which has proved most acceptable through experience in

consumer section. The technique adopted at MIS. N.B.P.L for carbonating

the beverage is as under: The ready syrup, which is prepared and stored in

ready syrup tank, is taken to the bottling line. It is passed trough a machine

called 'premix' where the syrup is automatically diluted with treated water to

the required level. Once it is diluted it is sent to the carbonator for

carbonation.

For carbonating the beverage a mechanical device known as

"CARBONATOR" is used. CO2 gas enters the carbonator through a valve

at the top of the body of the carbonator. The dome as well as the body of the

carbonator is filled with gas. Syrup is sprayed in to the carbonator from the

top, which flows down through the baffle plates provided inside the

carbonator. As the water flows down it gets mixed with the CO2 gas nrp.se,

nr inside the carbonator.

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Concentrates:

Flavoring materials used in making carbonated beverages are primarily

are alcoholic extracts, emulsions, alcoholic solutions or fruit juices.

Concentrates or non-alcoholic beverage bases are supplied byN.B.P.L's principle company from channo (Punjab) having international

standards. On addition of concentrate to the simple syrup we get respective

finished syrup ready for further process beverages.

Bottle Washing and Bottle Inspection:

One of

reg no 10dkcma109 (1)

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