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BISLERI-Company Visit Report OPERATIONS MANAGEMENT 2/24/2010 SUBMITTED TO: MS. SAKSHI SAXENA SUBMITTED BY: SHALINI GAUTAM (119) RASHI RAINA (122) SHRUTI BHATT (124) SHRUTI ARYA (139) SONAL ARORA (131)
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BISLERI-Company Visit ReportOPERATIONS MANAGEMENT

2/24/2010

SUBMITTED TO: MS. SAKSHI SAXENA

SUBMITTED BY: SHALINI GAUTAM (119)

RASHI RAINA (122)SHRUTI BHATT (124)

SHRUTI ARYA (139)SONAL ARORA (131)

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ABSTRACT

Bisleri has its operations running throughout the subcontinent of India and is one of the leading bottled water supplying companies in India. As of 2007, Bisleri has 8 plants & 11 franchisees all over India. In this report we have tried to portray the production and operations conduct of Bisleri at their Anand Vihar plant, which we had visited. This report gives an outlook of what all products do they provide, the information about the processing of raw water to final product (which is divided in two parts WTP and Filler system), their quality check system and the strategy they follow. Interestingly, we also came to know that they manufacture the polymer bottles themselve.

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INTRODUCTION

In the 18th century, water supply was not safe so consumption of bottled natural mineral water was a privilege of the highest in society, captains of industry, politicians, royalty and so on since it was so expensive. By the mid nineteenth century, as businesses transformed considerably and consumption increased, global production climbed to several hundred million bottles.The first plastic bottle was launched in 1968 by Vittel. This bottled water was aimed at more general public consumption. Bottled water was introduced for the first time in Mumbai, India in the early 60’s by Signor Felice Bisleri.

In 1969 Parle bought over Bisleri (India) Ltd. and started bottling Mineral water in glass bottles under the brand name 'Bisleri'.In the mid 1980’s, another revolution in the bottled water industry moved the market forward with PET (Polyethylene terephtalate), a new recyclable plastic material that became the packaging benchmark worldwide. This new lighter, stronger material improved packaging practicality to meet the evolving consumer needs.   In due course Parle Bisleri also advanced to PET returnable and non returnable containers.

Bisleri for India

Safe drinking water shortage around the world particularly the third world countries contribute to the fact that the bottled water industry in India is growing at the rate of 40 % every year. Even though it accounts for only 5 percent of the total beverage market in India, branded bottled water is the fastest growing industry in the beverage sector. This also insinuates that there is increasing health awareness towards the importance of safe drinking water in the minds of the average Indian.

Bisleri, since its inception has become a name synonymous with safe drinking water and meets the requirement of the average Indian through its model distribution system in the far reaches of the country.Bisleri has been awarded the Reader’s Digest ‘Most Trusted Brand’ twice. Because of this reliability, it would be fair to say that the price that we would pay for a bottle of Bisleri is the price paid for assurance of health since 90% of diseases in India are water borne.

Importantly, Bisleri bottled water, though priced same as other bottled water brands in India, contains added minerals which are lost from our bodies when we sweat and need to be replenished regularly, thereby increasing its health benefits tremendously.All our / Bisleri plants follow a stringent process for purification of the raw ground water wherein 157 tests are carried out to assure the end consumer of the safety of bottled water. Out of every 1000 litres of source water taken from the ground to be processed at the Bisleri plants, 956 litres is given back as safe drinking water to the population of the nation. The remaining quantity is mainly lost to evaporation. Several industries like paper, steel and sugar

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have a more damaging global footprint and waste huge quantities of ground water during their processes to make the final products.

PRODUCT DESIGN

Bisleri product range now comprises of two variants: Bisleri with added minerals & Bisleri Mountain Water. It is available in 8 pack sizes: 250ml cups, 250ml bottles, 500ml, 1 litre, 1.5

litre, 2 litre, 5 litre, and 20 litre.

Bisleri with added Minerals:

Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

Bisleri Mountain Water

Inspired by nature, it comes to you from a pristine source situated in the beautiful and scenic mountains of Northern India. Natural Mountain Water resonates with the energy and vibrancy of health and well-being. It is packed with the goodness of nature's minerals which will refresh your senses and rejuvenate you. We invite you to experience our Natural Mountain Water - The sweet taste of purity.

The main focus of product designs is customer satisfaction (what the customer wants) and eases to use. Thus different capacity product came into play for uses at different location offices (20L), family trip (5L), other handy capacity bottles (2L, 1L), and children packs (250ml cups/bottles 500ml).

Bisleri manufacture the final product of polymer bottles themselves from the raw polyethylene terephthalate tubes and are popular resins used to make different types of plastic bottles.

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PROCESS SELECTION

The process for production is divided into two parts: The water treatment plant (WTP) and The Filler System. Bisleri Mineral Water contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times.

WATER TREATMENT PLANT:

The raw water from ground is collected in three bore wells. The collection of water tales place with the help of water pump which is present 250 feet deep inside land and power of the pump to pull water is 15 horsepower.

The first bore well i9s used for production of pure water for filling into the BISLERI bottles. The second borewell is used for alternate use if first borewell goes out of order or doesn’t

function properly. The third borewell is used for domestic purposes like floor cleaning, hand washing etc. The borewell water is then sent to two large tanks each of capacity 20 kilolitre at 3-4 kg

pressure. The raw water from these tanks is then sent to WTP i.e. Water Treatment Plant. Both the

WTP and raw water tanks are separated from each other so to prevent any contamination of water and space utilization is optimum.

The raw water undergoes the process of OZONATION or ONLINE DOZING which includes the side by side mixing of raw water with ozone gas so to kill bacteria, fungi, micro organisms, eliminate toxic materials.

The raw water is sent to Sand Filter of capacity 40000 litre per hour to trap minute sand particles.

Then it is sent to attached Carbon filter of same capacity of 40000litre per hour to remove odor, taste, organic substances.

Then the water is ent to UV light of wavelength = 260nm fitted machine so to kill bacteria with the help of UV radiation.

Then this water free from bacteria etc. is sent to 5 micron filter to trap particles that are greater than 5 micrometer in size. Very fine suspended impurities, colloidal matter, chlorine traces sand particles etc., which escape untapped in sand filter, are easily separated in these filters.The water is sent to RO system .Reverse osmosis is a liquid filtration method for removing many types of large atomic molecules from smaller molecules, by forcing the liquid at high pressure through a membrane of 0.0007 micrometer with pores (holes) just big enough to allow the small molecules to pass through.It is most commonly known for its use in drinking water purification from seawater, removing the salt and other substances from the water molecules. The process is similar to

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membrane filtration. However there are key differences between reverse osmosis and filtration. The predominant removal mechanism in membrane filtration is straining, or size exclusion, so the process can theoretically achieve perfect exclusion of particles regardless of operational parameters such as influent pressure and concentration. RO (Reverse Osmosis), however involves a diffusive mechanism so that separation efficiency is dependent on influent solute concentration, pressure and water flux rate. It works by using pressure to force a solution through a membrane, retaining the solute on one side and allowing the pure solvent to pass to the other side. This is the reverse of the normal osmosis process, which is the natural movement of solvent from an area of low solute concentration, through a membrane, to an area of high solute concentration when no external pressure is applied.

Then Mineral Dozing is done by mixing the resultant water with minerals like magnesium sulpahte for antibiotic and anti-fungal effect and Potassium Bicarbonate for anti-fungal effect.

Then the water is sent to Product water storage tanks of capacity 2500litres and two 2000 liters for storage purpose.

The one micron filter is used and 0.45 micron filter is used to trap particles of 1micronmeter and 0.45 micrometer respectively.

Then water from above is then mixed with ozone gas to follow the process of ONLINE DOZING to increase self life and maintenance of taste.

FILLER PROCESS

The water from WTP is sent to pipes that are attached to filling machines. These filling machines first revert the empty bottles, inject ozone gas to clean the bottle and then the water is filled in the bottles.

These filed bottles with the help of conveyer belts reach Cap Elevator that performs capping process to provide cap to bottles.

Then these bottles go to Labeling process i.e. labels of Bisleri are glued or stuck to them with THE LABELLING sensor.

The date of manufacturing, price are all printed to the bottles with the help of data coding machine .The coding is done in sensor and ink is filled in machine with ink pipeline.

The bottles are passed through CHLOROFLUROLIGHT to see any foreign particle if present

These are then packed in boxes.

HOW BOTTLES ARE MADE?

The Polymer PET (PolyEthyleneTetraPhalate) in the form of small bottle shapes is used to make bottles of varying sizes.

This polymer is heated softly and high pressure of air is applied

After this the bottles are molded with the help of molder to get the desired shape as needed.

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QUALITY CHECK

Rigorous R&D & stringent quality controls has made Bisleri a market leader in the bottled water segment. Strict hygiene conditions are maintained in all plants.

Every hour samples of water that are filled in to the bottles are taken and various testing is done. First it is checked for odor if any, presence of alkanity, chlorine and calcium. The water is also checked in machines like PH METER, TDS (TOTAL DISSOLVE SOLIDS) METER, NEPHLOMETER, SPECTROPHOTOMETER AND MEASURING OF TUBILITY. They also do aerobic microbial count and pathogen testing.

Water systems monitor for a wide variety of contaminants to verify that the water they provide to the public meets all federal and state standards. Currently, the nation's community water systems (CWSs) and non-transient non-community water systems (NTNCWSs) must monitor for more than 83 contaminants. The major classes of contaminants include volatile organic compounds (VOCs), synthetic organic compounds (SOCs), inorganic compounds (IOCs), radionuclides, and microbial organisms (including bacteria). Testing for these contaminants takes place on varying schedules and at different locations throughout the water system.

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Transient non-community water systems may monitor less frequently and for fewer contaminants than CWSs. Because these types of systems serve an ever-changing population, it is most important for them to monitor for contaminants such as micro biological and nitrate that can cause an immediate, acute public health effect.Water systems also monitor for a number of contaminants that are currently not regulated. This monitoring data provides the basis for identifying contaminants to be regulated in the future.

PLANT LAYOUT

Plant Layout is the physical arrangement of equipment and facilities within a Plant. The Plant Layout can be indicated on a floor plan showing the distances between different features of the plant. Optimizing the Layout of a Plant can improve productivity, safety and quality of Products. Uneccessary efforts of materials handling can be avoided when the Plant Layout is optimized.

This is valid for:- Distances Material has to move- Distances Equipment has to move- Distances Operators have to move- Types of Handling Equipment needed- Energy required to move items against resistance (i.e. gravity)

Plant layout is very essential and needs consideration and attention from the very beginning so as to avoid subsequent problems. Though one can think of several layouts but the best one is obviously the one, which is both very systematic and cheap. It is arrangement of machines,

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scientific use of work area, easy and convenient transport system, easy sorting out of materials and processing different parts. Since the area has already been selected and it is neither possible to neither change that nor expand that as per needs of the factory therefore layout is to be adjusted accordingly. Thus layout is disposition of various facilities and services of the plant within the specified area. It is arrangement of location of different machines and plants within the factory in such a way that there is minimum possible cost, the maximum output and the best quality product. In it all the requirements connected with production like the raw materials, machines, tools, fixtures etc. to be properly cared from the very beginning with the design of the factory. It is the agreement with the main focus that each operation is performed without the least inconvenience.

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Plant layout of Bisleri:

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STRATEGY

ADVERTISING STRATEGIES OF BISLERI

FMCG major Parle Bisleri India will soon slug it out to gain market share in the Rs 1,750 crore Indian packaged water sectors. Dumping aside plans to re-enter the branded fruit drinks sector (Bisleri had planned to launch its mango drink Alfaa last year), Ramesh Chauhan, chairman of Bisleri International, is now betting big on the water business. To sustain its leadership in the sector, Bisleri is chalking out an aggressive growth strategy, which includes extension of its manufacturing capacity and distribution network. On the other hand, Coca-Cola India is beefing up its packaging initiatives and advertising strategy to woo new consumers. With increasing competition, the sector will witness a major tussle between the two lead players, namely Bisleri and Coca-Cola's Kinley, predict industry analysts. "The economic recession has not impacted this sector, which is currently growing at 20%," said an industry analyst based in Mumbai. On Bisleri's revised strategy, Ramesh Chauhan, chairman of Bisleri International, said, "We are not re-entering the mango drinks sector this year. Instead, we will put all our efforts and investments into water." Chauhan's non-compete agreement with Coca Cola expired in 2003 and he has been working on re-launching a beverage brand since then. However, according to Chauhan, Bisleri is not looking at the enhanced water sector this year. Meanwhile, Coca-Cola India has introduced its flagship water brand, Kinley, in a new packaging in select markets across the country. "There new packaging innovation is supported by an integrated advertising strategy designed by Ogilvy & Mather India. With this move, they want to communicate the core benefit of 'purity' offered by Kinley," said a Coca-Cola spokesperson.

BRAND STRATEGIES OF BISLERI

India's top bottled water brand, Bisleri, is all set to embrace a new look by introducing a celebration pack this New Year. The new look will encompass changes in packaging that are more suited for parties, events and celebrations.Revolving around the central idea to position it as a brand for all occasions that will connect with consumers at all points in time, Bisleri aims to create a brand identity amongst consumers within the bottled water segment. Created by Elsie Nanji of Red Lion, part of the Publicis network, the new design keeps in mind the brand's association with being safe and pure, while being more appealing with the new look.

“We felt the need to customize packaging design to meet consumer expectations. The new design represents the company's vision of leading the industry in delivering the best product, while showcasing innovation and safety to our consumers," says Anjana Ghosh, director, Bisleri International. Without doing away with the current packaging, water bottles will be available with the new packaging design of Bisleri in 250 ml and 500 ml pack sizes.

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A dominant player in the bulk segment, which follows the direct to home and direct to institution delivery model, Bisleri has also introduced an outdoor advertising campaign to create awareness about the new packaging.Designed by Alakh Advertising, the campaign will kick off next week with 30 odd hoardings at several locations in Mumbai, including Marine Drive, Churchgate, Worli, Haji Ali, Bandra, Malad and Chembur.Bisleri will also use the new design on 120 trucks used for daily distribution. The company also plans to extend the outdoor campaign to other cities.Mineral water under the name Bisleri was first introduced in Mumbai in glass bottles in 1965 by Bisleri Ltd, a company of Italian origin. Ramesh Chauhan acquired Bisleri India from its Italian founder in 1969, when he was chairperson of Parle Exports.

COMPETITION STRATEGIES OF BISLERI

Not too many months ago, Tata Enterprise’s natural mineral water brand, Himalayan, made a splash in the Indian market, hailing itself as ‘100 per cent pure mountain water from the Himalayas’. The credo there was that as the world is turning towards spirituality and ethnicity, one mustn’t forget the purity in what’s original and untainted.

Himalayan even rolled out a commercial (made by Rediffusion Y&R) that had the earth ripped off its commercial elements, with everything going back to its natural state (including mountain water, now bottled in the form of Himalayan).

A few months later, things took a rather interesting turn when Himalayan filed a case against Bisleri on an issue regarding “trademark infringement”. The latter had even launched a website, www.bislerihimalayan.com, which it had to discontinue.

Now, Bisleri is back with a commercial that has it, quite indirectly, trying to claim the original mountain water territory once again. Shot on a budget of a whopping Rs 1.5 crore, the ad employs special effects and has been created by Red Lion, the Elsie Nanji founded design arm of Publicis India.

The commercial opens on a shot of the Himalayan mountain range “breaking” into a thousand water droplets. Within one such drop, we see a man seated in a meditative pose. The voiceover talks of how mountain water is ‘precious water”, giving life to earth, while the visual shows trees gaining life from water. Next, the visual depicts metaphors of spiritual significance such as the Mandala art, yogic chakras and poses, and even a meditative dance in progress. Finally, two human

beings embrace each other in a celebration of life, encapsulated in a water droplet. The voiceover concludes that Bisleri Mountain Water is “the sweet taste of purity”.

Although the ad doesn’t openly hail Bisleri as the original mountain water, Elsie Nanji, managing partner, Red Lion, says that the leadership claim is, in fact, strong but subliminal. “Our brief was for Bisleri to ‘own mountain water’,” says Nanji. “Over the years, Bisleri has become generic to the category and is, in fact, the original mountain water. We had to take the leadership stand in this case.” One will have to wait and see what its younger counterpart, Himalayan,

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wants to say on that.

The ad shows how water touches all our lives and the channel through which it travels in our own bodies. “This is water from the Gods… and it is a vital ingredient in our body,” says Nanji, adding that the spiritual layers have been added to give an ethnic, authentic feel to support the original mountain water claim.

The production has been done by White Light, and the whole film took about three months to complete. While some of the production work was done in India, a portion of it (such as the shots showing the mountains breaking into water droplets) has been done in Los Angeles.

Ruchika Desai, senior brand manager, Bisleri, says that the chief problem for the brand was to go beyond the functionality of the product and move into the imagery turf. Over the years, Bisleri has stood for purity and safety (most popular among its ads were the ‘Play Safe’ campaigns featuring model and actor Dino Morea).

Bisleri revamped its packaging in October 2006, going from blue to green, because “everyone in the category had adopted the colour blue”, according to Desai. Back then, Bisleri launched a TVC showing the journey of a Bisleri bottle – how it goes to its origins, the Himalayas, and comes back refreshed and ready to rejuvenate. “In this commercial too, we have shown how Bisleri water helps celebrate life, rejuvenate people and benefits the human body holistically,” says Desai. Annual ad spends for Bisleri are pegged at Rs 35 crore. The campaign will enjoy a two month burst on air, take a break, and return again early next year.

For the record, Himalayan Natural Mineral Water, the internationally known natural mineral water brand, is now a product of Tata Enterprise. According to the company, the water is endowed with vital organic minerals. Untouched and unprocessed, it has a taste acquired after more than 20 years of percolation, as it makes its way to an underground aquifer located in the Shivalik range of the Himalayas.

Bisleri, on the other hand, has been around for several years. Mineral water under the name, Bisleri, was first introduced in Mumbai in glass bottles in 1965 by Bisleri Ltd, a company of Italian origin. Parle bought Bisleri (India) in 1969. The company recently introduced Bisleri Natural Mountain Water – water brought from the foothills of the mountains in Himachal Pradesh. Its recent ad campaigns revolve around the thought, ‘The Sweet Taste of Purity’.

MARKETING STRATEGIES OF BISLERI

Bisleri have been the market leaders in India as far as mineral waters are concerned. Every time their bottle and waters are checked and rechecked for its purity. Their main aim is to stay ahead of the main rivals i.e. Pepsi and Coca Cola. There are various marketing strategies adopted by bisleri in meeting the firms objectives. The main marketing objectives are to attract a special group of people .The different design is shown to a special group of customers & dealers and according to the demand, the design is chosen by the company .and secondly to survive in current competitive market to cop up with different uncertainity in market .Bisleri has organized

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various promotional activities.To promote new product bisleri has gone through various advertising campaign. Bisleri has also issued its promotional catalogue and diaries. Bisleri also participate in various events organized in institutes ,social programs and fairs .Some times they also offer free and low cost stolls. The starting 15 -20 catters they provided in these events are either free or low cost. To promote new products of bisleri apart from media advertising various hordings ,flex as well as catalogues are also used.

PRODUCTION STRATEGIES OF BISLERIA target is given to production department in which they have to produce a standard amount of quantity of product in a given time period. It is about 1,00,000 catters per month.In summer and in winters the targeted quantity of product are different. In winters the demand of water is reduced then in the summers, so the production of water is less in winter then summer. The amount of quantity produced and stored is about 50,000 to 1,00,000 catters monthly. The production is done on the storage basis rather than the order basis. Water Stored in warehouses is replaced on the daily basis ,that is, after every 24 hours whole stoke is send in to market .

MANUFACTURING STRATEGIES OF BISLERI

Bisleri focuses on all aspects of purity and cleaneness of water.This is the reason bisleri manufactures every part of product themselves. Along with water the bottles, caps and handles are also manufactured by them.The bottle is manufactured by the polymers ,which are bought from market. The caps and handles of 20 ltr bottels are also manufactured by them at separate places and later brought by there venders to the refinery plants.There are also well organized laboratories in which the sample of first bottle is tested whether they are completely pure and the quantity of chemicals used in refinery procedure are used in adequate quantity. Even in between of complete procedure of manufacturing the sample of water is tested.

OUR EXPERIENCE

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This visit was indeed a very good learning experience as we could actual relate to what we were taught in classroom. Even while making this report we were thinking like managers, it was like we were making a report on our product. We are heartly very thankful to our mam ‘Ms Shakshi Saxena’ that she gave us such an interesting task to do for internal exams. Hope we get such task in future also, a very good exposure indeed.