INDUSTRIAL VISIT REPORT

Vidyasagar University

REPORT SUBMITTED BY

ARIF ISLAM

ROLL NO: PG/VU0AP01/MBA-IS 012

BENGAL INSTITUTE OF BUSINESS STUDIES

COMPANY VISITED: VARUN BEVERAGES

[Link]

THIS REPORT IS SUBMITTED FOR THE PARTIAL

FULFILMENT OF MASTERS OF BUSINESS ADMINISTRATION
FROM VIDYASAGAR UNIVERSITY
 OBJECTIVES OF THE VISIT

When it comes to grooming students to become accomplished professionals, industrial knowledge is

essential.
Hence, we had visited to R.J. Corporation Limited, the biggest PEPSI products manufacturer of West
Bengal.

Here are few objectives of this industry visit:

1. To understand the manufacturing process of Pepsi, sprite,7 up and other beverages, from raw
materials to the finished product.

2. To appreciate the importance of quality control and quality assurance in the food and
beverage industry.

3. To understand the logistics and supply chain management involved in getting the finished
product from the factory to the consumer.

4. To appreciate the role of a manufacturing plant in the local economy and community.

5. To gain exposure to the organizational structure and culture of a leading multinational

company.

Overall, the objective of an industrial visit to a Pepsi manufacturing plant is to provide students like
us and professionals with a hands-on learning experience that enhances their understanding of the
industry and its various aspects.
 Introduction

R.J. Corporation Limited have brought the best international brands specializing in food &
beverages industries into India. Over the past three decades, they have systematically
advanced not only in catering to the evolving needs and preferences of their consumers, but
have also become strong beacons of quality and good standing. Today, R.J. Corporation
Limited stand tall among corporate leaders, having established an organizational and systems
architecture that is set to steer us into new orbits of growth.

We were fortunate enough to visit R.J Corporation Limited on 15th of February, where we
interacted with the General HR Manager.
It was a PEPSI industry which started in the year 1991with R.J. Corporation Limited Food
and Beverage, HORECA.
Pepsi has access to all places excluding Andhra Pradesh and Ladakh.
KFC, Pizza Hut, Posta Café also belongs to Pepsi.
We had a great learning experience overall with the while team of Pepsi.
 Company profile

The Company was incorporated as Varun Beverages Limited on June 16, 1995 at New Delhi
as a public limited company under the Companies Act, 1956. The Company obtained a
certificate of commencement of business on July 4, 1995. They have been associated with
PepsiCo since the year 1990s and have over two and half decades consolidated the business
association with PepsiCo, increasing the number of licensed territories and sub-territories
covered by varun beverages, producing and distributing a wider range of PepsiCo beverages,
introducing various SKUs in the portfolio, and expanding the distribution network. As of the
date, of this Red Herring Prospectus, the Company has 53 Equity Shareholders.

Major events and milestones of the Company

The table below sets forth the key events in the history of the Company:

1995 -Incorporation of the Company as public limited company.

1996-Started operation at Jaipur.

1999-Started operations in Alwar, Jodhpur and Kosi.

2004-Merger of DBL with the Company pursuant to the order of High Cthet of Delhi dated
October 6, 2004.

2012-Merger of VBIL with the Company pursuant to the order of High Cthet of Delhi dated
March 12, 2012.

2013-The Company acquired the business of manufacturing and marketing of soft drink
beverages and syrup mix in Delhi, India.

2015-Business transfer agreement through which the Company acquired PepsiCo India’s
business of manufacturing, marketing, selling and distributing soft drink beverages and syrup
mix in the Indian states of Uttar Pradesh (excluding certain territories), Uttarakhand,
Himachal Pradesh, Haryana (excluding certain territories) and the Union Territory of
Chandigarh

-Business transfer agreement through which the Company acquired PepsiCo India’s business
of manufacturing, marketing, selling and distributing soft drink beverages and syrup mix in
Bazpur, Jainpur, Satharia and Panipat

-The Company acquired the business of selling and distribution of soft drinks beverages and
syrup mix in one district undertaking situated in Punjab

2016-The Company acquired entire shareholding of Arctic International Private Limited in

Varun Beverages Mozambique, Limited.
-The Company acquired entire shareholding of Arctic International Private Limited in Varun
Beverages (Zambia) Limited.

Key people: Ravi Jaipuria (Founder-Chairman)

Revenue: ₹9,410 crore (US$1.2 billion) (FY2022)
Operating income: • ₹1,302.14 crore (US$160 million) (FY2022)
Net income: • ₹819.0 crore (US$100 million) (FY2022)
Parent: RJ Corp
Apart from carbonated soft drinks of PepsiCo such as Pepsi, 7 Up, Mountain Dew and
Mirinda , the company distributes Tropicana and Tropicana Slice fruit juice brands, Gatorade
sports-themed beverages, Sting energy drinks, Duke's club soda, Lipton ready-to-drink ice
tea, and Aquafina brand of bottled water. As of 2019, Varun Beverages is PepsiCo bottler in
27 states and 7 union territories of India. The company also distributes its products in Nepal,
Sri Lanka, Morocco, Mozambique, Zambia and Zimbabwe.
In 2022, VBL entered into an agreement to manufacture Kurkure Puffcorn for PepsiCo India
Holdings.
 Key products/services offered by the company

Some of the key products of PEPSI are:

1. Pepsi
2. Mirinda
3. 7UP
4. Mountain Dew
5. Nimbooz
6. Aquafina
7. Sting
8. Lehar Club Soda

Let’s know in details about these products:

1. Pepsi- Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and
developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as
Pepsi-Cola in 1898, and then shortened to Pepsi in 1961.

2. 7 UP- 7 Up or Seven Up is an American brand of lemon-lime-flavored non-caffeinated soft

drink. The brand and formula are owned by Keurig Dr Pepper although the beverage is
internationally distributed by PepsiCo.
3. MOUNTAIN DEW: Mountain Dew, stylized as Mtn Dew in some countries, is a carbonated
soft drink brand produced and owned by PepsiCo. The original formula was invented in 1940
by Tennessee beverage bottlers Barney and Ally Hartman. A revised formula was created by
Bill Bridgforth in 1958. The rights to this formula were obtained by the Tip Corporation of
Marion, Virginia.

4. STRING ENERGY: Sting Energy (or Sting) is a carbonated energy drink from PepsiCo
International and produced by Rockstar Inc. Sting is available in flavors such as original Gold
Rush, Gold, Power Pacq , Power Lime (Kiwifruit/Lime) and Berry Blast (Strawberry).It was
introduced in 2002.

5. AQUAFINA: Aquafina is an American brand of purified bottled water that is produced by

PepsiCo, consisting of both unflavored and flavored water.
 Main competitors of the company

Some of the main competitors of this company are:

1. Coca-Cola

2. Dr. Pepper Snapple.

3. Red Bull.
 Activities in the company on the day of the visit

1. Company Presentation Demonstration.

Firstly, they took us to their presentation area, and briefed us about their water harvesting, there
business all over the world and precaution to take while entering the manufacturing plant, and further,
they led us to the main production unit, where, first we got to see the manufacturing of plastic bottles
for 7 up, continued by the session of the production of bottles, wherein, for every 1 minute 700
bottles are manufactured and concentrated cola gets filled in the bottles and the pre-forms turns into
bottles by pressure.

2. Plant Tour.

There are two different manufacturing sections in the factory; one is for soft drinks like slice, and all
other juices which are prepared using fruit pulp. And, the other section is to produce beverages like
Pepsi, 7 up, and String energy etc. We got to know how water gets purified, as in to what temperature
the water will be heated to purify it.
3. Manufacturing Demonstration.

The manufacturing process is followed as:

 Ingredient Delivery: Flavor concentrates are shipped from special Pepsi-Cola manufacturing
plants in heavy-duty, air-tight containers. Liquid sweeteners are transported in special tanker
trucks. All ingredients and food products are stored in clean, sanitary areas, and items
requiring refrigeration are kept in temperature-controlled areas. The bottles and cans that will
eventually be filled with Pepsi are manufactured elsewhere, and shipped to Pepsi plants
wrapped and sealed for protection. Labels, cartons, caps, the carbon dioxide used to carbonate
soft drinks and other supplies are also produced for Pepsi by other companies. On arrival,
everything is subject to careful inspection to make certain all of the ingredients and materials
meet high Pepsi standards.

 Washing and Rinsing: After the ingredients have been delivered, all of them are washed
thoroughly and cleaned.

 Coding: Once on the belt, cans are part of an enclosed, controlled environment that keeps them
sanitary and helps ensure quality throughout the filling process. They travel rapidly through a
printer that applies a production code to each can. Then they're automatically turned upside
down, and rinsed thoroughly with filtered water before proceeding directly to the filler.

 Filling: In the last step of the manufacturing process, as the now-rinsed cans reach the filler,
they're reinvented, immediately filled and the lid is applied –at an average speed of 1,200 cans
per minute. The filler is where the syrups from the mixing tanks are combined with the
purified water from the filtration process. The liquid is then carbonated. This carbonation
process gives soft drinks the special sparkle –fizzy bubbles –that adds to their quality of
refreshment.

 Raw material procurement: Pepsi sources its raw materials, such as sugar, carbonated water,
caramel color, and flavorings, from suppliers. The company has strict quality control measures
in place to ensure that the raw materials meet the required standards. This room has very
restricted security.

 Mixing and blending: The raw materials are mixed and blended in large tanks to create the
syrup, which is the base for the soft drink. The syrup is then stored in large containers.
 Carbonation: Carbonated water is added to the syrup to create the final product. The
carbonation process is carefully controlled to ensure that the correct amount of carbonation is
added.

 Filling and packaging: The final product is then filled into cans or bottles and labeled. The
bottles and cans are then packaged into cases and pallets, ready for shipment.

 Quality control: Varun beverages has strict quality control measures in place to ensure that the
products meet the required quality standards. The company tests the products at various stages
of the production process to ensure that they are safe for consumption.

 Distribution: The finished products are then distributed to retail outlets, vending machines, and
wholesalers, where they are available for purchase by consumers.

 Warehousing and Delivery: The finished packages are stacked on shipping pallets and moved
to temporary holding areas or to a central warehouse for shipping. The storage is purely
temporary, since freshness is an important part of delivering the best possible product to our
consumers. Some of our products will be quickly transported by large trucks to outlying
districts and towns. Most, however, are loaded into Pepsi-Cola delivery trucks you see calling
on food stores in your own neighborhood. Other trucks deliver Pepsi-Cola syrup to restaurants
and fountains. To make sure there's always enough Pepsi for everyone who wants one, our
trucks are on the road every single day. Many individual stores actually receive deliveries
several times per week.
And lastly, we had a Question and Answer Session, where the student’s queries had been taken up
about the production of bottles, beverages, there in-house team for production and strategies for any
emergency. The responses gained were acknowledged by all the students. We thank the school of
management studies for providing us this opportunity to learn and interact with the professionals.
Analysis of the marketing functions of the company

VISION OF THE ORGANIZATION

The future description of something (an organization corporate culture, a business, a

technology, an activity) in the future. Varun Beverages define its vision statement as follows:
We will establish ourselves as a supplier of choice by delighting our customers with our
service and our products. In the coming decade, we will become the most cost competitive
Beverages Plant and so serve the community and the nation.

Market Survey:

Marketing survey is an assessment, which can help executive to raise the level of their
subordinates. Survey collects recorded and analyze the data about marketing problems to
facilitate decision-making.

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

Beverages has provided its total market potential ranging U.P., RAJASTHAN,HARYANA,
M.P., GOA, NEPAL, due to piracy of time, market survey was operated only in Vrindavan
city.

Soft drink good market has divided the consumer’s good into three categories:

(a)Convenience goods

(b)Shopping goods &

(c)Special goods

Soft drink falls in the categories of convenience goods. These products, which a consumer
buy frequently, immediately, regularly and with minimum shopping efforts. The distribution
of these products should be available for the convenient location to facilitate consumer. Soft
drink completely fits into the definition, simply because soft drink are impulse item purchased
on the spur of the moment without much through & consideration. Hence V.B.L. does its
best effort to make soft drink available within easy reach of consumers.

Different marketing activities are adopted to ensure proper discharge at marketing functioning
three folds:

(1) Anticipation and recognition at demand.

(2)Stimulation of demand

(3) Satisfaction of demand

PROMOTION FACILITIES

The company in order to enhance its sales gives certain Promotional concessions to the
dealers and retailers.

DISTRIBUTORS:
The company owns the advertisement costs Expenditure On lifting schemes are given. The
company owns umbrellas, Chains and paintings etc.

RETAILERS:
⮚ Free painting.
⮚ Glow signboard.
⮚ Refrigerators are provided (on certain terms and conditions).
⮚ Umbrellas and chains are provides by the company, conditions being good gathering and
publicity etc. market schemes are given.
MARKETING CONCEPT

Marketing boasts a rich array of concept and tools. We will start by defining marketing, and
then describe its major concept and tools.
Marketing is a societal process by which individuals and Group obtain what they need and
want through creating, Offering, and freely exchange products and services of Value with
others.
The marketing concept hold that key to achieving its Organizational goals that consists of the
company being more effective than competitor in creating, delivering, and communication
customer value to its chosen target market. The marketing concept takes an outside in
prospective. It starts with a well-defined market, focuses on customer needs, coordinates all
the activities that will affect customer and produces profits by satisfying customers.

MISSION STATEMENT

Consistent with the values of the Varun Beverages. Pvt. Ltd and strives to strengthen India’s
industrial base through the effective utilization of men and materials. The means envisaged to
achieve this are high technology and productivity, consistent with modern management
practices. Overall, the company seeks to scale the heights of excellence in all that it does in all
atmospheres free from fear and thereby reaffirms the faith in democratic values.
 SWOT ANALYSIS

STRENGTH

•Pepsi is a well-established company, it has a good reputation in the market.

•Advertising of Pepsi is much more aggressive than coke.

•Backed by huge promotion at National and International level.

•Lot of SGA’s provided in the market

WEAKNESS

•Non-fulfilment of commitments on time, made to shopkeepers.

•Incompetent salesman who do not give the schemes in the market regularly.
•Unavailability of various demanded flavors like Mirinda and Mirinda Lemon.

OPPURTUNITY

•May tie up or liaison with major showrooms, computer

centers and restaurant.
•Huge publicity of lemon Mirinda/ Slice has created a lot of demand.

•Company has brand equity in the eyes of customers, so its new products can easily penetrates
in the market.

THREAT

•Threat of competitors’ new brand entry in the market in near future.

•Restrictions made by Govt. agencies that soft drinks are harmful and non
- Nutritive.

•Natural juices are now available whose price are less or same as soft drinks.
 Overall learning from the visit

 Understanding of the beverage industry:

We gained a first-hand understanding of the beverage industry, including the processes
involved in the production of soft drinks and the challenges faced by companies operating in
this sector.

 Knowledge of production processes:

We learnt about the different production processes involved in the manufacture of soft drinks,
such as bottling, labelling, and packaging, and see the machinery used in the production line.

 Quality control:
We learnt about the importance of quality control in the production of beverages and how
 Varun beverages implements strict quality control measures to ensure that its products meet
the highest standards and remains consistent throughout the season.

 Business operations:
We learnt about the various operations involved in running a business, such as supply chain
management, distribution, and logistics, and analyzed how these are managed by Varun
beverages.

 Teamwork and collaboration:

We learnt the teamwork and collaboration that goes into the production of beverages and learnt
about the importance of effective communication and cooperation between departments for
achieving a common goal.