ACKNOWLEDGEMENT I would like to thank Mr. P. Srinivas Rao, Manager- Supply Chain, Hindustan Coca-Cola Beverages Pvt. Ltd., Visakhapatnam, without whom this internship would have not been achieved a completion. I am grateful to him for having taken time off his busy schedule and guided me throughout the tenure. I express my gratitude to the Hindustan Coca-Cola Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them and make the best out of my internship. My heartfelt gratitude also goes out to the staff and employees at HCCBPL, Mr. Amir Hussain (Factory Manager), Mr. Ch. Srinivasulu (Executive-HR), Mr. Hara Bhaskar (Executive- Finance), Mr. Anmol Kalsi (Team Lead- Production) for having co-operated with me and guided me throughout the two months of my internship period. I thank my institute, GITAM Institute of International Business, for having given me this opportunity to put to practice, the theoretical knowledge that I imparted from the program. I thank the internship Functional Guide, Dr. D.Ravinath, and Industry Guide, Prof. Dr. M.V.Lakshmi, for having guided and supported me through the course of the internship. I would also like to thank Mr. M.V.S. Kameshwar Rao, for his advice and guidance towards imparting a financial angel in the work. I take this opportunity to thank my parents and friends who have been with me and offered emotional strength and moral support. | Page 1
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
ACKNOWLEDGEMENT
I would like to thank Mr. P. Srinivas Rao, Manager- Supply Chain, Hindustan Coca-Cola
Beverages Pvt. Ltd., Visakhapatnam, without whom this internship would have not been
achieved a completion. I am grateful to him for having taken time off his busy schedule and
guided me throughout the tenure. I express my gratitude to the Hindustan Coca-Cola
Beverages Private Limited (HCCBPL) for having given me an opportunity to work with them
and make the best out of my internship. My heartfelt gratitude also goes out to the staff and
employees at HCCBPL, Mr. Amir Hussain (Factory Manager), Mr. Ch. Srinivasulu
(Executive-HR), Mr. Hara Bhaskar (Executive- Finance), Mr. Anmol Kalsi (Team Lead-
Production) for having co-operated with me and guided me throughout the two months of
my internship period.
I thank my institute, GITAM Institute of International Business, for having given me this
opportunity to put to practice, the theoretical knowledge that I imparted from the program. I
thank the internship Functional Guide, Dr. D.Ravinath, and Industry Guide, Prof. Dr.
M.V.Lakshmi, for having guided and supported me through the course of the internship. I
would also like to thank Mr. M.V.S. Kameshwar Rao, for his advice and guidance towards
imparting a financial angel in the work.
I take this opportunity to thank my parents and friends who have been with me and offered
emotional strength and moral support.
| P a g e 1
CERTIFICATE FROM COMPANY GUIDE
5th August 2010
To Whomsoever It May Concern
This is to certify that Mr. Hanumanthu Kamalakar, student of Master of Business
Administration (International Business), Gitam Institute of International Business, GITAM
University, Visakhapatnam, has successfully completed the following Project with Hindustan
Coca-Cola Beverages Pvt Ltd-Visakhapatnam.
PROCUREMENT MANAGEMENT: A case study on consumable Management
for HCCBPL
The duration of the project was from 21st April to 21st June 2010.
During his stint Mr. Hanumanthu Kamalakar has shown initiative to learn and a high level of
commitment to his work.
For Hindustan Coca-Cola Beverages Pvt Ltd.
P. Srinivas Rao
Manager- Supply Chain
| P a g e 2
ABBREVIATIONS
PR: Purchase Requisition
PO: Purchase Order
AP: Accounts Payable
COA: Chart of Authority
PJV: Purchase Journal Voucher
RFA: Request for Authorization
VMF: Vendor Master File
YTD: Year to Date
GRN: Goods Receipt Note
SRN: Service Receipt Note
CGRN: Capital Goods Receipt Note
| P a g e 3
DECLARATION
I, Kamalakar.H student of GITAM School of International Business, Vishakhapatnam hereby
declare that this Project Report is an original unpublished work done at Hindustan Coca-Cola
Beverages Pvt. Ltd., Visakhapatnam titled “Procurement Management: A Case-Study on
Consumables Management for HCCBPL, Visakhapatnam” as a partial fulfilment of Masters
of Business Administration (IB) degree. To the best of my knowledge, no piece of this report
work has been done and submitted by anyone in this regard.
Kamalakar.H
MBA (IB)
Roll No. 1226109113
2009-11 Batch
| P a g e 4
EXECUTIVE SUMMARY
Coca-Cola, the product that has given the world its best-known taste was born in Atlanta,
Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading manufacturer, marketer
and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly
400 beverage brands. It sells beverage concentrates and syrups to bottling and canning
operators, distributors, fountain retailers and fountain wholesalers.
Coca-Cola was the leading soft drink brand in India until 1977, when it left rather than reveal
its formula to the Government and reduce its equity stake as required under the Foreign
Regulation Act (FERA) which governed the operations of foreign companies in India. In the
new liberalized and deregulated environment in 1993, Coca-Cola made its re-entry into India
through its 100% owned subsidiary, HCCBPL, the Indian bottling arm of the Coca-Cola
Company. HCCBPL, Visakhapatnam is a COBO, bottling unit of Coca-Cola- the details of
which has been explained in the report.
Objective:-
The objective of the study lies in understanding the Supply Chain activities of HCCBPL and
analyzing the “PR to PO” process and therein evaluating the system on its performance
grounds. Secondly, under the action of Financial Supply Chain Management, the “Payables
Management” at HCCBPL, Visakhapatnam was evaluated and better measures have been
suggested to enhance the ongoing practices.
PR to PO process:-
The entire “PR to PO” process is a module wherein, an executive or employee requests for an
item or service and raises a PR, which in turn undergoes a series of approvals and scanners,
and finally turns into an PO. The approvals list includes the department HoD, Finance and
Supply Chain department. The PO copy so raised is used as a document of request, to receive
the goods or services from the vendors/ suppliers, and the invoice is raised accordingly.
Software Program:-
To enhance the “PR to PO” process, I have taken a real-time approach by using software
(program) to analyze the time for the process at each level of approval and then maintained
queues to make the work faster and accurate. The program created, would help in identifying
| P a g e 5
the problem at a particular level of operations and then assign the stage in a ‘red’ or ‘green’
queue depending on the number of days spent at that particular stage.
Payables Management:-
The “Payables Management” at the organization is studied and efforts and suggestions have
been enlisted to develop the process. Alternative approaches towards the payable system have
been explained in the work and a three stage Financial Supply Chain approach has been
developed for the operations.
Inventory days as a benchmark:-
The entire work has been developed keeping in conscious the inventory status for the
materials. The company earlier has been using a fifteen days minimum inventory system and
has therefore put in ‘macro’ (mini- software program), to calculate the daily material
consumption and average available days of inventory left for the material. This source has
been taken as a reference, and all the assumptions and calculation have been made based on
these fifteen days of minimum inventory.
Annexure 1- softcopy
Conclusion:-
Finally, the impact of the practices followed by Coke has been discussed, and it has been
evaluated and compared with the alternative suggested plans, benefits of the same on the
suppliers, dealers and banks has been discussed. The study has elaborately discussed the
strategies followed at Coke and an effort has been put in, to enhance these practices and
minimize the time of action, and importantly reducing the system wide costs.
| P a g e 6
Chapter
1
Introduction
| P a g e 7
INTRODUCTION
Coca-Cola, the corporation nourishing the global community with the world’s largest selling
soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus, giving
new thumbs up to the Indian soft drink market. In the same year, the Company took over
ownership of the nation’s top soft-drink brand and bottling network. It’s no wonder that the
brands have assumed an iconic status in the minds of the world’s consumers.
Coca-Cola India is among the country’s top international investors, having invested more
than US$ 1 billion in India in the first decade, and further increasing to another US$100
million in 2003 for its operations.
The Indian operations comprises of 56 bottling operations, 27 owned by the Company, with
another 29 being owned by franchisees. That apart, a network of 21 contract packers
manufactures a range of products for the Company. On the distribution front, 10-tonne trucks
– open bay three-wheelers that can navigate the narrow alleyways of Indian cities –
constantly keep the brands available in every nook and corner of the country’s remotest areas.
These huge operations do need a cost effective and timely distribution of all materials and
services, which in turn plug in to an effective Supply Chain maintained in the organization.
The Supply Chain system work as an integration of purchasing, production and distribution
processes. The procurement of materials or services is done via global and local suppliers; the
global vendors are selected by the corporate (Coca-Cola India Pvt. Ltd.), while that of local it
is done by the HCCBPL.
The consumable management deal with the daily procurement from local vendors through a
series of approvals via PR to PO process. And the services and materials are received
accordingly. After the receipt of the same, an appropriate payment towards the service is paid
thereby.
| P a g e 8
OBJECTIVE
Understanding the Supply Chain activities of HCCBPL, Visakhapatnam
Analyzing the “PR to PO” process and therein evaluating the system on its
performance
Evaluating the “Payable Management System” for HCCBPL, Visakhapatnam
| P a g e 9
Supply Chain Management- An Overview
Fierce competition in today’s global markets, the introduction of products with shorter life
cycles, and the heightened expectations of customers have forced business enterprises to
invest in, and focus attention on, their supply chains. This, together with continuing advances
in communications and transportation technologies (e.g. mobile communication, Internet, and
overnight delivery), has motivated the continuous evolution of the supply chain and of the
techniques to manage it effectively.
In a typical supply chain, raw materials are procured and items are produced at one or more
factories, shipped to warehouses for intermediate storage, and shipped to retailers or
customers. Consequently, to reduce costs and improve service levels, effective supply chain
strategies must take into account the interactions at the various levels in the supply chain. The
supply chain, which is also referred to as the logistics network, consists of suppliers,
manufacturing centres, warehouses, distribution centres, and retail outlets, as well as raw
materials, work-in-process inventory, and finished products that flow between the facilities.
We define supply chain management as follows:
Supply chain management is a set of approaches utilized to efficiently integrate suppliers,
manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the
right quantities, to the right locations, and at the right time, in order to minimize system wide
costs while satisfying service level requirements.
Difficulties of Supply Chain Management
Supply chain strategies cannot be determined in isolation. They are directly affected
by another chain that most organisations have, the development chain that includes
the set of activities associated with the new product introduction.
It is challenging to design and operate a supply chain so that total system wide costs
are minimized, and system wide service levels are maintained.
Uncertainty and risk are inherent in every supply chain.
| P a g e 10
Key Concepts Used in Report
Customer service management
Procurement
Product development and commercialization
Manufacturing flow management/support
Physical distribution
Outsourcing/partnerships
Performance measurement
a) Customer service management:
Customer Relationship Management concerns the relationship between the
organization and its customers. Customer service provides the source of customer
information. It also provides through with real time information on promising dates
and product availability through interfaces with the company’s production and
distribution operations. Successful organizations use following steps to build
customer relationships:
Determine mutually satisfying goals between organization and
customers
Establish and maintain customer rapport
Produce positive feelings in the organization and the customers
b) Procurement process:
Strategic plans are developed with suppliers to support the manufacturing the
manufacturing flow management process and development of new products. In firms
where operations extend globally, sourcing should be managed on a global basis. The
desired outcome is a win-win relationship, where both parties benefit, and reduction
times in the design cycle and product development is achieved. Also, the purchasing
function develops rapid communication systems, such as electronic data interchange
(EDI) and Internet linkages to transfer possible requirements more rapidly. Activities
related to obtaining products and materials from outside suppliers. This requires
performing resource planning, supply sourcing, negotiation, order placement, inbound
transportation, storage and handling and quality assurance. Also, includes the
| P a g e 11
responsibility to coordinate with suppliers in scheduling, supply continuity, hedging,
and research to new sources or programmes.
c) Product development and commercialization:
Here, customers and suppliers must be united into the product development process,
thus to reduce time to market. As product life cycles shorten, the appropriate products
must be developed and successfully launched in ever shorter time schedules to remain
competitive. According to Lambert and Cooper (2000), managers of the product
development and commercialization process must:
Coordinate with customer relationship management to identify and
identify customer-articulated needs
Select materials and suppliers in conjunction with procurement, and
Develop production technology in manufacturing flow to manufacture
and integrate into the best supply chain flow for the product/market
combination.
d) Manufacturing flow management process:
The manufacturing process is produced and supplies products to the distribution
channels based on past forecasts. Manufacturing processes must be flexible to respond
to market changes, and must accommodate mass communication. Orders are
processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes
in the manufacturing flow process lead to shorter cycle times, meaning improved
responsiveness and efficiency of demand to customers. Activities related to planning,
scheduling and supporting manufacturing operations, such as work-in-process storage,
handling, transportation, and time phasing of components, inventory at manufacturing
sites and maximum flexibility in the coordination of geographic and final assemblies
postponement of physical distribution operations.
e) Physical distribution:
This concerns movement of a finished product/service to customers. In physical
distribution, the customer is the final destination of a marketing channel, and the
availability of the product/service is a vital part of each channel participant’s
marketing effort. It is also through the physical distribution process that the time and
| P a g e 12
space of customer service become an integral part of marketing, thus it links a
marketing channel with its customers.
f) Outsourcing /partnerships:
This is not just outsourcing the procurement of materials and components, but also
outsourcing of services that traditionally have been provided in-house. The logic of
this trend is that the company will increasingly focus on those activities in the value
chain where it has a distinctive advantage and everything else it will outsource. This
movement has been particularly evident in logistics where the provision of transport
warehousing and inventory control is increasingly subcontracted to specialists or
logistics partners. Also, to manage and control this network of partners and suppliers
requires a blend of both central and local involvement. Hence, strategic decisions
need to be taken centrally with the monitoring and control of supplier performance
and day-to-day liaison with logistics partners being managed at a local level.
g) Performance measurement:
Experts found a strong relationship from the largest arcs of supplier and customer
integration to market share and profitability. By taking advantage of supplier
capabilities and emphasizing a long-term supply chain perspective in customer
relationships can be both correlated with firm performance. As logistics competency
becomes a more critical factor in creating and maintaining competitive advantage,
logistics measurement becomes increasingly important because the difference
between profitable and unprofitable operations becomes narrower. A.T. Kearney
consultants (1985) noted that firms engaging in comprehensive performance
measurement realized improvements in overall productivity. According to experts
internal measures are generally collected and analyzed by the firm including
Cost
Customer service
Productivity measures
Asset measurement, and
Quality
| P a g e 13
Chapter
2
Review Of
Literature
| P a g e 14
REVIEW OF LITERATURE
Procurement and relationship management trends in FM services
By Tero J.T. Lehtonen and Anssi I. Salonen
Helsinki University of Technology, CEM Facility Services Research
Finland
Abstract:
Although services are increasingly taking up a larger part of any organization’s purchasing
expenditures, relatively few academic studies into buying business services are available.
One important part of the business service sector is facilities management (FM) services. The
aim of this paper is to recognize the procurement trends of FM services and to describe the
partnership control mechanisms that contribute to the success of FM partnerships. The results
are based on a questionnaire, which was carried out in Finland. As well as contributing to the
supply chain and relationship management literature, this study offers potential benefits to
both FM service providers and buyers in terms of how to formulate successful relationships
and to improve the performance and efficiency of partnering relations. It was found out that a
similar transition towards closer relationships and bigger purchase entities is taking place in
the FM context as well as in other industries. However, some exceptions were also identified.
These exceptions could be explained partly by the novelty of the partnering phenomenon and
partly by the operational nature of most FM services. In most cases, the choice of the
partnering approach is related to the forming of wider service packets. When implementing
partnering relations the role of top management is to set up the shared values and visions.
Once they have established these in the organization they do not have any remarkable role in
relationship management. During the ongoing partnership, the operative level runs the daily
initiative, development and problem solving based on ad hoc procedure.
This study has attempted to clarify the procurement and relationship management trends in
business services, particularly in the FM setting. It was discovered that a transition towards
closer relationships and bigger purchase entities is taking place in FM in the same way as in
other industries. However, some exceptions were also identified. These exceptions could be
| P a g e 15
explained partly by the novelty of the partnering phenomenon in the FM context and partly
by the highly operational nature of most FM services. Since the formation and maintenance
of partnerships are costly and time-consuming processes, organizations should adopt them
only after rigorously conducted strategic analyses. However, there is a gap between theory
and industrial practice as only few organizations have a sourcing strategy for FM services. In
the future, companies should evaluate each sourcing situation more thoroughly and decide
which relationship type to apply. In contrast to the prevailing trends in other industries, there
was increase in the size of supplier bases in FM.
This might be partly due to the organizations outsourcing more of their facilities related
functions during the last years and partly due to the shift from using a sole supplier to using a
number of specialist partners. As the lack of sourcing strategies, this also mirrors the fact that
the outsourcing and procurement practices of FM services are still under transformation
phase. Since organizations have not yet recognized the importance of the relational risk and
formalized their management mechanisms of providing services in closer relationship, there
is still strong potential for organizations to tap into by adopting relational risk management
schemes and more sophisticated relationship management methods already in use in matured
industries. In addition to the business perspective, relationship success in FM services
includes the end-user perspective, which emphasizes the importance of site-level operations.
This, alongside the fact that FM services have usually only minor strategic value, could also
explain why little attention is paid to the management of FM partnering relations in the
strategic overall management of the company.
This study also offers potential benefits to service providers in terms of how to formulate
successful relationships and manage buyer’s perception of service quality. Firstly, as
partnerships yield competitive advantage only through effective management, suppliers
should exploit the success factors mentioned in the paper. Secondly, suppliers may reap the
potential benefits of partnerships fulfilling buyer expectations by focusing to their front-line
staff’s friendliness and ensuring good end user feedback.
Altogether, the study contributes to the relationship management literature from the business
services point of view. The results could be exploited by both service provider and buyer
organizations to improve the performance and efficiency of partnering relations. However,
some limitations should be recognized and taken into account when interpreting our findings.
| P a g e 16
The Supply Chain Approach to Planning and Procurement Management
By
Gregory A. Kruger
February 1997 Hewlett-Packard Journal
This paper describes the processes and equations behind a reengineering effort begun in 1995
in the planning and procurement organizations of the Hewlett-Packard Colorado Springs
Division. The project was known as the supply chain project. Its objectives were to provide
the planning and procurement organizations with a methodology for setting the best possible
plans, procuring the appropriate amount of material to support those plans, and making up-
front business decisions on the costs of inventory versus supplier response time (SRT),*
service level to SRT objectives, future demand uncertainty, part lead times, and part delivery
uncertainty.
| P a g e 17
Chapter
3
Industry
and
Company Profile
| P a g e 18
Non-alcoholic beverage market in India
The majority of urban and suburban Indians consume non-alcoholic store bought beverages
“less than once a day” suggesting a large untapped market potential. In order to increase
consumption and penetration of such beverages however, manufacturers will have to address
the two primary reasons why some Indians abstain entirely, that is, health concerns and
undesirable taste - as highlighted in Boston Analytics’ survey of 8300 people across 15 cities.
Approximately 120 billion litres of beverages are consumed by Indians every year, but only
5% represent store-bought packaged beverages. The majority of Indian consumers (75%) still
consume non-alcoholic store-bought beverages ‘less than once a day’, highlighting a large
untapped market opportunity, particularly in the carbonated drinks and juice or juice-based
markets (estimated to be worth $1.5 Billion and $.25 billion respectively). While
consumption frequency decreases with age, it is found to increase with income levels, except
in the top-most economic strata of society. Health concerns remain the primary reason for
not consuming non-alcoholic store-bought beverages at all. Yet of the 40+ brands covered in
Boston Analytics’ study, none held a definitive position in this regard either positively or
negatively. Boston Analytics’ study also revealed that 29% of those who consume non-
alcoholic store bought beverage beverages do so at a fixed time during the day, suggesting
that carbonated beverages have become a part of life for a significant portion of the Indian
consumer market. Product taste is the primary driver of brand choice for carbonated, juice-
based and sports/energy drinks. While consumptions patterns are somewhat similar across
different tiered cities, reasons for not consuming non-alcoholic store bought beverages vary
considerably. This study has implications for both the marketing and product development of
carbonated, juice based and sports/energy drinks. Significant opportunities exist for
manufacturers to expand these markets through both greater consumption and greater
penetration.
The store-bought non-alcoholic beverage market in India is significantly under
penetrated, even in urban and suburban areas. 75% of those interviewed for this study
report consuming store bought non-alcoholic beverages less than once a day. While
| P a g e 19
consumption increases with income (with the exception of the highest household
income level), it decreases with age.
One possible hypothesis for low penetration is the lack of routine consumption. Only
29% of carbonated beverage consumers, 27% of fruit or juice based drink consumers
and 9% of energy or sports drink consumers report consuming such beverages at a
regular time each day.
Overall, health concerns was the most common reason for abstaining from consuming
store bought non-alcoholic beverages followed by a desire to prepare one’s own fresh
beverages. Significant differences exist however by product category, i.e., carbonated
beverages, fruit drinks and energy or sports drinks in terms of reasons for abstaining
There are numerous initiatives which manufacturers, distributors and marketers can
take in order to increase their market share in these product categories. For
example: o Non-alcoholic beverage brands do not appear to be positioning themselves
or differentiating themselves along the brand attributes that matter most to consumers
in terms of product/brand selection and reasons for consuming and/or not consuming.
As with most product categories in India, consumption behaviour and preferences differ
dramatically across cities in India. While Tier 1 cities (or the largest metros in India) report
the highest consumption, significant differences exist among these cities, e.g., in terms of the
time of day store-bought non-alcoholic beverages are consumed, preferred brands for
carbonated beverages, reasons for consuming a particular product type, etc.). Such
differences demonstrate the need for carefully targeted marketing campaigns that appeal to
the needs, behaviours and preferences of local communities.
| P a g e 20
Hindustan COCA-COLA Beverages Pvt. Ltd
Coca-Cola (also known as Coke, a name that was trademarked by The Coca-Cola Company
after it was discovered many people called it by that particular name) is a very popular cola (a
carbonated soft drink) sold in stores, restaurants and vending machines in more than 200
countries. It is produced by the Coca-Cola Company (NYSE: KO), which is also often
referred to as simply Coca-Cola or Coke. Coke is one of the world’s most recognizable and
widely sold commercial brands; its major rival is Pepsi.
Coke was originally intended as a patent medicine when it was invented in the late 19th
century, Coca-Cola was bought out by businessman Asa Griggs Candler, whose marketing
tactics led Coke to its dominance of the world soft drink market throughout the 20th century.
Although faced with critiques of its health effects and various allegations of wrongdoing by
the company, Coca-Cola has remained a popular soft drink to the present day It was initially
sold as a patent medicine for five cents a glass at soda fountains, which were popular in the
United States at the time thanks to a belief that carbonated water was good for the health. The
first sales were made at Jacob's Pharmacy in Atlanta, Georgia, on May 8, 1886, and for the
first eight months only nine drinks were sold each day. Coca-Cola was sold in bottles for the
first time on March 12, 1894, and cans of Coke first appeared in 1955. By 1888, three
versions of Coca-Cola - sold by three separate businesses were on the market.
On February 7, 2005, the Coca-Cola Company announced that in the second quarter of 2005
they planned a launch of a Diet Coke product sweetened with the artificial sweetener
sucralose ("Splenda"), the same sweetener currently used in Pepsi One. The company
actually produces concentrate for Coca-Cola, which is then sold to various Coca-Cola bottlers
throughout the world. The bottlers, who hold territorially-exclusive contracts with the
company, produce finished product in cans and bottles from the concentrate in combination
with filtered water and sweeteners. The bottlers then sell, distribute and merchandise Coca-
Cola in cans and bottles to retail stores and vending machines. Such bottlers include Coca-
Cola Enterprises, which is the single largest Coca-Cola bottler in North America and Europe.
| P a g e 21
The Coca-Cola Company also sells concentrate for fountain sales to major restaurants and
food service distributors.
The Coca-Cola Company has on occasion introduced other cola drinks under the Coke brand
name. The most famous of these is Diet Coke, which has become a major diet cola but others
exist, such as Cherry Coke, Coke Zero, and Vanilla Coke. The Coca-Cola Company owns
and markets other soft drinks that do not carry the Coca-Cola branding, such as Sprite, Fanta,
and others. The actual production and distribution of Coca-Cola follows a franchising model.
The Coca-Cola Company only produces a syrup concentrate, which it sells to various bottlers
throughout the world who hold Coca-Cola franchises for one or more geographical areas. The
bottlers produce the final drink by mixing the syrup with filtered water and sugar (or artificial
sweeteners) and fill it into cans and bottles, which the bottlers then sell and distribute to retail
stores, vending machines, restaurants and food service distributors. The bottlers are normally
also responsible for all advertisement and other sales initiatives within their areas.
Pepsi is often second to Coke in terms of sales, but outsells Coca-Cola in some localities. In
India, Coca-Cola ranks third behind the leader, Pepsi-Cola, and local drink Thumbs Up.
However, The Coca-Cola Company purchased Thumbs Up in 1993. The products of the
company reach consumers and customers around the world through a vast distribution
network made up of local bottling companies. These bottlers are located around the world,
and most are independent businesses. Using syrups, concentrates and beverage bases
produced by the Coca-Cola Company, their global bottling system packages and markets
products, then distributes them to more than 14 million retail outlets worldwide. The Coca-
Cola Company is committed to assisting its bottlers with the functions of an efficient bottling
operation and initiating quality systems to ensure the highest quality products for their
consumers.
The trademark "Coca-Cola" was registered with the U.S. Patent and Trademark Office in
1893, followed by "Coke" in 1945. The unique contour bottle, familiar to consumers
everywhere, was granted registration as a trademark by the U.S. Patent and Trademark Office
in 1977; an honour awarded very few packages. The most valuable assets happen to be the
trademarks they possess. For Coca-Cola, the most drunk soft drink on earth is one of the
world s best-known and most admired trademarks, recognized by more than 90 percent of the
world s population. Interestingly, the world that is touched by the cherished drinks for every
moment, the Coca-Cola trademarks happen not only to be their most valuable assets but of
| P a g e 22
the entire earth. The business system of the Company in India directly employs
approximately 6,000 people, and indirectly creates employment for many more in related
industries through our vast procurement, supply and distribution system. On the distribution
front, 10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of
Indian cities, ensure availability of our brands in every nook and corner of the country. The
term soft drink originally applied to carbonated drinks made from concentrates, although it
now commonly refers to almost any cold drink that does not contain alcohol.
Hindustan Coca-Cola Beverages Private Limited is an Indian subsidiary of the US based
Coca-Cola Company. The company-owned Bottling arm of the Indian Operations, Hindustan
Coca-Cola Beverages Private Limited is responsible for the manufacture, sale and
distribution of beverages across the country. Coca-Cola India is among the country’s top
international investors, having invested more than US$ 1 billion in India within a decade of
its presence and further pledged another US$ 100 million in 2003 for its operations. It is the
world’s largest selling soft drink since 1886. The Coca-Cola Company returned to India in
1993 after a gap of 16 years giving new Thumbs up to the Indian Soft Drink Market and
took over the ownership of the nation's top soft-drink brands and bottling network. The vast
Indian operations comprises 25 wholly company owned bottling operations and another 24
franchisee owned bottling operations and a network of 21 contract packers also manufactures
a range of products for the Company.
| P a g e 23
HCCBPL- Visakhapatnam
Hindustan Coca- Cola Beverages Private Limited came into existence after the then
established Gold-Spot Company was overtaken by the Coca-cola in the year 1998. Hindustan
Coca- Cola Beverages Private Limited is situated in a total area of 3.62 acres in Industrial
Area, Manchukonda Gardens within city limits of Visakhapatnam. The entire plant is divided
into four major segments, namely, The Water Treatment Plant, Syrup Preparation Plant,
Carbon-Dioxide Preparation Plant, and Administration.
The installed capacity of the plant is 600 BPM single line. The company comes under the
category of aerated waters manufacturing. The plant is designed to produce both 300 ml and
200 ml pack size of Returnable Glass Bottles (RGB) of all coca-cola brand soft drinks viz;
Coca- Cola, Fanta, Sprite, Thums-up and Limca and also Kinley soda 300ml.
In addition to a total no. of 279 permanent employees, the company also gives employment to
various contract workers and contractors.
The company is headed by Area General Manager, who in turn leads of departmental heads