Chapter I

1 INTRODUCTION

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COCA-, the product that has been given the its best-known taste was born in Atlanta, , on May 8, 1886. COCA-COLA Company is the world’s leading manufacturer, marketer and distributor of non-alcoholic beverage concentrates and syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates and syrups to bottling and canning operators, distributors, fountain wholesalers. The company’s beverage products comprises of bottled and canned soft drinks as well as concentrates, syrups and not- ready-to-drink powder products. In addition to this, it also produces and markets sports drink, tea and coffee. The COCA-COLA Company began building its global network in the 1920s. Now operating in more than 200 countries and producing nearly 400 brands, the COCA-COLA system has successfully applied a simple formula on a global scale:” provide a moment of refreshment for a small amount of money-a billion times a day”.

The COCA-COLA Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. More than anything, that system is dedicated to people working long and hard to sell the products manufactured by the company. This unique worldwide system has made the COCA-COLA Company the world’s premier soft-drink enterprises. For more than 115 years, COCA-COLA has created a special moment of pleasure for hundreds of millions of people every day.

The company aims at increasing shareowner value over time. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services, thus increasing brand equity on a global basis. They aim at managing their business well with people who are strongly committed to the company values and culture and providing an appropriately controlled environment, to meet business goals and objectives. The associates of this company jointly take responsibility to ensure compliance with the framework of policies and protect the company’s assets and resources whilst limiting business risks.

2 COMPANY PROFILE

ABOUT THE COMPANY

COCA-COLA was the leading brand in India until 1997, when it left rather than reveals its formula to the Government and reduces its equity stake as required under the foreign regulation Act (FERA) which governed the operations of foreign companies in India. COCA-COLA reentered the Indian market on 26th October 1993 after a gap of 16 years, with its launch in Agra. An agreement with Parle group gave the company instant ownership of the top soft drink brands of the nation. With access to 53 of Parle’s plants and a well set bottling network, an excellent base for rapid introduction of the company’s international brands was formed. The COCA-COLA company acquired soft drink brands like Thumps-up, Gold spot, , Mazza, which were floated by Parle, as these products had achieved a strong consumer base and formed a strong brand image in Indian market during the re-entry of COCA-COLA in 1993.Thus these products became a part of range of products of the COCA-COLA company. In the new liberalized and deregulated environment in 1993, COCA-COLA made its re-entry into India through its 100% owned subsidiary, HCCBPL , the Indian bottling arm of the COCA-COLA company. However this was based on numerous commitments and stipulations which the company agreed to implement in due course. On such major commitment was that, the Hindustan COCA-COLA Holdings would invest $5 billion in India from 2012 to 2020 to capture the Indian market. COCA-COLA is made up of 7000 local employees, 500 managers, over 60 location, 27 companies owned bottling operation (COBO), 17 Franchisee Owned Bottling Operations (FOBO) and a network of 29 contract packers that facilitate the manufacture process of a range of products for the company. It also has a supporting distribution network consisting of 15, 00,000 retail outlets and 15000 distributors. Almost all goods and services required to cater to the Indian market are made locally, with help of technology and skills within the company. “Think local, act local”, was the mantra that COCA-COLA follows, with punch lines like “Life has to aisi” for the urban India and “Thanda matlab COCA-COLA” for the Rural India. The resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban India between 2011 and 2012, the per capita consumption of cold drinks doubled due to the launch of the new packaging of the 200 ml returnable glass bottles which were made available at price

3 of Rs.10 per bottle. This new market accounted for over 80% of India’s new COCA-COLA drinkers. At COCA-COLA, they have a long standing belief that everyone who touches their business should benefit, thereby including them to upload these values, enabling the company to achieve success, recognition and loyalty worldwide.

Past and Present 1894 .A modest start for a bold idea In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called COCA-COLA to sell using a common glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs Candler, who owned the company. Candler thanked him but took no action. One of his nephew’s already had urged that COCA-COLA be bottled, but Candler focused on fountain sales. 1899 . The first bottling agreement Two young attorneys from Chattanooga, Tennessee believed they could build a business around bottling COCA-COLA. In a meeting with Candler, Benjamin F.Thomas and Joseph B. Whitehead obtained exclusive rights to bottle COCA-COLA across most of the United States (specifically excluding Vicksburg) for the sum of one Dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their venture.

1900-1909…. Rapid Growth The three pioneer bottlers divided the country into territories and sold bottling rights to local entrepreneurs. Their efforts were boosted by major progress in bottling technology, which improved efficiency and product quality by 1909, nearly 400 COCA-COLA bottling plants were operating. Most of them family-owned business. Some were open only during hot- weather months. 1916 Birth of the contour bottle Bottlers worried that the straight-sided bottle for Coca-Cola was easily confused with imitators. A group representing the Company and bottlers asked glass manufacturers to offer ideas for a distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won enthusiastic approval in 1915 and was introduced in 1916. The contour bottle became one of the few packages ever granted trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the world - even in the dark!

4 1920s … Bottling overtakes fountain sales As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge after their 1923 introduction. A few years later, open-top metal coolers became the forerunners of automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.

1920s and 30s … International expansion Led by longtime Company leader Robert W. Woodruff, chief executive officer and chairman of the Board, the Company began a major push to establish bottling operations outside the U.S. Plants were opened in , Guatemala, Honduras, Mexico, , Italy, Peru, , and South Africa. By the time World War II began, Coca-Cola was being bottled in 44 countries.

1940s … Post-war growth During the war, 64 bottling plants were set up around the world to supply the troops. This followed an urgent request for bottling equipment and materials from General Eisenhower's base in North Africa. Many of these war-time plants were later converted to civilian use, permanently enlarging the bottling system and accelerating the growth of the Company's worldwide business.

1950s … Packaging innovations For the first time, consumers had choices of Coca-Cola package size and type the traditional 6.5-ounce contour bottle, or larger servings including 10-, 12- and 26-ounce versions. Cans were also introduced, becoming generally available in 1960.

1960s … New brands introduced Following ® in the 1950s, ®, ®, ® and ® joined brand Coca-Cola in the 1960s. Mr. Pibb® and ® were added in the 1970s. The 1980s brought ® and Cherry Coke®, followed by ® and ® in the 1990s. Today hundreds of other brands are offered to meet consumer preferences in local markets around the world.

1970s and 80s … Consolidation to serve customers As technology led to a global economy, the retailers who sold Coca-Cola merged and evolved into international mega-chains. Such customers required a new approach. In response, many small and medium-size bottlers consolidated to better serve giant international

5 customers. The Company encouraged and invested in a number of bottler consolidations to assure that its largest bottling partners would have capacity to lead the system in working with global retailers.

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in . And as the century closed, more than $1.5 billion was committed to new bottling facilities in Africa.

21st Century …

The Coca-Cola bottling system grew up with roots deeply planted in local communities. This heritage serves the Company well today as people seek brands that honor local identity and the distinctiveness of local markets. As was true a century ago, strong locally based relationships between Coca-Cola bottlers, customers and communities are the foundation on which the entire business grows.

Hindustan COCA-COLA Beverage Pvt. Ltd, Khordha Plant

Company Overview:-

Hindustan COCA-COLA Beverage Pvt. Ltd. Khordha. It is one of the bottling plants of “COCA-COLA “under the Khordha plant there is another bottling plant in Rourkela, where only RGB production happens. HCCBPL, Khordha plant was established in the year 2000 under the authority of COCA-COLA, India. This plant is the 3rd largest plant after Ahmadabad and Rurki in term of production of finished goods. The production plant is situated in Khordha Industrial Estate, where the production and distribution work are done. Both Odisha and Jharkhand zone come under this region. Jharkhand is fully depending on Khordha plant because no production plant is there.

So from Khordha plant, goods are sent to distributor in two ways, one is from directly from its plant and another is through its Depot. Because to the long distance route they are sending to their depot. Mainly Khordha plant has 6 locations for Odisha region for distribution and production and 4 locations for Jharkhand for only distribution.

6 In HCCBPL, Khordha there are 5 production lines which are presently operating.

These are

1. Krones 600 BPM

2. MZ RGB 600 BPM

3. CSD 600 BPM

4. PET 140 BPM

5. WTR 75 BPM

Proposed expansion plan is about the inventory management of all these which is the subject of my study. These are the list of manufacturing plant and depot of Khordha division:-

ODISHA

F1- Khordha: - In this plant production as well as distribution of finished goods to distributors does. F2- Rourkela (Direct Depto): - It is one of the depots of HCCBPL, Khordha where goods are directly distributed by the company to the retailer. F3- Rourkela (Indirect Depto):- From here goods are sending to the distributor point. F4- Mancheswar (Direct Depto):- From here goods are sending from the F1 plant and distributed to the retailer. F5- Bhawanipatana: - This is same like all indirect depots, goods are sending from Khordha plant to here and from there goods are sending to the distributor point. F7- (Rourkela CO-pack):- It is one of the RGB bottling plants of HCCBPL, Khordha. Here production happens and finished goods are sending to the F2 and F3 location. JHARKHAND X4- Jamshedpur: - From the F1 location goods are send here and dispatch to the distributor. X6- Deogarh: - This is also same as X4 depot. X8- Ranchi (Direct Depto):- Goods are sending from F1 location to here and distributed to directly retailer. X9- Ranchi (Indirect Depto):- Goods are sending from F1 location to here and distributed to distributor.

7 Products

8 3C Report

Company Profile: The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups , which is headquartered in Atlanta, Georgia..[2] The company is best known for its flagship product Coca-Cola invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca- Cola Company in 1892. The company operates a franchise distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments.

Its stock is listed on the NYSE and is part of DJIA S&P 500 index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. As of 2015, its chairman and CEO is Muhtar Kent.

The Customer: At Coca-Cola , customers are at the heart of coca-cola. Customer preference is a core value of the business. This means building true partnerships that create sustainable value and profitable growth for the business and the customers across all key channels. By finding new ways to win together in the marketplace, coca-cola aim to be the preferred supplier to all of the customers.coca-cola target to the whole crowed.its taget to the rich to the poor.its not only adopted by rich it also reach to the pood with its small size bottle. Mass generation adopt coca cola.

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Company Profile: The Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups , which is headquartered in Atlanta, Georgia..[2] The company is best known for its flagship product Coca-Cola invented in 1886 by pharmacist John Stith Pemberton in Columbus, Georgia.[3] The Coca-Cola formula and brand was bought in 1889 by Asa Griggs Candler (December 30, 1851 – March 12, 1929), who incorporated The Coca-Cola Company in 1892. The company operates a franchise distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca- Cola Company owns its anchor bottler in North America, Coca-Cola Refreshments.

Its stock is listed on the NYSE and is part of DJIA S&P 500 index, the Russell 1000 Index and the Russell 1000 Growth Stock Index. As of 2015, its chairman and CEO is Muhtar Kent. products.

The Customer: At Coca-Cola , customers are at the heart of coca-cola. Customer preference is a core value of the business. This means building true partnerships that create sustainable value and profitable growth for the business and the customers across all key channels. By finding new ways to win together in the marketplace, coca-cola aim to be the preferred supplier to all of the customers.coca-cola target to the whole crowed.its taget to the rich to the poor.its not only adopted by rich it also reach to the pood with its small size bottle. Mass generation adopt coca cola.

The Competitors: The main compititors of coca-cola are

PepsiCO

Godrej Beverage

Parle Agro

Mother dairy

Ladakh Foods

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