ABSTRACT

The Project work Entitled Organisational study at Podaran Foods

India Private limited clearly emphasis the functions of various operational departments
within the organisation. It provides intense industrial knowledge and a vivid learning
exposure right from production process of soft drinks, human resource management,
logistics, logistics, marketing, packaging and labelling and other financial aspects. The study
further analyzed the organisations strengths and areas to be improvised.

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 CHAPTER I

COMPANY PROFILE

Podaran Foods India Private limited was founded by Mr.M.K.Podaran. The

Company was established in the year 1969. Mr. P. Suresh Kumar acts an executive director.
The company entered into partnership agreement as on 1st April 2011, there were six partners
namely as M. K. Podaran, Mr. K. Subramani, SMT. P. Annakkodi, SMT.S. Selvi, Mr. P.
Suresh Kumar and Mr. S. Gopal. Our director also participated in Yi Erode Chapter
Activities for the month of April 2013. An Environmental Safety Mission to Kudankulam
Nuclear Power Plant (2 X 1000 MW) 19th April 2013.

1.1 MISSION

We create value by Providing private brand fruit and beverage solutions for our
customers through best-in-category market responsiveness and service while continually
improving execution in all areas of our operation.

1.2 VISION

We will continue to develop our private brand capabilities and build relationships with
customers and employees that create value over the long term. This will enable us to

1. Maximise the success of our core business

2. Grow by expanding into complementary private brand channels and product lines
where we can add superior value.

Fig 1.1 Podaran Soft Drinks

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 The Company was accredited by FPO-1148, FSSA and it was affiliated with
CII. The Entire financial transactions were deals with KVB, ICICI and the books of accounts
were duly audited by Mr.C.A.Selva Raj. The total capital employed was around 3 crores.

1.3 SOCIAL RESPONSIBILITY

The company was excellent enough in performing several CSE initiatives. Few of
them were “Tree Plantation” in joining hands with “THALIRGAL”. Thalirgal is a plants
nursery in Selaiyur, Chennai. The Objective of this nursery is to plant 1 Crore trees in and
around Tamil nadu, to generate awareness among general public for hygienic environment as
well as to generate awareness among farmers regarding “Iyarkkai Vaellanmai”.

Fig 1.2 Social Responsibilities

1.4 PRODUCTS

The main products manufactured by the concern were fruit juices and soft drinks in both
glass and PET bottles with wide flavours range from 200ml to 1500 ml. The products are

 Mango  Apple
 Green  Lime
 Cola  Guava

Fig. 1.3 Types of Soft Drinks

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 CHAPTER II

OBJECTIVE OF THE STUDY

To gain a practical learning experience from this organisational study in

aspects of managerial responsibilities and roles of top executives, internals functioning of all
the operational departments in terms of HR policies, financial performance, production
process, R & D and despatch activities.

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 CHAPTER III

INDUSTRY PROFILE

Fig 3.1 Beverage Storage

3.1 HISTORY

The first carbonated drink originated in 17th century. The first marketed soft drinks
in the western world appeared in the 17th century. They were made of water and lemon juice
sweetened with honey. In 1676, the compagnie des Lemonades’ of Paris was granted a
monopoly for the sales of lemonade soft drinks. Vendors carried tanks of lemonade on their
backs and dispensed cups of the soft drinks to thirsty Parisians.

In the late 18th century, scientists made important progress in replicating naturally
carbonated mineral waters. In 1767, Englishman Joseph first discovered a method of infusing
water with carbon di oxide to make carbonated water. When he suspended a bowl of distilled
water above a beer vat at a local brewery in Leeds, England. His invention of carbonated
water (also known as soda water) is the major and defining component of most soft drinks.

Priestley found that water treated in this manner had a pleasant taste, and he
offered it to friends as a refreshing drink. In 1772, Priestley published a paper entitled
Impregnating Water with fixed air in which he describes dripping oil of vitriol (or sulphuric
acid as it is now called onto chalk to produce carbon dioxide gas, and encouraging the gas to
dissolve into an agitated bowl of water.

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 Another Englishman, John Mervin Nooth, improved Priestley’s design and sold his
apparatus for commercial use in pharmacies. Swedish chemist Torbern Bergman invented a
generating apparatus that made carbonated water from chalk by the use of sulphuric acid.
Bergman’s apparatus allowed imitation mineral water to be produced in large amounts.
Swedish Chemist Jons Jacob Berzelius started to add flavours (spices, juices and wine) to
carbonated water in the late eighteenth century.

3.2 SOFT DRINKS MARKETS

Soft drinks industry is purely in a perfectly competitive market. Great

employment opportunities in this industry due to 70% growth every year. Government
provide 25% subsidy to fruit juices on machinery. Government impose tax 5% for fruit Juices
and 12% for beverages. Climatic change is considered as a major barrier. Major Players in
this industry were coke and Pepsi.

Fig 3.2 Industry Share

3.3 INDUSTRIAL GROWTH

The beverage industry is a shifting landscape as volume leading categories such as

soft drinks continue to lose volume versus prior year ( -3.5% in 2009 according to A.C
Nielsen ) while functional and health and wellness oriented categories enjoy strong volume
growth. Functional beverages continue to be the hottest segment in beverage.

Market research firm Zenith International estimates global per capita consumption
of functional beverages will increase 25% from 2010 to 2013, roughly from 5.5 litres per
person to 6.9 litres. Industry giants Coca Cola (www.coke.com) and pepsi
(www.pepsico.com) continue to diversify their portfolios, as evidenced with coke’s

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acquisitions involving Glaceau’s Vitamin water and its recent investment in Zico Coconut
Water.

Once you have identified beverage manufacturers that can support the filling
processes, packaging and closures required for your beverage product, the next important
factor to take into account is location. Choosing a beverage manufacture that is
geographically convenient for your distribution network is important. In some instances,
there may not be a contract manufacturing facility within your immediate geography. In this
case, you will need to find shipping companies and inventory options to transport and store
your product. Sourcing beverage manufacturing plants, solving logistics issues, identifying
freight operators and storage facilities are services Power Branks provides on a regular basis.
We specialise in U.S beverage manufacturing but also experience locating co-packers in
international markets should this be required for your project.

3.4 POWER BRANDS WITH PRIVATE LABEL

Power Brands has worked with countless beverage manufactures as well as

international co-packers and have an extensive list of beverage manufacturing plants that we
have worked with. They can easily helps to identify the beverage manufacturer that will best
serve our new product.

Every day Power Branks helps a broad range of clients, from individuals to
multinational companies, get into or succeed in the beverage business. From private label
beverages to the latest consumer trend, alcoholic beverages as well as soft drinks and
functional beverages, Power Brands has helped countless beverage companies breathe life
into their ideas.

To be successful in the drink business we need a great idea and great

execution. It helps to have access to industry knowledge and expertise to help you avoid the
common pitfalls along the way that can cost you both time and money. Power Brands has an
in-house staff dedicated to making sure your drink business has every opportunity for
success.

A “Private label” beverage brand is owned by a retailer who wishes to

participate in a robust category with their line of beverages produced at beverage
manufacturing facilities. Historically, Private label brands have been perceived as “me-too”

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value oriented brands which offer lower quality but better prices than “Name Brands”. This
perception has evolved over the years as private label offerings have significantly improved
in quality and consumer satisfaction.

Private label permeates virtually every beverage category in the United States.
Private label beverages also known as store or home brands, can now be found in the largest
and the smallest of beverage categories. Although carbonated soft drinks remain popular, as
the market has evolved and consumer tastes have shifted, retailers in private label have
moved into more non-carbonated products, like bottled water and fruit beverages, as
chronicled in the latest edition of Beverage Marketing Corporation’s Private Label Beverages
and Contract Packing in the U.S report.

Private label carbonated soft drinks, private label milk, private label bottled
water and private label juices are considered prime categories for private label beverages.
Branded products like coke, Pepsi and Dr. Pepper still dominate the industry, but the vast size
of the carbonated soft drink category has created an opportunity for private label brands,
which are typically purchased by value-conscious consumers. For the most part, the branded
company leaders have done an effective job at blunting further inroads of private label
through strong marketing of their products, gaining widespread distribution, and pricing their
products so that they are attractive to the mass market.

The Strength of brands like Coca-Cola, Pepsi, and Red Bull ensure that retailers
struggle to gain a strong foothold in the lucrative carbonated and energy drink sectors.
Additionally, the Higher Market share of flavoured milk brands compared to whole milk
highlights that any product category where companies have to concoct their own formulas to
create a unique taste, offers an advantage to national brands over private label. While
Consumers may not be as brand loyal 0with bottled water as they are with some other
categories, there are a wide number of branded waters that are experiencing solid success in
the market. The Success of brands varies by water type. Waters that often serve as substitutes
for tap water, such as so –called retail bulk water in large packages, tend to have the greatest
amount of private label. In 2007, 42.5% of retail bulk water sales in supermarkets were
private label.

Private label juice is solidly represented within the United States. The category
is more fragmented than other established categories, thus providing an opportunity for

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private label because consumers may be less brand-loyal. In 2007, 14.4% of shelf-stable fruit
beverage sales in supermarkets were accounted for by private label.

Once again, it is category segment that lacks significant differentiation that

offers solid returns for retailers. The branded leaders in the category have managed to
withstand private label by strong branding and marketing which in the bottled water sector,
often revolves around packaging that stands out and a promotional focus on the purity of their
product. It is also notable that like milk, branded products have great strength in the flavoured
water sector. A private label brand can help retailers take advantage of a robust industry
segment with a high quality product that suits its customers’ needs.

Fig 3.3 Podaran Label

Power Brands is an industry leader in private label beverage development for

private label drink, private label bottling and any other service that may be needed to create
your very own private label beverage. We can help design your label, assist in branding,
provide a custom formulation, and find the right contract manufacturer to suit your needs.

3.5 BEVERAGE FORMULATION

Beverage Formulation is a fairly complex process that requires a team of highly

skilled technicians to complete successfully. With processing variables and many ingredients
to consider, formulating unique and relevant beverages is a blend of art and science. A
Beverage formulation can consist of a blend of flavours, sweeteners, acidifiers, emulsifiers,

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colours, Nutraceuticals, botanicals, preservatives and many other types of beverage
ingredients. A trained professional should always under take this process.

Beverage flavours can be very volatile and its important to understand how they
will react in different bases. Nutraceuticals, which are now a very important part of beverage
formulation, are also very unstable if used incorrectly, it is important to know how each one
will react to other ingredients. Making sure the shelf life is sufficient to sustain a profitable
supply chain is also a very important factor hence the importance of understanding the
preservative process. There are obviously many other factors involved in beverage
formulation.

Power Brands has an extensive array of ingredients and equipment as well as

highly experienced and knowledgeable food scientists specializing in drink formulation. We
create custom formulas based on your specifications. Once a drink formula is finalized our
beverage industry experts will guide you through the final stages of beverage label
development and also setup your beverage formulation for mass production.

3.6 BEVERAGE FLAVOURS

A new drink can be developed by using natural beverage flavours, organic

beverage flavours and artificial beverage flavours or very often any combination of these
varieties of beverage flavours. The classification of these types of beverage flavours is
determined based on how the flavour is derived.

Natural flavours are preparations or single substances obtained exclusively by

physical processes from fruit and vegetable or sometimes animal materials either in their
natural state or naturally isolated from the natural ingredient. Natural drink flavours are
becoming more popular in the United States and across the globe as the trend towards natural
food and beverage continues to grow rapidly. Organic flavours are produced in a similar
fashion to natural flavours but follow a very strict processing procedure and only use organic
materials. Artificial flavours are substances chemically identical to substances found in
nature. Here are some of the types of ingredients that are used to compliment the above
mentioned beverage flavour systems.

A Flavour Enhancer is an ingredient that has little or no taste or smell on its

own in a standard dose, but which can compliment enhance, r otherwise modify the flavour

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of a beverage. This may take the form of a flavour modifier or a flavour potentiator. Flavour
Modifier is a substance that enhances suppresses or otherwise changes a drinks flavour’s
Flavour Potentiate can increase the perceived intensity of the flavour of another substance.

Flavouring Oils can be used to achieve a pleasing and authentic fruit flavour in
a water- based beverage, manufactures often use flavouring oils derived from citrus fruits
such as oranges, lemons or limes. Theses flavouring oils are very concentrated, and must be
balanced out with sweeteners before they are palatable. Masking agents can be added to hide
an off-taste in products that can often include ingredients such as soy, vitamins, herbs or a
number of Nutraceuticals ingredients. Flavour modifying agents can be used to make unusual
ingredients palatable-removing bitterness, for Example. With Myriad beverage flavour
options it is very important to work with an experienced team of beverage experts.

3.7 OTHER KEY CONSIDERATIONS

Other key considerations are the contract manufacturing fees charged by the
beverage production company to run your product and the geographic location of the facility.
If you wish to distribute your brand in the Northeast but the only facility that can run your
product is located in Southern California, then you need to account for the freight expense of
raw materials as well as finished product.

3.7.1 BEVERAGE EQUIPMENT

Owing beverage equipment does play a very important role in the success of
many beverage companies but it’s the type of company and the stage that the company is in
that must be looked at very carefully, Beverage equipment is very expensive at the best of
times and downright outrageous sometimes, costing millions of dollars for vey basic
beverage equipment. It is so expensive because it is highly specialized and also because high
quality beverage equipment is built to last under extremely demanding conditions. Many
beverage facilities will run 24 hours a day 7 days a week and this puts tremendous strain on
the beverage equipment.

Along with the cost of the beverage equipment there are the installation costs as
well as the costs of owning or renting the large facilities that will house all of your beverage
equipment. For most beverage brands it makes much more sense to start their beverage

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brands first and create a decent revenue stream before considering buying beverage
equipment.

There are many contract manufacturers that can produce your new beverage
brand for you at reasonable price while you build your business. Power Brands utilizes these
types of companies to manufacture beverages all across North America, Europe, Asia and
other parts of the world.

However if you are already established or beverage equipment is essential to

your business plan, Power Brands can assist you with the process of sourcing, Purchasing and
installing the beverage equipment that you will need to run your company.

3.7.2 BEVERAGE DEVELOPMENT

Food and beverage development is the innovative engine which fuels category
growth and ensures manufacturers are responsive to consumer needs and provide products
that must meet these needs. Beverage developers looking to succeed in the beverage industry
will need to focus their efforts on distinguishing their product from existing category
offerings. The most important thing to consider when you are thinking about developing a
beverage is creating an identity, also known as a branding. Before you start creating your
brand you need to identify your target demographic. Once you know who you are looking to
target you will be able to better develop a beverage that will connect and speak to consumers
in your target demographic. Your target demographic may dictate everything from design to
flavour. Understanding who you are selling to is the first step in successful beverage
development. Once you have a target demographic you will essentially build your brand
around your target. For many people food and beverage development and branding can be an
elusive field but it can be an essential part of beverage development and marketing.

3.7.3 BRANDING

To develop a beverage the company need to not only create a flavour and a name
you need to create a brand, a brand that connects with their target demographic. Once the
company have come up with their branding, their product’s personality, and think of some
things that would be in alignment with their products personality. Conversely also consider
what might be out of character for their brand, in other words what wouldn’t it do. Once they
have decided on their brands personality, promote it and never waiver from their core.

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3.7.4 COLOR

Choose colours that communicate the benefits of your brand. In Example, if your
brand is natural or organic you may want to feature shades of green and earth tones; if your
brand is energizing you may want to feature bold bright colours; if your brand has a berry
flavour use colours that people associate with berry. Colour is not only an effective way to set
your product apart from the completion but also a way to communicate your brand’s benefits.

3.7.5 SHAPE

Uniquely shaped beverage packaging is a great way to have your brand stand apart
from the competition. Packaging with a distinct shape has a certain quality that makes you
want to pick it up and play with it.

3.7.6 ARTWORK

Power Brands employs a full time beverage package design team with the expertise
needed to create high quality designs that are eye catching and will engage consumers. We
can help you develop a unique and memorable brand with a package that sets your beverage
apart.

3.8 BEVERAGE MARKETING

“Beverage Marketing” is a broad term which can encompass a company’s efforts to

communicate key brand attributes to target consumers, a promotional strategy to engage
consumers, incentive programs for distributors or retailers, joint co-operative marketing
campaigns with complementary brands to add consumer value, among myriad other
objectives, strategies and tactics. For most entrepreneurs and beverage companies, it is
important to understand the distinction between two key functional areas of beverage
marketing: consumer marketing and channel marketing. It is also important to understand a
smart spend of marketing budget resources versus wasteful spending on efforts that do not
support or achieve brand objectives.

3.8.1 CONSUMER MARKETING

Classic consumer beverage marketing can be defined as activities undertaken by

the company to reach the brand’s end consumer. This can include sampling campaigns,

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Public relations efforts, Radio or television campaigns, print ads, internet activation and co-
marketing efforts. Consumer marketing strategies and tactics are often perceived as the
“Core” part of brand management and many entrepreneurs and small companies are eager to
allocate funds in this area. New brand owners will often find themselves inundated with
offers and opportunities from vendors looking for promotional dollars. As a brand owner you
must be able to evaluate these opportunities and determine which are good investments of
marketing dollars are and which are wasteful.

3.8.2 CHANNEL MARKETING

Beverage marketing to the retail trade, as opposed to the end consumer, is the
essence of channel marketing. This is an often overlooked or under-prioritized part of a
company’s beverage marketing strategy. Channel marketing is important as it can strengthen
a beverage brand’s relationship with key retail partners. An effective channel marketing
campaign can ensure a brand benefits from incremental merchandising activity and in-store
awareness, reaching consumers where it matters most: when they are in a position to
purchase the beverage.

3.9 CORPORATE GOVERNANCE

Clearly structured and practised corporate governance forms the basis of all our
decision and control processes and thus enjoys the highest priority. It represents the long-term
and success-oriented management and control of our company by assuming responsibility
and respecting our company values. These values are firmly anchored in our fundamentals
which constitute the guideline of our daily work and which form the basis for our personnel
management.

We are fully aware of the impact of our decision and therefore act responsibly,
transparently and with sustainability in mind. Dealing with risks is appropriate and always in
the interest of the company. A Targeted and efficient co-operation between Supervisory
Board and Executive Board is part of our corporate governance.

3.9.1 SUPERVISORY BOARD

The Supervisory Board advises and monitors the Executive Board in the
management of the business and is constantly informed by the Executive Board on issues
involved in business development. The five members of the supervisory Board are made up

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of members of the owner family and in the majority of experienced personalities from
industry and commerce. The interests of the company are clearly the focus of the control and
monitoring activities by the Supervisory Board.

3.9.2 EXECUTIVE BOARD

The Executive Board is as the management body, obligated to achieving a

sustained, positive development of the company. It consists of six members who share
responsibility for the company’s strategic approaches and their implementation.

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 CHAPTER IV

ORGANISATIONAL CHART

MANAGING
DIRECTOR

GENERAL
MANAGER

HR FINANCE & R&D

PRODUCTION MARKETING DESPATCH
MANAGER ACCOUNTS CHIEF
MANAGER MANAGER MANAGER
MANAGER

ASSISTANT WORKERS
REQUISITION ASSISTANT DRIVERS
SALES CHIEF
OFFICER ANALYST
MANAGER ACCOUNT
ANT
HELPERS
SUPERVISOR SALES
OFFICER
CLERKS
TECHNICIAN
& DISTRIBUTOR
OPERATORS

WORKERS STORE
KEEPER

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 CHAPTER V

FUNCTIONAL DEPARTMENTS

The Functional Departments includes

 HR Department
 MARKETING Department
 PRODUCTION Department
 FINANCE Department
 R & D Department
 DESPATCH Department

5.1 HUMAN RESOURCE DEPARTMENT

The division of a company that is focused on activities relating to

employees. These activities normally include recruiting and hiring of new employees,
orientation and training of current employees, employee benefits and retention. Formerly
called personnel. Initially Mr. Ponnusamy acts as HR Manager and now Mr. Suresh Kumar
as HR Manager. There were around 700 employees working in this concern and 300
employees in this particular unit. Employees are provided with casual leave for five to seven
days and medical leave if needed. Supervisors are recruited based on their educational
qualification. Labours are not in need of educational qualification but they are provided with
the on-job training for three months. Working time starts from 9.00 A.M to 6.00 P.M. Wage
and salary policies involves

 Workers – Rs.7, 500 / Month

 Accountant – Rs.10, 000 / Month

5.1.1 FACTORIES ACT 1881

The company was registered under factories act 1881 to provide health and
safety measures to workers. It was passed with the intention of safeguarding the health of
workers. It extended the age limits for the medical examination of persons entering factory
employment, while also including male workers in the regulations for providing seats and
issuing extensive new building regulations with good infrastructure and recreational facilities.

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5.1.2 HUMAN RESOURCE DEPARTMENT CARRIES OUT THE
FOLLOWING FUNCTIONS

1.) MANPOWER PLANNING

It involves the planning for the future and finding out how many employees
will be needed in the future by the business and what types of skills should they possess.

It depends on the following factors

 The number of people leaving the job

 The Projected growth in sales of the business
 Technological changes
 Productivity level of the workers

2.) JOB ANALYSIS AND JOB DESCRIPTION

HR Department is also involved in designing the job analysis and job description
for the prospective vacancies. A Job Analysis is the process used to collect information about
the duties, responsibilities, necessary skills, outcomes, and work environment of a particular
job. Job Description are written statements that describe the

 Duties
 Responsibilities
 Most important contributions and outcomes needed from a position,
 Required qualification of candidates and
 Reporting relationship and co-workers of a particular job.

3.) DETERMINING WAGES AND SALARIES

HR Department is also involved in conducting market surveys and determining

the wages and salaries for different position in an organisation. This decision may be taken in
consultation with top management and the Finance department.

4.) RECRUITMENT AND SELECTION

One of the most important jobs HR departments is to recruit the best people for
the organisation. This is of crucial importance as the success of any organisation depends on

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the quality of its workforce. Details regarding the recruitment and selection procedure can be
found here.

5.) PERFORMANCE APPRAISAL

Once the employees are recruited, the HR Department has to review their
performance on a regular basis through proper performance appraisals.

Performance Appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the performance appraisal
is measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.

On the basis of performance appraisal the HR Department will set up an action

plan for each employee. If the employees need any training then HR provide that.

6.) TRAINING AND DEVELOPMENT

HR Department is constantly keeping a watch over the employees of the

organisation. In order to improve the efficiency level of the employees they have go undergo
regular trainings and development programmes. All trainings and development needs are
carried out by this department. Training might include on the job or Off the Job training. Find
more information on training here.

7.) EMPLOYEE WELFARE AND MOTIVATION

Happy employees mean a healthy organisation. Hr Department conducts various

employee welfare activities which might include employee get together, annual staff parties
etc.

HR Department also reviews organizational policies and its impact on the

motivation of the employees.

8.) ADDRESSING EMPLOYEE’S GRIEVANCES

HR Department is the link between the workers and the management. Employee’s
grievances related work environment are usually entertained and resolved by the HR
Department.

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9.) LABOUR MANAGEMENT RELATIONS

For Smooth operation of any organization, it is crucial to have good labour

management relations. HR department has to ensure that these relations are cordial. In case of
any labour-management conflict the HR Department will play a vital role in bringing both
management parties to the negotiation table and resolving the issue.

10.) IMPLEMENTING ORGANIZATIONAL POLICIES

HR Department has to co-ordinate with line manager and sees that organizational
policies are being implemented in a proper manner. Disciplinary action can be initiated
against employees who are not following organizational rules and regulations. All these
actions are conceived and implemented by the HR Department.

11.) DISMISSAL AND REDUNDANCY

HR Department has to take firm actions against employees who are not following
the organizational code of conduct, rules and regulations. This can result in the dismissal of
the employee.

Sometimes, an organisation may no more require the service of an employee. The Employee
may be made redundant. HR Department has to see that organizational and government
regulations are being followed in this process.

5.2 MARKETING DEPARTMENT

Marketing is the management process through which goods and services move
from concept to the customer. Marketing department was under the direct control of director.
Products marketed only to four states. Separate ASM (Area Sales Manager) has been
functioning in each states whose main function is to expand distributors network. Andhra was
No. 1 in beverage consumption. No other promotional methods were followed by the
company and its targets mainly on rural market. Standard pricing strategy has been adapted
and there have been no credit policies.

Functions of marketing include the co-ordination of four elements called 4 P’s of marketing:

 Identification, Selection and Development of a product

 Determination of its price

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  Selection of a distribution channel to reach the customer’s place and
 Development and Implementation of a promotional strategy

Director has a good knowledge of the customer. This means they build up an
accurate picture using the resources that are available. Directors gather information from
questionnaires, focus groups, the internet, interviews, buying habits and many more sources.
Gut feel can only take their business so far. The marketing mix includes all tangible elements
that allow marketing the soft drinks. This includes facilities, their employees, the product
itself, the cost strategy, the process of selling and how they promote and advertise. This
extent the marketing manager gets involved in these elements. A product focused
organisation will probably start with an idea for a new product, then try and determine who is
likely to buy it. A marketing focused business starts with the consumer and tried to figure out
what they want to buy. Some product focused businesses are very successful but it is
generally accepted that a marketing focus provides a greater chance of success. This company
focused on both aspects and created better chance of success.

The company maintains good CRM. Customer Relationship Management is the

process of communicating with customers throughout the various stages of the purchasing
process, and this includes people who have already bought from you. It is significantly easier
to hold on to an existing customer than it is to find new ones, but doing this requires all
elements of the marketing mix to be run well. The company has well designed BRAND
LOGO that it positions the products in the minds of target customers

Fig 5.1 Podaran Marketing Logo’s

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The company also underwent promotional activities of exhibiting their products in several
trade fairs.

Fig 5.2 Labelling Podaran Bottles

5.3 PRODUCTION DEPARTMENT

Production is a process of combining various material inputs and immaterial

inputs (Plans, Know – How) in order to make something for consumption (Output). It is the
act of creating output, a good or service which has value and contributes to the utility of
Individuals.

The company follows Continuous production system and the Machineries are
capital intensive with the capacity of 650 bottles per minute. Raw materials are purchased
only for cash. Machinery maintenance has been done once in a week by technicians and
operators. Random check was done in order to test quality. Special ETP tank has been
constructed for pollution control. The company has an expanded its production unit in
Andhra Pradesh (Chittoor).

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5.3.1 RAW MATERIAL REQUIREMENT AND SOURCE OF
PURCHASE

ITEM INDUSTRY / COMPANY

Sugar EID Parry Sugars India Limited , Pugalur

Fruit Pulp Krishnagiri

Apple Shimla

Bottles (Preform) Manjushree Advanced Packaging Solutions, Bangalore

1.) Huhtamaki PPL Limited, Hyderabad

Labels
2.) Kris Flexipacks Private Limited

1.) Closure System International

Caps
2.) Secure Industries Private Limited

Flavours Bangalore

CO2 Coimbatore

Water L & T, Tirupur

Table 5.1 Ingredients and its Sources

5.3.2 BEVERAGE CANNING

A Soft drink is a beverage that typically contains carbonated water, a sweetener

and flavouring. The Sweetener may be sugar, high-fructose corn syrup, fruit juice, sugar
substitutes (in case of diet drinks) or some combination of these. Soft drinks may also contain
caffeine, colourings, preservatives and other ingredients.

Soft drinks are called “Soft” in contrast to “hard drinks” (alcoholic beverages).
Small amounts of alcohol may be present in a soft drink, but the alcohol content must be less
than 0.55 of the total volume. Soft drinks may be served chilled or at room temperature.

Beverage canning typically starts with water being treated and cleaned to meet exacting
quality-control standards, usually exceeding the quality of the local water supply. This
process is critical to achieving a high quality beverage with a consistent taste profiles. The
treated water is piped into stainless-steel tanks of different sizes.

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 In the next stage various ingredients are added and mixed in batching tanks,
these are smaller holding tanks used to make syrup. The syrup can include ingredients such as
liquid sugars like fructose or sucrose, non-nutritive sweeteners such as aspartame or
saccharin, colour, flavours, Nutraceuticals, preservatives as well as a host of other ingredients
options. Once the syrup is ready it is pumped into much larger tanks where it is mixed with
more water to create a finished solution ready for packing.

If the product is going to be carbonated (absorption of carbon-di-oxide (CO2))

beverages are cooled using large, ammonia-based refrigeration systems. Carbonation is what
gives carbonated products their effervescence and texture. CO2 is stored in a liquid state and
piped into carbonation units as needed. This process can be manipulated to control the
required rate of beverage absorption. Depending upon the product, soft drinks may contain
from 15 to 75 psi of CO2. Fruit Flavoured soft drinks tend to have less carbonation than colas
or sparkling water. Once carbonated, the product is ready to be dispensed into the beverage
cans.

The Filling Room usually is separated from the rest of the facility, protecting
open product from any possible contaminants. This highly automated filling operation
requires a minimal number of personnel. Filling room operators monitor the equipment for
efficiency and adding any components that are needed during this beverage canning process.
Empty beverage vans are transported automatically to the filling machine via bulk material-
handling equipment.

Once all of the beverage cans are filled they are automatically packed into trays
and then shrink wrapped. This finished case of beverage cans is them placed onto pallets by a
palletizer and wrapped with plastic wrap ready for shipping.

The Canning Process involves the following stages

1.) SUGAR SYRUP CLARIFICATION

The Mixture of sugar, flavourings, essences and water is called syrup. Syrup
clarification will retain particles and crystals from your syrup.

2.) WATER MICROBIAL STABILIZATION

Water accounts for the largest portion of your beverage and needs to be safe. The
Prefilteration phase plays a key role in your process – protecting the final filter, ensuring the

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long life and good economics of your filter train and reducing the initial bio burden. Final
Filtrations removes micro-organisms such as bacteria, mould, yeast and protozoa to achieve
the required contaminant – free water quality.

3.) CARBONATION

Carbonation is the step of adding carbon – di –oxide to a drink. The CO2 that you
inject into your beverage must be free of particles and micro – organisms. Non – carbonated
drinks do not include the carbonization step.

4.) PASTEURIZATION

Pasteurization or Pasteurisation is a process of heating food, which is usually a

liquid to a specific temperature for a pre- defined length of time and then immediately
cooling it after it is removed from the heat. It is named after microbiologist Louis Pasteur for
his work on his pasteurization process. This process slows spoilage caused by microbial
growth in the food.

Unlike sterilisation, pasteurization is not intended to kill all micro-organisms in

the food. Instead, it aims to reduce the number of viable pathogens so they are unlikely to
cause disease (assuming the pasteurized product is stored as indicated and is consumed
before its expiration date) Commercial – scale sterilisation of food is not common because it
adversely affects the taste and quality of the product. Certain foods, such as dairy products,
may be superheated be ensure pathogenic microbes are destroyed.

5.) BOTTLE BLOWER AND BOTTLE WASHER

The air used in the bottle blower to turn the pre-forms into the final PET bottle
must be free of contaminants; its filtration ensures a bottle with low bio burden is produced.
Bottle blowing can be done in any beverage process using PET bottles.

Just as the air used in the bottle blower must be free of contaminants, the water
used to rinse the bottles must also be free of contaminants; its filtration ensures good quality
of the bottles prior to filling. A safe and reliable container is essential to maintain the quality
and shelf life of your drink. Most single serve size beverage bottles sold in the United States
are made from POLYETHYLENE TEREPHTHALATE (PET). PET has become the
material of choice for beverage bottles because it is inexpensive, lightweight and shatter
resistant. PET bottles have been extensively tested for safety over many years and there is no

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conclusive evidence that there is any harm in drinking from a properly produced plastic
beverage bottle. Beverage bottles made with PET are widely used for everything from water
and fruit juice to soft drinks and even beer companies use PET Bottles. Over all plastic
beverage bottles are the most used type of bottle globally. Plastic bottles can be easily used
for storage and transportation purposes for liquids, grains, cereals etc. Plastic bottles can be
solid or diffused colours or transparent. Plastic bottles are available in various shapes and
sizes and they can be easily recycled if handled responsibly.

GLASS BOTTLES

Have a significant shelf impact which can be enhanced by their shape and
decorative treatments. Glass beverage bottles can be manufactured with very elaborate
designs and because of this they are often the packaging that makes the biggest impact on the
consumer. A glass beverage bottle is very appealing to the eye and the feel of the glass
beverage bottle appeals to the consumer’s tactical senses. In a highly competitive market
place only glass provides such a wide spectrum of options to help manufacturers differentiate
their products from the crowd. Glass beverage bottles convey a premium appeal. However all
of these positive attributes have to be weighed against the higher cost of this type of beverage
bottle.

6.) BOTTLE FILTER

Gas filtration can also be used during the filling process of carbonated drinks. In
order for the filling to be possible, the filler bowl must be pressurized and the gas used must
be microbiologically stable. Finally the after filling the bottles are moved to despatch.

The Following Flow Diagram clearly depicts the production of soft drink.

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 Fig 5.3 Production Flow

5.4 FINANCE & ACCOUNTS DEPARTMENT

Finance Department is the part of an organisation that manages its money.

The business functions of a finance department typically include planning, organising,
auditing, accounting for and controlling its company’s finances. The finance department also
usually produces the company’s financial statements. Accounting system was entirely
computerized. All the transactions are duly entered in books of accounts by accountants.
Books maintained are

 Bank Book
 Cash Book
 Journal
 Ledger
 Purchase Register
 Sales Register
 Stock Register

Monthly transactions are reported to their auditor Mr.C.Selvaraj. Annual audit

was undergone after examination of the report the auditor will certify that the balance sheet
and the Profit & Loss Account are in agreement with the books of accounts maintained. Their
turnover was around 6 Crore during the last financial year. The income tax return was

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transmitted electronically with digital signature and it was digitally signed by the director in
every assessment year

5.4.1 AIMS OF FINANCE DEPARTMENT

Finance department takes responsibility for organising the financial and

accounting affairs including the preparation and presentation of appropriate accounts and the
provision of financial information for managers.

The main areas covered by the financial department include:

1.) BOOK KEEPING PROCEDURES

Keeping records of the purchases and sales made by a business as well as capital
spending. These records today are typically kept on computer files. But they still use the term
ledger entries to refer to the days when all financial transactions were carefully recorded in
thick books (Ledgers).

2.) CREATING A BALANCE SHEET AND PROFIT & LOSS ACCOUNT

Financial statements are produced at given time intervals, here at the end of each
financial year. Trial balances are extracted from the ledger entries and Balance Sheet is
created showing the assets and liabilities of a business at the year end. In addition, records of
purchases and sales are totalled up to create a Profit & Loss (P&L) accounts.

5.5 RESEARCH AND DEVELOPMENT

Research and development is one of the means by which business can

experience future growth by developing new products or processes to improve and expand
their operations. The company has special R & D experts to undergo all sorts of research
activities. Investigation activities that a business chooses to conduct with the intention of
making a discovery that can either lead to the development of new products of procedures or
to improvement of existing products or procedures.

The company’s Development and Innovation department is dedicated to

designing innovative drink bases, compounds, emulsions and other innovative beverage
solutions. The department specializes in tailor made development to most each customer’s
requirements in terms of taste package innovative bottle design.

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5.5.1 WIDE RANGE OF ON-GOING BEVERAGE INNOVATIONS

 Healthier Products
 Functional drinks
 Low Calorie Beverages
 New Tastes / Flavours
 New Textures
 Interesting new mixes

5.6 DESPATCH DEPARTMENT

The sending of someone or something to a destination or for a purpose. A

special supervisor was in charge of despatch duties. Company uses their own vehicles with
30 drivers for shipment. An order form has been maintained in despatch department with
concerned driver details. In the event of a major accident, the Dispatcher is responsible to
Operations. Despatch manager ensure that all documents related to accident, received from
the vehicles Controlling Dispatcher are properly filed in the Flight Safety Incident / Accident
File.

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 CHAPTER VI

SWOT ANALYSIS

STRENGTHS:

 Loyal Customers
 Strong in their target Market
 Support of Channel Members

WEAKNESS:

 Significant focus on carbonated drinks

 Negative publicity

OPPORTUNITIES:

 Bottled water consumption growth

 Increasing demand for healthy food and beverage
 Growing beverages consumption in emerging markets (Especially BRIC)

THREATS:

 Changes in consumer preferences

 Water Scarcity
 Competition from major players
 Saturated carbonated drinks market.

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 CHAPTER VII

FINDINGS

My general observation during my organisational study was that they

have maintaining loyal customers through quality products. Tremendous support has been
provided by channel members in other states. The organisation is working with skilled
executive with clear organisational policies. They also lack in few aspects like proper dress
code and internal arrangements of records have to be done properly. Seasonal Change
(winter) was considered as a major barrier for the Industry.

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 CHAPTER VIII

CONCLUSION

An effective study has been undergone in the organisation relating to all

the aspects of management and gained a practical learning exposure in all the functional
departments of the concern in terms of HR Policies, financial performance, production
process, R & D and despatch activities. I thank the company Director Mr. P. Suresh Kumar,
General Manager Mr. S. Gopal who gave their dedicated support for my organisational study
and also I extend my gratitude to all the internal supervisors and staff members for their
support in successful completion of my project.

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 CHAPTER IX

BIBILOGRAPHY

 www.podaranfoods.in

 www.podaranfoods.tradeindia.com

 https://www.britannica.com/topic/soft-drink

 www.niir.org/information/content.phtml?content=184

 www.madehow.com/Volume-2/index.html

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