An Organisational Study: Industry Profile: Meaning of Organisation (About FMCG Sector)

AN ORGANISATIONAL STUDY
CHAPTER 1 INDUSTRY PROFILE: MEANING OF ORGANISATION (About FMCG sector) Fast Moving Consumer Goods (FMCG) FMCG are products that have a quick shelf turnover, at relatively low cost and do not require a lot of thought, time and financial investment to purchase. The margin of profit on every individual FMCG product is less. However the huge number of goods sold is what makes the difference. Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, and other non-durables such as glassware, bulbs, batteries, paper products and plastic goods, such as buckets. Fast Moving is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year. The category may include pharmaceuticals, consumer electronics and packaged food products and drinks, although these are often categorized separately. The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving Consumer Goods (FMCG).Three of the largest and best known examples of Fast Moving Consumer Goods companies are NESTL, UNILEVERAND PROCTER & GAMBLE. Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The FMCG sector represents consumer goods required for daily or frequent use. The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and toiletries), household care (fabric wash and household cleaners), branded and packaged food, beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products) and tobacco. The Indian FMCG sector is an important contributor to the countrys GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India. The industry also creates employment for 3 m people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to liberalization, urbanization, increase in the R V Institute of management Page 1
disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middleclass through product and packaging innovations. Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality, the sector meets the everyday needs of the masses. The lower-middle income group accounts for over 60% of the sectors sales. Rural markets account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been present in the country for many decades. But in the last ten years, many of the smaller rung Indian FMCG companies have gained in scale. As a result, the unorganized and regional players have witnessed erosion in marketshare. HISTORY OF FMCG COMPANIES IN INDIA: In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been adominant force in the FMCG sector well supported by relatively less competition and high entry barriers (import duty was high). These companies were, therefore, able to charge a premium for their products. In this context, the margins were also on the higher side. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market share. In the process, margins have been compromised, more so in the last six years (FMCG 6. sector witnessed decline in demand). ABOUT PACKAGED DRINKING WATER INDUSTRY :
India is the tenth largest bottled water consumer in the world. In 2002, the industry had an estimated turnover of Rs.10 billion (Rs.1, 000 crores). Today it is one of India's fastest growing industrial sectors. Between 1999 and 2004, the Indian bottled water market grew at a compound annual growth rate (CAGR) of 25 per cent - the highest in the world. R V Institute of management Page 2
With over a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local. Most of the small-scale producers sell non-branded products and serve small markets. In fact, making bottled water is today a cottage industry in the country. Leave alone the metros, where a bottled-water manufacturer can be found even in a one-room shop, in every medium and small city and even some prosperous rural areas there are bottled water manufacturers. Despite the large number of small producers, this industry is dominated by the big players. Bisleri has been the first to introduce mineral water to India. For over 30 years, Bisleri remains the pioneers in the bottled water industry with its ever-evolving innovations and product offerings. Parle was the first major Indian company to enter the bottled water market in the country when it introduced Bisleri in India 25 years ago. Parle Bisleri and later on Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries entered into the bottled water market in the country, The total annual bottled water consumption in India had tripled to 5 billion liters in 2004 from 1.5 billion liters in 1999. Global consumption of bottled water was nearing 300 billion liters in 2009.
INDIAN BOTTLED WATER MARKET SHOWING SUBSTANTIAL GROWTH : Drinking water is undoubtedly a good thing, far better than buying soft drinks or liquid candy, as nutritionists like to call it. The bottled water industry in India has shown strong growth over the last five years. Recent market figures suggest that the market grew from USD 189 million in 2003 to USD 599 million in 2008. This is tantamount to a growth rate of 216 percent. It has been estimated that over the next 5 years, the industry will grow twofold. The Indian market is one of the fastest growing markets across the world. One of the primary reasons stated for such high growth has been the rise in the level of disposable income among consumers. This coupled with poor water infrastructure has boosted the R V Institute of management Page 3
market. Players are trying to capitalize their position in the market via large scale investments. PepsiCo forwarded that they plan on investing USD 220 million in the Indian beverages industry The bottled water business in India is also growing fast, but the supplies are erratic and the quality of water delivered is unreliable too. No wonder consumer preference for bottled water has spurred a billion-dollar industry during the last decade. From less than 2 million cases in the early-90s, the current consumption of bottled water is well over 90 million cases in India and growing. With a little over 5 billion liters of bottled water being consumed in a year, the bottled water industry has been growing at a compound growth rate of anywhere between 25-40 percent. This is the highest amongst the world's leading bottled water consuming countries. Industry pundits believe that the boom time for the Indian bottled water industry is to continue -- more so because the economics are sound, the bottom line flat and the government uncaring about what happens to the nation's water resources. With the growing market size, one can imagine the employment opportunities being created with the surge in bottled water industry. Its just not manufacturing of bottled water any more. Professionals required in this industry are engineers with mechanical, electrical and chemical background. The rise of the Indian bottled water industry began with the economic liberalization process in 1991. The market was virtually stagnant until 1991, when the demand for bottled water was less than two million cases a year. However, since 1991-1992 it has not looked back, and the demand in 2004-05 was a staggering 82 million cases. (See Fig 1.1)
Fig 1.1
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Growth Rate of Packaged Water Bottle Organized packaged water industry provides unique employment opportunities to the locals under following segments: Geological Engineers (Water Diviners): For setting up a bottled water plant, the most essential element is raw water. The geological engineers services are required to find out the underground source of water. Mechanical/Electrical Engineers: Bottled water industry demands mechanical & electrical engineers to run most sophisticated bottle blowing machines, bottle filling machines and other utilities like compressors, chillers, generators Candidates with the knowledge of blow molding & other allied plastic processing fields too are in great demand Chemical Engineers: In bottled water industry, water processing forms the main operation. Hence, one needs to employ chemical engineers, who are well versed with the different types of water treatments. New technologies like reverse osmosis, UV treatment & ozonation, calls for specialized knowledge in processing
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Microbiologists: There are 6 to 7 bacteriological tests to be conducted on each batch of the bottled water. These tests play a very important role and should be conducted by a microbiologist, who has experience in microbiological technique. Chemist: Bottled water undergoes around 50 to 52 tests, before it is released to the consumers. Out of this nearly half of the tests, needs to be conducted in-house. For this, industry needs graduates and post-graduates from analytical chemistry faculty. The candidates with the knowledge of handling sophisticated equipments like spectrophotometer are in great demand. COMPETITORS : Top multinational players such as Coca-Cola and PepsiCo have been trying for the past decade to capture the Indian bottled water market. Today they have captured a significant portion of it. However, Parle Bisleri continues to hold 40 per cent of the market share. Kinley and Aquafina are fast catching up, with Kinley holding 20-25 per cent of the market and Aquafina approximately 10 per cent. The rest, including the smaller players, have 2025 per cent of market share. The western region accounts for 40 per cent of the market and the eastern region just 10. However, the bottling plants are concentrated in the southern region - of the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu. This is a major problem because southern India, especially Tamil Nadu, is water starved.
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INDUSTRY VOLUME Particulars Cap cost Bottle cost Particulars Treatment cost Label cost Carbon cost Transportation cost Others(case) Total cost Selling cost Amt(Rs) 0.25 2.50 - 3.50 0.10 - 0.25 0.15 - 0.25 0.50 0.10 - 0.25 0.25 3.85 - 5.25 12.0 - 14.0
Note: The cost are indicative and even over estimated in some heads and not absolute. This will vary from place to place and with size of the manufacturer. It was compiled during 2000-2009 Source: compiled from number of sources by centre for science and environment. VARIETY BOTTLED WATER :
OF
Bottled water is sold in a variety of packages: pouches and glasses, 330 ml bottles, 500 ml bottles, one- liter bottles and even 20- to 50-litre bulk water packs. The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water. Premium natural mineral water includes brands such as Evian, San Pellegrino and Perrier, which are imported and priced between Rs.80 and Rs.110 a liter. Natural mineral water, with brands such as Himalayan and Catch, is priced around Rs.20 a liter. Packaged drinking water, which is nothing but treated water, is the biggest segment and includes brands such as Parle Bisleri, Coca-Cola's Kinley and PepsiCo's Aquafina. They are priced in the range of Rs.12-14 a liter.
PRODUCT CHARECTERISTICS : R V Institute of management Page 7
Packaged water bottle with added minerals has a TDS count (total dissolved solids count) of approximately 100. It contains minerals such as magnesium, sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times. Calcium is essential for the forming of bones and teeth and proper Magnesium is essential for proper functioning of kidneys, curbing fatigue Sulphate act as cleaning agents. functioning of muscles. and neuromuscular balance.
Chloride is known to be essential for glands, prevent skin disorder and inflammation. Potassium is essential for overall mental health and the level of sodium in the body. MINERAL TASTE OF WATER
EFFECT
OF
ON THE
When mineral combine together in water they add different taste to the Magnesium and Sulphate together impart a sweetish taste to water. Sodium When calcium and magnesium combines with bicarbonates it adds hardness
water. This is because each mineral has it own taste. and chloride combine to give a salty taste. to water. Excess of carbon imparts a metallic or astringent to water. BUYERS PACKAGED WATER BOTTLE
OF
Millions of people, both in rural and urban India, suffer from inadequate or no tap water supply, so bottled water is much in demand. Corporate Offices, Industries, Schools and government organizations are also the buyer of packaged water bottle. SUBSTITUTES AVAILABLE PACKAGED WATER BOTTLE
FOR
In developed countries, municipal water is generally of high quality, and provides a far cheaper alternative to pure or bottled water. In municipalities where the water is of a R V Institute of management Page 8
somewhat lower quality, the use of home filtration systems such as Brita, Culligan, Kinetico or PUR filters provides potable water at considerably lower cost than pure or bottled water. In many areas of the world, good municipal water is unavailable. The United Nations estimates that in 2005, 1.1 billion people lacked access to safe, affordable, drinking water, and two to five million people die every year from preventable water-related diseases. In areas without a consistent supply of safe, potable water, alternatives to bottled water include boiling, filtering, or otherwise processing contaminated water to remove harmful pathogens or chemicals Even where advanced water filters are not available, and fuel for boiling is scarce, effective water filters can be made in a few hours from clay by hand without advanced technology or skills. In some areas, water may be obtained from and in the form of Rain water, stored in a cistern or rainwater tank. In rural areas the rain is typically very pure and can be safely consumed without additional treatment or filtration Ground water obtained through pumps or wells should be monitored for quality to ensure no risk of contamination or build up. Many people in Bangladesh and West Bengal, India are drinking groundwater that has been discovered to be contaminated with arsenic after wells were drilled to protect the population from the contaminated surface water Many countries such as the United Kingdom have water that is adequate for drinking on tap, due to filters in the plumbing infrastructure. In these countries, it is sometimes seen as wasteful and pretentious to consume bottled water. KEY SUCCESS FACTORS PACKAGED WATER BOTTLE
OF
The key success factor of packaged water bottle is Government Failure to Address Basic Services. Millions of people, both in rural and urban India, suffer from inadequate or no tap water supply. Even some parts of Mumbai, the country's financial capital, get a mere two hours of daily water supply. The city's Virar suburb gets 45 minutes. Hence bottled water is much in demand by residents - even though the businesses profiting from the sales are thriving from access to public water sources.
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Bottled water fills a void created by government failure to address basic services, Peter Gleick of the Pacific Institute writes in its World Water report. "In many parts of the world, tap water is not available or safe to drink," writes. "In these regions, the failure of governments to provide basic water services has opened the door to private companies and vendors filling a critical need, albeit at a very high cost to consumers." The institute reasons that governments should tap into spending on commercial water by consumers to secure funds to provide safe water at fraction of the cost. US national director of the Think outside the Bottle campaign argues that demand for bottled water is due to industry creating "a market by casting doubt on the quality of tap water, when in fact bottled water is subject to far less scrutiny and often comes from same source". CURRENT
SCENARIO :
When Parle Exports took charge of the brand operation and the business took off in the market. With factories across India and a strong distribution network, Bisleri established itself as a force to reckon with in the domestic packaged drinking water market. Earlier the packaged drinking water market consisted of five star hotels, tourists and foreigners. As a marketing strategy, a conscious decision was taken by the company that only 40% of the sales should come from these outlets and 60% from general market i.e., pinwales, street ships, general stores and even non-tourists. This brought about a sea change in the perception in the consumers mind about consumption of Bisleri. Earlier, drinking bottled water was considered to be more of a status symbol. That thinking has slowly changed to the point where today, not drinking Bisleri is considered as being behind the times. Such has been the presence and penetration of the Bisleri brand in the bottled water segment. About two years ago, a strategy was adopted to concentrate aggressively on the home market. The habit of boiling water or using electronic gadgets was not adequate, since the source of water itself was unreliable. The bulk packages like the 2, 5 and 20 liter bottles were introduced to meet this market need. The price per liter went down as a result, making bottled water very economical for the consumer. R V Institute of management Page 10
Up to 40 percent of bottled water comes from the same source as tap water, but is sold back to consumer at hundreds of times the cost. The cost of a bottle, along with the cap and the carton, is the single biggest cost - between Rs.3.85 - Rs.5.25 for a one-liter bottle. For water sold in big plastic jars (20-50 liters), which are also reused, or in pouches, this cost is much lower Cost of Producing 1 Liter Branded Bottled Drinking Water The total cost (excluding labour marketing and tax) Rs 3.85-5.25 Selling cost Rs 12.0-14.0
OBJECTIVES OF ORGANISATION STUDY: The study has been carried out in M/S Bisleri International Pvt Ltd, Bangalore. Objectives underlying the study of the organization: To gain insight about the working system of Bisleri International Pvt Ltd. To understand the structure and organization of operations of the Company. To gain knowledge about the objectives, functions carried out by various departments. To study the systems, procedures policies of the company in carrying out their functions. To analyze the Strengths, Weaknesses, Opportunities and Threats of the corporation as a whole. To come to know about the products / services offered by the company.
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CHAPTER 2 COMPANY PROFILE
INTRODUCTION Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. This company was started by Signor Felice Bisleri who first brought the idea of selling bottled water in India. Parle bought over Bisleri (India) Ltd. in 1969 & started bottling Mineral water in glass bottles under the brand name 'Bisleri'. Later Parle switched over to PVC nonreturnable bottles & finally advanced to PET containers. Since 1995 Mr. Ramesh.J. Chauhan has started expanding Bisleri operations substantially and the turnover has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently Bisleri have 13 plants & 9 franchisees all over India. Bisleri have their presence covering the entire span of India. Bisleri has a command of 60% market share of the organized market. Overwhelming popularity of 'Bisleri' & the fact that Bisleri pioneered bottled water in India, has made us R V Institute of management Page 12
synonymous to Mineral water & a household name. When you think of bottled water, you think Bisleri. Bisleri values their customers & therefore have developed 8 unique pack sizes to suit the need of every individual. Bisleri Products are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, and 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. Till date the Indian consumer has been offered Bisleri water, however in the effort to bring something refreshingly new to the consumer, Bisleri have introduced Bisleri Natural Mountain Water - water brought to you from the foothills of the mountains situated in Himachal Pradesh. Hence Bisleris product range now comprises of two variants: Bisleri with added minerals & Bisleri Mountain Water.
Bisleri commitment is to maintain strict quality controls in every unit. Bisleri will not only purchase caps from approved vendors, also manufacture their own bottles in-house. To be at par with International standards, Bisleri have recently procured the latest state-of-the-art machinery which has not only helped us improve packaging quality but has also reduced raw material wastage and doubled production capacity and you can rest assured that you are drinking safe and pure water when you consume Bisleri. Bisleri is free of impurities and is 100% safe. Bisleri constantly endures to reach higher levels of performance for which Jayantilal Mohanlal Chauhan has already bagged the excellence award for their service. Bisleri ranks higher than many iconic brands, and has recently received 2nd most trusted brand award in cold beverages after GLUCON-D. In the past year Bisleri was ranked at 80 th position but in the current year it is ranked at 23rd position. (Reference Brand Equity, THE ECONOMIC TIMES, 17 JUNE 2009).
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It is Bisleri commitment to offer every Indian pure & clean drinking water. Bisleri Water is put through multiple stages of purification, ionized & finally packed for consumption. . Rigorous R&D & stringent quality controls has made us a market leader in the bottled water segment. Strict hygiene conditions are maintained in all plants. The Indian consumer today enjoys the sweet and pure taste of Bisleri mineral water. However in an effort to offer something special to their loyal consumers they have recently introduced BISLERI NATURAL MOUNTAIN WATER - water brought to you from the foothills of the mountains situated in Himachal Pradesh. This newly launched offering has widened our product range to two variants: Bisleri with added minerals and Bisleri Mountain Water. The bottling and marketing plant in Bangalore was setup in the year 1982 with work force. In the starting the production rate was 600 cases per day. The work force has become double in numbers due to the sincere commitment given by the top management and thus production capacity could able to increase up to 6000 cases per day. The company is doing their distribution and marketing function with its 20 trucks and 2 autos using these vans and autos it performs both direct Selling and Indirect Selling activities. In which one salesman and a deliver boy will accompany in each van. BACKGROUND AND INCEPTION OF THE COMPANY In 1967, Bisleri an Italian company, started by Signor Felice Bisleri, first brought the idea of selling bottled water in India. It started a company called Bisleri India. In 1969, Ramesh Chauhan, the chairman of Parle Exports, bought over the brand. In those days, Bisleri packaged drinking water was available in glass bottles. Being a returnable package owing to various other problems such as breakage and weight, in 1972-73, Bisleri was made available in PVC (Poly Vinyl Chloride) bottles. After this plastic packaging was introduced, things started to change, and sales increased rapidly. The upsurge in the sales of Bisleri started in 1993 as Ramesh Chauhan sold off the Parle stable of brands, including Thums Up, Limca and Gold Spot. Recognizing the potential of the packaged drinking water market, he then went on to concentrate on making Bisleri a top selling brand in India. R V Institute of management Page 14
NATURE OF THE BUSINESS CARRIED ON The Bisleri international private limited established in Bangalore in the year 1998. It is the first drinking water industry in India (pioneer) Packaging drinking water which contains: 500ml 1 Lt 2 Lt 5 Lt 20 Lt Filling water also supply
VISION An India in which every person has uninterrupted access to scientifically purified and fortified drinking water, irrespective of geographical barriers or economic limitations. MISSION We are in the business to serve the customer. He is the most important person. He is the only one who pays. He deserves the best quality and presentation at a worth of the lowest R V Institute of management Page 15
production &distribution cost. This will make us an unbeatable leader and will have satisfied loyal customer. VALUES Trust: Build trust in every single individual who interacts with the brand. Innovation: Approach innovation not as a can-do, but as a must-do. Seamlessness: Integrate smaller goals seamlessly to achieve the larger objective. Commitment: Sow the seeds of commitment at every step towards the goal. GOALS Bisleri International industry aims at total customer satisfaction. To become No 1 company in India by 2011 To be USD 100 million company by 2011 To expand bottled water market in India and across global.
COMPANY
OBJECTIVES :

To earn a reputation for being an innovative, trend setting brand. To be positioned as a lifestyle oriented, vibrant and contemporary Build strong relationships with our suppliers to secure a preferential Insisting on customer satisfaction in all areas of our organization to Gain the 50% share in the market Establish the position of market leader in 5 years Provide the pure mineral water.
product.
supply of the best quality products.
attribute the retention of an ever increasing customer base.

MILESTONES :
1969: Buys Bisleri bottled water from an Italian company, Felice Bisleri. It was bottled in glass bottles then. Early-1980s: Shifts to PVC bottles. Sales surge Page 16
Mid-1980s: Switches to PET bottles, which meant more transparency and life for water. 1993: Sells carbonated drink brands like Thumbs Up, Gold Spot and Limca to Coca- Cola for Rs 400 crore. 1995: Bisleri launches a 500 ml bottle and sales shoot up by 400 per cent. 2000: Introduces the 20-litre container to bring prices down from Rs 10 a litre to Rs 2 a litre. 1998: Introduces a tamper-proof and tamper-evident seal. 2000: BIS cancels Bisleri's license of water bottling in Delhi since some of the bottles did not carry ISI label; the license is restored one-and-a-half months later. 2002: Kinley overtakes Bisleri. The national retail stores audit by ORG-MARG show Kinley's market share at 35.1 per cent compared to Bisleri's 34.4 per cent. 2003: Bisleri says it plans to venture out into Europe and America to sell bottled water.
OPERATIONAL AREA Ahmedabad Ltd., Complex,
OF
BUSINESS : Amravati Saturna, Badnera Road, Pin:444 605 Tel:721-2511163/2510357 Fax:721 2675377 E-mail:shramshri@vsnl.com Assam Sureka Projects (P) Ltd. Silasendurighopa, Amingoan, Kamarup, Assam-781 031
m/s.Salar Beverages Pvt. Shramshri Instruments Pvt. Ltd. 406/B, Silver Oaks Comm. Amravati (M.S.) INDIA Opp. Arun Society, Paldi, Ahmedabad-380 007 Tel:07926588065/26584555 Fax: 079-26588054 E-mail: bisil@satyam.net.in
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Aurangabad Co.P.Ltd. Off. Plot No.77 opp. Vardhman Residency, Near Riddhi siddhi Hall, UlkaNagari, Aurangabad Tel:0240-2343121 Fax: 02402556366 Bangalore 29/33, Udayagiri Village, Devanahalli Taluk, Bangalore-562 110 E-mail: bangaloreorder@bisleri.co.in Delhi M/s WZ-8/1, Area, Kirti Nagar, New Delhi-110 015 Tel: 011-25107300, 25107301 Fax: 011-25451504 E-mail: Dhar M/s.Gautham Breweries(P)Ltd., Village-Lebad, District Dhar(M.P) Tel:07292-277640/277430 E-mail:anil@bisleri.co.in Goa Bisleri International Pvt.Ltd, L-72, Verna Electronic City, Verna, Salcette, Goa-403 722 Tel:0832-2783351/2887350 E-mail:goaorder@bisleri.co.in pramit@varahi.in Guwahati M/s.Sureka Pvt.Ltd. AnujBhawan, Bilpar, A.K.Azad Road, SarabBhatti, Grwahati-781 008 Tel:0361-2635637 Fax:0361 2635637 Email:ravi_sureka@ya Hubli BTM BevaragesPvt.Ltd. N-4, 1st Gate, Indl. Estate, (Karnataka) Hyderabad M/s.Dasari Springs, Flat No.3, Vishnu Plaza, Ameerpet, hoo.com Jaipur Bisleri Pvt. Ltd E-12/A, Road No.1, V.K.I Area, Jaipur-302 013 Page 18 International Projects Adhya Industrial Himalayan Waters,
BadalBaharr Mineral Water Bisleri International Pvt. Ltd.
Gokul Road, Hubli 580 030 Near Satyam Theatre, Tel:0836-2334769/2334789 Hyderabad-500 016, R V Institute of management
Fax:0836 2236590 Tel:040-5575668 Email:jaipurorder@bisl eri.co.in
Kolkata M/s.Orient Beverages ltd., Aelpe Court,3rd Floor, 225C,A.J.C.Bose Road, Kolkatta 700 020 Tel:30527001/2/3 Fax:033-30522001 Email:orientbeverages@redif fmail.com
Ludhiana M/s.Asianlak Health Foods Ltd., V.P.O.Jandiali, Chandigarh Road, Near Kohara, Ludhiana-141 112 Tel:0161-2843 215/274/652 E-mail:bisleri@satyam.net.in
Patna M/s. Pure & Sure, S B Industries 126, Jai B Block, Ground floor, MathewariApts, Patliputra Colony, Patna-800 001. Tel:06123093900/0933473190 0 Fax:0612 990 Email:suncare@sancha rnet.in Mangalore M/s. Sri Manjunath Foods &Packagings PVT. Ltd. Plot No.33, Karnad Industrial Area, Mulki, Mangalore(D.K) 574 154. 2210989-
REGD OFF. Mumbai Ltd. Western Express Highway, Andheri(East), Mumbai 400 099. Tel:022-66953030/31 Email:mumbaiorder@bisleri.
Nasik Namita Agro Foods Pvt. Ltd. Nehru Chowk, Malegaon 123203,(Nasik) Tel:231005,230163 Fax:02554-231091 Email:sudhirk_nsk@sancharnet.in
Bisleri International pvt. 260, Manglwar Ward,
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co.in
Pune Uma Agro Products Village-Eklahare, Post-Kalamb, Tal.Ambagaon, Dist.Pune Tel:02133-239114
Thrissur N M Minerals India Pvt. Ltd. Iv/270 A, Madakkathara, Oppl KSEB Sub Stn, Mannuthy, Thrissur 680 651 Tel:0487-2694850
Visakhapatnam M/s. Deepak Aqua Flows Pvt. Ltd., Maarikavalasa Village, Paradesipalem Post, Visakhapatnam 531 1
BISLERI S RANGE
OF
PRODUCTS :
Himalayan Water
The Himalayas, the abode of the Gods, where the earth meets the heavens and where in lies nature's untouched bounty. White glaciers, snow-capped mountains and a plethora of exotic herbs and other flora that have therapeutic properties. This is where one finds a treasure trove of den natural spring water that flows through natural purifying filters, mineral rich rocks and herbs from which it absorbs many healing properties. Bisleri bottles this pristine spring water directly at source, at the foothills of the Himalayas. . Bisleri Mountain Water is available in 500ml. bottles & 1 liter bottles. Mineral Water
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This product is bottled drinking water at its best. Bisleri with added minerals has a TDS count (total dissolved solids count) of approximately 100. It contains minerals such as magnesium sulphate and potassium bicarbonate which are essential minerals for healthy living. They not only maintain the pH balance of the body but also help in keeping you fit and energetic at all times. Bisleri with added minerals is also put through multiple stages of purification to ensure the elimination of all forms of bacteria. This makes the water you drink completely safe to consume. Bisleri with added minerals is available in 250ml cups, 250ml bottles, 500ml bottles, 1 liter bottles, 1.5 liter bottles, 2 liter bottles and 5 and 20 liter cans. Mountain Water For over 30 years, Bisleri has been the pioneer in the bottled water industry with its innovations and an eye for perfection. And ever since it was established in 1969, Bisleri has constantly searched for inspiration in nature.
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This search has now led bisleri to the new Natural Mountain Water. Inspired by nature, it comes to you from a pristine source situated in the beautiful and scenic mountains of Northern India. Natural Mountain Water resonates with the energy and vibrancy of health and well-being. It is packed with the goodness of nature's minerals which will refresh your senses and rejuvenate you. COMPETITORS
INFORMATION :
Bisleri is suffering some of the drawbacks from the competitors such as, Aquafina Bailey Kinley Kingfisher Mc. Dowell Director special (DTS) Royal challenge Manickchand Binbu Kauveri Aavari.
As these companies are recently established and investing more on Advertisement and Research sales, they are pushing back the Bisleri Company and finding their place in the market.
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As the competition is the main drawback for all the companies, there is no stand by any of the company without more investments, so investment should be planned and competed and should be created in the global market place.
POLICIES
OF THE ORGANIZATION :
QUALITY POLICY: The casing tube itself is protected with stainless steel mesh to give a preliminary filtration to the water. Ultra filtration gives water reduction in turbidity and adds sparkle Activated carbon purifier to remove colour and odour in water Reverse osmosis membrane has porosity of less than 0.01 micron the process renders water free micro-organism. To ensure Bisleri is held safe free from contaminations, ultraviolet treatment and orgnisation process is carried out. Ozone a very powerful bactericide with no side effect, as it disintegrates into oxygen within couple of hours. Sterilization effect of organized water continues even after water is packaged, thereby ensuring safety of Bisleri up to its final packing. To ensure high quality of packing materials, components like caps and bottles are manufactured in-house. Good manufacturing practices are stringently followed at all times. Processing is religiously monitored at every stage. Testing source water, processing parameters, microbial quality, packaging material integrity and finally, shelf life studies, forms an integral part of quality and safety assurance plan. PRODUCT/SERVICE POLICY: A CLEAR DIFFERNTIATION IS HAPPENING AMONG THE MADLY OF WATER BRAND IN TERMS BOTH PRICING AND POSITIONING. R V Institute of management WHILE BISLERI IS Page 23
TOUTING ITSELF AS Pure and Safe brands like bailey, yes and hello are trying to ride the mineral water wave. And Evian launched by French drinks. The facts however remind that almost all players in the category are positioning themselves on the purity and hygiene platform. In the scenario ho will Mr. Chauhan differentiates Bisleri from the other and most importantly for how long. Mr. Chauhan has been trying to differentiate Bisleri by its breakaway seal as an assurance or purity. As he says almost 76% of consumption of bottled drinking water happens in transit. Marked research conducted Bisleri revealed that the other overriding concern for this set of buyers is the tampering of the seal and reused bottles. Man has witnessed used bottles being refilled at railway station. So when a consumer buys mineral water, he would like to be assured that the water has not been tampered with. NUMBER OF EMPLOYEES
IN THE ORGANISATION :
Type of employees Men Women Total
Number of employees 212 33 245
PERFORMANCE
OF THE ORGANISATION :
Bisleri command a 60% market share of the organized market. In 1995 Mr. Ramesh J. Chauhan as its chairman has started expanding Bisleri operations substantially and the turnover has multiplied more than 20 times over a period of 10 years and the average growth rate has been around 40% over this period. Presently they have 13 branches & 11 franchisees all over India. They command a 60% market share of the packaged drinking water market. Therefore they have developed 8 unique pack sizes to suit the need of every individual. They are available in 250ml bottles, 500ml, 1L, 1.5L, 2L which are the non-returnable packs (one-way packs) & 5L, 20L which are the returnable packs (Two-way packs). Till date the Bisleri has been offered water to the Indian consumers, however the Bisleri in R V Institute of management Page 24
effort of bringing something refreshingly new to its customers, they have introduced Bisleri Natural Mountain Water (water brought from the foothills of the mountains situated in Himachal Pradesh) and recently they have also introduced fizzy soda. Hence their product range now comprises of three variants: Bisleri with added minerals, Bisleri Mountain Water and Bisleri fizzy soda.
Share Holding Pattern of Bisleri International Private Limited. The share holding pattern is as follows Share holding of promoter and promoter group Individuals/ Hindu Undivided Family Foreign Total Share Holding of Promoter and Promoter Group. Public share holding Financial Institution/ Banks Shares held by Custodians and against which Depository Receipts has been issued.
ORGANISATION STRUCTURE OF BISLERI INTERNATIONAL PRIVATE LIMITED A top level management consists of chairman and Managing Director who leads the team of 50 people. Under him the General Manger, Deputy General Manger comes and the Manger of each Department is under Deputy General Manger
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Deputy General Manager
Production Department
Sales Department
Accounts Department
Admin Department
Quality Ctrl Department
Dispatch Department
Plant Manager
Sales Manager
Account Manager
Admin / HR executives
Quality Incharge
Dispatch
Blowing
Filling
ASM
Accountant
Chemists
Micro biologists
Supervisor
Operator
Operator
Sales Executives Sales Man
Cashier
Loader
Staff
Fig 2.1 Structure of Bisleri International Private Limited CERTIFICATES

AND ACHIEVEMENTS :
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Bisleri is the market leader in water industry with its chief competitors being Kinley (Coca-Cola) and Aquafina (Pepsi) and many local brands with 40% market share. Bisleri has now become a generic name. People dont ask for packaged drinking water or mineral water. They ask for Bisleri which is the major achievement to the company, which would help in easy marketing of their product in the market compared to their competitors. This generic name would also help in improving the brand image of the company. Bisleri is currently the market leader in the bottled-water market with a 50% plus market share in the Rs 1200-crore Indian bottled water segment. The company has around 35 manufacturing centers and approximately 120 distribution centers, touching over 3.5 lakh retail outlets. Bisleris distribution extends well into Indian villages, and the paanwalas are one of its biggest distributors. BISLERI RECEIVES INDIA STAR 2008 AWARD FOR PACKAGING EXCELLENCE Bisleri, the makers of bottled water, on September 19 2008 received the national award, India Star 2008, from the Indian Institute of Packaging(IIP) for excellence in packaging of its Bisleri Mountain Water from the Himalayas in Mumbai. Bisleri has ISI & BIS Certification for maintenance of quality standards. Bisleri is committed to Quality & Customer Orientation; this has made us the most trusted household name in India. Bisleri was awarded proud with the Most Trusted Brand Award by Reader's Digest in 2007 in drinking water category. Bisleri has been awarded as most 2nd Most trusted brand among the beverages category and ranked 23rd out of list of 100 most trusted brands in the country by Times of India Brand Equity Survey July 2009. INFRASTRUCTURE
FACILITIES :
Production facilities There is a continuous process of Productions in total 2 shifts as: 7-30 am to 7-30 pm 7-30 pm to 7-30 am R V Institute of management Page 27
Two supervisors in each shift in all units. Approximately 90 employees are working in each shift. As told previously the type of process is batch process. Batch process means group of people engaged in a particular work. Likewise, number of groups engaged in each unit assigning different type of work say in air blowing section bottle moving, bottle fixing, filling bottle packaging. There are intervals for every 3 hours of breakfast, lunch and for tea etc. the company providing free coffee, tea to all the employee 4 times a day. Company provides mask, shoes, glouse & gown before starting the work to all the employees. Rest rooms; if the employees get tired they can take rest for mean while. If any injurious occur in the work place the hospital will be paid by company itself. Size of Land Bisleri International Private Limited of Bangalore branch located at Udayagiri village, Devanahalli Taluk Bangalore -562 110. Bisleri Company of Bangalore covers around 12 acres of land. BRANCHES PLANT OF BISLERI
AND
Bisleri have Branches in the following states Jammu and Kashmir. Chandigarh. Delhi. Sharhihabad. Jaipur. Rudrapur. Jharkhand. Orissa. Mumbai. Page 28
Hyderabad. Bangalore. Chennai
FUTURE
GROWTH AND PROSPECTUS :
Bisleri was the first to market bottled water in a totally virgin market and naturally people associate the brand with bottled water. Now Bisleri is perhaps already ten steps ahead of its competitors and will endeavor to widen its gap in the times to come. Bisleris brand positioning stresses on pure, clean safe drinking water. Some of the future plans to maintain the tip spot that Bisleri commands in the Indian market are: New pack sizes in bottles and cups Increase the distribution network with an investment of over 200 crores Strengthen presence in traditionally weak areas by setting up 12 new bottling facilities at a cost of rest 150 crores.
Bisleri Plans to set up 25 new Bottling Plants Mineral water major Bisleri International plans to set up 25 new bottling plants across India and aims to achieve a 40 per cent growth rate in the current fiscal, a top company official said. Bisleri are also targeting a 40 per cent growth rate this year, Bisleri International Chairman and Managing Director Ramesh Chauhan has told the company has envisaged Rs 50-crore investment for setting up these new bottling plants in Maharashtra, Kerala, Jammu & Kashmir, Himachal Pradesh, Tamil Nadu, and Karnataka, UP, Orissa, Jharkhand and north Bengal. These plants will be set up partly by the company and partly by a franchisee, Chauhan said.
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The company has 52 bottling plants across India, which includes plants at Delhi, UP, Jaipur, Mumbai, Goa, Bangalore, Chennai and Rudrapur, which are owned by the company. The company also proposes to double the manufacturing capacity of its existing units in Nagpur and Mumbai.
MCKINSEY 7S` FRAME WORK in BISLERI There are many management approaches which talk about managing the things and operation in an organization. One of the famous modes to analyze the pattern of management is Mc 7s` frame work. The 7s` model is better known as Mc Kinseys, this is because the two persons who developed this module. Tompetus & Robert waterman has been consultant at Mc Kinseys and co. They described that an organization is not that just structured but consist of 7s` elements. This can be distinguished into so called Hard Ss &soft Ss. The model is very much helpful in viewing the interrelationship of strategy formation and interpretation it focus manger attention to a verification of activities. That may affect the implementation of any strategy as the model originally developed as a way of thinking more broadly about the problems of organizing effectively. It is a judge tool for the implementation of the strategy. (See Fig 2.4) MCKINSEY 7S FRAME
Structure
Strateg R V Institute ofy management
System s
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Shared values
Skills
Style
Staff
The 7s` model is mainly distinguished into two types. Hard S model Soft S model
The hardest elements are visible and easy to identify as they can be found in a strategy elements, corporate plans, organization charts and other documentation of the company. They are. Strategy System Structure. The soft element involves difficulty in describing their capabilities, values, and elements of corporate culture. They are. Style Staff Skills Shared values. R V Institute of management Page 31
Strategy According to Mc Kinseys strategy means the action, this company in response or anticipation of change in its external environment. In other words it is the determination of basis long -term objectives or sources of action and allocation of resources to achieve the organization goal. According to Glueck, strategy is defined as unified, comprehensive and integrated plan designed to ensure that the basic objectives of the enterprise are achieved. Strategy Bisleri International industry aims at total customer satisfaction. To become No 1 company in India by 2011. To be USD 100 million company by 2011. To expand market in India and in global. To become 1 of the leading industry in India. System Bisleri follows various systems Inventory control system Order execution system Merit rating system Process and quality control system The casing tube itself is protected with stainless steel to give preliminary filtration to the water. Ultra filtration gives reduction in turbidity and ads sparkle Activate carbon purifier to remove colour and odour in water. Reverse osmosis membranes has porosity of less than 0.01 micron. This process renders water free micro organisms. Style Style includes two things, they are R V Institute of management Page 32
Management style Organization style. Having a participative kind of leadership the top management of bisleri international private limited encourage the initiative from employee and tries to implement them. Interactive section is conducted at regular intervals. Company has free up ward communication channel. Skill Skill refers to the ability to perform certain task without any difficulty. The organization is fully dependent on its staff. The management of the organization has got the capacity of achieving the targets through various skills. They are. Skill to keep the morale of the employee at high level by suggestion, quality circle etc, which require employee involvement. Skill to achieve daily target for monthly profits. Skill to achieve employee satisfaction by proper performance appraisal and effective administration. Training is imparted continuously to employees depending on the requirement. The training can be of two types on-the time& of-the time training. Staff The Bisleri international (p) ltd hired people and they train them well and they assign job to right person at right time. There are around 250 employees working in the organization. 75-staff 175-casuals Shared Values
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The Bisleri international (p) ltd gives importance to both its customer and employees and mission statement reflects it. The motto of the company is to satisfy its customer quality products. There values are Integrity, leadership, team work, co-operation, quality, passion, openness, and transparency.
CHAPTER 3 FUNCTIONAL DEPARTMENTS Bisleri has 5 main functional departments they are Production and quality Department. Shipping Department. Human resource Department. Marketing Department. Finance Department. 3.1 PRODUCTION AND QUALITY DEPARTMENT
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Production Department is the main center in the organization. Production is the conversion of raw material into the end product by using processes, machines, men, tools and so on. It is the process by which goods and services are created. Production management has become one of the important concepts in the organization. It means application of management principles to the production function in the factory. It involves the application of planning, organizing, directing and controlling to the production process. Functions To follow up the daily production schedule. To upgrade technical efficiency of production. To maintain coordinated relationship with all other key department. Making the working place pleasant. To perform the function of production department managers are appointed. Plant manager is Head of the production department. He looks after the activities of production. The Hierarchy of Production Department See Fig 3.1 The 5S` in the production management are product-plant-process-programmes- and people.
PLANT MANAGER
PRODUCTION MANAGER
PRODUCTION EXECUTIVE
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SUPERVISOR
OPERATOR
CASUAL/CONTRACT LABOURES Fig 3.1 Hierarchy of Production Department Raw Material The raw material used in Bisleri International Pvt is ground water (natural resource). Product Produced The products are produced according to the monthly plan. Monthly product to be produced depends on demand. Then purchase order is placed. Order will be break down in 4 weeks. Before 25th of every month order are delivered. Produced quantity should be informed to the government, if they cross the capacity, they should intimate the government. To produce the product they should get the license from the government. Types of License they have are Labour license, Gauges, Thermometer.
This license should be renewed monthly. Types of Product Produced at Bisleri Mineral water, Page 36
Himalaya mountain water/ natural water, Fizzy soda
The department turnover is 4-5 cores annually. The type of plant layout Bisleri International Private Ltd follows is process layout. The machines are placed one after other. They have two processing areas one for one way pack and second for the two way pack One Way Pack It includes 250ml, 500ml, 1ltr, 1.5ltr,& 2ltr which is non returnable bottles once it is sold it will not come back. This is known as one way pack. Two Way Pack It includes 5ltr, &a 20ltr jar which is returnable jars. Once it is sold, the empty jars are collected from the distributors &distributors collect from the customer &it is sent to the factory, it is again rinsed and washed, it is used for filling water, where it is cleaned and UV test is done for 100% purity. Moving trolley with wooden shelfs is used to shift the jars and bottle to the vehicle. They have both automated and semi-automated machines. Blowing- Automated and Semi Automated Filling Fully Automated
Total Number of Employees Total number of employee in the production department is 102 out of which 1. 32 employees of staff 2. 70 employees are contract laborers. After hiring people in production department training is provided for about 6 months which includes probationary period of about 3 months and then confirmation letter is given. Safety Programs of Bisleri R V Institute of management Page 37
First aid kits are provided to the employees for the safety from mis-happening, accidents, and sudden break down problems. They have some security measures for the employees Security Measures Please Wear the Following and Enter Cap Mask Apron Gloves
Hygiene Practices in processing area Do not wear un-secured jewellery. Do not spilt, chew, tobacco or eat. Do not cough or sneeze. Do not enter process area if you have cuts, wounds &other injuries. Do wear your apron, head wear, gloves, mouth piece & shoe. Do wash your hands frequently. Do report to the supervisor if suffering from skin infection, diarrhea
Quality Department Bisleri international private limited has given more importance to the quality. They follow the quality assurance or in the broader sense it can be termed as quality control. It refers to the any activity that is concerned with maintaining quality at the desired level. It deals equally with detection of the quality problem if they occur. The reason why the Bisleri is following this quality assurance or quality control is because it provides the necessary confidence to the customer as well as to the top management that all concerned carry out their job effectively and that the product quality is as per
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customers satisfaction. Now a days customer demand high quality and reliable products. Any defect is loss for the company. Standard or Norms of Bisleri ISO 9000 BIS WHO (International Organization for Standardization) (Bureau of Indian Standards) (World Health Organization) Bisleri commits itself to produce and market a world class product to satify the consumer present and future needs. As Bisleri is given more importance to the quality, they follow water treatment in which the some steps are involved. This is because to sell pure water to the customer. And it has 60%of packed water market Process Involved in Manufacturing a Bisleri Water Bottle Water Process Consists of Following Steps Raw water disinfection by ozone Pressure and filter Activated carbon purifier Reverse osmosis Micron filtration Final ozonation
Raw Water Disinfection by Ozone. Earlier chlorination was the common method of pretreatment for raw water. Today because of the harmful effects of chlorine, Bisleri has started pretreatment of raw water with ozone. Ozone is a colorless gas with very strong oxidative and disincentive power. In comparison with chlorine it is over 3000 times more powerful disinfectant and over 50% R V Institute of management Page 39
more powerful in its oxidative power. These properties of ozone make it deal for disinfection of drinking water. Ozone is an efficient broad-spectrum microbiological control gas, an environment friendly safe and very reliable disinfectant. It destroys all bacteria yeast, moulds, viruses and cysts in very short duration when it comes into contact with water Pressure and Filter.
Sand filtration is commonly used as a pre -treatment to remove suspended particles from water. The filtration medium consists of a multiple layers of sand and gravel. Activated Carbon Purifier.
Activated carbon purifier is used for de-chlorination or de-ozonation, colour and odor removal, removal of heavy metals BOD/COD reduction and a number of other applications Reverse Osmosis.
This technique is used to reduce the total dissolved solids and make the water palatable. This process removes the excess quantity of unwanted salts, minerals. Micron Filtration. Final Ozonation.
There are used mainly to ascertain the effectiveness of the system. Ozone is a powerful disinfectant and used at final stage of treatment. It is used mainly to disinfect empty containers, especially returnable jars. The ozone in the sealed both ensures the bottle ensures the bottle; cap as well the head space (the air above the water in the bottle) gets sterilized. Ozone helps maintain the sterility of the water during filling and the shelf life of the product. See Fig 3.2
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Fig 3.2 Production Process
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After packaging two tests are conducted by taking the samples of water i.e. Chemical test Biological test.
Chemical test: In this test 3-4 liters of bottled water are taken as a sample and for that samples 26 parameters are checked to know the water is pure and it is safe to drink. Biological test: In this test required samples are taken & for that 6 micro biological parameter used to check the sample to know whether it is pure and safe to drink. Logistics used in Bisleri The logistic used in Bisleri is Transport Bisleri has 9 own vehicle to deliver the jars and bottle to the customer place. Out of which -2 vehicles are Tata Ace -2 vehicles are Tata LCD 407 -5 vehicles are Tata SF 407 And also have 3 private vehicles/ transport vehicles are attached. Payment for 3 transport vehicle made once in a 15 days, this is according to their agreement.
Work Flow Model R V Institute of management Page 42
The group of Bisleri international private limited has following model FIRST RECEIPT OF RAW MATERIAL
RAW MATERIAL RECEIVED ARE SUBJECT TO QUALITY CONTROL ANALYSIS
STORED IN STORE DEPARTMENT
ISSUE OF RAW MATERIAL BY FIFO METHOD
PACKAGING OF PRODUCT
FINISHED GOOD STORAGE
DISPATCH OF PRODUCT FOR SALE Fig 3.3Work Flow Model 3.2 SHIPPING DEPARTMENT R V Institute of management Page 43
Shipping department is another functional department in the Bisleri International Private Limited. Shipping is carried through two ways i.e. through One way pack and another through two way pack. Steps Which Is Followed In One Way Pack In one way pack the order are received from sales co-ordination. After receiving order from sales coordinator, shipping plan will be prepared. The stock is sent, delivered at distributors spot.
Steps Which Is Followed In Two Way Pack In two ways pack order are received from distributors, executives & customer. After receiving order from the distributors and from customer shipping plan will be prepared. This plan with regard to which vehicle to be sent and its route. It is delivered to the customer place. After delivery, the empty jars are collected back for refilling Inventory Management System Shipping also includes the inventory department Where separate stores are maintained for inventory To look up these Inventory store are provided. Security is employed to look after this inventory and they are under 1) Purchase officer 2) Security clerk 3) Stores security guard Where Goods received notes are maintained. Stock Movement Book is also maintained Hierarchy of Shipping Department see Fig 3.4 GRN (Goods received notes) SMB (Stock movement book)
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HOD / Assistant manager
Shipping executive
Shipping supervisor
Loaders
Drivers and cleaners Fig 3.4 Hierarchy of Shipping Department
3.3 HUMAN RESOURCE DEPARTMENT R V Institute of management Page 45
HR department is responsible for employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirements with view to contribute to the goals of organization, individual and the society. Functions An effective utilization of human resource in the achievement of Maintains a desirable working relationship among all the members of the Generate maximum individual and group development within in the Develops the human resource and their knowledge, skills and potentialities Creating the right attitude among the employees through effective organization goals. organization organization.
motivation. Regional head is head of HR Department. He looks after the activities of HR. The Hierarchy of HR Department is shown See Fig 3.5 Regional Head
HR Manager
Executive Senior
Officer/ clerk
Fig 3.5 Hierarchy of HR Department R V Institute of management Page 46
Human Resource Planning COLEMAN has defined human resource planning as the process of determining man
power requirement in order to carry out the integrated plan of the organization It is projecting future manpower requirements and developing manpower plans for the implementation of the projection. Human Resource Planning is carried out in Bisleri Company. Need to carry out the Human Resource Planning are Carry out the work, each organization needs personnel with the necessary qualification, skills, knowledge, and work experience. These are provided through effective human resource planning. Human resource planning is essential because of frequent labour turn over which is unavoidable. For Expansion and Growth programmes of the organization human resource planning are required. Human resource planning is important in order to identify areas of surplus personnel or areas in which there is shortage of personnel. Changing technology and new techniques of production, existing employees need to be trained, so that they can meet the challenge Steps they follow for the Human Resource Planning Recruitment According to Flippo Recruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for the jobs in an organization R V Institute of management Page 47 Requisition of employee would be given by every department Human resource planning is done based on approved budget This approval is taken from top management. Internal &external plans are prepared by executives for human representatives
resource based on requisition.
Corporate officer looks after the recruitment process. Based on job description recruitment is done. The sources of recruitment they follow are internal and external recruitment Internal recruitment: when any vacancy occurs, some body within the organization is upgraded, transferred promoted or sometimes demoted. This is internal source of recruitment. Internal source of recruitment of Bisleri Employee reference Present permanent employee Temporary / casuals employee.
External recruitment: under external source of recruitment personnel needs are filled by advertisement, personnel consultant, and employment exchange, educational institution, waiting list, jobbers and contractors leasing. External source of recruitment of Bisleri Selection Selection is the process to choose the individual who can most successfully perform the job from the pool of qualified candidates. Selection procedure which the company follows Receipt of application Screening /scrutinizing Interview Medical examination Reference checks Advertisement Head hunters Campus interview Consultants
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Manager/regional head decision Offer letter Employment
Training and Development Training is the short term process utilizing systematic and organized procedure by which non managerial personnel learn technical knowledge and skills for definite purpose. In Bisleri internal and external training is carried out. They use both the method of training i.e. on the job and off the job training. In the on the job the training is given based on skill matrix-where certain parameter are set to perform the actual job In the off job the training is given to the employees by hiring trainers from outside and they also approach some consultant to provide efficient training to their employees from professional trainers. Training calendar is also prepared based on monthly/quarterly/annually. Performance Appraisal According to Edwin Flippo Performance appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of employees excellence in matters pertaining to his present job and to his potentialities for better job Performance appraisal followed by bisleri: KRA key result area method of performance appraisal is used It is based on departmental objectives Every employee of concerned department is assessed &rating are given by the concerned HOD (head of the department) In the end every HOD is rated &assessed by the mangers. Motivation for Employees R V Institute of management Page 49
In Bisleri International Private Limited the employees are motivated by providing monetary and non monetary benefits Monetary bonus, incentives Non monetary -motivation, appraisal, award (Good employee of the year award) Industrial Relation and Grievance Handling Industrial relation in Bisleri is good, because of which they have good and Shop floor committee is appointed to handle the grievances Initially grievances are handled/resolved by the concerned department heads If it is not resolved, it is resolved by the management There is no trade union; but the management is taking steps for meeting the effective team
needs of the employees. Salary, Compensation and Retirement Benefits Salary is paid according to the grading from clerical class to manager. Gratuity is paid at the time of retirement; minimum 5 years service is required to get gratuity. Employees are covered under the following acts ESI - Employee State Insurance PF - Provident Fund
Bonus Act Industrial standing orders Payment of wages Act Minimum wages Act Working shift in Bisleri Shifts Shift Timing From 6.30 AM To 2.30 PM Page 50
Shift Shift 2.30 PM 9.30 AM 10.30 PM 6.30 PM
Half an hour is for lunch break in every shift Food is provided for employees in the premises And beverages are provided two times a day 10.30 am & 3.30pm DATE OF PAYEMENT OF WAGES 7TH OF EVERY MONTH Security Guards of Bisleri Bisleri Hires Security from MAA Security Total number of security staff is 7 They have 3 shifts in the security. The hierarchy of security is shown in Fig 3.6 Security supervisor
Security head
Security guards Fig 3.6 Hierarchy of Security
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The pass will be provided for the people who visit the Bisleri international private limited and the pass should be get signed from the person we meet. The pass contain the following details
Bisleri International Private limited
SL no NAME OF THE VISITOR NAME OF THE COMPANY ADDRESS VEHICLE NO REASON FOR VISIT PERSON TO SEE TIME IN TIMEOUT
DATE
Security Sign
visitor
person you met
Note: For visitor please obtain signature from the person met and handover pass to security.
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3.4 MARKETING DEPARTMENT Marketing is a total system of business activities designed to plan, price, promote, and distribute goods and services to present and potential consumers. Marketing is the principal revenue generating activity. All other functions of the firm are revenue consuming. If marketing fails to generate sufficient revenues for meeting all expenses, and producing profit, the firm will be unable to survive and grow. Functions Increase sales volume. Carry out the Promotional activities. Increases profitability. Train and motivate the work force. Motivates distributor, retailers, and other middlemen. Carry out sales promotion activities.
Objectives Attracts the consumers to buy the products. Marketing Department helps in promoting the product Generates more number of sales
Assistant manager is the head of Marketing Department. He looks after the Marketing Department. The Hierarchy of Marketing Department See Fig 3.7
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ASSISTANT GENERAL MANAGER
ASSITANT SALES MANAGER
SALES EXECUTIVE
PROMOTERS
Fig 3.7 Hierarchy of Marketing Department
Sales Department This is the department where the revenue is generated other department are revenue consuming. This Department helps the organization for the survival for long term. Number of Personnel In marketing department total number of personnel is 50. Out of which 20 executive 20 sales representatives. 5 assistant sales managers.
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1 assistant sales manager for whole market. 2 assistant sales managers in Bangalore city for north and south. 1 assistant sales manager for Karnataka south 1 assistant sales manager in Hubli
Promotion Department of Bisleri Advertising Advertising can be defined as mass, paid communication of goods and services or ideas by an identified sponsor. Advertising appears in the recognized media, such as news papers, magazines, radio, television, cinema, outdoor hoarding and posters, direct mail and transit. Importance of advertisement Advertising stimulates production, employment and income leading to rising purchasing power and better living standards Commercialization of invention, accelerated public acceptance of innovation, new product etc. Advertising enables consumer to secure relevant and adequate information about all rival product and their relative merits. Advertising builds up brand preference and brand loyalty. Advertising has educative value also. It teaches us to adopt new ways of life and higher standard of living. Bisleri advertise in Sales Promotion Bisleri dont offer any discount. They participate in exhibition, and in melas. Magazines, Television Television they advertise in sport channel, & in regional channel.
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Distribution Once the product is produced it should be available to the consumer. Distribution helps in distributing the products to final consumer. Bisleri follows two ways of distribution Direct Distribution: This is the way where Bisleri directly distribute to the consumer. Where consumer call Bisleri, place an order and they drop their address to them and home delivery is made. This is usually for 20 ltrs jar. No middlemen are used in this way of distribution. Indirect Distribution: In indirect distribution they distribute to the retail shop were consumer buy from retail shop. This is usually done for 250ml, 500ml, l liter, 2ltr, 5ltr.
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3.5 FINANCE DEPARTMENT In finance department all the department accounts are maintained & it is sent to Mumbai head office. Where consolidated accounts are prepared which is computerized. Balance sheet and profit and loss account are prepared at the end of each year. Functions To ascertain the expenses incurred in producing a product. To find the cost per unit that is by taking into the account the total cost and production of a particular product. To allocate the costs incurred into 3 main categories namely factory, office, and selling overhead. To compare budgeted cost with actual cost and calculate the variances if any. To advice the production department to decrease the cost, minimize wastage and idle time. To implement cost control technique and methods. The finance manger estimates the total financial requirement of the firm The finance manger selects the right source of sounds at the right time at The finance manger makes effective investment of funds in profitable It is the responsibility of finance manger to protect the interest of stake The responsibility of maintaining liquidity position of the firm at the high Functions of finance manger through sound financial plan. right cost. avenues. holder like creditor, shareholder, employee etc. level is in the hands of finance manger
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Finance manager is the head of Finance Department. He looks after the Finance Department.
The Hierarchy of Finance Department See Fig 3.8 FINANCE MANAGER.
ACCOUNT MANAGER
ASSISTANT FINANCE MANAGER
ACCOUNTANT
OFFICERS Fig 3.8 Hierarchy of Finance Department
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3.6 PROBLEMS IN ALL FUNCTIONAL DEPARTMENTS IN A COPMANY
METHOD ADOPTED FOR DISTRIBUTION: THE ROUTESELLING policy adopted by BISLERI for distribution is more expensive than more commonly followed method of appointing distributors in different towns. This reduces the profit of company. The dealer margin is reduced due to this .therefore not many dealer keeps BISLERI in many areas. Indirectly this is reducing the coverage of BISLERI.
REUSE
OF
BOTTLE
BY
LOCAL
SELLERS
AND
ILLEGAL
MANUFACTURERS: Market research conducted by BISLERI revealed that the other overriding concern for this set of buyers is the tampering of seal and the reuse of bottles. Many have witnessed used bottles being refilled at railway stations. This deteriorates the brand image of BISLERI. For example: - local sellers fill the bottle of BISLERI with impure water and the bottles are purchased by illiterate customers as BISLERI water but they buy water of low quality. In this way brand of BISLERI gets affected.
FAULTS IN PRODUCTION:Page 59
Tests conducted by various authorities shows that it contains pesticides. In 2002 the 2cm long insect was found in the bottle of BISLERI. This has affected its sales and reputation. The license of its two factories one at Noida and other at Bangalore has been cancelled because of fault in production.
PRESSURE BY GOVERNMENT AUTHORITY: After insect was found in the bottles, FDA (Food & Drug Adulteration) has cancelled the production of BISLERI. Afterwards it was allowed to resume it but in this period its customer were moved towards other products. It is constantly under check by various authorities.
NOT MEETING THE DEMAND OF THE CUSTOMER: In certain parts of south in our country big bottles of BISLERI are in huge demand but the company is unable to meet the demand of the consumers. This is affecting the demand for the product. So People are forced to use other brands of mineral water.
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CHAPTER 4 SWOT ANALYSIS 4.1 Strengths Being Pioneer. Bisleri is the first to introduce mineral water. Quality standard. Bisleri is following a good quality control policy. Trust for Brand. Public prefers bisleri mineral water rather than other brand. Large Range of Products like bisleri mineral water, mountain water, soda. Marketing of Products and stability. Experience of Top management. Parle is the parent company though it has a They have well equipped infrastructure. They have skilled and trained employees which is asset for them & well Documented procedure, they should follow rules and regulations of the They have their own vehicles. which reduce the transportation cost They keep their employee happy and in good morale. Page 61
OF
BISLERI INTERNATIONAL PRIVATE LIMITED.
lot of experience.
equipped machines, Which enables to improve production and quality company.
Good employee and employer relation in organization as a result it reduces
grievance as there is no trade union activities. Profit is spent on advertising and marketing. This increases sales. Company can switch between suppliers quickly and cheaply
4.2 WEAKNESSES Method adopted for distribution is not good. Company follows only one way and two way distributions. Reuse of Bottle by local sellers and illegal manufacture Quality problem in production. Some minor problems such as seal breakage in production lead to quality problem. Pressure by Government Authority due to change in government policy. Frequent power failure problem of in time delivery. Due to the international air port, vehicles are not reaching in time due to frequent visit to the air port. Traffic jam is also a problem Shortage of Fuel for generation of power Frequent Labour turn over. Extra expenditure in imparting necessary training to the new employee Increasing expenses in R & D. Change in technology leads to spent more in research and development. Scarcity of water. Since water is the main component. Scarcity of water effects the organization or the entire department. R V Institute of management Page 62
4.3 OPPORTUNITIES Fast Growing Field Bisleri can Utilize its Distribution Chain Expansion in Europe Launch of Premium pack Increase in Production Growth of packed drinking water Demand for packaged drinking water day to day. Use of fully automated machines. Planning of dispatching of stocks in early morning Purchasing of bigger vehicles. Presently they have small vehicles were 200 Shifting location of factory. Development of HRD practices Democracy at work place It helps the worker to put across their demands and their point of view, this
cases can be shift. Purchasing of bigger vehicle allows them to shift 600 cases.
will help the worker to be more responsible and management more responsive R V Institute of management Page 63
Establishment of HRIS (HUMAN RESOURCE INFORMATION
SYSTEM) People prefer pure water than non purified water. India getting hotter day-by-day. There is increased demand for water bottle. Coca-cola has shifted focus from Kinley, three to four years back to driving Growing urban and rural market. Increasing purchasing power of consumer.
soft drink sales, which had taken a hit in the wake of the pesticide controversy.
4.4 THREATS Market is Eyed by the Big Players like Kingfisher, Coco Cola, Pepsico. Water Filter Manufactures Illegal Manufactures Strong Distribution Channel of the other Manufacture Frequent changes in government regulation. Shortage of fuel and power. Frequent power cut downs. Scarcity of underground water. Competitors occupy the market Fluctuation in the Production Change in technology Change in the industrial relation policy Change in labour laws Copying product and making minor feature and style improvements Page 64
Severe competition from competitors. Their competitors such as coca-cola (Kinley), and Pepsi (Aquafina), Tatas (Himalaya) Competition from small brands. These small brands have no standard quality, they exist for 6 month and they shut down. Since they have to earn profit they offer huge margins.
CHAPTER 5 5.1 FINDINGS It is found that Mineral Water under the name 'Bisleri' was first introduced in Mumbai in glass bottles in two varieties - bubbly & still in 1965 by Bisleri Ltd., a company of Italian origin. It is found that Bisleri value their customers and therefore have developed 8 unique pack sizes to suit the need of every individual. We are present in 250ml cups, 250ml bottles, 500ml, 1L, 1.5L, and 2L which are the non-returnable packs & 5L, 20L which are the returnable packs. It is found that Company has introduced Bisleri Natural Mountain Water - water brought from the foothills of the mountains situated in Himachal Pradesh. Hence our product range now comprises of two variants: Bisleri with added minerals & Bisleri Mountain Water. It is found that Rigorous Research and Development and stringent quality controls have made company market leaders in the bottled water segment.
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It is found that Bisleri has always been committed to offering every Indian pure and clean drinking water. Hence Bisleri water is put through multiple stages of purification, ozonization and is hygienically packed for final consumption. It is found that Bisleri controls 60 percent of packaged water market. It is found that Bisleri is committed to meeting the needs of its customers across the country. To effectively service the end consumer Bisleri has been working to continuously establish fresh bottling and distribution capacities. It is found that For over 30 years, Bisleri has been the pioneer in the bottled water industry with its innovations and an eye for perfection. And ever since it was established in 1969, Bisleri has constantly searched for inspiration in nature. It is found that After dominating the Indian mass packaged drinking water market with a 60 per cent share. Bisleri is all set to make splash abroad. It is found that In the next few months, company will start exporting Bisleri Mountain Water to take on the likes of French brand Evian in the premium packaged drinking water space. It is found that Company launched Bisleri in a new hexagonal bottle, it is getting a lot of appreciation. Bisleri is planning to launch it in Europe and America. It is found that Bisleri is aiming for at least $ 3 - 4 million of sales in the first year. It is found that Bisleri is planning to enter foreign market. The company plans to introduce new products like flavored and sparkling water, both in the domestic and the international markets. SUGGESTION It is suggested that Bisleri should work on its distribution system to be at par with competition with Kinley and Aquafina and should focus on not losing any further and gain back the dominant share. It should maintain star position.
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It is suggested that Persuasive advertising includes persuading customers to purchase now, customer loyalty, and convincing customers to tell others about the brand. It is suggested that Works on to maintain standard and a check against Unorganized Manufacturers. It is suggested that Huge investments by other companies are making in bottling plants and distribution. By end-2009, coke would have doubled the number of water bottling plants to 16, and Pepsi would have added seven more to its existing base of five plants. In contrast, Bisleri, a brand launched as far back as 1967, boasts a mere 15 bottling plants and three country-wide franchisees so Bisleri has to invest more on their business.
LEARNING EXPERIENCE I gained knowledge about the manufacturing industry in the modern world. I experienced with different practices and procedures used in the industry in the field of manufacturing. This sort of training helped me to gain the practical knowledge apart from my theoretical base. In todays market where customer is king, the company needs to strengthen its sales and service workforce and hence a good network. The core competence of the company lies in fact that it can meet its customer requirement with cost effectiveness along with value added services is the secret to its current success which deserves great appreciation. I gained experience of behavior people in the organization and I got the good exposure from the manufacturing industry where I visited the different department like Human Resource, Finance, Marketing, Production and Quality and Shipping Department. The company people were very supportive and they guided me all through project period with all relevant information and the data In Human Resource department I met senior HR executive who gave me all the details about how many employees are working and how they are working and about their skills, R V Institute of management Page 67
which type of training and welfare scheme were provided to employees and performance are rated. In Finance department they are equipped with the advance technology. In marketing department they have direct and indirect contract with customers and they mainly deal through agents. The company have wide distribution network all over globe. Apart from focusing on the existing customers, the company has to tap and target new opportunities there by expanding its current base. In order to retain its current customer base and expand its opportunities, the company has to enhance its quality policies and look towards using better technologies/ equipments there by setting high quality standards at the international market. In Production department the company manufactures the product according to the needs off the customers. The company is having both automatic and manual machines for the manufacturing of water bottle. Customer Satisfaction is the main aim of the company. It is like practical training which has made me to prepare for the future job. I come across real life situation under the domain of the business and the organizational world. I got the opportunity to interact with various personnel in the organization. It is completely a new experience to me. This helped me to sharpen the communication and interpersonal skills and get inspire by the working of the organization and I come to know the problem faced by the organization in the competitive business world and thus get to know what, why, and how the management principle. This study has certainly helped me to have one more dimensions in many pursuits to understand the management theories principle and practices. CONCLUSIONS From the report I conclude that groundwater is the cleanest and cheapest source for all, but company have over-extracted and polluted it with natural contaminants, agro-chemicals and industrial waste. Company should take measures to not pollute the environment. Bisleri should work on its Distribution channel to be in the competition. Since the technology is R V Institute of management Page 68
ever changing, company should focus on changing technology. However company can think value added services to capture the market from their competitors. Bisleri International Private Limited should focus on proper advertising.
BIBLIOGRAPHY Books Rao, V.S.P. (2005) Human Resource Management Text and Cases,
Excel Books, Edition 2, Page: 4, 30. Khan M.Y. and Jain, P.K. (2000) Financial Management Text and
Problems, Volume 3, Tata Mc Graw-Hill, Page: 1.4. Sharma Gagan Deep, Mahindra Man Deep. (2008) Production and
Operations Management Text and Cases, Edition 2, Kalyani Publishers, Page: 1.11-1.13. Company reports : Yearly reports News paper The Economic Times 17 June 2009.
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Websites Others Diary of Bisleri International Private Ltd. WWW.BISLERI.COM
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An Organisational Study: Industry Profile: Meaning of Organisation (About FMCG Sector)

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AN ORGANISATIONAL STUDY

PRODUCT CHARECTERISTICS : R V Institute of management Page 7

CHAPTER 2 COMPANY PROFILE

supply of the best quality products.

attribute the retention of an ever increasing customer base.

OPERATIONAL AREA Ahmedabad Ltd., Complex,

BadalBaharr Mineral Water Bisleri International Pvt. Ltd.

Bisleri International pvt. 260, Manglwar Ward,

Pune Uma Agro Products Village-Eklahare, Post-Kalamb, Tal.Ambagaon, Dist.Pune Tel:02133-239114

Type of employees Men Women Total

Number of employees 212 33 245

Deputy General Manager

Quality Ctrl Department

Sales Executives Sales Man

Fig 2.1 Structure of Bisleri International Private Limited CERTIFICATES

GROWTH AND PROSPECTUS :

Strateg R V Institute ofy management

Fig 3.2 Production Process

Work Flow Model R V Institute of management Page 42

RAW MATERIAL RECEIVED ARE SUBJECT TO QUALITY CONTROL ANALYSIS

STORED IN STORE DEPARTMENT

ISSUE OF RAW MATERIAL BY FIFO METHOD

FINISHED GOOD STORAGE

Drivers and cleaners Fig 3.4 Hierarchy of Shipping Department

3.3 HUMAN RESOURCE DEPARTMENT R V Institute of management Page 45

Fig 3.5 Hierarchy of HR Department R V Institute of management Page 46

resource based on requisition.

Security guards Fig 3.6 Hierarchy of Security

Bisleri International Private limited

person you met

ASSISTANT GENERAL MANAGER

ASSITANT SALES MANAGER

Fig 3.7 Hierarchy of Marketing Department

The Hierarchy of Finance Department See Fig 3.8 FINANCE MANAGER.

ASSISTANT FINANCE MANAGER

OFFICERS Fig 3.8 Hierarchy of Finance Department

3.6 PROBLEMS IN ALL FUNCTIONAL DEPARTMENTS IN A COPMANY

BISLERI INTERNATIONAL PRIVATE LIMITED.

equipped machines, Which enables to improve production and quality company.

Websites Others Diary of Bisleri International Private Ltd. WWW.BISLERI.COM

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