WINE PROJECT

Presented by –

pioneer Group
 A Project report is on production of wine
manufacturing, marketing & distribution

A Project report is on production of wine

manufacturing, marketing & distribution

 
 PG Wine Pvt. Ltd

Wine park , Vinchur, Nasik (Mh)

India-
 Mission
“To produce the highest quality
wine & provide an enjoyable
lifestyle and adequate
standard of living for our
customers .”
Board of Directors
 Name Designation Cell
Number
 
Bhavneesh Singh CMD & CLO
09975709884
 
Vishal Bhansude Production Director
09860077513
 
Ganesh Nikam Marketing Director
09766827361
 
Dhummkirti Katkar Finance Director
09860740888
 
Brijesh Patel Package & Warehouse
Director
09766650431
Introduction
What is wine?
Wine is an alcoholic beverage made by fermentation of grapes
or grape juice. It is the most popular beverage, associated
with happiness, celebrations and festivities. Global market for
wine is estimated at 25 billion liters.
Wine like beverages can also be made from other fruits and
grains. These beverage are also referred to as wines, with a
prefix E.g. Apple wine. The alcohol content in wine varies
from 10 to 14 %.
 vinchur

Godavari wine park, vinchur ,Nashik

Plant Location Methodology: Factor
Rating Method
Two Wineries sites (A and B) are assigned the following
range of point values and respective points, where the
more points the better for the site location.
Sites
Major factors for site location A
B

Power availability and reliability

Labor climate 67 80
57 85
Transportation
Water supply 67 65
Climate 98 95
Supplies 70 80 Best
Tax policies and laws 57 85 Site is B
65 85
Total pts. 579 655
Land requirement
• The “best” locations for each department, where best
means maximizing flow, which minimizing costs
Requirement of Land :- 65340Sq. fit
• Construction:-
• Processing layout building(15000 sq fit)
• Storage for barrel, refrigeration & finish material
• (15000 sq fit)
• Testing Room, Staff Room, Labouratory, Office & labour
(5000 sq.fit)
• Parking (8000 Sq fit)
• Raw Material Storage (10000 sq fit)
• Expansion of business (10000 sq fit)
Reason for selection of
Nashik site-
 
2. Raw material easily
available
3. Transportation charges
reduced.
4. Production can be increased
5. Climatic condition.
6. Number of supplier.
7. Efficient Labor
Office Layout Floor Plan

H.R
Finance
Fin. Acct.

Manager Waiting

11
 Work 1 Station 3 Work Station
4

Work Station 2 5
Belt Conveyor

Office

Note: 5 tasks or operations; 3 work stations

Warehouse Layout Floor Plan

Conveyor
Truck

Zones Order Picker

Transparency Masters to accompany
© 2004Heizer/Render
by Prentice Hall,
– Principles
Inc., Upper
of Operations
Saddle River,
Management,
N.J. 07458
14 5e, a
Wine varieties
There are three types of wines
2. Red wine
3. White wine
4. Rose wine
Raw material
• Grapes are basic requirement.
• End product –no direct relation
with raw material.
• Only little changes in process.
Types of Grapes
• Cabernet Sauvignon
• Merlot
• Shiraz
• Zinfandel
• Pinot noir
• Cabernet Franc
• Cinsaut
• Pinotage
• Source of raw material-local
farmer.
• Cost of raw material fluctuating .
• Depend upon overall production.
• Cost play important role in
manufacturing.
• Low cost for input leads to increase
profit.
How to maintain cost?
• Contract with the farmer .
• It includes- name of farmer
quantity
quality
cost
total period fo
contract.
Manufacturing process: (video)

The plant and machinery consists of

Cleaning and washing equipment, juice
extraction Plant, fermentors, storage
tanks filters, pumps and bottling
equipment.

The manufacture of grape wine involves following

basic steps:
4. Crushing of Grapes
5. Alcoholic Fermentation
6. Bulk Storage and Maturation of Wine
7. Racking/Clarification and Packaging
Production Process
 Equipments:-
2. Crushing machine
3. Filters
4. Stainless Steel Tanks
5. Filling
6. Bottles
7. Packaging decisions
8. Corks
9. label
PACKAGING AND STORAGE
• BOTTLE- 375ml, 750ml

• Cap- cork, metal,

• Best – metal
Storage
• Storage own warehouse.
• Horizontal position.
• Controlled temp
Warehouse
• Storage of wine is an important
part. If end production is not stored
properly then losses are huge to
the company. Storage temperature
should be maintained according to
its requirement.
• In storage wine basically stored
horizontally. It save space and
handling is easy than vertical
storage of wine bottles.
Transportation
• We are using two type of
transportation system
1)Internal transportation
2)External transportation

Producti Distributi
on on
Purchasi Receivi Stora Operatio Stora
ng ng ge ns ge
HR Activities

A)Selection Of Staff
B) Designation
C) Salary
D) HR Policies
SELECTION OF STAFF
1. APPLICABILITY---- 
The entire terms and conditions etc.
contained herein shall be applicable to all
permanent employees including probationers who
are employed and / or deployed and / or attached
to PG WINES PVT LTD.
2. APPOINTMENT---- 
• Employees are appointed related his job and
qualification.
• An employee, on recruitment, must immediately
fill up the Bio-data form giving his / her personal
details and communication address as required
by the company.
• He / she shall also submit the originals of all
certificates of his / her age, qualifications and /
or past experience, for verification, with a true
(attested) photocopy of such certificates and
Designation
• Designation will be given to the worker
as according to there capabilities, if we
will give the work according to there
capabilities than only they can perform
better & Company will earn benefit, if
Company will earn benefit than
company will also provide good
incentive, schemes to the worker &
they will perform more better.
• Company is having various designations
in the organization like for machine
operation, raw material handling,
packaging, store keeper, watchman,
worker for transportation etc. These all
work will be distributed as according to
Salary
HR Policies
• POLICY STATEMENT

• GENERAL CONDITIONS OF
EMPLOYMENT

e)APPLICABILITY

• APPOINTMENT
• CONFIRMATION
• LEAVE POLICY
b) Casual Leave (CL)
c) Sick Leave (SL)
d) Privilege Leave
DISCIPLINE

c) UNIFORM
d) PUNCTUALITY
e) REPORTING AND RECORD
KEEPING
f) SMOKING AND CLEANLLINESS
POLICY
PERFORMANCE
APPRAISAL,PROMOTION,BONUS AND

• RETIREMENT POLICY
• WELFARE POLICY
c) LEAVE ENCASHMENT
d) MONTHLY OPEN HOUSE
e) TRAVEL ELIGIBILITY
f) MOBILE PHONE ALLOWANCE
PLEASE DETACH THIS SHEET AND RETURN IT TO THE HR MANAGER DULY
SIGNED
 
• NAME OF THE EMPLOYEE:
• DESIGNATION:
• DATE OF JOINING:

 
 
 
 
 
 
 

DECLARATION
 
• I HAVE READ, UNDERSTOOD AND ACCEPT THE TERMS AND CONDITIONS STATED IN THE HUMAN RESOURCES
POLICY DOCUMENT OF ACOUSTIC PVT. LTD., AND AGREE TO ABIDE BY THE SAME WHILE IN THE SERVICE OF
THE COMPANY. I UNDERSTAND THAT I AM LIABLE TO DISCIPLINARY ACTION AS PER THE RULES OF THE
COMPANY IN THE EVENT OF BREACH OF THE RULES AND GUIDELINES CONTAINED IN THIS DOCUMENT. I
SHALL STRIVE TO UPHOLD THE HIGHEST STANDARDS OF ETHICS, DISCIPLINE AND WORK CULTURE WHILE
IN THE SERVICES OF THIS COMPANY.
 

• SIGNED
__________________________________

• NAME
___________________________________
Research &
Development
Manufacturing Operations
• Where are the production
facilities? (Some wineries may
have several crushing,
bottling/ warehousing
locations.)
• How do you account for winery
labor? (How do they keep track
of capitalized vs. expensed
costs.)
Marketing & Sales
• Do you do direct sales, use a broker
or a distributor or a combination
thereof? Are sales limited to your
state or do you sell nationwide or
export?
• Do you sell any of your wines on
futures?
Domestic market
• Booming Economy
• Wine consumption growing at 30% every year.
2006-07 expected at 40% growth.
• More people shifting from Spirits to Wines.
Spirits growth only by 10%.
• Ladies & youth: big factors.
• Expected to grow to 100 million people in next
5 yrs
• Wine growth 3 times faster than spirits &
Beers
Market Research
• Which type of liquor you prefer?
– Beer C whisky
– Wine D rum E other

• Do you like wine?

A yes
B no

• Age group?
A 18-25 B 25-35
C 35-45 D 45 and above

• Which brand you prefer?

A sula B ND wines
C vintage D sankalp
E any other

• Which type of wine you prefer?

A Red B rose
C white

• How often you drink wine?

A daily B weekly
C occasionally

• Which range of wine you prefer?

A 150-200 B 200-250
C 250-300 D 300-and above
Le gal F rame W or k
Agreements
• Shipments Covered by Agreement
• Customer Shall Comply with All Applicable Laws
and Regulations
• Customer Shall Comply with All Pioneer
Requirements.
• Indemnity
• Loss or Damage
• Money-Back Guarantee
• Term
• Termination
• Unauthorized/Return Shipments
• Prior Agreements
• Confidentiality
• Entire Agreement and Amendment
Types of License
• Three types of licenses given for foreign liquor by the
government

• THESE ARE FL 1, FL 2, and FL 3.

• Fl 1- permit for purchase of liquor directly from the

distilleries and sale to fl2 or fl3 license holders

Markets & Regulations

Centre for Civil Society 222

• FL 2- permit for purchase of liquor directly from the fl

1license holders and sale to the local public but can’t
sell liquor to fl 3 license holders.

• FL 3- permit for purchase of liquor directly from the fl 1

but not from fl2 license holders and sale to all this
license is generally given to the hotel owners.
Few Problems of Wine
Industries
• Scarcity of water could be
accounted for as the chief cause
responsible for the wine industry as
the grape cultivation suffers from
unseasonal rains.
• Inadequate help by the government
authorities to the wine sellers or
bar owners as far as promoting this
industry is concerned.
• State Government have also
imposed very high Sales Tax on
consumption of imported liquor in
Distillery/Brewery License
Fee
• Bottling fee
• Litter age fee
• Assessment Fee
• Franchise Fee
• Permit Fee
• Gallon age Fee
• Raw Material Excise
• Availability Fee
• Brand/Label Fee
• Permit Fee
• Transportation Fee
• Import Pass Fee
• Export Pass Fee
• Educational/Welfare Cess
• Vend Fee
• Sales Tax/Surcharge
• License Fee
• Toll Tax
Marketing & Sales
• Once the product is ready for sale, the
wineries have a variety of options on how
to sell their product.

• The wineries may also sell directly to

restaurants and "bottle shops.“

• The wine will be sold through complete

chain.
Suppli
er
Suppli
er
Suppli
} Storag
e
Mfg. Storag
e
Dist. Retaile
r
Custom
er

er
• The wineries will have their own sales
force, even though working through a
broker or a distributor.

• Wine making has progressed to such an

extent that most of the wines produced
today are palatable. Few are of such
consistently superior quality as to truly
distinguish themselves from the
competition.
• The method of sale :-
1) Wholesale Trader (FL1)
2) Distributor (FL2)
• First year target on limited areas
i.e.
Pune
Kolhapur
Mumbai (all region)
Goa
Ahemdnagar
Advertisement
• The advertisement through various
media is banned for the ads. of
wine.
• Direct ads. Expenses amount will
be paid to traders.
• Winery truism
Forecasting Analysis

• Market analysis
• Customer awareness
• Competitor’s
• Market demand
FINANCIAL REPORT
 FIXED ASSETS (in Rs.)

Land
40,00,000
Building 10,00,000
Ware House 10,00,000
Plant & Machinery
80,00,000
Furniture
1,00,000
Computer
50,000
TATA 207
 Projected Income and Expenditure Statement
For the year of 2008-09
Sales 1,53,00,000
-Sales Return 3,00,000
NET SALES 1, 50,00,000
-Cost of Goods Sold 26, 24,800 (1)
GROSS PROFIT 1, 23,75,200
-Administration Exp. 7, 05,600 (2)
-Selling Exp. 7,26,000 (3)
-Depreciation (10% 15,26,500 29,58,100
EBIT 94,17,100

-Interest (13.25% on Loan) 23,18,750

EBT 70,98,350
Tax 23, 65,880
EAT 47, 32,470
Note:-
Per day we are going to produce 170 litres of wine in 1st
year.
Total production in 1st year will be 61200
Working Note:
Note 1 : Cost of goods sold
( In
Rs.)
Purchase Raw Material
Grapes (12*122400Kg) 14,68,800
Bottle & Cap (81000*5) 4,08,000 18,76,000

Electricity (15000*12) 1,80,000

Wages & Salary
Prod. Manager (10000*2*12) 2,40,000
Tech. Manager (8000*12) 96,000
Packaging (3000*3*12) 1,08,000
Machine Operator (2700*2*12) 64,800
Tank Filler (2500*2*12) 60,000 5,68,000
Note 2: Administration Expenses
(In Rs.)

Insurance of Factory 50,000

Telephone Expenses 20,000
Legal Expenses 48,000
Audit Fees 8,000
Salary
Manager (15000*12) 1,80,000
Wine Master (18000*12) 2,16,000
Accountant (5000*12) 60,000
Office Security (2900*2*12) 69,600
Warehouse Security (2500*12) 30,000
Office Clean Boy (2000*12) 24,000
5,79,600

TOTAL 7,
Note 3 : Selling & Distribution Exp.

(In Rs.)
Salary
Marketing Person (8000*2*12) 1,92,000
Transport Labor (3000*4*12) 1,44,000
3,36,000
Free Sample
50,000
Loading & Unloading
20,000
PROJECTED BALANCE SHEET
for the year of 2008-09
(In Rs.)
SOURCES:
Equity Capital 75, 00,000
Long Term Loan 1,75,00,000
Retained Earning 47,32,470
Total
2,47,32,470
APPLICATIONS:
Gross Fixed Asset 1,52,65,000
-Depreciation (10%) 15,26,500
NET FIXED ASSETS 1, 37,38,500
Debtor
15,00,000
Stock
26,56,333
Cash & Bank
68,37,637
 Projected Income and Expenditure Statement
For the year of 2009-10
Sales 1,68,48,000
-Sales Return 4,48,000
NET SALES 1,64,00,000
-Cost of Goods Sold 32,55,600
GROSS PROFIT 1,31,44,400
-Administration Exp. 7, 72,800
-Selling Exp. 8,52,800
-Depreciation (10%) 15,26,500 31,52,100
EBIT 99,92,300

-Interest (13.25% on Loan) 18,55,000

EBT 81,37,300
Tax (33.33%) 27,12,162
EAT 54, 25,138
Note:-
Per day we are going to produce 180 litres of wine in 2nd year.
Total production in 2nd year will be 64800 ltr.
Interest on 1,40,00,000 @ 13.25%
 PROJECTED BALANCE SHEET
for the year of 2009-10
(In Rs.)
SOURCES:
Equity Capital 75, 00,000
Long Term Loan 1,40,00,00
Retained Earning 1,01,57,608
Total 3,16,57,608
APPLICATIONS:
Gross Fixed Asset 1,52,65,000
-Depreciation (10%) 1,52,65,00
NET FIXED ASSETS 1, 37,38,500
Debtor (10% on sale) 16,00,000
Stock (Finished Goods, Raw Material) 28,61,067
Cash & Bank 1,34,58,041
TOTAL 3,16,57,608
Note:-
Long term loan 1,75,00,000
Less:- Principle paid 35,00,000
Balance 1,40,00,000
Retain Earning Last year 47,32,470
Add:- Current Year 54,25,138
Total 1,01,57,608
Stock of Raw Material of 1 Month 1,94,400
Stock of Finished Goods of 2 Month 26,66,667
 Projected Income and Expenditure Statement
For the year of 2010-11
Sales 1,87,20,000
-Sales Return 7,20,000
NET SALES 1,80,00,000
-Cost of Goods Sold 40,56,000 (1)
GROSS PROFIT 1,39,44,000
-Administration Exp. 8, 88,000 (2)
-Selling Exp. 3,98,000 (3)
-Depreciation (10%) 15,26,500 35,12,500
EBIT 1,04,31,500

-Interest (13.25% on Loan) 13,91,250

EBT 90,40,250
Tax (33.33%) 30,13,115
EAT 60,27,135
Note:-
Per day we are going to produce 200 litres of wine in 3rd
Year
Total production in 3rd year will be 72000
Interest on 1,05,00,000 @ 13.25%
 PROJECTED BALANCE SHEET
for the year of 2010-11
(In Rs.)
SOURCES:
Equity Capital 75, 00,000
Long Term Loan 1,05,00,000
Retained Earning 1,61,84,743
Total 3,41,84,743
APPLICATIONS:
Gross Fixed Asset 1,52,65,000
-Depreciation (10%) 1,52,65,00
NET FIXED ASSETS 1, 37,38,500
Debtor (10% on sale) 18,00,000
Stock (Finished Goods, Raw Material) 32,48,000
Cash & Bank 1,53,98,243
TOTAL 3,41,84,743
Note:-
Long term loan 1,40,00,000
Less:- Principle paid 35,00,000
Balance 1,05,00,000
Retain Earning Last year 1,01,57,608
Add:- Current Year 60,27,135
Total 1,61,84,743
Stock of Raw Material of 1 Month 2,48,000
Stock of Finished Goods of 2 Month 30,00,000
Promoters Contribution
The contribution from the members of the organization will
be 30%
The contribution from the Bank Loan is 70% @13.25%

The company is having Cash & Bank Balance of Rs. 1,53,98,243

The company is going to get BEP at the end of third financial
year i.e. 2010-2011