A

PROJECT STUDY REPORT

On

Training Undertaken at

Titled

TOTAL PRODUCT MANAGEMENT AT THE DISTRIBUTOR

AND RETAILER LEVEL

Submitted in partial fulfillment for the

Award of degree of

B.B.A

SUBMITTED TO: SUBMITTED BY:

Bharat Lal Sharma Ms Poonam swami

BBA III yr Sr. Lecturer

PODDAR INTERNATIONAL COLLEGE

JAIPUR

PREFACE

I feel great pleasure in doing my project “Total project Management at the Distributor

and Retailer Level of Hindustan Coca-Cola Beverages Pvt. Ltd.” with Coca-Cola.

Their whole hearted support enabled me to complete this project.

This project is on “Quality initiatives taken by Coca-Cola” in pursuit of TQM Phase-

III certification for the Kaladera Plant in Jaipur.

In the I phase of the project I collected various samples from the Distributors and

Retailers and surveyed the warehouses along various quality parameters with the help

of questionnaires and observation method.

In the second phase I analyzed the data generated in the I phase, generated report on

its basis and presented the same to the quality department officials with the help of

bar graphs, pie-charts and histograms.

ACKNOLEDGEMENT

2

I express my sincere thanks to my project guide, Mr. Pranav Bhatt (Quality Assurance

Manager), for guiding me right from the inception till the successful completion of the

project. I sincerely acknowledge her for extending their valuable guidance, support

for literature, critical reviews of project and the report and above all the moral support

she had provided to me with all stages of this project.

I would also like to thank the supporting staff R. S. Rawat (Senior Executive, Quality

Assurance), for his help and cooperation throughout our project.

I would also like to thank the supporting my college faculty Ms Poonam Swami Sr.

Lecturer., for her help and cooperation throughout our project.

(BHARAT LAL SHARMA)

INDEX

1.) Preface 2

3

2.) Acknowledgement 3

3.) Introduction to Coca-Cola Worldwide 5

4.) Bottling 13

5.) Product Profile 48

6.) Coca-Cola in India 53

7.) Terms and Terminology 60

8.) Research & Methodology 62

9.) TPM in Food and Beverages Industry 71

10.) Territory Division of Project 75

11.) Findings 77

12.) SWOT Analysis 92

13.) Conclusion 95

14.) Recommendations 97

15.) Appendix 99

16.) Bibliography 103

INTRODUCTION TO COCA-COLA WORLDWIDE

4

The Coca-Cola Company exists to benefit and refresh everyone it touches. Founded in

1886, the Company is the world's leading manufacturer, marketer, and distributor of

nonalcoholic beverage concentrates and syrups, used to produce nearly 400 beverage

brands. Our corporate headquarters are in Atlanta, with local operations in over 200

countries around the world. The Coca-Cola company exists to benefit and refresh

everyoneittouches.

The basic proposition of the business is simple, solid and timeless. The company

aims at bringing refreshment, value, joy and fun to its stakeholders, they successfully

nurture and protect brands, particularly Coca-Cola. That is the key to fulfilling our

ultimate obligation to provide consistently attractive returns to the owners of our

business.

More than a billion times every day, thirsty people around the world reach for Coca-

Cola products for refreshment. They deserve the highest quality—every time. Our

promise to deliver that quality is the most important promise we make. And it

involves a worldwide, yet distinctively local, network of bottling partners, suppliers,

distributors and retailers whose success is paramount to our own. Our investment in

local communities in over 200 countries totals billions of dollars in jobs, facilities,

and marketing, the purchase of local goods and services, and local business

partnerships. Always and everywhere, we pursue continuous innovation in the

products we offer, the processes we use to make them, the packages we develop and

the ways we bring them to market.

The Coca-Cola system is one of the most diverse organizations on earth, with a rich

mosaic of talented colleagues who bring a variety of intellectual, professional, ethnic

and cultural perspectives to our enterprise. They reflect the nations, cultures and

languages of the world. Our policy is to foster an inclusive environment that

encourages all employees to develop and perform to their fullest potential.

SPEECH BY CHAIRMAN

5

Our workplace must be a place where everyone's ideas and contributions are valued.

Our employees deserve equal treatment under our policies governing compensation,

advancement, health, safety and other aspects of workplace life. We understand that

fairness in the workplace, coupled with the opportunity to develop individual

capabilities, fosters our collective success.

Responsible stewardship of the environment is a top priority for The Coca-Cola

Company. By preserving and enhancing our natural world, we brighten the future for

our planet and for each other. We put this principle into practice through The Coca-

Cola Environmental Management System, known as eKOsystem. We operate our

business as stewards of the environment, with a commitment to continually move our

business toward sustainability: striving to consume fewer natural resources, and to

recover and reuse resources more extensively. Our commitment to protect the

environment extends throughout our organization, involving officers, managers and

employees at all levels. We are accountable for our actions, conducting assessments

of our environmental performance and taking action toward continuous improvement

in all that we do. Society advances on the strength of community: people sharing their

ideas and resources to reach common goals. We seek to strengthen local communities

worldwide through our support for education, through partnerships with other

organizations and through acts of citizenship by the people of Coca-Cola.

We support education because of its power to expand opportunities for individuals

and increase understanding between cultures. We partner with national and

international organizations to alleviate economic disadvantage and help improve the

quality of life in local communities. Together with our local bottling partners, we

strengthen communities by giving with our hands and our hearts, as partners in the

promise of a better life.

There's never been a better time to be a part of The Coca-Cola Company. Our people

are dedicated to strengthening relationships with stakeholders and communities

everywhere.

E.neville Isdell

Chairman, Board of Directors, and Chief Executive

6

Officer

The Coca-Cola Company E.neville Isdell leads The Coca-Cola Company into the

new century with a firm commitment to the values and spirit of the world's greatest

brand. He was elected chairman and chief executive officer in February 2000 and is

the 11th person in the history of the Company to hold this title.

Under E.neville Isdell leadership, we have positioned The Coca-Cola Company for

growth, guided by our mission to provide branded beverages that refresh people

around the world, anywhere, any time, everyday. By moving key decision-making

closer to local markets, we have spurred innovation, accelerated growth and fostered

deeper connections to consumers. Simply put, we are closer than ever to you.

A talented and highly experienced worldwide management team coordinates our new,

nimble and entrepreneurial network.

Across more than 200 countries ... more than 100 languages ... a multitude of cultures

and geographies, The Coca-Cola Company strives to be a special part of people's

lives. This privilege comes with a responsibility. We have chosen to take a leadership

role, knowing that our differences make us stronger in our business and in our

communities - each and every day.

We embrace our commitment to diversity in all its forms at The Coca-Cola Company

as a core value. Diversity - of race, gender, sexual orientation, ideas, ways of living,

cultures and business practices - provides the creativity and innovation essential to our

economic well-being. Equally important is a highly motivated, healthy and productive

workforce that achieves business success through superior execution and superb

customer satisfaction.

Board of directors

E. Neville IsdellChairman, Board of Directors, and Chief Executive OfficerThe Coca-Cola Company

7

Herbert A. AllenPresident and Chief Executive OfficerAllen & Company Incorporated(a privately held investment firm)

Ronald W. AllenConsultant to, Advisory Director, and former Chairman of the Board,President, and Chief Executive Officer, Delta Air Lines, Inc.

Cathleen P. BlackPresidentHearst Magazines

Warren E. BuffettChairman of the Board and Chief Executive OfficerBerkshire Hathaway Inc.(a diversified holding company)

Barry DillerChairman of the Board and Chief Executive Officer InterActiveCorp (IAC)

Donald R. KeoughChairman of the Board,Allen & Company Incorporated

Maria Elena LagomasinoChairman and Chief Executive OfficerJ.P. Morgan Private Bank

Donald F. McHenryDistinguished Professor in the Practice of Diplomacy and International Affairs at the School of Foreign Service,Georgetown University

SENIOR MANAGEMENT - FUNCTION HEADS

Harry L. Anderson

Director, Supply Chain and Manufacturing ManagementVice President, The Coca-Cola Company

 Jean-Michel R. Arès

8

Chief Information OfficerVice President, The Coca-Cola Company

 Ralph Carlton

Managing Director, Corporate Strategy and PlanningVice President, The Coca-Cola Company

J. Alexander M. Douglas Jr.

Chief Customer OfficerSenior Vice President, The Coca-Cola Company

 Gary P. Fayard

Chief Financial OfficerExecutive Vice President, The Coca-Cola Company

 Charles B. (Chuck) Fruit 

Chief Marketing OfficerSenior Vice President, The Coca-Cola Company

 Ingrid Saunders Jones

Chairperson, The Coca-Cola FoundationSenior Vice President, The Coca-Cola Company

 Cynthia P. McCague

Director, Human ResourcesSenior Vice President, The Coca-Cola Company

 Patricia V. Powell

Senior Vice President, Quality DivisionThe Coca-Cola Company

 Danny L. Strickland

Senior Vice PresidentChief Innovation/Research and Development OfficerThe Coca-Cola Company

Bottling

One of our great strengths is our ability to conduct business on a worldwide scale

while maintaining a local approach. At the heart of this approach is our bottling

system.

Before any one of our nearly 400 brands is consumed by anybody around the world, it

9

has to be produced, packaged and distributed. Since we reach six billion consumers in

over 200 countries, our bottling system has to be the best.

Our bottling partners are local companies - some independently owned, some partially

owned by The Coca-Cola Company - so they are rooted in their communities,

thinking and acting locally. They are employers, purchasers of local goods and

services, good neighbors, and, of course, producers of the world's most popular

beverages.

It's a big job, and sometimes it's done quite creatively. In Indonesia, for instance,

boats transport Coca-Cola® and our other brands between the many hundreds of

islands that make up that nation. In the Amazon, where the main road is often the

river itself, water-borne distribution is also common. In some of the higher elevations

of the Andes, Coca-Cola is sometimes transported by four-legged power. Across

much of Africa, bottlers deliver to thousands of family-run kiosks and home-based

stores on which local economies depend.

Coca-Cola® originated as a soda fountain beverage in 1886 selling for five cents a

glass. Early growth was impressive, but it was only when a strong bottling system

developed that Coca-Cola became the world-famous brand it is today.

1960s … New brands introduced

Sprite®, Fanta®, Fresca® and TAB® joined brand Coca-Cola in the 1960s. Mr.

Pibb® and Mello Yello® were added in the 1970s. The 1980s brought diet Coke®

and Cherry Coke®, followed by POWERaDE® and Fruitopia® in the 1990s. Today

scores of other brands are offered to meet consumer preferences in local markets

around the world.

10

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or

underdeveloped for decades. After the fall of the Berlin Wall, the Company invested

heavily to build plants in Eastern Europe. As the century closed, more than $1.5

billion was committed to new bottling facilities in Africa.

21st Century … Think local, act local

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the Company well today as consumers seek brands

that honor local identity and the distinctiveness of local markets. As was true a

century ago, strong locally based relationships between Coca-Cola bottlers, customers

and communities are the foundation on which the entire business grows.

ABOUT KALADERA

Beverages Bottling Plant of Hindustan Coca-Cola Beverages Private Limited at

Jaipur, Rajasthan. The Plant was constructed at a cost of INR. 65 Million and was

completed ahead of schedule within a period of 6 months against the stipulated

11

construction period of 8 months. This project achieved the fastest completion

schedule

for any Coca-Cola projects.

The project constituted construction of main plant of area 8,700 sq.m., Utility Block

of area 715 sq.m. ETP of 800 cum flow per day, water tank of 1.17 million litres

capacity, external development works etc.

Kaladera, Jaipur

Coca-cola has set up manufacturing plants in Rajasthan through its subsidiary

company, Hindustan Coca-Cola Beverages. The company was formed in October

1999. It prepares, packages and distributes commercial non-alcoholic beverages under

the brand names of Coke, Fanta, Limca, Kinley, Thums Up, etc. The company

controls approximately 75% of the total bottling activities in India.

The company manufactures its products from two locations in Rajasthan, including

Kaladera in the Jaipur district. The prime reason for locating the plant at Kaladera was

the abundant availability of water. Besides, the labour environment is very peaceful.

The company has invested over Rs.five million and has plans to invest an additional

Rs.10 million in the State. It meets the demand for soft drinks in Rajasthan and

supplies the same to New Delhi.

Coca-Kaladera, in Govindgarh block, is a large village about forty kilometers from

Jaipur city. An overwhelming majority of its 12-13,000 inhabitants engage in

agriculture. But it is also an education hub in the region, with schools and excellent

colleges, thanks partly to the work of social reform organizations in the past. Many of

its students come here from affected villages around.

Falling Water Tables, Sinking Hearts

This was earlier a fairly fertile region. "Even when there was famine in other parts of

Rajasthan, the area around Kaladera was doing alright. But ground water has fallen

sharply in the last few years," said a professor in a local college. This area has been a

12

declared a 'dark zone', which means that digging new wells and installing pumps is

illegal, and no loans are sanctioned towards this. Figures as to how far down the water

table has gone vary, but there is not the slightest doubt that it has fallen precipitously.

Peering into numerous wells in the area, whose depth varied between forty and eighty

feet revealed that all of them were bone-dry, their only use now being to provide

shelter to some homeless pigeons. "Just seven or eight years ago, these wells used to

have water at about 10-15 feet," said one farmer pointing at his now completely dry

well. All households this reporter visited had dug bore wells; some had submersibles,

in which the motor itself is submerged in the water at depths of 200 feet or more. The

deputy-Sarpanch (deputy village head) of the local panchayat (village council) said,

That old well outside my house used to be full barely 8-9 years ago. I had to go

deeper. Then I gave up on that well, and had to dig a much deeper bore. Cultivators

here have to go down 125 feet to get water. In five years, the situation will be

extremely grim. They will finish the water and go away."

The 'they' referred to is the Coca-Cola plant just a couple of kilometers

away, at 39-40, RIICO Industrial Area. Established in 1999, the bottling plant owned

by Coca-Cola manufactures Coke, Fanta, other soft drink brands, and its bottled water

Kinley. Its extractions have been increasing with each passing year. According to the

recent Report on A Press Clipping on the Withdrawal of Ground Water by Coca-Cola

Factory at Kaladera, by scientists from the Central Ground Water Board, Western

Region, and the Rajasthan Pollution Control Board, among others, the Coca-Cola

plant extracted 1,37,694 cubic meters of water in 2002-03, and 1,74,301 cubic meters

in just nine months to December 2003.

A news report in The Hindu published earlier had similar figures. Quoting a

hydrologist of the Central Ground Water Board, Western Region, it said that shallow

aquifers in the Kaladera region had already dried up and deeper aquifers were now

threatened by the Coca-Cola plant's activities (The Hindu, 16 June 2004). Coca-Cola

gets the water free except for a tiny cess it pays the government, little over Rs 5,000

(USD 110) a year in the three years 2000-02, and Rs 24,246 (USD 525) in 2003

(Report, 2004). In the vicinity of the Coca Cola plant is a beer-manufacturing plant,

which gitators also want closed down, but their focus is on the huge Coca-Cola plant.

13

FAST FACTS

System investment: More than US$1 billion since 1993.

History

After a 16-year absence, Coca-Cola returned to India in 1993. The Company's

presence in India was cemented in November that year in a deal that gave Coca-Cola

ownership of the nation's top soft-drink brands and bottling network.

Investment, Employment and Economic Impact

Coca-Cola India has made significant investments to build and continually improve

its business in India, including new production facilities, wastewater treatment plants,

distribution systems and marketing equipment. During the past decade, the Coca-Cola

system has invested more than US$1 billion in India. As such Coca-Cola is one of the

country’s top international investors. In 2003, Coca-Cola India pledged to invest a

further US$100 million in its operation.

The Coca-Cola business system directly employs approximately 10,000 local people

in India. In addition, several independent studies have documented that, by providing

opportunities for local enterprises, the Coca-Cola business also generates a significant

employment “multiplier effect”. In India, we indirectly create employment for more

than 125,000 people in related industries through our vast procurement, supply and

distribution system.

14

Population: 1 billion.

Share of sales: The Company leads the CSD market with a nearly 60 percent share of sales.

Annual per capita consumption: Nine (eight-ounce servings).

System employment: Approximately 10,000 people.

Bottling Operation

The Coca-Cola system in India comprises 27 wholly-owned Company-owned bottling

operations and another 17 franchisee-owned bottling operations. A network of 29

contract-packers also manufactures a range of products for the Company. Almost all

the goods and services required to produce and market Coca-Cola in India are made

locally, sometimes with the help of technology and skills from the Company. The

complexity of the Indian market is reflected in the distribution fleet, which includes

10-tonne trucks, open-bay three-wheelers that can navigate the narrow alleyways of

Indian cities, and trademarked tricycles and pushcarts.

Products

Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the

Company's international family of brands, including Coca-Cola, diet Coke, Sprite and

Fanta, plus the Schweppes product range. Our Kinley water brand was launched in

2000 and, in 2001, our energy drink Shock and our first powdered concentrate,

Sunfill, hit the market.

Annual per capita consumption of soft drinks in India is nine 8-ounce servings.

Marketing

While broad direction and themes for our global brands are created at a global level,

specific marketing programmes for our products are determined locally. In early

2003, Coca-Cola India collected Advertiser of the Year and Campaign of the Year

awards for the Thanda Matlab Coca-Cola all-media campaign. Innovation has been

the hallmark of other marketing campaigns, with the Company racking up "firsts" in

the introduction of canned and PET soft drinks, vending machines and backpack

dispensers for crowds of cricket supporters.

15

Quality

We consider the consistent high quality of our beverages to be one of our business’

primary assets. In India, as in each country where we produce our beverages, the

Coca-Cola system adheres not only to national laws on food processing and labelling,

but also to our own strict standards for exceptional quality. In everything we do, from

the selection of ingredients to the production of our beverages and their delivery to the

marketplace, we use our specialised quality management system, The Coca-Cola

Quality System, to ensure that we are offering consumers only the highest quality

products. We monitor our success through our customer and consumer feedback and

our in-trade monitoring programmes, and this iformation enables us to continuously

improve.

Coca-Cola and the community.

At Coca-Cola, we have a long-standing belief that everyone who touches our business

should benefit. That basic proposition – that our business should bring benefit and

refreshment – is central to the way we operate in communities around the world.

Coca-Cola India provides extensive support for community programmes across the

country, with a focus on education, health and rainwater harvesting, all key priorities

of the Indian government, which has recognised the Company’s efforts with several

awards.

Education: Coca-Cola India is supporting community-based primary education projects set up to provide educational opportunities to

marginalised children in slums and villages. To date, the projects have benefited 50 schools, thousands of students, over 500,000 villagers and

over 10,000 slum dwellers, as well as several villages near Coca-Cola bottling plants.

  

Environment: Coca-Cola India is supporting community-based rainwater harvesting

projects in rural and urban areas to help restore water levels and promote community

education in ways to conserve natural resources. These initiatives have benefited over

10,000 Delhi residents, as well as local community members, both in areas surrounding

Coca-Cola bottling plants and elsewhere.

   

16

Healthcare: Coca-Cola India is partnering with NGOs as well as St. John’s

Ambulance Brigade (Red Cross) to provide free medical facilities and information to

poor people who cannot afford to visit hospital facilities. These efforts are helping tens

of thousands of underprivileged people in seven states in India, as well as several

villages near Coca-Cola bottling plants.

The Company has also supported a range of other national initiatives, such as a major

polio-eradication drive and drought-relief programme, in addition to support towards

the National Cricket Championship for the Blind, and National Athletics meetings for

the physically challenged.

 

 

The world's favourite drink. The world's most valuable brand.

The most recognizable word across  the world after OK.

Coca-Cola has a truly remarkable heritage. From a humble

beginning in 1886, it is now the flagship brand of the largest

manufacturer, marketer and distributor of non-alcoholic

beverages in the world.

COCA COLA IN INDIA

In India, Coca-Cola was the leading soft-drink till 1977 when

govt. policies necessitated its departure. Coca-Cola made its

return to the country in 1993 and made significant investments

to ensure that the beverage is available to more and more

people, even in the remote and inaccessible parts of the nation.

Coca-Cola returned to India in 1993 and over the past ten

years has captured the imagination of the nation, building

17

strong associations with cricket, the thriving cinema industry,

music etc. Coca-Cola has been very strongly associated with

cricket, sponsoring the World Cup in 1996 and various other

tournaments, including the Coca-Cola Cup in Sharjah in the

late nineties. Coca-Cola's advertising campaigns Jo Chaho Ho

Jaye and Life ho to Aisi were very popular and had entered

the youth's vocabulary. In 2002, Coca-Cola launched the

campaign "Thanda Matlab Coca-Cola" which sky-rocketed

the brand to make it India's favourite soft-drink brand. In

2003, Coke was available for just Rs. 5 across the country and

this pricing initiative together with improved distribution

ensured that all brands in the portfolio grew leaps and bounds.

 Brand Ambassadors 

Coca-Cola had signed on various celebrities including movie

stars such as Karishma Kapoor, cricketers such as Srinath,

Sourav Ganguly, southern celebrities like Vijay in the past

and today, its brand ambassadors are Aamir Khan,

Aishwarya Rai, Vivek Oberoi and cricketer Virendra

Sehwag.

 SKUs 

Glass PET Can Fountain

200 ml 500 ml 330 ml Various Sizes

300 ml 500 ml + 100 ml free    

500 ml 1.5 L    

1000 ml 2 L    

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  2.25 L    

 

TWO RAINWATER-HARVESTING PROJECTS IN KALADERA VILLAGE

India, May 17, 2004 - Coca-Cola India on Monday dedicated two rainwater-

harvesting projects to the people of Kaladera village in Jaipur district where the

company has its Bottling

The Company constructed rainwater harvesting structures at Government Girls

School and Government Degree College Kaladera with an approximate storage

capacity of three lakh litres and a ground recharge potential of an additional five lakh

litres.

Three structures were constructed within two months with the technical assistance of

the State ground water board US Salodia, IAS, while handing over the project to

people said that there was definite need for conserving our natural resources and such

initiatives will surely benefit the

Local communities

This scientific method for recharging of aquifers is the need of the hour and it is

important to take action to ensure sustainable development, said an official of the

State

Ground water deptt.

The vice president, Coca-Cola India, Sunil Gupta said, "we have completed this

project before the monsoon for the desired benefits. It's a small initiative but it would

inspire others to take up similar projects for water conservation."

On the lines of Coca-Cola to protect, preserve and enhance the environment, seven

other industries would be constructing rain-water harvesting projects within their

19

premises in RIICO Industrial area, Gupta said.the company also announced other

rehabilitation grants for unemployed enterprising ladies and for repairing of damaged

and broken roads.

COCO COLA ENTERPRISE CLOSE TO OUR COMMUNITY

Although we are a $17 billion, international company, we strive everyday

to be "Close to Home." Though this goal may seem to be difficult for a

company our size, in reality it is at the core of our organization.

Throughout the past 100 years, Coca-Cola bottlers in towns and

communities throughout our territories have helped build their

communities as they helped to develop the Coca-Cola brand and build

their businesses. The first bottling franchise began operations in 1901,

serving parts of Tennessee and other nearby locations under the ownership

of Benjamin F. Thomas and James F. Johnston, grandfather of our former

chairman and chief executive officer, Summerfield K. Johnston, Jr.

These links remain vital to our business today, as demonstrated by our

strong commitment to maintaining a local focus to our business that

includes a stronger than ever commitment to being a good local citizen.

Our employees are involved in a broad array of community activities and

initiatives, helping everyday to improve education, to aid local charities,

and to strengthen communities. In activities as varied as sponsoring Coca-

Cola Kids Clubs, to helping local youth sports leagues, to serving

important roles in local chambers of commerce, Coca-Cola Enterprises

employees work to help those around them.

This approach extends throughout our business as well. For example, with

20

a strategy we call Community Marketing, our employees play a major role

in customer success by increasing the presence of Coca-Cola at the

neighborhood level. In our community schools, we strive to be responsive

and respectful of the rights of parents, teachers, and students to choose the

beverages for their schools. We encourage positive choices about physical

fitness, lifestyle and nutrition through our program, “Your Power to

Choose…Fitness Health Fun.”

In every market, in every town, in every Coca-Cola Enterprises sales

center, there are similar examples of our efforts to help and improve the

local areas we serve. It is a foundation of our business, which is why our

philosophy of "Close to Home" is essential to our success.

COCA COLA CLOSE TO PARTNERS

As the world's largest bottler of liquid, nonalcoholic refreshment, we

operate in markets with dramatically different consumer preferences,

product delivery systems, economic conditions, and marketplace

opportunities.

Despite these variables, Coca-Cola Enterprises meets the needs of local

customers and communities throughout its diverse territories with a strong

commitment to local, community-based marketing and superior

marketplace execution. These concepts, combined with our firm belief in a

decentralized operating structure that places responsibility and

accountability as close as possible to the customer, clearly distinguishes

Coca-Cola Enterprises from other bottlers.

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COCA COLA CLOSE TO PEOPLE

The people of Coca-Cola Enterprises are the heart and soul of our

business, building relationships with our customers and our consumers in

the communities we serve. By putting people first, we hope to create value

for everyone touched by our Company.

We strive for an atmosphere in which all employees are comfortable being

themselves - offering ideas, making suggestions, expressing views, and

appreciating our shared and unshared differences - regardless of their age,

race, gender, nationality, ethnicity, religion or sexual orientation.  

COCA COLA CLOSE TO COMPANY

Close to home" is a strong statement for a Company that operates

throughout the United States, Canada and Western Europe, runs 454

facilities, and generates revenues of approximately $17 billion each year.

Yet, our Company and its employees work everyday to enhance our focus

on the local nature of our business. Though Coca-Cola Enterprises Inc. is

little more than 16 years old as a company, our roots span the more-than

100 years of the Coca-Cola bottling business. From their earliest days,

Coca-Cola bottlers have worked in partnership with their local

communities.

Today, we strive to build upon this heritage by working very hard to be an

outstanding local citizen and an integral part of each community

throughout our territories.

COCA COLA GUIDING PRINCIPLE FOR CITIZENSHIP

We will adhere to the highest ethical standards, knowing that the quality of our

products, the integrity of our brands and the dedication of our people build trust and

22

strengthen relationships.

We will serve the people who enjoy our brands through innovation, superb customer

service, and respect for the unique customs and cultures in the communities where we

do business.

:::: Enrich the workplace ::::

We will treat each other with dignity, fairness and respect. We will foster an inclusive

environment that encourages all employees to develop and perform to their fullest

potential, consistent with a commitment to human rights in our workplace.

The Coca-Cola workplace will be a place where everyone's ideas and contributions

are valued, and where responsibility and accountability are encouraged and rewarded.

:::: Preserve the environment ::::

Our approach to environmental issues is guided by a simple principle: We will

conduct our business in ways that protect, preserve and enhance the environment.

The Coca-Cola eKO System translates this principle into action by establishing a

framework for successfully managing our environmental performance worldwide.

:::: Strengthen the community ::::

23

We will contribute our time, expertise and resources to help develop sustainable

communities in partnership with local leaders.

We will seek to improve the quality of life through locally-relevant initiatives

wherever we do business.

Coca-Cola in India - Products & Quality

Leading Indian brands Thums Up, Limca, Maaza, Citra and Gold Spot join the

Company's international family of brands including Coca-Cola, Diet Coke, Sprite

and Fanta, plus the Schweppes product range.

Our Kinley water brand was launched in 2000 In 2001, our energy drink Shock and

our first powdered concentrate, Sunfill, hit the market Annual per capita consumption

of soft drinks in India is nine 8-ounce servings In early 2003, Coca-Cola India

collected Advertiser of the Year and Campaign of the Year awards for the

Thanda Matlab Coca-Cola all-media campaign

In early 2003, Coca-Cola India collected Advertiser of the Year and Campaign of

the Year awards for the Thanda Matlab Coca-Cola all-media campaign The

Coca-Cola system adheres not only to national laws on food processing and

labeling, but also to our own strict standards for exceptional quality In everything we

do, from the selection of ingredients to the production of our beverages and their

delivery to the marketplace, we use our specialised quality management system, The

Coca-Cola Quality System, to ensure that we are offering consumers only the highest

quality products We monitor our success through our customer and consumer

feedback and our in-trade monitoring programmes, and this information enables us

to continuously improve our already demanding systems.

-Cola Company is a global company with some of the world's most Our beverages

are produced

24

COCA COLA CLOSE TO PEOPLE

The heart and soul of our enterprise have always been our people. Over the past

century, Coca-Cola people have led our success by living and working with a

consistent set of ideals. While the world and our business will continue to change

rapidly, respecting these ideals will continue to be essential to our long-term success.

Nothing is more important to our success than integrity. This begins with insisting on

absolute quality for every one of our products, and acting with a strong sense of

accountability in everything we do.

Coca-Cola people have always known that building and nurturing our relationships

with other people and the world around us is an essential part of our work. No matter

how big or complex our business becomes, we must always demonstrate complete

respect for each other. As the world becomes more interconnected, yet more firmly

rooted in local pride, recognition of our interdependence with our stakeholders

becomes even more essential.

A large part of our relationship with the world around us is our relationship with the

physical world. While we have always sought to be sensitive to the environment, we

must use our significant resources and capabilities to provide active leadership on

environmental issues, particularly those relevant to our businesses.

As we have expanded over the decades, our company has benefited from the various

cultural insights and perspectives of the societies in which we do business.

Much of our future success will depend on our ability to develop a worldwide team

that is rich in its diversity of thinking, perspectives, backgrounds and culture. Coca-

Cola is the world's most inclusive brand, and Coca-Cola must also be the world's most

inclusive company.

From source water to soft drink bottle

At The Coca-Cola Company, through our globally accepted and validated

manufacturing processes and Quality Management Systems, we ensure that our

25

manufacturing facilities are equipped to provide the consumer with the highest

possible quality beverage each time. Let us now take you through the processes

and Quality Assurance Programmes followed by our world-class manufacturing

facilities in India.

Even before the plant is constructed, the site is selected based on the availability of

source water meeting the potability quality standards. At all our carbonated and non-

carbonated soft drink manufacturing locations, the source water is tested for all

requirements of potable drinking water. The analysis is always conducted by

independent third party accredited laboratories. The source water is then properly

protected and re-tested periodically to ensure conformance to potability standards.

The water is then drawn through sealed pipelines into the storage tanks in secured

water treatment areas of the manufacturing plant..

1. The first step in the manufacturing of soft drinks is the disinfection of water

using the globally approved procedure of chlorination. This treatment ensures

the destruction of microorganisms including pathogens and oxidation of heavy

metal ions and organic impurities.

2. The second step is the filtration at the molecular level, which is achieved

either by coagulation/flocculation or reverse osmosis. Contaminants

commonly removed by this process include:

- Dirt, clay and any other suspended matter in the water.

- Microbial matter (including bacteria, yeast, moulds, virus, protozoa).

Heavy metals and compounds which may cause an off-taste

- When coagulation/flocculation is used, colloidal materials and

suspended particles are removed by settling plus enhanced filtration

through multi-media. If needed, alkalinity reduction may also be

achieved by lime softening or ion exchange filters.

26

3. The third step to stop potential contaminants is water purification using

granular activated carbon filters. The granular activated carbon,

with its large and porous surface area, ensures effective removal of trace levels

of organic compounds (including pesticides and herbicides), colour, off-taste

and odour-causing compounds using the principle of absorption.

4. The last step is polishing filtration, which is passing water through high

efficiency 5-micron filters to ensure every drop of treated water is free from

any activated carbon fines and is safe for use in

Similar to the stringent norms used for water, we buy high-grade sugar from

authorized sugar mills in India and this is treated with a globally acclaimed

carbon treatment which removes any impurities and is then used for the

preparation of purified sugar syrup. This sugar syrup is then blended with the

soft drink concentrate.

Carbon-dioxide from authorized suppliers meeting international purity standards

is procured, which goes through stringent quality control checks before being used

in the beverage process.

The three ingredients of syrup, treated water and carbon-dioxide are blended as per

The Coca-Cola Company's specifications.

The glass bottles returned from the market are thoroughly cleaned and sanitized with

specially formulated cleaning agents at high temperature that use sophisticated state-

of-the-art Bottle Washers or Bottle Rinses (in case of PET). These bottles are then

transported to the filler using a fully automated conveyor system after a thorough

visual inspection. The beverage is then filled into glass containers or virgin food grade

PET bottles using a high-speed automated filling machine. The entire filling operation

is fully automated and untouched by human hands.

The bottles are finally capped/crowned, date coded and packed into crates/cartons to

make them available to our consumers.

27

The complete manufacturing process has a well defined and structured Quality

Control and Assurance Programmer.

All the manufacturing facilities employ qualified, experienced and trained

professionals for manufacturing and testing of our products.

Routine tests carried out by bottling operations and external laboratories:

An employee operates a proportioner, where the syrup, carbon-dioxide and

water are blended.

Analysts examine water samples using a UV spectrophotometer.

All the bottling facilities follow the Good Manufacturing Practices requirements as

applicable to the food industry. All manufacturing equipments fulfills the stringent

requirements of GMP and sanitary design.

The entire quality management system of each plant is documented, managed and

continually improved through a world-wide accepted system of TCCQS (The Coca-

Cola Quality System).

The Company also has a strong internal audit system to monitor compliance to

international and local standards. The manufacturing facilities also get audited by

accredited external audit agencies against quality management standards.This internal

checks and balances system works virtually in every aspect of our business and gives

us the confidence to reassure our promise to consumers every day.

At The Coca-Cola Company, we are committed to delivering high quality products to our customers and

consumers throughout the globe. Each and every time.

   Process parameter  No. of tests

       

1  Water  71

2  Water Treatment & Auxiliary

Chemicals

 68

3  CO2  50

28

4  Sugar  13

5  Syrup  17

6  Packaging Material  25

7  Container Washing  17

8  Finished Product  18

9  Market samples  15

10 External Lab

 

 147

   TOTAL  441

Cola and the Battle for Safe Water

Water harvesting is the buzzword. Millions of rupees are being sunk to promote water

harvesting. And at the same time, licenses are being issued to private companies to

not only exploit ground water but to go in for 'water mining'. In the past few years, for

instance, the number of golf courses has multiplied in and around the major metros in

India and at the same time more and more bottling plants for soft-drinks are being set

up. The basic objective being very clear: let the average consumer conserve water for

the benefit (and luxury) of the rich and the elite!

In India, as the prestigious fortnightly Down to Earth estimates that the ever-swelling

numbers of urban consumers who are hitting the (soft-drink) bottle and the increasing

ability of the beverage manufacturers to penetrate the rural market have ensured that

sales and revenues head north. According to market sources, the soft-drink industry

was estimated at 6.5 billion bottles in the year 2000 and volumes have been increasing

at 14-15 per cent per annum since then.

"An international soft drink association put the market size of the soft-drink sector in

India at about 1.4 billion litres in 1998. Producing this quantity would require a

staggering 5.6 billion litres of water. Most of this is extracted from groundwater

resources. Assuming that the per capita consumption of water is 30 litres per day, the

water consumed annually by the soft-drink industry is enough to meet the water needs

29

of more then 5 lakh people (say, for the district of Bolangir in Orissa, which is

chronically drought hit) for a year."

In Kerala, marketed by the State tourism as God's own country, an NGO "Jananeethi"

is waging a lone battle against the excessive extraction of groundwater and the

resulting deterioration of water quality caused by Hindustan Coca-Cola Beverages Pvt

Ltd -- a local unit of the multinational soft-drink giant. The resulting impact on

agriculture in the region has been very well documented.

We present the news report from the latest issue of Down to Earth magazine. The

second item is the complete report prepared by Jananeethi, which can be obtained

from the address listed.

1. Water battle

Regulations sorely missed as Kerala villagers cross swords with Coke over

indiscriminate groundwater use

Kushal P S Yadav & Surendranath C Down to Earth

Even as Coca-Cola draws a generic link with all things cool in its latest ad, the soft-

drink giant is feeling the heat of a two-month-long agitation by local villagers against

its bottling plant in Palakkad district of Kerala. Their grievance: excessive

groundwater extraction by Hindustan Coca-Cola Beverages Private Limited (hcbl) -

the local unit of the multinational company.

"The plant was set up in 1998 on a 15-ha plot in violation of the Kerala Land

Utilisation Act of 1967, intended to prevent the use of agricultural land for non-

agricultural purposes," alleges Velloor Swaminathan, convenor, Coca-Cola Virudha

Janakeeya Samara Samithy, a local pressure group. Hcbl officials, however, refute

these allegations. In fact, they are said to have justified the unit's functioning by

pointing out that there is no law regulating the use of water. And they are not far

wrong.

Up in arms

30

For the past few weeks Plachimada village, located in Palakkad, has been in the thick

of controversy. People from about 1,000 households, including 50 women belonging

to Eravala and Malasar tribal communities, have been holding demonstrations and

staging sit-ins in front of the hcbl factory complex.

Villagers allege that the soft-drink unit is guzzling water through borewells, sucking

the groundwater aquifer and their open wells dry. "Earlier my irrigation pump used to

run throughout the day but now there is not enough water to operate it for even 15

minutes," says R Krishnaswamy, who owns about three hectares (ha) of land adjacent

to the hcbl plant. He has not watered his coconut trees for three months. Consequently

though there has been a six-fold drop in the yield of nuts, he can only watch

helplessly.

To be sure, Coke cannot be solely blamed for the current row. Because the law of the

land allows beverage makers to set up shop anywhere in the country. It is not

mandatory for them to undertake an environmental impact assessment. A mere

consent from the state pollution control board, apart from furnishing details about the

quantity of water to be used, is all that they need to get started.

Free for all

Shocking as it may sound, there are hardly any laws or regulations governing

groundwater extraction in India. No mechanisms exist to regulate the amount of water

used.

All issues pertaining to groundwater are dealt with by two core bodies - the Central

Ground Water Board (cgwb) and the Central Ground Water Authority (cgwa). Both

fall under the Union ministry of water resources. While the cgwb is responsible for

advising states on matters relating to groundwater, the cgwa was constituted under the

Environmental (Protection) Act, 1986, to regulate and control groundwater

management. But both these authorities are by and large advisory.

The cgwa has the mandate for banning the extraction of groundwater in areas where

the water table is very low or the water quality has deteriorated because of pollution.

"If the water level plummets by four metres over a period of 10 years in a particular

place, it is designated as a notified area," reveals a cgwa official. Regions where the

31

natural replenishment of water is less than the annual extraction also come under the

purview of notified areas. To date, the cgwa has notified only 11 such spots in the

country. The few groundwater norms that have been formulated remain restricted to

these areas.

Nominal charge

Since there are absolutely no groundwater abstraction controls in the rest of the

country, soft-drink makers like Coca-Cola just need to specify how much water will

be used in the unit so that they can be charged for that amount. Payment by the user is

termed as water cess and is regulated under the Water (Prevention and Control of

Pollution) Cess Act, 1977. The industry has to pay cess on the water consumed for

specific purposes at prescribed rates. "To determine the amount of water used, meters

of prescribed standards are installed at stipulated places," says a Central Pollution

Control Board official.

Water cess can differ from state to state and on the basis of type of application. In

some cases, this amount can be very low. The hcbl spokesperson informed Down To

Earth that the company paid this levy to the Kerala Pollution Control Board (kpcb)

every six months.

According to him, the cess is paid under three heads: l For cooling, spraying in mines

and boiler at the rate of 2.25 paise per kilolitre (kl) l For domestic purposes at the rate

of 3.00 paise per kl l For processing at 7.50 paise per kl.

When compared to what the denizens of Delhi pay for domestic consumption of

water, the cess paid by hcbl in Palakkad is a pittance. The capital's residents pay 35

paise per kl for consumption up to 10 kl and Rs 1.50 per kl for use above 20 kl. As

against this, a charge of 3.00 paise for 1000 litres of water would indeed make the

Kerala district a cost-effective proposition. Significantly, who would want to conserve

water when such a paltry sum has to be paid?

32

2. Jananeethis report: On the amplitude of environment and human rights

ramification. July 2002

Excerpts:

Jananeethi team inspected the public wells and the private wells situated very close to

the factory site and collected samples for testing in sterile clean bottles and they were

sealed. All the wells had moderate levels of water in them and it looked clear. The

samples when drawn from the wells, showed turbidity. A white precipitate formed a

sediment when the water sample was kept without movements for some time. High

levels of turbidity can protect the microbes from the effects of disinfection and the

water can stimulate bacterial growth. (WHO, 1998). The water samples showed

precipitates on heating. Disagreeable taste of this well water was also observed at the

time of collection though there was no objectionable odour. As such no health-based

value is prescribed for drinking water for the colour. . Acceptable pH of drinking

water is between 6.5 and 8.5.

Inorganic constituents:

Chloride levels in the water were 540 mg /l. The normal level of Chloride in

unpolluted water for Palakkad district is not given. But the standard prescribed for the

drinking water is 200 mg/l and the maximum permitted is 600 mg/l. The present value

of 540 mg /l of chloride content in the water samples collected is slightly high when

the topography of the region is correlated with the water distribution. The presence of

sulphates at a level of 250mg/l may alter the taste of the drinking water though it also

is in the permitted level. TDS (Total Dissolved solids) has great effect on the taste of

drinking. Palatability of drinking water with TDS level less than 600 mg/l is generally

considered good.

Hardness of drinking water

The present samples collected showed a very high level of hardness .The taste

threshold for the calcium ion is in the range of 100 to 300 mg/l. Taste threshold of

magnesium is probably less than that of calcium. Consumers also tolerate more than

500 mg/l. On heating the water it forms deposits of calcium carbonate. The major

33

problem with the well water in the area is the presence of hard water .It may be due to

the erection of tube wells, and pumping and drainage of ground water at a very high

level. Though the hardness of the well water is not posing any health problems, it has

other social and psychological consequences on the lives of these people. More soaps

and detergents are to be spent, as lathering of soap will be less in hard water. Heating

of hard water precipitates carbonates. There will be more fuel use and loss of

efficiency as the people are poor and dependants on firewood as fuel. Heating hard

water under pressure can cause explosions. So the hardness of water adversely affects

cooking which is the main activity of the women of the area. Washing linen in hard

water reduces the life of the fabric and results in economic loss to this community.

Hardness of water shortens the life span of pipes and motor fittings used for pumping.

Most of the farmers pump water from their wells for agriculture

General remarks on well water:

The drinking water in the vicinity of the Hindustan Coca-Cola Beverages Pvt.Ltd is of

poor quality. Water having disagreeable taste and turbid appearance is not preferred

for domestic use. The high alkalinity, total hardness, chloride content, TDS and MPN

value are not conforming to the drinking water standards. The water available is very

hard. The dissolved oxygen content is less. Since the MPN value is higher bacterial

contamination may be suspected. Hence Jananeethi feels that the water of the wells of

this area is polluted and unfit for domestic use.

Chemical Examination of the waste slurry

The samples of waste collected from the farmlands were tested for its manurial value

since the factory had impressed peasants that it was good manure. The cream coloured

and tar black residue which was spread in the farmlands appeared clay like matter

34

with 28 to 30 % calcium in it and 4 to 5 % phosphorus. There was no nitrogen content

in the collected waste, proving that the manurial value of the waste is nil. Too much

of calcium in the soil can leach into the wells and ponds as they will be washed by

heavy rains and this again may pose severe problems in the area, The presence of

excess calcium in the farmland may lead to nutrient imbalance in the soil .The

farmlands which are having apparently very good soil structure may in due course get

spoiled. Slurry disposal system needs immediate attention from the factory

management and selling the slurry waste to farmers, as manure has to be stopped

forthwith. Earnest effort has to be taken up to detect the heavy metal residues in this

waste as this is spread in all farmlands of the area. The residents are experiencing

sever foul odour from the factory especially in the evening and nighttime. It is also

reported that the wastewater generated emits a putrid odour when it is used for

irrigating the gardens in the factory compound.

The AgBioIndia mailing list is an effort by the Forum for

Biotechnology & Food Security to bridge the yawning gap in our

understanding of the politics of food. We believe this mailing list will

create wider awareness and understanding of the compexities of the

crisis facing Indian agriculture and food security. This list will keep

you posted on the intricacies and games being enacted in the name of

eradicating hunger.

It is a non-commercial educational service for non-profit organisations

and individuals. Subscribers are welcome to contribute information.

PRODUCT PROFILE

The Coca-Cola Company's Brands (as of 12/31/02)

A

A&W *

35

Ades Alive

Almdudler Ambasa

American Andifrut

Andina Nectar Aqua

Aquactive Aquana

Aquarius Aqvaris

Arwa Aybal

B

Bacardi Mixers Barq's

Beat Belte

Beverly Bibo

Bimbo Bimbo Break

Bistrone Bjare

BlackFire Bom Bit Maesil

Bonaqua/Qa BPM

Bright And Early Burn

Buzz

C

caffeine free Coca-Cola caffeine free Coke light/diet

Coke

Cal King Calypso

Canada Dry * Canning's

Cappy Capric

Carvers Chafresco

Chaho Charrua

Cheers Cherry Coke

Chinotto Chinotto Light

Chippewa Ciel Chivalry Citra

Coke II Coca-Cola

Cocoteen Cresta

Cristal Crush *

Crystal Cumberland Gap

36

D

Dannon * Dasani Water

Delaware Punch DESCA

diet A&W * diet Almdudler

diet Canada Dry * diet Charrua

diet Cherry Coke diet Coke/Coca-Cola light

diet Coke/Coca-Cola light

with lemon

diet Crush *

diet Dr Pepper * diet Fanta

diet Inca Kola diet Kia Ora *

diet Krest diet Lift

diet Lilt diet Mello Yello

diet Minute Maid Soft

Drink

diet Mr Pibb

diet Nestea Cool diet Nestea/Nestea Light

diet Oasis * diet Schweppes *

diet Sprite/Sprite Light

diet Tai

diet Squirt *

diet Vanilla Coke

Disney Hundred Acre

Wood

Disney Xtreme Coolers

Dorna Dr Pepper *

Drim

E

Eight O'Clock Eight O'Clock Fountain

Eight O'Clock Litro Pack Emblem

37

F

38

G

Georgia

Georgia Club

Georgia Gold

Gini *

Gira

Gold Spot

Grand Blue

Grapette

Guarana Jesus

H

H2OK

Hanul Yeon Cha

Hawai

Hi Spot *

Hi-C

Hit

Horizon

Huang

I

Ice Cold Mix

Ice Dew

Ice Mountain

Inca Kola

Itu

Izvorul Alb

J

Jaz Cola

Jet Tonic

Jinmeile

Jolly Juice

Joy

Jurassic Well

 

K

Kapo Axion

Kapo

Kapo Super Power

Kia Ora *

Kilimanjaro

Kin

Kin Light

Kinley

KMX

Kochakaden

Koumi Soukai

Krest

Kuat

Kuat Light

Kuli

L

Leafs

Lift

Lilt

Limca

Limonade

Linnuse

Love Body

Fanta Finley

Fioravanti Five Alive

Fontana Fraser & Neave

Freezits Fresca

Frescolita Freskyta

Frestea Frisco

Frugos Fruit Labo

Fruit Tree Fruitia

Fruitopia Fruitopia Tea

COCA-COLA IN INDIA

Coca Cola in India-

After a 16 years absence, coca cola returned to India on October 26,1993 with its

launch in Agra.An engagement in March 1993 with the Parle Group gave the

company instant ownership of the nation’s top soft drinks brands, with access to

parle’s 53-plant botteling network, and a base for rapid introduction of the company’s

international brands. This network remains India’s largest soft drink bottling and

distribution infrastructure, reaching out too Indian consumers through a universe of

over 8000000 retail outlets spread across the country.

As the leading producer and marketer of soft drinks in India, the company leads the

flavoured, carbonated soft drink market . the Coca-cola Company’s products in India

include the company’s international brands- Coca cola, sprite and fanta, as well as

39

G

Georgia

Georgia Club

Georgia Gold

Gini *

Gira

Gold Spot

Grand Blue

Grapette

Guarana Jesus

H

H2OK

Hanul Yeon Cha

Hawai

Hi Spot *

Hi-C

Hit

Horizon

Huang

I

Ice Cold Mix

Ice Dew

Ice Mountain

Inca Kola

Itu

Izvorul Alb

J

Jaz Cola

Jet Tonic

Jinmeile

Jolly Juice

Joy

Jurassic Well

 

K

Kapo Axion

Kapo

Kapo Super Power

Kia Ora *

Kilimanjaro

Kin

Kin Light

Kinley

KMX

Kochakaden

Koumi Soukai

Krest

Kuat

Kuat Light

Kuli

L

Leafs

Lift

Lilt

Limca

Limonade

Linnuse

Love Body

India’s leading soft drink brands, Thumps Up Limca and Maaza- brands acquired

from the Parle Group in 1993.

Brands in India:-

1. Coca-Cola

2. diet Coke®

3. Sprite®

4. Fanta®

5. Schweppes

6. Thums Up®

7. Limca®

8. Maaza®

9. Citra™

10. Gold Spot®

11. Kinley™ water

12. Sunfill™ concentrate

13. Shock™

14. RIMZIM®

TERMS AND TERMINOLOGY

1.) DOD- DESPATCH OUT DATE- The date at which the product must

leave the factory warehouse and reach retail outlet. If any product is going to

attain its DOD in a week’s time then it must be communicated to the manger

of the warehouse & the stock should be cleared as soon as possible.

2.) Focus Stock- The stock whose DOD is less than 15 days away.

3.) BBD- Best Before Date- The date before which the product is fit for

consumption. BBD stock can’t be sold in market.

4.) Clearance Stock- The stock which is between the Focus & BBD stage.

40

G

Georgia

Georgia Club

Georgia Gold

Gini *

Gira

Gold Spot

Grand Blue

Grapette

Guarana Jesus

H

H2OK

Hanul Yeon Cha

Hawai

Hi Spot *

Hi-C

Hit

Horizon

Huang

I

Ice Cold Mix

Ice Dew

Ice Mountain

Inca Kola

Itu

Izvorul Alb

J

Jaz Cola

Jet Tonic

Jinmeile

Jolly Juice

Joy

Jurassic Well

 

K

Kapo Axion

Kapo

Kapo Super Power

Kia Ora *

Kilimanjaro

Kin

Kin Light

Kinley

KMX

Kochakaden

Koumi Soukai

Krest

Kuat

Kuat Light

Kuli

L

Leafs

Lift

Lilt

Limca

Limonade

Linnuse

Love Body

5.) Quality Distributor Audit- Company’s quality auditor pays regular

visits to the warehouses of the distributor and the retailer to check whether all

the quality parameters are met or not.

6.) RGB- Refill Glass Bottle. These bottle are made up of glass.

7.) PET- These bottle are made of plastic.

RESEARCH METHODOLOGY

For the purpose of the study surveys were conducted at the distributor and retailer

warehouses across different cities of Rajasthan. The survey sheet (a sample copy is

attached) were prepared according to the objectives of the project and was

administered accordingly. The data gathered through this exercise became the primary

data. The survey sheet was accompanied by discussions with dealers and retailers

which provided an in-depth view of the problems and challenges faced by them on the

quality issues. Detailed notes were prepared on the basis of these discussions.

41

G

Georgia

Georgia Club

Georgia Gold

Gini *

Gira

Gold Spot

Grand Blue

Grapette

Guarana Jesus

H

H2OK

Hanul Yeon Cha

Hawai

Hi Spot *

Hi-C

Hit

Horizon

Huang

I

Ice Cold Mix

Ice Dew

Ice Mountain

Inca Kola

Itu

Izvorul Alb

J

Jaz Cola

Jet Tonic

Jinmeile

Jolly Juice

Joy

Jurassic Well

 

K

Kapo Axion

Kapo

Kapo Super Power

Kia Ora *

Kilimanjaro

Kin

Kin Light

Kinley

KMX

Kochakaden

Koumi Soukai

Krest

Kuat

Kuat Light

Kuli

L

Leafs

Lift

Lilt

Limca

Limonade

Linnuse

Love Body

Thus questionnaires and discussions were the two main tools/instruments used.

The methodology was used to gather information and data related to the quality

problems faced by the distributors and retailers of coca-cola so as to minimize the

lead time of the product from factory to the point of purchase.

Some of the other sources used for the report were –

Company Documents- The documents provided by the company gave an insight

of the quality initiative of coca cola as well as provided the company profile and the

organizational chart. It also helped in generating the broad parameters of the survey

and the analysis thereafter.

Discussions- To prepare the guidelines of the study and to get the general idea of

the working of the organization and its different departments various discussions and

brain storming sessions were held with different departmental heads at the kaladera

plant.

Flow Diagram

42

Reception of Potable Water

Demineralization & Standardization of

Water

Adjustment of pH

Addition of sugar & syrup in the concentrate

Bottling

Preparation & Clarification

of Sugar Syrup

Mixing of Concentrate

Chemical Testing

G

Georgia

Georgia Club

Georgia Gold

Gini *

Gira

Gold Spot

Grand Blue

Grapette

Guarana Jesus

H

H2OK

Hanul Yeon Cha

Hawai

Hi Spot *

Hi-C

Hit

Horizon

Huang

I

Ice Cold Mix

Ice Dew

Ice Mountain

Inca Kola

Itu

Izvorul Alb

J

Jaz Cola

Jet Tonic

Jinmeile

Jolly Juice

Joy

Jurassic Well

 

K

Kapo Axion

Kapo

Kapo Super Power

Kia Ora *

Kilimanjaro

Kin

Kin Light

Kinley

KMX

Kochakaden

Koumi Soukai

Krest

Kuat

Kuat Light

Kuli

L

Leafs

Lift

Lilt

Limca

Limonade

Linnuse

Love Body

Products Manufactured & Capacity :

Line1 - 600 bottles per minute (BPM) Returnable glass bottle (RGB) Multi serve line.

Line2 - 400 bottles per minute (BPM). 300 ml Returnable Glass bottles (BPM)

Line 3 - 150 bottles per minute (BPM) 2lt. &500 ml mobile.

Major raw material - treated water, concentrate, sugar& carbon dioxide.

Raw Water Treatment - To get treated water for processing operations raw water is

conti9noeslu coagulated, flocculated and classified and then passed through and

carbon and micron filters.

Waste water treatment & disposal - Waste water from the facility is treated in an

ETPC capacity 960/dayconsisting of primary, secondary and tertiary treatment units.

43

Secondary treatment 70% of effluent is used for horticulture inside the plant

premi9ses and remaining 30% is used in processing units after tertiary treatment (220

m/day capacity)

Domestic effluent is treated in specific tanks and disposed through soap pits.

Infrastructure & Utilities :-

1. Land and area

The facility is spread over 81000 square meter

2.Manpower

A total of 156 personnel will be employed for all activities Including Production,

warehouse administration, security and maintenance out of that 72 are full time.

3. Water supply and treatment

Water requirement are not by 3 bore wells on the site. Raw water is disinfected by

chlorine and treated in a reverse osmosis unit of 25 meter qub/ hour capacity to give

treated water used for beverage making. Another steam of Raw water id passed

through disinfection, sand filtration plant and softening plant to get soft waster which

is used for bottle washing, boiler make up and other uses.

WHAT IS TPM ?

A SYSTEM DESIGNED FOR LOCAL MARKETS

TO IDENTIFY & PRIORITIZE ISSUES

TO MINIMIZE TIME & TEMPERATURE EXPOSURE

FROM THE MANUFACTURE, STROAGE & HANDLING OF OUR

PRODUCTS

44

TIME & TEMPRATURE MANAGEMENT OF ALL PRODUCTS

ESPECIALLY PET PACKS AND OTHER SENSITIVE ATTRIBUTES

SUCH AS FLAVOUR & COLOUR

THE 4 PRODUCT LIFE CYCLE

4 PHASES OF TPM

45

PRODUCTION

WAREHOUSING

DISTRIBUTION

TRADE & MERCHANDISING

EDUCATE

EXECUTE

TPM IN FOOD & BEVERAGES INDUSTRYTPM IN FOOD & BEVERAGES INDUSTRY

46

MONITOR

MAINTAIN

In managerial economics one of the classifications of goods is In managerial economics one of the classifications of goods is

Durable goodsDurable goods

Non-durable goodsNon-durable goods

Perishable goodsPerishable goods

Food products & beverages (carbonated & non-alcoholic) falls in category ofFood products & beverages (carbonated & non-alcoholic) falls in category of

perishable goods as these are susceptible to contamination.perishable goods as these are susceptible to contamination.

According to Ross, Total Product Management is integration of all functionsAccording to Ross, Total Product Management is integration of all functions

and processes within the organization in order to achieve continuous improvement ofand processes within the organization in order to achieve continuous improvement of

quality of product, or in other words, maintaining quality at every stage (procurement,quality of product, or in other words, maintaining quality at every stage (procurement,

processing, storage, logistics & retailing.)processing, storage, logistics & retailing.)

TPM at Hindustan Coca-Cola Beverages Ltd., JaipurTPM at Hindustan Coca-Cola Beverages Ltd., Jaipur

Product PortfolioProduct Portfolio

47

CLASSIFICATION OF GOODS

PERISHIABLE GOODSDURABLE GOODS NON-DURABLE GOODS

FOOD PRODUCTS & BEVERAGES

RGB (Reusable glass bottles)RGB (Reusable glass bottles)

Coca-Cola, Fanta, Sprite, Limca, Thums-up, Kinley soda, Maaza, Sport Cola,Coca-Cola, Fanta, Sprite, Limca, Thums-up, Kinley soda, Maaza, Sport Cola,

Canada DryCanada Dry

PET (0.5 lit, 1.5 lit, 2 lit)PET (0.5 lit, 1.5 lit, 2 lit)

Coca-Cola, Fanta, Sprite, Limca, Thums-Up Coca-Cola, Fanta, Sprite, Limca, Thums-Up

Can (330 ml)Can (330 ml)

Coca-Cola, Fanta, Sprite, Thums-UpCoca-Cola, Fanta, Sprite, Thums-Up

Tetra Pack (200 ml)Tetra Pack (200 ml)

MaazaMaaza

Parameters of TPMParameters of TPM

BBD (Best Before Date) – It is the date whichBBD (Best Before Date) – It is the date which

assures consumer that product is fit forassures consumer that product is fit for

consumption.consumption.

PACKAGING MATERIAL PACKAGING MATERIAL BEST BEFORE DATE (BBD) BEST BEFORE DATE (BBD)

RGBRGB 180 DAYS180 DAYS

PET (2 Lit, 1.5 Lit)PET (2 Lit, 1.5 Lit) 90 DAYS90 DAYS

PET (0.5 Lit)PET (0.5 Lit) 60 DAYS60 DAYS

CAN (except diet coke)CAN (except diet coke) 60 DAYS60 DAYS

TETRA PACKTETRA PACK 180 DAYS180 DAYS

TPM at Processing LevelTPM at Processing Level

48

Testing product for Testing product for

Gas volumeGas volume

AppearanceAppearance

pHpH

Packaging materialPackaging material

TPM at Warehouse LevelTPM at Warehouse Level

Following FIFO systemFollowing FIFO system

Keeping an eye on focus, clearance & dispose stockKeeping an eye on focus, clearance & dispose stock

Monitoring for BBD & DODMonitoring for BBD & DOD

TPM at Distributor & Retailer LevelTPM at Distributor & Retailer Level

Continuous monitoring for BBD & DODContinuous monitoring for BBD & DOD

Maintaining FIFO systemMaintaining FIFO system

Avoiding sunlight exposureAvoiding sunlight exposure

Technological advancement and globalization resulted entire world as globalTechnological advancement and globalization resulted entire world as global

village . The only way to survive in global market is to offer best quality of productvillage . The only way to survive in global market is to offer best quality of product

and services . Total quality management , just in time , economic order quantity ,and services . Total quality management , just in time , economic order quantity ,

E.R.P, M.R.P And Total product management are important tool which can ensureE.R.P, M.R.P And Total product management are important tool which can ensure

best quality product best quality product

Aggressive marketing strategies and heavy advertising can sale product once Aggressive marketing strategies and heavy advertising can sale product once

but its quality which is responsible for frequent purchase but its quality which is responsible for frequent purchase

Total product Management is need of hour and each company has to ensure qualityTotal product Management is need of hour and each company has to ensure quality

wise its product are bestwise its product are best

TERRITORY DIVISION OF THE PROJECT

49

1. JAIPUR

2. UDAIPUR

3. JODHPUR

4. AJMER

The project was divided into four categories namely Jaipur, Jodhpur, Udaipur and

Ajmer. I was assigned the Udaipur division, which included the areas of Udaipur,

Chittorgarh, Mt. Abu, Alwar, Bhilwara, Dholpur and other parts of eastern and north

eastern Rajasthan.

50

FINDING

With the help of questionnaires we found out the average age of PET and RGB at the

distributors and retailers warehouse at the places we toured. The findings of the

various distributors and retailers have been complied in the charts below

AVERAGE AGE OF COCA-COLA PRODUCTS AT THE

DISTRIBUTOR LEVEL

51

52

AVERAGE AGE OF COCA-COLA PRODUCTS AT THE RETAILER LEVEL

53

54

Competetive analysis of RGB

29

16

97

54

0

20

40

60

80

100

120

2003 2004 Quarter'03 Quarter'04

Days

55

56

Competitive analysis of PET

3027

8285

0

10

20

30

40

50

60

70

80

90

2003 2004 Quarter'03 Quarter'04

Day

s

Competetive analysis of Kinley water

45

112107

104

0

20

40

60

80

100

120

2003 2004 Quarter'03 Quarter'04

Day

s

57

Competetive analysis of CAN

79

70

75 75

64

66

68

70

72

74

76

78

80

2003 2004 Quarter'03 Quarter'04

Day

s

58

59

Sale per day in May'2010 in different Areas

0

100

200

300

400

500

600

Tonk Road Raja Park Malviya Nagar Station Road Sodala C-scheme

AREAS

Thumsup Coca-cola Limca Sprite Maaza

PR

OD

UC

TS

60

TOTAL PRODUCT MANAGEMENT AT DIFFERENT LEVEL

Production:-

Management should be efficient enough in order to minimize the wastage and

to increase and optimize the productivity.

Proper training should be given to the worker.

Proper material holding from the raw material to the finished goods.

Production is done in such a way that the product is made should have proper

label, date of manufacturing and it should be hygiene and the packaging

should be proper.

Warehouse:-

In warehouse the goods are kept properly. It should be kept clean in shade not

in open and direct sunlight should not fall on stock specially on Limca and Fanta

because it change the colour and taste. Proper board should be made for every lot of

stock.

The board contain the following:-

1) Lot number

2) Date of manufacturing

3) Date of Dispatch (DOD)

4) Best before date (BBD)

5) Quantity of goods

Distribution:-

Note arrival time of truck and departure time from plant

61

Check conformity of brand/pack against indent

Note date code & segregate date wise and tag

Select cool – ventilated area of low temperature

Move older lot for first out dispatch

Improve storage condition – godown/layout

Check stock against target& trend

Decide order – dispatch schedule by brand/pack

Ensure fifo practice by agent

Create awarness of TPM specifically PET- maaza- sprite

Rationalise route and brand time table (small vehicle)

Do not kill or over order stocks

Personality supervise date code – check – all products

BBD lapse is a direct revenue hit

Report high risk stock – take suitable action

Demonstrate – educate – enforce FIFO at pos along with the daily route

activity

Be polite but firm about agent’s and retailer’s negligence . Don’t let

replacement be taken for granted

ROLL OUT PLAN

Make deadlines

Dispatch schedule of distributors – firm numbers

Direct route sale plan

Calculate stock level against plan

Work reorder plan for brand pack or action of cxcess stock well in advance

62

FOR EXAMPLE:-

BOARD FOR RGB MONTH MARCH ‘05

PATICULERS THUMPS UP COCA-COLA LIMCA SPRITE FANTA

LOT NO. 1ST 1ST 3RD 1ST 4TH 2ND

DATE OF MFG. 02/03/09 04/03/09 03/03/09 02/03/09 04/03/09

DATE OF DISPATCH 02/06/09 04/06/09 03/06/09 02/06/09 04/06/09

BEST BEFORE DATE 02/09/09 04/09/09 03/09/09 02/09/09 04/09/09

QUANTITY OF

GOODS

500 250 150 120 80

FIFO method should be follow while placing the stock so it is easy for shipping

department at the time of dispatch, so the old stock is not remain in warehouse and

become BBD stock. FIFO method is strictly followed in shipping department. The

stock is reach to the distributor point with in dispatch out date (DOD) is half of best

before date (BBD). DOD is very important. It is the maximum time allowed for

reaching the goods from production to distributor.

Proper receiving of goods from company and maintain the record of each stock.

The following steps is maintained:-

1) Record for stock received.

2) Stock is placed in such a way that FIFO method is follow.

3) Ageing analysis board should be maintained regularly.

4) Proper ventilation and lighting should be there.

5) Place should be free from insects and pests.

6) Dry and proper temperature should be maintained.

7) Proper management of product delivery to retailer.

We do the retailer’s survey in which we see the manufacturing date of each brand

present at retailer’s shop. From this we conclude that this product is BBD or not,

if it is BBD then, it means that the sale of this flavor is not very good and this

flavor is not liked by the consumer. If the product is fresh not BBD then the sale

63

of product is good because in this business the flavor is most important element.

In this survey we inform the distributor to replace the BBD product. This process

helps management to decide which flavor is more popular & which is less

popular.

We also conclude that Thumsup and Limca (RGB) flavor are more wanted or sale

at juice center. 2L PET is more at provision store and department store. In rural

area RGB’s Selling is more because it cost Rs. 35 and give 2L in comparision to

300 ml and 500 ml and the quantity is also sufficient for family members. In this

summer sale of 2L PET of Thumsup and Limca is more because in comparison of

300 ml and 500 ml, 2L cost less.

64

SWOT ANALYSIS

65

SWOT Analysis

Strength Stronger brands in Cold drinks

Defining taste

Dominant market shares

First mover advantage

Established distribution network.

Aggressive market development

Weaknesses

Bakeries and hotels do not appreciate the policy of price difference

between wholesalers and distributors.

It doesn’t have tie ups with big hotel chains { like Oberoi and Taj }

The company does not distribute samples to potential users.

Service provided by the distributor is not up to the mark.

Visi coolers provided by the company are not adequate in number.

Opportunities

66

Impulse snacking is an Indian habit.

Attitude and disposable income changes are favourable to impulse

drink.

Large youth population, 47% of urban India is growing dominant

cold drink consuming segment.

Child and gifting segments expected to grow at faster rate.

Great opportunity lies in the untapped new channels (school, colleges ,

clubs, hotels etc.)

Threats

Aggressive marketing by competitors in hotels.

Foreign drinks have entered the market, and are eating up the

market share of coca cola.

67

CONCLUSION

CONCLUSION

68

In the last few pages, one could clearly see how satisfied employees are with the implementation of the new safely management system and would like to have more such System implemented. A total culture of safety in the organization and even in their personal lives has been developed in the organization and each and everyone is happy to follow it.

How does an organization achieve all this?

An implementation of any new system is not welcomed enthusiastically because every human being by nature, fear change and resistance to change ought to be there. knowing this fact ,anyone of us can appreciate that skill if something was implemented so smoothly and perfectly, we can conclude that a lot of effort has been made for its success. there are two points that explain from here;-

All the safety rules and norms were being followed at the entire complex prior to adopt this initiative.

The second point is that whatever little adjustment had to be made they couldn’t be made without the entire organization’s co-operation. A good amount of seriousness had been displayed by one and all, each and everyone had put in his\her best to practice safety and achieve the stokes whole heatedly.

69

RECOMMENDATIONS

70

RECOMMENDATIONS

After the completion of two months on the project the above findings were presented

to the officials of Coca-Cola along with various recommendations based on the

findings of the project. The recommendations were based on a case to case basis of

various distributors and retailers and follow up action was also taken on various

occasions.

As it has been depicted in the graph above the average age of the products had

declined in an average in 2003 as compared to 2002 which is necessary for the TQM

Phase III Certification for which the Kaladera plant was striving.

The above report generated by us was presented to the higher authorities of coke to

lay claims for the certification, the decision on which was pending while we finished

the project.

71

APPENDIX

72

APPENDIX

1. Name:_____________________________________________

2. ContactNo:_________________________________________

3. Occupation:_______________________________________

Tick as applicable:

Q.4 WHAT IS THE AVERAGE AGE OF COCA-COLA

PRODUCT OF PET 500ML AT DISTRIBUTOR LEVEL?

44%

57%

69%

53%

Q.5 WHAT IS THE AVERAGE AGE OF COCA-COLA

PRODUCT OF PET 1.5L&2L AT DISTRIBUTOR LEVEL?

45%

57%

60%

80%

73

Q.6 WHAT ARE THE AGE OF COCA-COLA

PRODUCT OF 500ML AT RETAILERS LEVEL?

48%

52%

43%

38%

Q.7 OVERALL, HOW SATISFIED ARE YOU WITH COCA-COLA PRODUCTS AS A COMPANY?

Highly satisfied

Satisfied

Not Satisfied

Q.8 IN WHICH AREA COCA-COLA PRODUCTS REQUIRED MOST?

Hotels

Cinema Halls

Bakeries

All of the above

74

Q.9 WHICH COCA-COLA PRODUCT SATISFIES YOU THE MOST?

Coca Cola

Thumsup

Mrinda

Pepsi

FANTA

Q.10 ARE YOU DRINK :

PEPSI

COCACOLA

FANTA

THUMS UP

-YOUR VALUABLE SUGGESTIONS: -

1. __________________________________________

2. __________________________________________

3. __________________________________________

75

BIBLIOGRAPHY

76

BIBLIOGRAPHY

BOOKS: -

Organizational behavior :- L. M. Prasad

Human Resource Management:- C. B. Gupta

Personal Management:- C. B. Mamoria

Personal Management:-S. V. Gankal

World Wide Web:-

W.W.W. Google.Com

W.W.W.cocacola.Com

77