A Summer Internship Report On

PEPSI CO INDIA HOLDINGS PVT LTD MADURAI

A summer internship report submitted to Madurai Kamaraj University

in partial Fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

R.MOHAN(Roll No: 2009-21)

REGISTER NO: A9410371

MASTER OF BUSINESS ADMINISTRATION

INSTITUTE OF CO-OPERATIVE MANAGEMENT(AN INSTITUTION OF NATIONAL COUNCIL FOR COOPERATIVE TRAINING, NEWDELHI)

CHINNA UDAIPPU, PTC POST, MADURAI

MASTER OF BUSINESS ADMINISTRATION

INSTITUTE OF CO-OPERATIVE MANAGEMENT(AN INSTITUTION OF NATIONAL COUNCIL FOR COOPERATIVE TRAINING, NEWDELHI)

CHINNA UDAIPPU, PTC POST, MADURAI

CERTIFICATE

This is to certify that this work entitled “A summer internship in

PEPSI CO INDIA HOLDINGS PVT LTD, NH-7, DINDIGUL MAIN

ROAD, PARAVAI, MADURAI – 625402 done by R.MOHAN

REG NO: A9410371 in partial fulfillment of the requirement for the

award of the degree of master of business administration of Madurai

Kamaraj University is a bonafide work done under my guidance .To the

best of my knowledge this is his original effort.

Dr. R.GOPALSAMY Shri. G.SURESH

Program director Principal

DECLARATION

R. MOHAN

Reg. No- A9410371

Master of Business Administration

Institute of Co-operative Management(AN INSTITUTION OF NATIONAL COUNCIL FOR COOPERATIVE TRAINING, NEW DELHI)

CHINNA UDAIPPU, PTC POST, MADURAI

I hereby declare that this Institutional Training has been

carried out in PEPSI CO INDIA HOLDINGS PVT LTD,

Dindigul main road, Paravai, Madurai is submitted for the partial

fulfillment of requirement of degree of Master of Business

Administration Institute of Co- operative Management, affiliated to

Madurai Kamaraj University, Madurai. I also declare that this report

or any other part. Therefore has not been submitted elsewhere for

other degree or diploma.

DATE :

PLACE : MADURAI (R.MOHAN)

ACKNOWLEDGEMENT

First of all we praise and thank god for showering his

blessing and strengthening us in completing this summer

internship successfully .we express our sincere gratitude to

our Principal Dr P. JEGANATHAN for allowing us

carrying out this summer internship in a successful manner.

My hearty thanks to Dr. C.PITCHAI Program

Director Master of Business Administration, for his

valuable guidance in making this summer internship

successful.

My hearty thanks for all other institute staffs. Constant

valuable discussion encouragement and throughout my

summer internship.

My hearty thanks to PEPSICO INDIA HOLDINGS

PVT LTD, PARAVAI, MADURAI for gave this golden

opportunity to do this summer internship in his concern.

My hearty thanks to ALL FRIENDS, MY PARENTS

AND RELATIONS.

CONTENTS

1. INTRODUCTION

a) INDUSTRY PROFILE

b) COMPANY PROFILE

c) PRODUCT PROFILE

2. OBJECTIVES

3. ORGANISATION STRUCTURE

4. DEPARTMENTS

a) PURCHASE DEPARTMENT

b) STORE DEPARTMENT

c) PRODUCTION DEPARTMENT

d) MAINTANANCE DEPARTMENT

e) QUALITY CONTROL DEPARTMENT

f) SHIPPING DEPARTMENT

g) FINANCE DEPARTMENT

h) HUMAN RESOURCES DEPARTMENT

i) MARKETING DEPARTMENT

5. ACHIEVEMENTS & AWARDS

6. CONCLUSION

INDUSTRY PROFILEOne of the dynamic industries in our country is the soft drink

industry. Soft drinks are a non-alcoholic beverage made with carbonated

water. Such drinks are called soft to distinguish them from Alcoholic or

hard drinks. Soft drinks are also called pop because the type of bottle

caps used before 1890’s made a popping noise when removed. People in

various areas call soft drinks as soda. Most soft drinks are sweetened and

flavored with specially prepared syrup, the flavoring are usually made

from various plant part such as root, bark and seeds of cola tree. Most

brands of soft drinks were manufactured through franchised bottle with a

security formulated beverage syrup or flavor base.

Mr. Joseph Priestly, an English Chemist, produced the first

artificially carbonated water in the year 1772. At that time mineral water

was a popular remedy for certain diseases. Previously artificial mineral

water was also called as soda water. In 1806 bottled soft water was

produced and sold by Mr. Benjamin Sill man, a Chemistry Professor

at Yale College. The number of soft drink bottling company in the

United States increased approximately from 65 to 2000, between 1980-

2000 during 1970’s increased in the price of soft drinks. Many people

switched to less expensive non-carbonated soft drinks, produced using

powdered mixes which became an important part of an industry.

In 1903, Pepsi-cola trademark was registered. In the real of non

alcoholic drinks consumers spent more money on carbonated soft drinks

than anything else. The sector is dominated by three major players which

together control nearly 80% of the global market. Coca-Cola is king of

the soft drink empire and boasts a global market share of around 50%

followed by Pepsi co at about 21% and Cadbury Schweppes 1dr pepper

and save up at 70%.

The company consists of Frito-Lay North America, PepsiCo

Beverages North America, PepsiCo International and Quaker Foods

North America. PepsiCo brands are available in nearly 200 countries and

territories and generate sales at the retail level of about $92 billion.

Some of PepsiCo's brand names are more than 100-years-old, but

the corporation is relatively young. PepsiCo was founded in 1965 through

the merger of Pepsi-Cola and Frito-Lay. Tropicana was acquired in 1998

and PepsiCo merged with The Quaker Oats Company, including

Gatorade, in 2001.

PepsiCo offers product choices to meet a broad variety of needs

and preference -- from fun-for-you items to product choices that

contribute to healthier life style.

To be the world's premier consumer Products Company check on

convenient foods and beverages.  We seek to produce healthy financial

rewards to investors as we provide opportunities for growth and

enrichment to our employees, our business partners and the communities

in which we operate.  And in everything we do, we strive for honesty,

fairness and integrity.

Shareholders

PepsiCo (symbol: PEP) shares are traded principally on the New

York Stock Exchange in the United States. The company is also listed on

the Amsterdam, Chicago and Swiss stock exchanges. PepsiCo has

consistently paid cash dividends since the corporation was founded.

Corporate Citizenship

At PepsiCo, we believe that as a corporate citizen, we have a

responsibility to contribute to the quality of life in our communities. This

philosophy is expressed in our sustainability vision which states: PepsiCo

responsibility is to continually improve all aspects of the world in which

we operate environment, social, economic -- creating a better tomorrow

than today.

Our vision is put into action through programs and a focus on

environmental stewardship, activities to benefit society, and a

commitment to build shareholder value by making PepsiCo a truly

sustainable company.

PepsiCo Headquarters

Pepsi headquarters was recently changed in new york to dubai.

COMPANY PROFILE

CORPORATE OVERVIEW

Pepsi co was incorporated in the year 1919 and was re-

incorporated in North Carolina in 1986. Pepsi is engaged in beverage and

snack food business.

PepsiCo is a multinational company and it is most successful

consumer product company in the world with annual revenue of $ 20

billion and about 1, 43,000 employees.

Some of PepsiCo’s brand names are nearly 100 years old. PepsiCo

has achieved a leadership position in each of the two major packaged

good business i.e. beverage and snack chips. PepsiCo the conglomerate

king of soft drink has its wide range of soft drinks products available in

every book & corner of the world.

THE INDIAN STORY

Pepsi & Co came to India as food processing unit, Punjab during

the year 1986-87 head office Pepsi food unit situated in Delhi, employees

are more than 2500 people. Pepsi co today is the leader in the cola and

orange segments of beverages in India and enjoys leadership in soft

drinks in many parts of the country.

It focuses on execution excellence, strengthen, bottle network,

reach and penetration in rural and semi-urban areas and customer focused

marketing areas.

PEPSI INDIA

FOODS BEVERAGES

EMU WOMU NOMU SOMU

1. PEPSI FOODS

Pepsi manufacture the food product like LAYS, KURE KURE etc.

2. PEPSI BEVERAGES

Pepsi beverages manufacturing the soft drinks with concentrates

flavor.

PEPSI INDIA MARKETING:

Distribute soft drink all over the India

1. East operating marketing unit(EMU)

2. West operating marketing unit(WOMU)

3. North operating marketing unit(NOMU)

PEPSI PROFILE IN MADURAI

The present plant located at Paravai, Madurai was commissioned in

December 1987 to manufacture double cola a regional product. The plant

was taken over by Mr. Adaikalaraj a congress M.P. Then for selling

PepsiCo product a franchise. The plant was acquired by PepsiCo on 2nd

May 1994; it is located 8km from the city of Madurai and service the

entire south TamilNadu and parts of Kerala.

This plant at presently has been installed capacity of 435 BPM and

65 employees. This plant has been identified as a center of excellence

among the Pepsi cola international plant and has been a consistent

performance in areas of product quality and plant key performance

indicators.

In Madurai plant under the SOMU (South Operating Marketing

Unit)

Madurai plant is single line plant.in this plant produce only bottle

items only.

PRODUCT PROFILE

Soft drinks are a non-alcoholic beverage made on carbonated

water. Such drinks are called soft to distinguish then from alcoholic or

hard drinks. Pepsi co today is the leader in the cola and orange segments

of beverages in India and Enjoys leadership in soft drinks in many par of

the country.

It has the following major brands;

1. Pepsi

2. Mirinda Orange

3. Mirinda lemon

4. 7up

5. Slice

6. Evervess soda

7. Aquafina-mineral water

8. Mountain dew

9. Nimbooz

These are the products are produce in India.

OBJECTIVES

1. To gain a practical knowledge of the various departments in an

organization.

2. To obtain the practical knowledge of what is happening in the

particular organization.

3. To study the production process of the concern.

4. To understand the Management skills and efficiency of the

management personnel in the particular organization.

ORGANISATION STRUCTURE

ORGANISATION STRUCTURE IN

MADURAIPLANT MANAGER

MANUFACTURING HR FINANCE QC SALES

MANAGER MANAGER MANAGER MANAGER MANAGER

PRODUCTION HR QC

EXECUTIVES EXECUTIVE EXECUTIVE

OPERATORS HR

ASSISTANT SALES SHIPPING

EXECUTIVE EXECUTIVE

ACCOUNTS PURCHASE STORES IT

EXECUTIVE EXECUTIVE EXECUTIVE EXECUTIVE

Finance Department

The finance department has to make payment whenever it is

needed. The purchase department purchase materials in consultation.

The PepsiCo Company is automated and follows the procedure in

SAP (System Applications Protect).

Functions of finance department are

Purchase Accounting

Material issue

Distribution and Selling

Branch Accounting

Auditing

Sales Tax

Purchase Accounting

Quotations are invited for the purchase of raw materials,

engineering spares, utilities needed for manufacturing process in day –

today operations the various vendors quotations are evaluated compared

and then the orders are placed the quality control executive will inspect

the material of the sample, After the quality is conformed and signed the

material goes to stores the stores department raises the MRN ( Material

Receipt Note) this passes through quality checks bills or invoice copies

purchase order and MRN are given to finance department.

Material Issued

The Finance Department makes a statement about consumption of

each raw material the yields is calculated by comparing the raw materials

and finished product.

Distribution and Selling

Each distributor is given code number and records are maintained

separately for each distributor the distributors are given a credit limit the

distributor credit limits is Rs.5 lakhs. The distributor can order goods

within the credit limit if the credit limits exceeds the company will supply

products only when the distributors pay for the orders. Deposit is

collected from new purchasers for the crate and empty bottles.

Branch Accounting

Slice soft drink is produced at Palgut Branch. It is transferred to

Madurai Plant; Madurai Plant prepares a branch accounting statement.

Auditing

They conduct audit namely internal the internal audit is carried on

among the departments thrice in a year the external audit is done on 31 st

March.

Sales Tax

The tax is paid according to the value of sales and profit since the

slice soft drink is produced at Palgut Branch. The excise duty and sales

tax are paid them separately local tax alone is paid by Pepsi co, Madurai.

PURCHASE DEPARTMENTPurchase Department

The purchase department is very important to carry on production

the purchase executive is responsible for the purchase department

especially on the engineering spare parts and chemicals. Purchase

department is a profit center of company.

Function of Purchase Department

The purchase executive consults financial department

executives

To maintain the daily report system

To inspect the quality of materials

Quotations are invited from various vendors.

The requirements of various departments are identified

through the requisition slip and approval from the

departmental needs. Quotations are invited from various

vendors the quality control executive will check the quality

of sample from the product. The samples are approved by

the Quality Control Executive and Plant Manager.

Vendor Registration

If the goods are received in any damaged condition. The

goods are returned back to the vendors. Mostly the purchase is made on

cash basis the main objective of purchase department is to minimize the

cost.

Negotiation

Negotiate with vendors for the purpose of reduce the purchase

cost

Vendor evaluation

vendor evaluation is conducted by purchase department at

once in a year. For the purpose of find the vendors characters

Types of material purchasing

1. RMPM(Raw Material And Packing Material)

2. CAPEX(Capital Expenditure)

3. R&M(Repairs And Maintenance)

4. Chemicals And Consumables

5. G&M(General And Administration)

Vendor details

Flavour -- Flavour are bought from Punjab

New bottles -- Calcutta, Pondicherry, Bombay.

Crowns -- Crowns are bought from Rajasthan

Sugar -- Sakthi Sugar - Madurai.

STORES DEPARTMENTFUNCTIONS OF STORES

• Get the purchase order copy from purchase department

• Receive the materials from vendors

• To check the gate entry of material, billing address, actual

received material and invoice

• To check the quality and quantity of material

• Use some codes for identification and classification of material

Classification of stores management

1. Material management

2. Inventory management

Material management

Bin system

• Opening stock

• Receipts

• Issues

• Closing stock

They are using

• FIFO(to avoid the expiry of materials)

• HIFO(reduce the capital investment of material)

GRBN(goods received back note)

INVENTORY MANAGEMENT

ABC analysis

1. Always (maximum 75% of material using for production)

2. Better (22% of material requirement for production)

3. Control (the material using less than 10% of production )

Ved analysis

1. Vital(very important material for production )

2. Essential(essential for production but not required

immediately)

3. Desirable (required but not affect the production)

INFORMATION TECHNOLOGY DEPARTMENT

all the departments are using computer. All the computers

are connected by network communication.

Functions of IT

• Create user id for all executives and computers users

• Data security

• Check communication

• Problem solving

Software using

• SAP(system application products)

• Use excel for all department

• ASDOS (alternative sales and distributing operating system)

using only sale department only in pepsi co

Particulars of ASDOS

1. Customer detail

2. Brand detail

3. Route detail

4. Route schedule

5. Load detail

PRODUCTION DEPARTMENT

A production department is producing the product in various

processes. The production team is deciding production plan. The

production team is responsible for planning the production &

maintaining the resource availability i.e. (Men & Material)

The various activities in production are planning, water

treatment syrup preparation bottle inspection, filling, crowning,

coding, filled bottle inspection and casings.

ORGANISATION CHART OF PRODUCTION DEPT

Production Manager

Executives

Operators

The operators may be Pepsi cola employees or casual labor.

The operators work in 3 shifts.

Production Team

The production team consists

1. Qualitative control Coordinator

2. Shipping Coordinator

3. Production Manager

PR ODUCTION PROCESS

Raw Material

Raw materials are converted into

1. Direct Raw materials

2. Indirect raw materials

1. Direct Raw materials

a. Water

b. Sugar

c. Flavor

d. CO2

a) Water

Water is purchased from outside sources, used in the beverages 90%.

The water is purified and then used for production.

b) Sugar

Sugar is used for preparation.

c) Flavors

Flavors in liquid are mixed to sugar & water.

d) CO2

CO2 is used as liquid gas, mixed with flavor.

2. Indirect Raw materials

a. Bottle

b. Crown

c. Case

a) Bottle

Bottle is used for packing beverages.

b) Crown

Crown is used for cover the bottle.

c) Case

Case is used for move the more number of bottles safely.

MANUFACTURING PROCESS

Planning

Water Treatment

Syrup preparation

Bottle Washing

Bottle inspection

Filling, Crowning, Coding

Filling, Bottle Inspection

Casing and Palletting

Planning

Shipping Manager Manufacturing Manager and Quality Control

Manager plans the production process. This plan is done for each day.

Water treatment

Water is purchased daily, water is treated for purification.

Purchased raw water is separated into

Treated water

Soft Water

WATER

Treated Water Soft Water

Treated Water Stage-1

Raw water is transferred into process of coagulation and sand

filtration.

Equipment used in the Treated Water:

Coagulation tank

Sand filter – 1

Lime dissolving tank

Fe SO4 dissolving tank

Chlorine dissolving tank

Some chemicals used for the purpose in treated water

Lime to reduce alcoholic

Fe SO4 (Ferrous sulphate)-to filter water

Salt – to purify water

Chlorine solution - to kill microns

Treated Water stage-2

1. Activated carbon filter (ACF)-to filter the carbon

2. Micron polisher

3. UV lamp (Ultra Violet) –to observe bacteria.

Treated water is used

For syrup preparation

For beverage

For carbonated beverage

For reducing the salt in water

PROCESS OF FLOW CHART IN TREATED WATER

PUMPWater

Coagulation Tank

LIMEADDED

Fe SO4 CO2

Soft water

Enter to Sand

Treated Water Sump

ACF (Activated Carbon Filter)

Micron Polisher

UV Lamp

Production Enter

The hard water is converted into soft water.

1. Sand filter – 2

2. Activated carbon filter 9ALF2)

3. Softener 1/11

Soft water is used

Equipment cleaning

Cooling tower and boils

Bottle washing

SYRUP PREPARATION

Required equipments

Pneumatic Conveyor

Raw syrup tank

Filter press

(Plate Heat Exchange)

o PHE1

o PHE2

Simple Syrup Prix

Finished Syrup tank

Sugar is used as a raw material in the syrup preparation. Sugar is

prepared from Sakthi Sugar. If the Color of the sugar is duly it is

purchased from other places. Treated water is converted into syrup by

adding sugar and concentrate.

1. PNEUMATIC CONVEYOR

The sugar is filtered by air compression (or) Pneumatic Conveyor.

2. RAW SYRUP TANK

Water is heated at 80 C temperature then carbon and hydro are

mixed with water.

o Carbon is used for removing the meioses (organic)

o Hydro is used for removing the thickness

3. FILTERING PROCESS

After 30 minutes it moves to filter press. The water is passed to

filter press is 22 and the size of paper is 62mm. Filter press is used for

removing the carbon powder.

4. PHE

Phenolphthalein is called as PHE – 1 & PHE – 2

PHE – 1

In this step, the water is coded and the temperature is

reduced at 40 C.

PHE – 2

The water is cooled temperature is reduced.

5. AGITATOR

The Agitator mixes the syrup with treated water. To check the

limitation of salt, flavor and syrup. The standard volume is 5700 liters.

Refrigeration plant operator supplies cooling tower water. The ratio is 1:

5.

The syrup and water diluted in the ratio of 1:5 and is prepared

under the supervision of quality control executives.

SYRUP MANUFACTURING PROCESS

BOTTLE SECTION

ConcentrateReceipt

Inspection

Act HyfloReceipt

Inspection &

SugarReceipts &

Storage

ActivatedCarbon

Hyflo Supered

Pre – CastingTank

SugarTreatment

Tank

Weighment

Dumping inTo pneumatic

Conveyor

FilterationThrough

Dise Filter

Pumping

FilterationThrough Filter

Process

PHE – 1 Output <40oC

PHE – 2 Output <20oC

Finished Syrup TankFinished Syrup MakingSalt & Flavor Addition

SaltDissolving

TankPump Strain

RecircubtionClarity

UNCASER

The uncase passes the bottle in the bottle washing section 8

belts are used in this machines. In this section work is done manually.

BOTTLE WASHING PROCESS:

A) PRE RINSE (OR) PREWASH:

3 jets are used for cleaning the bottle. In this process water

is used for cleaning.

B) FIRST SOAK

In this process 1.5 % to 2% of caustic soda is used at the

temperature of 40oC to 50oC.

C) MAIN SOAK

Here 2.5% to 3% of caustic soda is used at a temperature of

75oC to 80oC bottles are washed for 7 minutes.

D) Hydro wash

Soft water is used for cleaning the bottles. In this process

temperature is reduced to avoid t0he breakage of bottles. Impurities are

cleaned and caustic soda is removed and finally the bottle is rinsed to

clean completely.

BOTTLE INSPECTION

In this process the neck of the bottle is inspected to check the

damage. Damaged bottles are removed.

Fillings:

The production executive manager is responsible for filling. The

empty bottles are to fill the carbonated beverages.

CROWNER & CODER:

It is coded and sealed crown is fed into the crowner. Coding is

used for printing the data and time on every bottle that comes out of the

filler.

FILLED BOTTLE INSPECTION:

The inspection is done to check whether the beverage filled

in all the bottles are equal in all bottles.

CASING & PALLETTING

1. CRATE WASHING

Machines are used for cleaning the crates. The crate can

accommodate 24 bottles.

2. Case packer

The case packer machine fills 600 minutes in case. This machine

is operated manually or automatically. If any bottles fall in the machine,

the belt is used as a safety measures for this process. Production

executive and line captain is responsible for this process. Thee

production executive prepares daily production report. Case packer is

then moved to shipping department.

SOFT WATER

SUGAR SYRUP PRE-MIX FILLER CROWNER

EMPTYBOTTLE

INSPECTION

BOTTLEWASHER

UNCASER

CODER

FILLEDBOTTLED

INSPECTION

CRATE CASING

TREATEDWATER

WATER

QUALITY CONTROL DEPARTMENTThe quality assurance dept is in charge of various control activities

of four departments.

Water treatment plant

Syrup preparation room

Effluent treatment plant

Line operations

Water Treatment Plant

The purchased water is converted into treated water & soft water.

The Water is used for.

Syrup preparation

Beverage production

Sanitation

Syrup room

Testing of sugar clarity Micro tests – Bacteria Yeast and mold is

done here.

Line Operations (bottling hall)

Cleanliness of the bottle is checked first.

Filled bottled tests

Gas volume

E.g. Pepsi 3.6 g.v. 7up 3.7 g.v

Sugar Content

Acidity

Micro – bacterial yeast – mold

The quality control executive is responsible for this process.

MAINTENANCE DEPARTMENT

The Maintenance of various equipments is carried out according to

the previous maintenance records

1. Breakdown maintenance

2. Annual maintenance

Break down maintenance

If there is any breakdown in the machinery the user informs the

maintenance executive or production executive through a requisition

form, the maintenance executive is responsible to repair the machines

after the machinery is repaired the maintenance executive has to submit

the job requisition form.

The maintenance executive accomplishers all the pending job

requisition forms and review once in a month.

Annual Maintenance

Daily activities are recorded in the annual maintenance record if

there is requirement of materials the maintenance executive should make

the purchase requisition.

SHIPPING DEPARTMENT

The Shipping executive plays a vital role for the marketing of the

products.

Functions of shipping department

To receive order

To maintain the record of glass bottles

To appoint the fork lift operator

To maintain the stock status report

To prepare a production plan

Glass Cracking

The PepsiCo uses only glass bottles in Madurai plant to provide the

product on GRB basis (glass returnable bottle) some times the returnable

bottles may be cracked due to friction. The cracking of glass bottles is

very dangerous. The cracked bottles are not stored in the warehouse

department because it affects the other products.

The distributors will send the acknowledgement to the company

acknowledgement means the number of orders in the placement security

enters the orders and delivery process in the register

The details maintained by the security are:

Truck report

Name of the product

Number of cases to be delivered

The acknowledgement is used for the cross check in the order and

delivery process.

Stock verification and reporting

The shipping executive will check the date of manufacturing that is

mentioned in each bottle every day. If any chipped neck or breakage of

bottles is detected it is recorded in the breakage report.

The shipping executive verifies the full stock level record of full

and empty bottles reports are forwarded to the plant manager and quality

control manager.

The Transport Name in

Sithandh transport

KN careers

The Sales forecast is done by sales department and result is given

to shipping department. The shipping department places the order

accordingly to market demand and production. This department adopts

the FIFO method (First in First Out) of stock register.

The department maintains the following records

Glass cracking report

ISO document

M & W (Manufacturing & Warehouse)

Production Plan

Ware house Department

The product which are not produced in Madurai are ordered from

the other branches and are stored in the ware house ware house is the

second point sales and it’s not excisable.

Warehouse also taken care of marketing the advertising materials

equipments are also stored in the warehouse.

The fills are given out the distributors invoice is given by the

shipping department the security maintain the full in and full out

register.

Every day the daily transactions are reported to the account

department shipping department and to the plant manager. And it is

also reported to the territory development manager.

Cross check is done by the accounts department by comparing the

shipping invoice statement and store statement if any deviation the

reasons are found and necessary actions are taken.

Stores are details maintained in the warehouse are reconciliation

statement stock purchase cost in transport warehouse cost stock,

transfer in and out and sales.

Plan is made for the distribution by various forecasting methods

the actual distribution of the month is compared and the percentage of

the disterence is found. If he actual is lesser reasons are studied for

the decrease in sales and necessary actions are taken.

Distribution Privileges

The distribution play a vital role to sale the distributors are hence

given discounts according to the number of cases they purchase they

are also given many attractive schemes which encourages the

distributors to sell more.

Warehouse capacity

Warehouse capacity - 130000 cages

Quantity - 1 Case

200 M1 - 24 bottles

300 M1 - 24 bottles

500 M1 - 24 bottles

600 M1 - 24 bottles

1.5 Liter - 9 bottles

2 liter - 9 bottles

Records Maintained

Daily stock Register

Daily glass movement

Weekly stock register

Human Resources DepartmentHuman Resources department plays a role in maintaining the

industry and its people to stay in peace & unity. This dept. has to take up

the responsibility of keeping the W.R. in a warm comfort, for which they

have to look after all the work, is starting from industrial relation to house

keeping.

A Human Resources personal is a middle man who has to maintain

smooth relationship with all. For which the employees are treated

friendly and kept satisfied. By fulfilling the statutory requirement a good

relationship to maintained with the labor officer. By taking need and

feeling of employees to management. In time, it maintains a good

relationship with the management. Thus the area covered by the Human

Resources department is very essential & as to be handled with care since

it is a very sensitive area.

Total strength on Madurai Plant

• Plant Managers 1

• Managers 6

• Executives 23

• Associates 49

• Contract labor 450

Functions of Human Resource Department

In PepsiCo, Madurai there is no trade union.

Industrial Relations

Employee – Employee Relations

Training

Evaluate the people

Recruitment

Job evaluation

It plans the requirement of man power to complete a work.

It recruits, select & places the right person in a job

It makes the job analysis

It identifies the training needed & train employees

In administrates the wage & salary for the employees including

calculation for PF and ESI etc.

It maintains a smooth employee and industrial relations.

It organizes committee to offer special services like safety

committee, Canteen committee etc.

It provides the statutory & non statutory welfare facilities for

employees.

It also accesses the performance of the employee & ensures the

good working condition for the employees

Arranges for the family welfare program

Submit the statutory return to the government.

Deals with the problematic employees.

Maintenance all the employees files.

Employee’s multi-skill development.

Selection Process

The selection of the operators is done in Madurai and other

executions are selected in Chennai. The Sources are consultant

application blank and advertisements.

The steps involved in the selection process of the executive are

written test, interview, medical checkup, and according to the ability they

are specified with jobs. There is no caste division & no preference is

made according to it. Mostly women are not selected.

Performance Appraisal system

The performance appraisal is done by the immediate supervisors.

According to their skills, knowledge etc., they are given certain points

and are rated accordingly. Performance appraisal is normally done.

Reward system

Rewards are given to the workers

Who take less number of leaves

Who give good suggestion

Who perform well in their jobs

Wage and salary Administration

It is given on the monthly basis

It is credited on the employees bank a/c

PF and other allowances are given as per the statutory rules.

Timings of shifts

There are three shifts

First Shift 6.00 am to 2.00 pm

Second Shift2.00 pm to 10.00pm

Third Shift 10.00 pm to 6.00am

Office Timings

9.00 am to 5.00 pm

Bonus & Increment

Once in a year, the company provides increment to the workers in

the month of July. During Deepavali, the company provides bonus of

8.33 % to the workers.

Welfare Measures

Uniform

Uniforms are given to executives and operators every year. They

are following decentralized management system.

Heat net and ear plug:

Heat net & ear plug is provided to every operator. They should

wear before entering the production unit. This is done as a safety

measures.

Celebrations

PepsiCo have celebrated Pepsi day on Oct 6th where all the workers

get together the workers go for picnic once in a year. Independence Day

and Ayudha Pooja are celebrated in the company.

Computer education

Computer training is given to all the workers.

Rest Room

Pepsi provide a rest room for workers.

Canteen

Tea is only prepared in the canteen tea is given to all the staff

members during the shift timings which is free of cost.

Outdoor games

Every year sports activities like volley ball and badminton are

conducted to improve the sports talents of the workers.

Other Welfare measures

The company has provided excellent facilities like drinking water,

sanitary etc. The company also provides the provident fund, gratuity and

pension scheme for the workers. The company also provides ESI benefits

to their employees.

Welfare facilities

Canteen facility Tea, Coffee and Cool drinks are free to the

Employees. The Lunch Rs.16/- per head

First aid boxes are arranged in any working time to use the box

Rest room facility is available (ex. cot. Magazine. News Papers,

other)

Workers Participation in Management

Uniform are given to all employees

After each shift a vehicle is arranged to drop the employees in the

city.

Pepsi also helping the people living in the near by village to

providing them free Medical camp. They are supplied with free

note books to the employees children

To arrange the entertainment program (Cricket, cultural program

etc.)

To provide the drinking water facility to the employees

To arrange the committees for the employees (Safety committees

sports committee)

MARKETING DEPARTMNENT

Marketing is to sales a product among people. This includes

advertisement, attractive packaging, sales promotion activities etc.

PCIM (PEPSI CO INDIA MARKETING)

EMU WOMU NOMU SOMU

Chennai

Mamandoor Madurai Palakkad Hyderabad Bangalore

In pepsi co Madurai plant was covered by

Madurai

Trichy

Nellai

Virudhunagar

Kanyakumari

Ramanathapuram

Sivagangai

DISTRIBUTION CHANNEL

The Pepsi co in Madurai plant deals mainly with the distributor.

The distribution

Channel is

1. Godown supply

2. Distributer supply

Distributer supply

DISTRIBUTERS

The distributors enjoy many advantages. The distributor plays

vital role in selling the products. The company provides incentives to

distributors to increase the volume of sales and to continuer the growth of

sales in every season contest distributors are given discount of 4.5% to

5% according to the invoice value.

Each distributor is provided with mini cooler

RETAILERS

The retailers are also provided discounts during season for sales

promotion i.e. the scratch card is given to retailers for a pet bottle. The

card contains gifts to encourage them to increase the sales Number of

distribution in.

company

Distributer

Retailer or sub

distributer

Customer or consumer

Goodown supply

the company have their own goodown In

Trichy

Kovai

Nellai

In these areas the company store the goods then deliver the

distributer .

ACHIEVEMENTS AND AWARDSThe plant has operated without any loss to man hours caused by

accident for 2 million man hours and is approaching the 3 million mark.

The plant has received the ISO 2002 certification.

The plant has an effective effluent treatment plant for treating the

waste water.

YEAR AWARDS

company

godown

distributer

customer

retailer

1997 IQA bronze IQA gold

1998 IQA gold

1999 Best COBO plant in Pepsi Cola

International (PCI) world.

2000 ISO 9002, IQA gold, Accident free

year.

2000 Best COBO in PCI world highest

production in a month 465

Million Cases in May

HACCP – SQF 2000.

2001 Golden peacock national quality

award (GPNQA)

Two million LTA (lost time

accident)

Best COBO in PCA

Golden peacock environment

Management Award. IQA gold.

2002 GPNQA M & W Center of

excellence award

2003 GPEMA award Best plant in

Madurai.

2004 Best plant team in Madurai

Best manufacturing plant in

Madurai.

2005 pepsi co international silver level

2006 pepsico international gold level

2007 pepsico international silver level

2008 best quality team in south

operating market unit

Pepsico international silver level

2009 certificate of achievement matrix

score of +720

Aspirations:

To be a role model in terms of people and process

Lowest cost plant with best quality in the business unit

To be the best plant on quality among the COBO’S and

FOBO’S in the world.

To retain the best COBO plant status in the PCI world.

ConclusionI would like to conclude the report by thanking for the training

period analyzes the complete study to the Marketing branches in the

PEPSI Co India Holdings Private Limited.

As per the observation of the training the company has good

industrial relations among the employee and employer they are providing

good condition to the workers. PEPSICO is operating with aim to

achieve the fullest customer satisfaction

This training period is my wonderful Experience.