8/2/2019 Report Beverage http://slidepdf.com/reader/full/report-beverage 1/34 Report By: Er. Binod Pandey www.binodpandey.wordpress.com Table of Contents A. RECOMMENDATION .................................................................. Error! Bookmark not defined.B. ACKNOWLEDGEMNT ................................................................. Error! Bookmark not defined.C. PREFACE..................................................................................... Error! Bookmark not defined.D. INTRODUCTION ........................................................................................................................ 2 I. Historical Background of beverage........................................................................................... 2 II. Types of beverages ............................................................................................................... 2 III. Scope of beverage industries; .............................................................................................. 4 IV. General objectives: ............................................................................................................... 5 E. METHODOLOGY ........................................................................................................................ 6 I. Search strategy ......................................................................................................................... 6 II. Information sources ............................................................................................................. 6 III. Objectives of project: ........................................................................................................... 6 IV. Primary and secondary data collection; ............................................................................... 7 V. Rational of study; .................................................................................................................. 7 F. ANALYSIS; ................................................................................................................................. 7 I. Specific objectives in Nepal. ..................................................................................................... 7 II. Production: status and issues ............................................................................................... 8 III. Demand: status and issues ................................................................................................. 12 IV. Supply: status and issues .................................................................................................... 12 V. Financial aspects. ................................................................................................................ 13 VI. Managerial aspects: status and issues ............................................................................... 18 VII. Engineering and technical aspects: .................................................................................... 19 VIII. Health and beverage products: .......................................................................................... 25 IX. Environmental and ecological aspects: .............................................................................. 26 X. Social aspects:..................................................................................................................... 30 G. FINDINGS: ............................................................................................................................... 31 H. RECOMMENDATION: .............................................................................................................. 32 I. CONCLUSION: ......................................................................................................................... 33 J. REFERANCE ............................................................................................................................. 34
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Fruit juice industry is the easiest industries from the production point of view as
component for production of juice arrive in Nepal in Powder form. Only thing done in Nepal is
mixing with water and packing in attractive packs or bottles. Juice industries’ major problem iswater purification and tight competition with rival industries.
III. Scope of beverage industries;
Beverage covers a wide range of liquor and drinks. so beverage industries is a big
industry associated directly with the public’s food and drinking habit.
Today’s consumers are more or less health conscious and equally needs the refreshment
in their daily life. Beverage products are basically for the refreshments and enjoyments from
the daily drinking habit. People also want their health upgrade or in proper condition while
they enjoy or refresh themselves by drinks. And many of the beverages have fulfilled this
demand though some alcoholic drinks are not good for health. So, beverage industries and their
products has been an inevitable essence of modern society.
Traditional drinks like tea, coffee and traditional wines are taken the symbols of human
civilization and they are being used in almost every society around the globe from the very
ancient periods. These drinks are the part of our daily drinking habit. Non alcoholic soft drinks
and alcoholic hard drinks are the modern concept of drinking habit which is used all over the
world in very wide range. These all type of drinks has been a civilization symbol today. This
signifies the scope of beverages industries and their product.
Fluid intake is very essential for health. Water makes up the 70% of body’s weight and
contributes towards many of the bodily function. Vitamins and minerals are equally important
for good health. The beverages like juices and soft drinks, mineral waters are designed to
upgrade the health of the consumers while providing the refreshment as they consist vitamins
and minerals. Hence these all symbolize the scope of beverage industries and their products.
bottles per minute for 200 ml small glass bottles and 100 bottles per minute for 1.5 litters big
plastic bottles. The major products of Bottlers Nepal are cocacola,fanta,.................. bottlers
Nepal has been the one of major industries in Nepal in term of production.
Varun beverage is the other major industry producing the soft drinks in nepal. It holdsabout remaining 20% market share of soft drinks. It has got a single factory setup in Nepal and
is located in Kathmandu. Varun beverage is also a multinational company and is working
under the pepsicola international of USA. It also brings its raw materials from outside the
country. It brinks mango pulp from the India for the production of its very popular fruit product
slice. The main products of varun beverage are Pepsi, mountain due,Miranda,slice,and soda
water. Its production rate is 15000 liters per hour. So it has also been the major industry in
production of soft drinks.
Production alcoholic hard drinks:
An alcoholic beverage is a drink containing ethanol, commonly known as alcohol.
Alcoholic beverages are divided into three general classes in accordance to their production
and the constituent substances: beers, wine, and sprits.
The names of some beverages are determined by the source of the material fermented.
In general, a beverage fermented from a starch-heavy source (grain or potato), in which the
starch must first be broken down into sugars (by malting, for example), will be called a beer. If
the mash is distilled, the end product is a sprit. Wine is made from fermented grapes. Brandy
and wine are made only from grapes. If an alcoholic beverage is made from another kind of
fruit, it is distinguished as fruit brandy or fruit wine. The variety of fruit must be specified, as
(for example) "cherry brandy" or "plum wine."
Beer is generally made from barley, but can sometimes contain a mix of other grains.
Whisky (or whiskey) is sometimes made from a blend of different grains, especially Irish
whisky which may contain several different grains. The style of whisk(e)y (Scotch, rye,Bourbon, corn) generally determines the primary grain used, with additional grains usually
added to the blend (most often barley, and sometimes oats). As far as American whiskey is
concerned, Bourbon (corn), and rye whiskey, must be at least 51% of respective constituent at
fermentation, while corn whiskey (as opposed to Bourbon) must be at least 81% .
Two common distilled beverages are Vodka and Gin. Vodka can be distilled from any
source of agricultural origin (Grains and Potatoes being the most common), but the maincharacteristic of vodka is that it is so thoroughly distilled as to exhibit less of the flavors
derived from its source material. Gin is a similar distillate which has been flavored by contact
with herbs and other plant products — especially juniper berries, but also including angel root,
licorice, cardamom, grains of paradise, Bulgarian rose petals, and many others.
Apple jack is an example of a drink originally made by freeze distillation, which is easy
to do in cold climates. Although both distillation and freeze distillation reduce the water
content, they are not equivalent, because freeze distillation concentrates poisonous higher
alcohols rather than reducing them like distillation.
(with special reference to Himalayan distillery pvt.ltd.)
The most successful hard drinks producing industries in Nepal like Himalayan distillery
uses the latest available technology. The industry has the setting of the most efficient
fermentation based alcohol production plants using different feed stocks. The fermentation unit
is based on the highly successful SSUPF (Simultaneous Saccharification Yeast Propagation &
Fermentation).This principle improves the fermentation efficiency by minimizing the chances
of contamination during the process.
The fermentation section has been designed to process various feeds, like grain, starch,
molasses, etc., to produce ethanol, with high fermentation efficiency and low concentration of
congeners.
The plant consists of a substrate preparation section where grain, molasses etc. are
treated suitably. Molasses is clarified to remove sludge, gums etc. to improve fermentation
efficiency and reduce fermentation time. Grain undergoes size reduction, cooking and
liquefaction processes converting the starch in grains to sugar, which is subsequently
All the fomenters are made of top quality food grade Spanish stainless steel and all
critical equipment like Jet Cooker, Hammer Mill, Pumps, etc. have been sourced from the best
suppliers in the USA. The fermenters have been provided with a cooling system based on
Vapor Absorption Cycle to increase efficiency while simultaneously reducing congeners.
The distillation unit has been designed to produce the super neutral spirit of the highest
international standard. The plant consisting of thirteen columns has been designed to produce
best quality alcohol with high distillation efficiency and low percentage of impurities cut. The
plant is capable of producing 20,000 liters. of super silent spirit every day.
The plant design is based on the principle of Extractive Distillation, which is
universally accepted as the best method to produce most pure super silent spirit. Only selected
plants in the world have used this concept of design, and the technology is closely guarded.
The 13 columns continues distillation plant design is based on the valuable data gathered by
Mr. Vijay K. Shah, through research and experimentation over the years.
Himalayan Distillery Limited offers the largest range of premium alcoholic beverages.
Its collection includes instantly recognizable brands such as Royal Stag, Ultimate Gin, Russian
Vodka etc. complemented by a broad range of local, regional and specialty brands from around
the world.
Himalayan Distillery Limited has every kind of alcoholic products which suiteveryone's budget. It has premium brands, medium brands and cheaper brands of all varieties
like whisky, vodka, rum, brandy or gin.
While constructing this distillery, paramount important has been given to selecting the
best quality equipment with the sole aim of producing alcoholic beverages of superfine grade,
making them the benchmarks of quality in the market.
It has entered into a technical and marketing support agreement with The Seagram
Company Limited, which markets and distributes about 100 beverage alcohol brands
throughout more than 190 countries and territories. It has premium alcoholic beverages from
Seagram which are one of the most popular brands in the Nepalese market.
The other kinds of beverages produced in Nepal include Bottled mineral water and ice,
fruit juices, dairy beverages and Coffee and Tea. These products also consist a great part of
total beverage production in Nepal.
III. Demand: status and issues
The demand of beverage in Nepal is basically depends on the seasonal factors.
Beverages like soft drinks are very dependent on the seasons. The hot seasons are likely to be
favorable for the carbonated soft drinks. April may, and June is the month which covers 41%
of the total volume of production and the rest 59% in remaining 9 months. The alcoholic drinks
like hard drinks and beers are likely to have more demand in the coder seasons. Moreover the
soft drinks and alcoholic beverage also receives the higher demand in the festivals and the
occasions. The demand of mineral water and juices, tea and coffee is independent of the
seasons and they have higher demand independent of time as the population is growing higher.
According to the bottlers Nepal, for the current market, there is demand of about one
core cases of carbonated drinks per day if it is considered a average demand with in Nepal.
Demand of the almost all type of drinks depends on the place to place and its day to day
climate. We have higher demand of almost all type of beverage where the population is dense
and in most of the tourist area. Especially in different cities like Katmandu, Pokhara,
Biratnagar etc. The common beverage like tea, coffee has similar demand in almost all parts of the country. All the beverage companies are trying to create higher demand by the means of
advertising through adds in television, radio and newspaper. Also providing awareness about
their beverage products and there use throughout the country. Some company is also involved
in some social and public programs to interact with their consumers directly
And promoting their products during the interaction. Anyway the demand of all types
of beverages is growing higher day by day and the industries relating to the beverages are able
to meet this demand.
IV. Supply: status and issues
The supply of beverage is basically dependent on the demand and production of the
beverage products. The volume of supply is always greater when the demand is greater. The
common procedures followed by almost all the beverage industries in Nepal for the supply of
their products is as follows,
After the production, the products goes to the plant were house. From the plant
warehouse it is then supplied to the distributor warehouse. Again from the distributorwarehouse it is supplied to the retailer and finally from the retailer to the consumers.
Storage facilities, market centers, weighing facilities, and transport and communication
systems form the basic infrastructure essential to beverage industries. Inadequate infrastructure
has resulted in high transportation costs, high spoilage and wastage, and a lack of awareness,
and inability to exploit market opportunities.
The overall demand and supply relations of beverages can be judged on the basis of the
tree A. Availability, affordability, and accessibility. The most of the business and city centers
are the places where the availability of the beverage drinks is most. People living in these
places can afford for the price of beverage drinks. People are accessible to the any kinds of
beverage products at these place because of the good means of transportation. Advertisements
about the beverage products at places are easy. That’s why these place have the good demand
of the beverage products and the supply to these place seems to be higher. Consumers
affordability on the beverage products also depended on the economic conditions and social
and religious status of the general public’s. The supply of the beverage products is higher to the
consumers who are familiar with the products.
V. Financial aspects.
Nepal does not attract much foreign direct investment (FDI) in spite of policy. Reforms
initiated in the early 1990s to attract it. This is partly because a small, least developed,
landlocked, mountainous country has little to offer to investors. Nevertheless,
the investment on beverage industries seems to be in good condition. The investment
on the beverage industries in Nepal is both the local and foreign investments. The leading
industries relating to soft drink like Bottlers Nepal and varun beverage and industries
producing alcoholic drinks like Himalayan distilleries pvt.ltd are a part of multinational
companies operating in Nepal. These companies are based on the franchise operation of the
multinational companies. The industries like Aqua nepal,chaudhary group of industries etc.are
based on the local investment but many of them use the foreign technology.
The industries relating to the beverage products in Nepal has been a major part of
Nepalese economy. Linkages between foreign investors and the linked Nepalese enterprisesdealing with the beverage products have also been mutually beneficial. The former can benefit
from low-cost supply of inputs and specialization in the production of final beverage outputs.
The local suppliers receives an assured market within the country. This helps them increase
their output and employments. They are likely to receive technical advice from the foreign
investors, who have a strong interest in the high quality of the supplies they procure. In view of
the data limitations it is not possible to generalize about the extent to which linkages actually
exist between foreign-invested beverages related enterprises and the local suppliers or the kind
of benefits gained by them. There is, however, for the cases of all the beverage industries, the
linkage effect has been strongly positive for the Nepalese economy.
The contribution all the beverage industries for employment in Nepal are particularly
significant. For example, there are more than 500 workers in Bottlers Nepal and around 270
staffs in Varun beverages working in the factory only. There are many staffs working in the
marketing of the products of these companies. Similarly the big companies like Himalayan
beverage pvt.ltd and other small distilleries like aqua Nepal has given the employment
opportunities to the huge mass of the Nepalese people. The following table shows the
approximate data of the people employed directly in the beverage industries (in production site
or factories) in the year 063/064.
INDUSTRIAL PRODUCTS NO. OF INSDUSTRIES APPROXIMATE EMPLOYMENT
BEER 5 715
SOFT DRINKS 3 982
LIQUOR 8 6512
Source: Nepal and the world a statistical profile 2007.
The Industry Volatility refers to the year on year fluctuations which occur in industry
outputs of beverage products. The Globalization gives an indication of the extent to which the
industry is global based on factors such as the level of foreign ownership, the proportion of
demand accounted for by foreign operators and the volume of production conducted in other
countries.
Most foreign investors of beverage industries will wish to conclude agreements for the
transfer of technology in the production of beverages products as an integral part of theiroperations. These include agreements for the use of intellectual property for management,
marketing and other services from abroad. All such agreements require approval under
procedures through the Ministry of Industries. It is not clear what objectives the requirement
for government approval is meant to serve in cases of beverage industries. Perhaps one
objective is to protect local service providers and the local investors.
The principal taxes that impact on business are income tax, customs duties, excise and
value-added tax (VAT).All the beverage industries are bound to these taxes.
VAT is not incorporated in the analysis because a correctly administered VAT falls on
the consumer and is not a tax burden on business.
Commercial law. Company and allied laws are barely adequate for business purposes.
They do not compare with accepted international standards. For example, dissolution of
corporation can be affected in certain circumstances, but there are no provisions for
reorganization. Also absent are laws on secured transactions.
Accounting standards. Nepal has not adopted international accounting standards, and
these do not appear to be a requirement even for listed beverage companies. Many foreign
investors like Coca-Cola and Pepsi cola international will of course use international standards.
As and when Nepal enters the mainstream of international financial transactions, it may
become necessary to adopt international standards for all the beverage industries in Nepal.
There was less variety in the weaknesses with a large number of firms related with the
beverage industries. Weakest elements of Nepal’s beverage business environment were
political instability and the lack of security (both industrial and personal).But these conditions
are improving to better. Corruption, lack of clear governmental policy and guidelines and the
poor implementation of policy also have been the major disturbance in further investments and
broadening of the beverage industries. Nepal's legal framework was criticized by many
The most of beverage industries in Nepal are likely to follow the maintenance
engineering management procedures and system to keep their plants and equipments in the
industry in proper working condition. The company likes Bottlers Nepal pvt. Ltd is found toinvest almost 5% of their total budget in their regular repair and maintenance activities. All
types of maintenance system like preventive maintenance, predictive maintenance, protective
maintenance and reactive maintenance are followed in the Nepalese beverage industries. The
proper maintenance system is one of the good aspects of beverage industries in Nepal and has
resulted to maintain the productivity, Quality, reliability and maintainability in the beverage
products.
Most of the beverage industries in Nepal have their workshop and maintenancedepartment which actively participate in regular repair and maintenance. The maintenance
department is also like to have documentation about each plants and equipments and their
component. The documentation like plant/equipment records and history card has been used
for easy access to each plant and equipment for maintenance.
General tools and equipments:
Some of the plants, tools and equipments are found common in almost all the types of
beverage industries. The common parts or equipment are:
are due to body overload from heavy loads, (compared to 6% from sharp edges and 7% for
crushing).48% of the injuries are caused by lifting and lowering loads (compared to 16% when
carrying and 12% when pulling loads).
The commonest specific cause of injury was stacking containers. This accounted for53% of manual handling injuries. Studies show that 75% of manual handling injuries are
preventable if taken reasonable precautions. Most manual handling injuries (70%) happened to
manual production workers. Other occupations at risk are drivers (6%), laborers (5%),
maintenance workers (3%), cleaners (1.6%) and caterers (1%).
Manual handling injuries are usually caused by lack of information or training, or by
unsafe working procedures. The most common situation is when someone loses control of a
load. They might end up holding a heavy article too far from their body, or it might fall on
someone.
Occupational ill health:
The accident reports do not include occupational ill health. But reality suggests that the
occupational health priorities are likely to be:
(a) Back injuries from heavy manual handling, e.g. of casks, kegs, crates and items of
plant;
(b) noise-induced hearing loss from noisy plant, e.g. packaging machinery (kedging,
bottling and canning lines), compressors, boilers and steam plant;
(c) Occupational lung disease from exposure to grain and malt dust.
Solution of risks of injuries:
Overall risk reduction plan.
There are specific solutions in the Industry specific guidance section. Basically
followed by almost all beverage industries in Nepal:
1. Consulting trade union safety representatives or employee representatives on any
changes. If they are involved early on, learning from their experience.
products for health within their date though some of them contain some of foreign chemical used
as sweeteners and flavors.
Different beverage products in the Nepalese market are also been found to have contain
some harmful chemicals, germs or foreign material sometime which may be hazardous to theconsumers health. Though the manufactures do not accept this complains, many facts have been
revealed.
IX. Environmental and ecological aspects:
Noise pollution:
Most beverages industries have processes which emit high noise levels exceeding the
85 dB(A) and 90 dB(A) Action Levels at which employers are required to take action .Typical
noise levels (measured in dB(A)) which have been recorded in beverage industries are as
follows:
1. Drinks Bottling halls : 85-95 db
2. Bottle filling/labeling :85-95 db
3. De-crating/washing : 85-96 db
4. Casing/kedging :85-100 db
5. Cooperage machines >95 db
Ways followed by beverage industries to reduce noise pollution and its effects to the
workers are as follows:
When considering the purchase of machinery or plant, noise data is obtained from the
manufacturer/supplier to inform decision that is taken to set and operate them. The data
specifies noise levels at the operator’s positions.
Noisy machinery/plant is tried to remove into areas where there are no workers, or few
workers (E.g. into an outbuilding or into a dedicated room).
Where machinery/plant has to remain in the working area, it is enclosed within a sound-
insulating Where enclosure is not possible, noise is reduced by other engineering means such