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SUBMITTED BY : PURVESH KANSARA ID NO.

:- 097710592005

GUIDED BY : MS.RASHMI GHAMAWALA ASS.PROF.

SUBMITTED TO : SHRIM.H.KADAKIA INSTITUTE OF MANAGEMENT AND COMPUER STUDIES, ANKLESHWAR.

Establishment:
Cofounder Caleb Bradham in 1893. Concoction soft drinks for refreshing U.S. His most popular drink was famous

people. as Brads Drink. Which is made up of carbonated water, sugar, vanilla, rare oils, pepsin and cola nuts. In 1898 his neighbor artist design LOGO renamed as PEPSI COLA and got $100 trade marked. PepsiCo entered India in 1989.

Investment:
PepsiCo India and its partners have invested more than $ 1 billion since the company was established in the country.

Employment:
Created

more than 1,50,000 direct and indirect employment including suppliers and distributers.

Plants in India:

PepsiCo entered India in 1989. Aims to serve the long term dynamic needs of consumers in India. PepsiCo has approximately 43 plants in INDIA.

Mission: To be the worlds premier consumer Products Company focused on convenience 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. Vision: To build Indias leading total beverages company, delighting consumer by best meeting their everyday beverage needs, and stakeholders, by delivering performance with purpose, through our talented people.

Quality Policy: We shall deliver the best product in the market place. Highest quality. Biggest testing. Safety Policy: We shall design, construct, maintain & safe operate our plant so that they are safe for: The people working in the company. The assets of the company. The environment in & around.

Jhagadia Plant:
Location Plant Site Nearest City : : : 90 km from Baroda GIDC Mega Estate, Ankleswar. 12km from Plant GRB - 1997, PET - 2000, AF 2003, SLICE - 2010. 75766Sq Mtrs (18.7 Acres) 9570 Sq Mtrs 35336 Sq Mtrs 24529 Sq Mtrs

Year of Start up and Expansion :

Total Area of Plot Total Built up Area Max Coverage Allowed Green Blet Area

: : : :

PepsiCo India Holdings Pvt. Ltd Has four Production Lines.


GRB (glass Refilling Bottles) PET (Poly Ethylene Thylate) Aquafina (Water plant) Slice

Company contains 7 departments.


Human Resource Department Finance Department Production Department Shipping Department Marketing Department Quality Control Department Stores

Department

To find out by which method company verify and classify the material and codification system. To find out which types of Materials are available in the company. To study and analyze the inventory management system and control practices at PepsiCo India Holdings Pvt. Ltd. To find out management of projected sale and actual sale of each product. To find out how company apply tight controls to the significant few items.

To find out how company sell of outdated or slow moving merchandise. To find out which material company outsourced and rather why not it produces on its own. To find out security system to ensure that No stock is going out the back door. To find out how long it will take for delivery by supplier. To find out operating cycle. To find out inventory related ratios.

Exploratory Research Through:


Observation Personal

Interviews

OBJECTIVE-1 : To find out by which method company verify and classify the material and codification system.
Inventory Valuation System:
First in First out Method Weighted Average Method

Classification System:
ABC Classification

Codification System:
Forklift 47 Bearings 41 Filler machine 11 Censer 30 Electricals 42 General items 99

Determination Of Stock Level:


Minimum Stock Level Maximum Stock Level Re-order Stock Level

OBJECTIVE-2 : To find out which types of Materials are available in the company.
Raw Material Crown & Closure Pulp Co2 Carton Preform Label Sugar Sleeve Concentrate Work In Process Finished Goods Pepsi Mirinda Orange Mirinda Lemon 7-up Mountain Dew Slice Chemicals $ Consumable Repairs & Maintenance

OBJECTIVE-3 : To study and analyze the inventory management system and control practices.

Store Inward Register:


Descri ption Qty As per Challen Qty Rec Bill No & Date SAP No & GRN No D R SAP A S Code T E Re ma rks

Sr. No

GATE D Challen INWARD A No. NO. T E

PO Material

SAP (Systematic Application System):


Descr iption Stock Value Curr. INR U O M Valuated Stock Physical Stock Quantity Difference Location

OBJECTIVE-4 : To find out management of projected sale and actual sale of each product.

Production Mix:
YEAR 2007 2008 2009 AQUAFINA 577,211 571,412 744,531 PET 2,234,199 1,925,830 2,706,738 GRB 941,947 1,017,769 2,524,867

Management of Projected Sales & Actual Sales:

Always Difference Between Projected Sales & Actual Sales. Difference 20%. Difference stored as safety stock at warehouse.

OBJECTIVE-5 : To find out how company apply tight controls to the significant few items.
CO2

: To Avoid Accident Avoid contact with liquid and solid. Provide self-contained breathing in exclusive high CO2 area. Wear face cover to protect from liquid and solid. Operate machine at certain degree of compressor. Supplier Inox Baroda & Bombay. Isolate Plant Usage as per quantity produced.

Oil : Isolate plant. Supplier IOC.

OBJECTIVE-6 : To find out how company sell of outdated or slow moving merchandise.
Sell this products to Wine merchants. Some time destroy it.

OBJECTIVE-7 : To find out which material company outsourced and why not it produces on its own. Briquette
Water Empty Bottles

OBJECTIVE-8 : To find out security system to ensure that No stock is going out the back door.

ENG Issue slip (Engineering Material) PRD Issue slip (Production Material) LAB Issue slip LAB Material) Store Check in slip RGP (Return Gate Pass) NRGP (Non Return Gate Pass)

OBJECTIVE-9 : To find out how long it will take for delivery by the supplier.
As per requirement, within the day or for long rout 2-3 days. If not provided on time on regular basis, Company block vendor code.

OBJECTIVE-10 : Analysis of the operating cycle of the company.

Operating Ratio It is required to found to know how fast company operate its money in following things, RM Conversion Period : During 2008-2009 the requirement of these type of material is high. WIP Conversion Period : During 2008-2009 these type of material requirement is high as compare to previous year. Finish Goods Conversion Period : During 2008-2009 sales of the company is good and appears less than previous year. Debtors Collection Period : In 2008-09 company receives its collection more fast than previous year, it seems good for the company. Creditors Collection Period : Company receives more credit from suppliers so it can use the credit period to invest that money in another assets.

Inventory to Working Capital Ratio :


Indicates the part of Inventory in Working Capital
It is good to raise Inventorys part in Working capital as

compare to previous year.

Stock Turnover Ratio :


It shows the rotation of the inventory over sales.
Stock of inventory is increase in 2008-09, it means stock is

idol in store department.

Inventory to Sales Ratio :


It shows relationship between sales and inventory.
It saws the velocity of conversion stock into sales. In 2008-09 the ratio decrease it mean the stock is idol in the

store department.

Inventory to Current Assets Ratio :


It is concerned with current assets and inventory. If ratio is high it means inventorys part in current assets is

high. In 2008-09 the ratio increase as compare to previous year.

The less you rely on human intervention to identify items, input information, and track data, the more timely and accurate your records will be. Company having nice security system as it keep records of all issued materials. And apply ABC classification system. Company manage its difference of projected sales and actual sales as safety stock for future demand at warehouse. Company have separate plant for vital materials like Oil and CO2 and maintain safe and healthy organizational environment.

Some times company sell of out dated finished goods to the wine merchants, and sometimes it destroyed the material. Company outsourced Empty bottles and Briquette materials rather to produce it internally to save time and investment. For the verification company use First in First out method for long term and Weighted Average method for short term verification. The management of finished goods material is done tremendously by storing it next to the loading area, which materials are loaded for the sale. From the calculation of the Operating Cycle it is found that companys operating cycle is reduce which is good for the company.

It will be helpful to understand the theoretical aspects of the topic. The report is also showing companys requirement of the different inventory in the last 3 years. It will be helpful in analysing past performance of the companys inventory management.

Company should invest some amount for Research and Development to find out the cheapest techniques to manufacture outsourced materials. Company should also try to calculate the requirement of material by Economic Order Quantity. Company should try to store their raw material at the same place rather different place to save the time and for the optimum use of the space. Operating Cycle of the company is improve as compare to previous year but it is not consistent so company should maintain consistency.

My experience was nice during last one and half months study at PepsiCo. In the academic period we study the theoretical aspects of the inventory management, but here I got practical aspect of the inventory management. conclusion is that, the company manage its inventory in proper manner and practice its inventory management successfully. The companys financial position is also good.

Since the PepsiCo India Holdings Pvt. Ltd is the multinational company it does not have public shares and it is also not listed in Indian stock market, so it has not provided any financial data. The data required to calculate Operating Cycle are collected from the colloquial conversation while I was undertaking training. The data are collected from various concerned departments. All the data and its interpretations are based on approx figures.

FINANCIAL MANAGEMENT
I.

M. Pandey P. K. Jain & M.Y. Khan

ESSENTIALS OF INVENTORY MANAGEMENT


Max

Muller

www.pepsico.com