ORGANIZATION STUDY AND ROUTINE WORK

At
TATA GLOBAL BEVERAGES LIMITED
Submitted to

RAJAGIRI COLLEGE OF SOCIAL SCIENCES

In partial fulfilment
Of the requirements for the award of

MASTERS IN BUSINESS ADMINISTRATION

(2016-2018)

By
MARIA MATHEW
ROLL NO: B1942

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

RAJAGIRI VALLEY
KAKKANAD, KOCHI-682039

1
 DECLARATION

I, Maria Mathew hereby declare that this internship report is a record of work carried out by me at Tata Global
Beverages Ltd under the guidance of Dr.Sunil Puliyakot(Professor), during the period from April to May 2017.

This study was undertaken in partial fulfillment of the requirement of the award of the Masters in Business
Administration in Rajagiri College of Social Sciences.

I also declare that this report has not been submitted to any other university/board for the award of any
degree/diploma.

Place: Kochi Maria Mathew

Date:5/6/2017

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 ACKNOWLEDGEMENT

The gratification and elation of this project will be incomplete without mentioning all the people who helped me
to make it possible, whose guidance and encouragement were valuable to me.

First of all, I thank the God Almighty for his immense grace and blessings at each and every stage of the
organizational internship. I am thankful to my Faculty Guide, Dr.Sunil Puliyakot, Rajagiri College of Social
Sciences, Kochi, Kerala for giving me his valuable guidance to execute the Organisation Study as per university
requirements.

My sincere thanks to my project guide, Mr. Aayush Lohia, Treasury Manager for giving me an opportunity to
carry out my project study at Tata Global Beverages Limited and for sparing his valuable time for the same. It
was a learning experience to work with him.

I would like to record my deepest sense of gratitude to my friends and family who encouraged me for making this
internship a success.

Thank You,

Maria Mathew

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 TABLE OF CONTENTS

SL NO. CONTENTS PAGE

NO.
EXECUTIVE SUMMARY 8

CHAPTER 1: INDUSTRY PROFILE 10

1.1 INTRODUCTION 10

1.2 THE COMPETITIORS 11

1.3 THE MARKET 12

CHAPTER 2:COMPANY PROFILE 15

2.1 HISTORY 15

2.2 MISSION & VISION OF THE COMPANY 16

2.3 HEADQUARTERS 17

2.4 PRODUCTS 17

2.5 CUSTOMERS 21

2.6 PRODUCTION PROCESS 22

2.7 SUPPLY CHAIN ACTIVITIES IN TGBL 23

2.8 CORPORATE GOVERNANCE 24

CHAPTER3: ORGANIZAITONAL STRUCTURE & 25

FUNCTIONAL DEPARTMENT

3.1 LEVELS IN THE ORGANIZATION 25

3.2 FUNCTIONAL DEPARTMENT 26

CHAPTER 4:SWOT ANALYSIS 38

CHAPTER 5:ROUTINE WORK 41

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5.1 OBJETCIVE SOF THE ROUTINE WORK 41

5.2 CASH MANAGEMENT OF TATA GLOBAL BEVERAGES 41

5.3 ACTIVITIES 47

5.4 ACHIEVEMENTSON COMPLETION OF WORK 48

5.5 LIMITATION OF THE WORK 48

5.6 LEARNING FROM THE WORK 48

5.7 HOW ROUTINE WORK LEARNING CAN BE 49

INCORPORATED AS PART OF OGRANIZATIONAL
STUDY

5.8 AREAS OF IMPROVEMENT IN THE WORK OF THE 49

ORGANIZATION

5.9 TIME DUARTION OF THE WORK 49

5.10 CONCLUSION 51

BIBLIOGRAPHY 52

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 LIST OF FIGURES
SL CONTENT PAGE NO.
NO.

1 MAJOR TEA PLAYERS 14

2 PRODUCTION PROCESS 22

3 LEVELS IN ORGANIZATION 25

4 LEVELS IN HR DEPARTMENT 27

5 LEVELS IN SALES AND DISTRIBUTION DEPT. 28

6 LEVELS IN CORPORATE FINANCE DEPT. 29

7 LEVELS IN BUSINESS FINANCE 30

8 LEVELS IN MARKETING 31

9 LEVELS IN OPERATIONS MANGEMENT DEPT. 32

10 LEVELS IN PROJECT& DEVELOPMENT DEPT. 34

11 LEVELS IN R&D DEPT. 35

12 LEVELS IN QUALITY MANGEMENT DEPT. 36

6
 LIST OF TABLES

SL CONTENT PAGE NO.

NO.

1 TEA PRODUCTION 11

7
 EXECUTIVE SUMMARY
The study was conducted in Tata Global Beverages Limited as a part of two year MBA program in Rajagiri
College of Social Sciences for duration of two months. It consists of organization study as well as routine work.

This project report is basically to understand the theoretical and functional aspects of an organization. It was
aimed at an overall exposure to the working of the organization there by identifying the specific problems faced
by it and suggesting recommendations or solutions.

Tata Global Beverages Limited (formerly Tata Tea Limited) is an Indian multinational non-alcoholic beverages
company. It offers tea, coffee, and water. It is the world's second-largest manufacturer and distributor of tea and a
major producer of coffee.

This report presents the organizational study and routine work in Tata Global Beverages which includes the
history, vision & mission of the organization, its structure, various products and services offered by the
organisation and the different departments and their functions. The study also focuses on SWOT analysis and the
future strategies of the company. The report is divided into two sections:
Section1: Organizational study
Section 2: Routine work

8
 SECTION 1
PROFILE STUDY OF THE ORGANIZATION

9
 CHAPTER 1
INDUSTRY PROFILE
1.1 INTRODUCTION
The Tea industry has an important and special place in the Indian economy. Tea is the country's primary beverage,
with almost 85% of total households in the country consuming tea. India is the world's largest producer and
consumer of tea, with India accounting for 31% of the world tea production. India is also an important tea exporter.
Further, certain varieties of tea (for example Darjeeling) are grown only in India and are in great demand across the
world. In value terms, tea ranks as the fourth-largest agricultural product export item from India. In terms of
employment, the tea industry employs around 1.27 million people at tea plantations and 2 million people indirectly,
of which 50% are women. Tea is the prime beverage consumed in India. Tea plantations in India are mainly located
in rural hills and backward areas of North-eastern and Southern States.
The North- Eastern region with 82% of area accounts for 76% of total tea production. Major tea growing areas of the
country are concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is grown to a
small extent are Karnataka, Tripura, Himachal Pradesh, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim,
Nagaland, Meghalaya, Mizoram, Bihar and Orissa. The competitors to India in tea export are Sri Lanka, Kenya,
China, Indonesia and Vietnam. Tea is an agro-based commodity and is subjected to vagaries of nature. Despite
adverse agro climatic condition experienced in tea growing areas in many years, Indian Tea Plantation Industry is
able to maintain substantial growth in relation to volume of Indian tea production during the last one decade. There
has been a dramatic tilt in tea disposal in favor of domestic market. Indian tea export has been an important foreign
exchange earner for the country. There was an inherent growth in export earnings from tea over the years. Till 70s',
UK was the major buyer of Indian tea and since 80s' USSR became the largest buyer of Indian tea.
Tea is an essential item of domestic consumption and is the major beverage in India. Tea is also considered as the
cheapest beverage amongst all the beverages available in India. Tea Industry provides gainful direct employment to
more than a million workers mainly drawn from the backward and socially weaker section of the society. It is also a
substantial foreign exchange earner and provides sizeable amount of revenue to the State and Central Exchequer. The
total turnover of the Indian tea industry is in the vicinity of Rs.33000 Crs. Presently, Indian tea industry is having
19500(as on 18.12.2015):

• 1692 registered Tea Manufacturers,

• 2200 registered Tea Exporters,

10
• 5848 number of registered tea buyers,

• Nine tea Auction centers.

1.2THE COMPETITORS
India is a producer, consumer and exporter of tea. Production of tea reached 1,197.18 million kg in 2014-15. Around
955.82 million kg was produced in North India and 241.36 million kg was produced in South India. India has
acquired an exalted status on the global tea map. The country is the second largest tea producer in the world.
Interestingly, India is also the world's largest consumer of black tea with the domestic market consuming 911 million
kg of tea during 2013-14. India is ranked fourth in terms of tea exports, which reached 220.84 million kg during
2015-16 and were valued at US$ 641.95 million. India has around 563.98 thousand hectares of area under tea
production, as per figures for December 2013. Tea production is led by Assam (304.40 thousand hectares), West
Bengal (140.44 thousand hectares), Tamil Nadu (69.62 thousand hectares) and Kerala (35.01 thousand hectares).
According to estimates, the tea industry is India's second largest employer. It employs over 3.5 million people across
some 1,686 estates and 157,504 small holdings; most of them women. Even otherwise, India is a high cost producer
of tea because of high cost of labor and capital. Kenya produced 324,000 MT teas and reported to have exported
333,000 MT tea.
Sri Lanka produces 325,000 MT of tea. Sri Lanka encourages producers to pack good quality tea thereby effectively
checking over supplies. Sri Lanka exports around 305,000 MT teas. By exporting only the quality teas, Sri Lanka has
bounced back in the global markets for their orthodox teas. Their product portfolio consists of three types of teas
grown at different elevation and that insulates Sri Lankan tea industry from fluctuations in global prices. Sri Lanka
has a very strong presence in the tea bags segment. It has very successfully established two global brands that are
well entrenched in the markets for tea. During the last decade, large investments were made in producing quality teas
and machinery for tea bags. A great deal of this machinery came from India. Although presently China has a small
share (around 8%) in black tea, it could make much more black tea. Besides, the market for green tea is expanding
and that could affect to some extent the market for black tea.
State / Districts Area under tea ( in Th.Hectares) Production (Million Kgs)

Assam Valley 270.92 581.03

Cachar 33.48 48.02
Total Assam 304.40 629.05
Darjeeling 17.82 8.91
Dooars 72.92 177.85
Terai 49.70 125.34
Total West Bengal 140.44 312.1

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 Other North Indian 12.29 23.92
States(Includes Tripura,
Uttarakhand, Bihar,
Manipur,Sikkim,
Arunachal Pradesh,
Himachal
Pradesh,Nagaland,
Meghalaya, Mizoram and
Orissa)
TOTAL NORTH INDIA 457.13 965.07
Tamil Nadu 69.62 174.71
Kerala 35.01 63.48
Karnataka 2.22 5.52
TOTAL SOUTH INDIA 106.85 243.71
ALL TOTAL 563.98 1208.7

TABLE 1: TEA PRODUCTION

1.3 THE MARKETS

UK and Ireland are the traditional markets for tea but their imports have been declining. Even then the UK blenders
continue to be the global market makers. UK is where the blending industry first started decades ago. Pakistan has a
population of 154 million people, 66% of them live in rural areas. Pakistan consumed 109,000 MT in 2003. After the
break up with the East Bengal, Pakistan had tried the Sri Lankan teas but shifted to CTC tea from Kenya. Kenya took
a 66% share in Pakistan imports during 2003. India is now keenly looking forward to wresting a sizeable market
share from Kenya. The Pakistan market is dominated by CTC leaves. Pakistan levies income tax on imported tea. By
all accounts, Pakistan would soon be a fierce battle ground for global tea suppliers. Sri Lanka signed a FTA with
Pakistan and is a fellow member of SAARC, a regional agreement. India is gradually but surely improving relations
with its immediate neighbor. If India can get a strong foothold in the Pakistani market, that would offset its loss of
the Egyptian market to Kenya. Both Egypt and Kenya are members of COMESA, another regional agreement. Both
Sri Lanka and India have a big location advantage vis-à-vis Pakistan. Pakistan’s relations with Bangladesh are also
improving. Indonesia, although relatively a small producer of tea, has big exportable surplus and would seek access
to Pakistani market. With the per capita consumption nearly stagnant and a small increase in overall market size,
Kenya’s leadership would be threatened. To retain its share in the Pakistan market, Kenya will have to spend large
monies on media promotion. The cost so incurred will have to be compared with the gains from retaining the
12
dominant share. Kenya of course has much more tea to sell globally given that its home consumption is quite low.
Tea Board of Kenya is engaged in promoting and increasing consumption of tea at home and the neighboring
African nations. The Russian Federation has witnessed an 18% growth during the last 10 years, which is quite high
and makes Russia as the biggest importer of tea in the world. No wonder, most major tea packers are setting up
shops in Russian Federation. India has lost considerable share in CIS markets. The Indian exporters were content
supplying poor quality teas in response to low prices offered by the CIS countries under the special Rupee-Rubles
rate trade. In the process a basic lesson in consumer behavior was blatantly ignored. When an economy expands,
more money comes to people; they seek more choices, and the market shifts in favor of better quality and
convenience. A careful watch over developments in CIS markets would have prevented this downslide. Clearly that
is a legitimate function for the Tea Board but it had failed even though a Director Market Promotion is located in
Moscow. With the Russian market and for that matter even Poland, having turned around both Sri Lanka and Kenya
are making strong efforts for selling their tea. The recent establishment of a Tea Trading Center in Dubai has
generated considerable concern tea. Coffee dominates the US market. For tea, it is mainly an iced tea market where
cheaper teas are used. Nearly 70% of Argentina’s tea production is absorbed in the US. India cannot compete in this
segment because it offers only the high priced teas. Some small scale entrepreneurs of the Indian origin are sincerely
trying to popularize specialty teas in the US market using the ethnic route.
Tea bags were invented in the US in 1904 and they have become increasingly more and more popular because of
speed and ease in preparation. A scientific symposium in US tea and Health was held in 1991. Since then tea is being
repositioned in the US market as a health drink. The health benefits of tea are a global message and that sells hot in
USA. Bottled water in US is growing at 20% per annum. Some of that growth can be taken by bottled tea. Egypt
consumes 77,400 MT. Almost the entire quantity is imported and in that Kenya has a 66% share. Both Kenya and
Egypt are members of COMESA. Egyptian imports have declined by 11% causing a big gap in balancing global tea
trade.
Japan market for tea imports has not increased, rather it is stagnant. But internal readjustment is taking place; from
predominantly a gift market, it is now a liquid tea market. Tea plantations in India are mainly located in rural hills
and backward areas of North-eastern and Southern States.
T h e North - Eastern region with 8 2% o fare accounts for 76 % of total tea production. Major tea growing areas of
the country are concentrated in Assam, West Bengal, Tamil Nadu and Kerala. The other areas where tea is grown to
a small extent are Karnataka, Tripura , Himachal Pradesh , Uttaranchal , Arunachal Pradesh , Manipur , Sikkim,
Nagaland , Meghalaya, Mizoram, Bihar and Orissa.

1.4 MAJOR PLAYERS

The only player that has crossed the seven seas to promote branded tea in form of Poly-packets is Tata Tea. But the

13
fact that there are no other major house which has promoted itself as a tea manufacturing house provides enough
scope to the houses themselves to improve their status.

MAJOR TEA PLAYERS

DUNCAN’S JAYASHREE
ASSAM CO. GOODRICKE
TATA TEA INDUSTRIES TEA
LTD GROUP LTD
LTD &INDUSTRIES
LTD

FIGURE 1:MAJOR TEA PLAYERS

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 CHAPTER 2
COMPANY PROFILE
2.1 HISTORY
Tata Global Beverages is an incredible story, with almost 200 years of history behind them and a heritage of
consistent innovation and development. It all started when Tata Finlay was set up as a joint venture between Tata
Sons and UK based tea plantation company, James Finlay and Company in 1962.

In the year 1976, Tata Finlay took over the production and marketing operations of James Finlay. In 1983 Tata Tea
was born after James Finlay sold his shareholdings to Tata, heralding the beginning of a new journey. They took
their brands to the global market in the 1990s and built Cochin Spices Centre during the year. In 1991, the company
acquired 52,5% shareholding in Consolidated Coffee Ltd(now known as Tata Coffee Ltd.). Also they set up a pilot
plant in Munnar for the production of button mushrooms. Also they established the International business division
for consolidating their export operations and foraying into foreign operations. In the year 1993, the company entered
into a joint venture alliance with Allied Lyons plc and established Tata Tetley Ltd. In the year1996, the company
acquired 51% shareholding in Watawala Plantations Ltd through their Lankna JVC. In the year 1997, they
introduced 100 percent instant tea to the United States and launched their popular brand. Tata Tea Premium in the
twin-cities of Hyderabad and Secunderabad. In the year 1998, the company introduced their new brand ‘Agni’ in the
economic sector.

The company set out on a path with global ambitions, evidenced by the acquisition of Tetley in 2000. This was
followed by a string of strategic acquisitions including Good Earth, Jemca, Vitax, Eight O’ Clock Coffee and
Himalayan Water. In February 2005, the company transferred their business and undertaking of 16 tea estate in
Munnar to Kannan Devan Hills Plantation Company Pvt Ltd, a newly formed company set up by the management
and other categories of employees of these estates with effect from April 1, 2005.

The company operates in three segments: tea, which involve cultivation and manufacture of black tea and instant tea,
tea buying/blending and sale in bulk of value-added form; coffee and other products, involves in growing of coffee,
pepper and other plantation crops and conversion of coffee in to value added products such as roast and ground
coffee and instant coffee, and others, engaged in the sales of mineral water, other minor crops, curing operations of
coffee and trading of items required for coffee plantations. The company has five major brands in Indian market-
Tata Tea, Tetley, Kannan Devan, Chakra Gold and Gemini-catering to all major consumer segments for tea. In
addition, they grow coffee, pepper, and other plantation crops, as well as converts coffee into value added products,
including roast and ground coffee and instant coffee. Further it involves the sale of mineral water, other minor crops,
curing operations of coffee and trading of items required for coffee plantations, as well as deals in bulk spices, such
15
as cardamom, turmeric and nutmeg. The company has a 100% export oriented unit (KOSHER & HACCP certified)
manufacturing Instant Tea in Munnar, Kerala, which is the largest facility outside the United States. Tata Tea and
Tetley Group have full-fledged R&D centres that focus on the branded business. In addition, Tata Tea has an R&D
Centre at Teok (Assam) and a product development centre at Bangalore focused on the entire gamut of tea
operations. Company launched new Jaago Re campaign- ‘Aaj Se Khilana Bandh, Pilana Shuru’.

Then name of the company was changed from Tata Tea Ltd to Tata Global Beverages Ltd with effect from July 2,
2010 in order to reflect the current nature of the company and their vision for the future. Their new name unites the
interests of Tata under one umbrella. It signals their global ambition, as well as marking the next logical step in their
evolution from a history in plantations to becoming a marketing and focused organization with a portfolio of
engaging and exciting strong customer brands. During the year 2010-11, the company and PespiCo India Holdings
Pvt Ltd (PIH) formed a joint venture company, named NourishCo Beverages Ltd, in which the Company and
PepsiCo each hold 50% of the equity capital. The vision of the joint venture is to develop the business in India and
internationally focusing on health and wellness beverage products. In January 2012, the company entered in a joint
venture with Starbucks group whereby, the newly formed joint venture company Tata Starbucks Ltd shall engage in
the operation of Starbucks Cafes. As of May 2016 it has opened total of 73 stores of TATA Starbucks cafes.

2.2. MISSION AND VISION OF THE COMPANY

Tata Global Beverages is today an integrated beverage business that has set out on a journey to become the global
leader in branded ‘good for you’ beverages. They believe passionately in making the world a better place through
life-enhancing sustainable hydration - and their mission is to make this a reality. By ‘life-enhancing sustainable
hydration they meant beverages which taste good, are good for us, good for others and good for the planet.

Tata Global Beverages is a business with rich traditions and big ambition. As a consolidated group they are already
the second-largest tea company in the world, on a journey to become the global leader in branded ‘good for you’
beverages. TGBL is growing fast – focusing on ‘disruptive’ innovation that’s changing the way consumers enjoy
beverages, by growing their brands and investing in new and exciting opportunities to expand business. The
company is building a truly global business with 65% of the consolidated revenues coming from markets outside
India new corporate headquarters in London, a single Executive Office to co-ordinate key functions and three
Regional Presidents running consumer-facing businesses. It is working hard to build a shared company culture and
align every one of its 3,000 employees behind a clear strategy to deliver sustainable success. The company’s strategy
focuses on product innovation, building global brands, success in new channels and more countries, plus greater
efficiency.

16
Brands
 building key global brands, including Tetley and Tata Tea, plus exciting new regional brands such as Tetley
Infusions and Good Earth.
Products and ‘disruptive’ innovation
 challenging and changing the way customers think about beverages and enjoy
Sustainability
 aiming for long-term success, so sustainability makes business sense. The company has identified four key
issues to drive them forward: Ethical Sourcing, Climate Change, Packaging and Water.
Process
 new global information systems will help the company to improve efficiency and share knowledge, today and
in future.
Distribution
 moving into new markets and new channels to become truly global.

People
 through simplified global management system, emerging, culture and ‘talent’ strategy, Tata Global
Beverages become ‘the place to be’.

VISION
The vision of Tata Global Beverages is to be the most admired natural beverages company in the world by making a
big and lasting difference in Tea, Coffee and Water.

2.3 HEADQUARTERS
The company's headquarters is situated in Kolkata, India. It has plants and facilities in the UK, Australia, Canada,
Poland, Russia, Pakistan, Bangladesh, and South Africa.

2.4 PRODUCTS

Brands

Company has wide portfolio of product range. Company focused on marketing initiatives and its wide product
portfolio with the presence of brands across the price spectrum has made it gain the leadership position in India.
Strong brands are blood life of consumer goods companies. Brands of Tata Global Beverages touch millions across
the globe every day.
17
Company’s focus is on growing more brands through innovative and exciting variants while nourturing regional
brands. Company has invested significantly in brand building initiatives ensuring the brands retain top of the mind
recall with customers. Under its product portfolio, it has national brands and global brands.

National Brands

Tata Tea

Tata Tea is officially a super brand of India, enjoying almost legendary status in the country. It is the volume leader
and second most trusted hot beverage brand, thanks to great regional brands including KannanDevan, Chakra Gold,
Agni, Gemini and Tata Tea Gold. But it is not just about tea. The company also promotes social awakening and
action through its landmark ‘Jaago Re’ marketing companies. Tata Tea’s Soch Badlo campaign received Abby
awards, India’s most prestigious awards. It received three bronze Abbys in three categories- Brand campaign
websites, Creative use of Social Media and Digital Integrated Campaign.

 Tata Tea Premium: This is the flagship brand of Tata Tea which has been repositioned for the current year
and has been quite successful brand.
 Chakra Gold: One of the famous brand in South, it is positioned not only as the tea that refreshes you but also
makes you look at personnel, irrational biases in refreshing manner. Open up your mind has been the tagline
of its campaign.
 Kannan Devan: Recently Kannan Devan celebrated its 25 glorious years of its ploy packing that ensures
consumer satisfaction and enriched the life of many. And the theme for the brand was ‘winning challenges
with a smile for 25 years’.

Global brands

TGBL is expanding its footprint in international market. It is focusing on the brand portfolio which includes
brands such as Tetley, Good Earth, Eight O’Clock Coffee, Himalayan, Grand, Vitax, Jemca, Tata Coffee, Laagar,
Activate.

TATA Starbucks

TGBL has entered into joint venture with Starbucks to open coffee chains in collaboration across India.
Memorandum of understanding was signed in this regard which creates a collaboration for sourcing coffee beans,
utilizing roasting facilities to meet the requirements of Starbucks etc. are the main agenda in this joint venture.
Till now Tata Starbucks has opened a total of 73 stores.

NourishCo.

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 The company entered into joint venture with PepsiCo India with the objective to introduce a number of
nutritionally positive drinks in India. NourishCo, the joint venture, launched Tata Water Plus, India’s first
nutrient water brand. NourishCo also launched Tata Gluco Plus, a glucose based lemon-flavored drink in a
unique cup format, with the promise of providing instant energy.

The main products under bengaluru’s office are:

1. BULK AND INSTANT TEA:

Bulk Tea
Teas are supplied in packaging as per ISO norms as well as customer requirements like Kraft Paper Sacks, Multiwall
Paper Sacks, Rigid T--Sacks, Polywoven Sacks, Polylined Jute Bags etc.
Instant Tea
Instant Tea Division caters to customer specific product and are used for light density 100% Teas, Iced Tea Mixes
and in the preparation of Ready to Drink (RTD) beverages. Instant Tea powder is packed in bulk packages of
20/25/35 kg each.
2. PACKET TEA:
Kanan Devan: The Kanan Devan Tea story begins in the late 19th century when the first European settlers came to
the Kanan Devan Hills in the state of Travancore. Braving an inhospitable terrain the early planters started
cultivating Tea bushes in the fertile forest land of the Western Ghats. The tea they produced was exported to Europe
and other countries throughout the world. Specifically sourced from the Kanan Devan Hills, Kanan Devan tea is
characterized by its unique taste preferred throughout South India. Today the brand is a leader in its own right
throughout South India selling about 7 million Kgs of Tea.
Gemini: The brand Gemini is a dust tea, sold in the states of Andhra Pradesh, Madhya Pradesh, Chattisgarh, Tamil
Nadu and Karnartaka. However the focus of this brand is to be a strong regional player in the state of Andhra
Pradesh. This brand has a high component of Assam tea, which lends to its unique strength, taste and color. Gemini
is the market leader in its price segment.

Tata Tea Agni: By bringing the popular economy brand Agni under the stable TATA TEA, the flagship brand, the
company intends to further consolidate its presence in the large and promising economy segment by leveraging the
tremendous equity of the flagship brand and allowing consumers access to the popular TATA TEA brand.

Chakra Gold: Chakra Gold Tea is a blend of high quality Assam CTC Dust teas. Chakra Gold is a strong No 2
brand in the high quality & high priced Premium Dust tea Market of South India. Chakra Gold is available to
household consumers in a sleek, trendy and extremely attractive, international packaging.

Temptation: Tata Tea, is now offering consumers great value with the launch of Tata Tea Temptation - a premium,
19
orthodox leaf tea. Temptation will offer tea Connoisseurs a Rare Flavor of Assam Leaf' that delivers a unique taste
and aroma. Tata Tea Temptation is the first among many new products to come from Tata Tea Limited and can be
attributed to the company's sharply focused philosophy - "the customer is sovereign".

Tata Tea Gold: The product, introduced as an up grader variant of Tata Tea brand, has a blend of 85% CTC and
15% long leaf tea. This is a blend of tea which is visually unique and a superior taste. - An innovation in the tea
market.

Tata Tea Premium: Tata Tea, The flagship brand of our company, was launched in 1987. Tata Tea used tea leaves
picked from our own gardens, packed then and there at the gardens, thus sealing in the real freshness of the gardens.

3. TATA COFFEE
Tata Coffee Ltd. Asia's largest Coffee producing company started its Marketing division in the year 1993.
Coorg Coffee Works

These are a chain of outlets in Chennai and Bangalore run on franchisee model retailing fresh Roast and Ground
Coffee. Roasted Coffee beans of different varieties are displayed and consumers are given a choice to make their
own blends.
Tata's Coorg 100% pure Filter Coffee

Tata Coorg Double Roast

Tata's Coorg Double Roast has become India's 2nd largest filter coffee-chicory brand.
Tata Cafe
Tata Cafe, a 100% pure Instant Coffee, was launched in 1996. Lot of innovative marketing activities has given this
brand larger than life image.
Tata Kaapi
Tata Kaapi, an Instant Coffee - Chicory mixture is the third player in the Instant coffee-chicory segment. This brand
attempts to strike a balance between Tradition and Modernity. A blend of tradition and lifestyle imagery has been
used to project this brand. This brand has triumphantly entered the Guinness Book of World Records with the
world's largest Coffee mug.
Tata Cafe Jiffy Vending
Tata Cafe Jiffy Vending machines started operations in the year 1996 and has grown at a frantic pace. In the last year
they have grown extraordinarily well-spreading across 12 states in 40 Cities and Towns and this number is going to
accelerate. These machines cater to out of home consumption of Coffee in a fast, convenient and hygienic mode.
4. STRAWBERRY
20
The Strawberry preserve making unit of DARE (Drug Abuse Resistance Education) offers vocational rehabilitation
to the elder children of the project. As part of the rehabilitation program, a strawberry preserve-making unit is
maintained by the centre where the children are not only involved in the collection, cleaning and making of
strawberry preserve but are also encouraged to grow strawberries, which are then bought by the centre. This becomes
an additional source of income for the children. The preserve consists of farm fresh strawberries preserved in sugar
and lime juice; no artificial preservatives or coloring agents are used.

2.5 .CUSTOMERS

AREAS OF BUSINESS
Branded tea: The company has five major brands in the Indian market — Tata Tea, Tetley, Kanan Devan, Chakra
Gold and Gemini — catering to all major consumer segments for tea. Tata Tea's distribution network in the country
caters to over 1.2 million retail outlets.
Specialty tea: Tata Tea sells black, green, fruit and herbal teas under the brands of Tetley, Good Earth and JEMCA.
Instant tea: Tata Tetley has an export unit that sells a range of instant tea powders in the US.
Coffee: Tata Coffee produces 9,000 million tonnes of instant and ground coffee annually. It has an exclusive
stocking arrangement with the Barista range of coffee bars. Eight O’clock Coffee is the third-largest coffee brand in
the US.
Other beverages: Ready-to-drink teas, energy drinks and Himalayan branded mineral water are a part of Tata Tea's
portfolio.

21
2.6 PRODUCTION PROCESS

TEA PURCHASING

DISPATCH TO PACKETING
CENTRES

DATA TO BLENDERS

ISSUE BLEND CARDS TO

PACKETING CENTERS

ASSEMBLE BATCHES AS PER

BLEND SHEET

BLENDING

PACKING

STOCKIST RETAILER CUSTOMERS

FIGURE 2: PRODUCTION PROCESS

22
2.7 SUPPLY CHAIN ACTIVITY IN TGBL

The tea plucking in India usually picks up between July and October. The raw tea procurement in TGBL in TGBL is
done from North-eastern region(Assam and West Bengal) and southern region(Nilgiri-Kerala, Tamil Nadu) through
various auction centres as well as through other private vendors. The procurement is done for two varieties i.e.

 CTC (Crush-tear-curl) grade

 Dust variety

CTC grade is used as raw tea for further processing of Tata Tea, Tata Gold, Agni, Tetley brands. Dust variety of tea
is used for processing regional brands, to name few: Chakra, Gemini, Leo, Kanan Devan.

The procurement from southern region is more or less evenly throughout the year whereas the procurement from
Northeastern region has major seasonality effect. The tea from Northeast region especially the Darjeeling Tea is
harvested in different flushed:

 First flush is harvested in mid march following spring rains, and has a gentle, very light colour, aroma and
mild astringency.
 Second flush is harvested in June and produces an amber, full-bodied, muscatel flavored cup.
 Monsoon or rains tea is harvested in the monsoon (or rainy season) between second flush and autumnal, is
less withered, consequently more oxidized, and usually sold at lower price. It is rarely exported, and often
used in masala chai.
 Autumnal flush is harvested in the autumn after the rainy season, and has somewhat less delicate flavor and
less spicy tones, but fuller body and darker colour.

The tea harvested in various flushed has different aromas and taste. This poses a challenge for maintaining
quality standard of tea brands. To maintain similar aroma of a particular brand and to overcome the non-
availability of raw tea in some seasons, company has to maintain high inventory level. Besides every tea brand
require multiple blends which can be procured in different flushes. This lead the company to hold inventory until
all the blends are procured.

Company procures tea blends through various auction centres and private vendors. Many of these are registered
under small and medium enterprises (SME). Company has different terms of payment with the auction centre and
private suppliers which is governed by auction rules, government’s rule regarding SME payments and company’s
policies.

23
 Company sells its entire branded products on credit basis through consignee agents and Carry and Forwarding
Agents (C&F). Company sells directly to consignee agent whereas in case of C&F agents, their stockists are
TGBL’s customers. C&F agents get commission from the company on sale of the products. Company has wide
network of stockists and distributors through which it able to serve its customers in urban, semi urban and rural
areas. Company also supplies its products to government facilities such as Army Canteen.

2.8CORPORATE GOVERNANCE

Tata Global Beverages Limited aims to deliver long-term value for its shareholders by providing wide variety of
products and brands that consumers enjoy without ever compromising on integrity, environmental and social
obligations or regulatory compliance.

A set of clear management processes and policies are in place to ensure that this is the case- they also guarantee
transparency and openness in everything TGBL does, at every level. Corporate governance is made a priority at
every level of the company. It assigns responsibility and accountability to individuals, Board committees and
management teams.

24
 CHAPTER 3

ORGANIZATIONAL STRUCTURE AND FUNCTIONAL DEPARTMENTS

Organization structure, means a structure of relationship between different positions and jobs in an enterprise. The
relation may exist as formal or informal. It is a framework within which the efforts of every individual is coordinated
and directed towards the achievement of common goals and aims.

3.1 LEVELS IN THE ORGANISATION

VICE PRESIDENT

GENERAL
MANAGER

DEPUTY
GENERAL
MANAGER

CHIEF
MANAGER

SENIOR
MANAGER

MANAGER

25
 DEPUTY
MANAGER

ASSISTANT
MANAGER

EXECUTIVE

FIGURE 3: LEVELS IN THE ORGANISATION

3.2 FUNCTIONAL DEPARTMENTS

There are nine functional departments:
 Human resource
 Finance
 Business finance
 Corporate finance
 Sale and distribution
 Marketing
 Operations
 Project and development
 R&D
 Quality management
 SCM

HUMAN RESOURSE DEPARTMENT

26
FUNCTIONS OF THE DEPARTMENT:

 Formulation of Human Resource policies, procedures, rules and regulations.

 Employee recruitment, selection, hiring, placement and discipline.
 Wage and salary administration.
 Employee relations, welfare and benefits.
 Training and development.
 Human Resource record management.

REGIONAL HR
DIRECTOR

CHIEF MANAGER

SENIOR MANAGER

FIGURE 4: LEVELS IN HR DEPARTMENT

SALES AND DISTRIBUTION DEPARTMENT

FUNCTIONS OF THE DEPARTMENT:
 Establishes and enforces policies.
 Set sales and distribution plans and goals for the company.
 Develops strategies or recommends procedural changes to meet competition and improve customer
satisfaction

27
 VP SALES & DISTRIBUTION
DEPT.

RM HEAD HEAD OF TRADE

RM
RM EAST RM WEST MODERN INSTITUTI MARKETING
NORTH SOUTH
MANAGER ONS MANAGER

FIGURE 5: SALES AND DISTRIBUTION DEPARTMENT

FINANCE DEPARTMENT
Main Functions of Finance Department:
 Preparation of budget, appropriation of accounts, re-appropriations,.
 Control of expenditure and ways and means position.
 Audit
 Treasury administration.
 Administration of Taxes ie, Sales Tax, Entertainment Tax, Luxury Tax and Entry Tax etc.
 Resource mobilization through loans, Institutional Finance, Small savings, Credit
 Investment and public debt.
 Financial advice.
 Safety and investment of funds from consolidated funds, contingency fund and public account.
 Contract, recovery and refund of revenue etc.

Finance Department has two divisions:

a. Corporate Finance

28
b. Business Finance

a. Corporate Finance

GENERAL MANAGER

CHIEF MANAGER

SENIOR MANAGER

FIGURE 6: LEVELS IN CORPORATE FINANCE

Corporate finance includes two key functions: accounting and finance.

 Accounting concerns itself with day-to-day operations. Accountants balance the books, track expenses and
revenue, execute payroll, and pay the bills. They also compile all the financial data needed to issue a
company's financial statements in accordance with government regulations.
 Finance professionals analyze revenue and expenses to ensure effective use of capital. They also advise
businesses about project costs, make capital investments, and structure deals to help companies grow.
b. Business Finance
The functions of business finance are the following:
 Making payments for expenditure incurred in business.
 Fulfill the requirements of working capital.
 Purchasing office premises and office buildings.
 Purchasing plant and machinery
29
 GENERAL MANAGER

CHIEF MANAGER

DEPUTY MANAGER

FIGURE 7: LEVELS IN BUSINESS FINANCE

MARKETING DEPARTMENT

Functions of Marketing Department

 Development of marketing goals and strategy
 Conducting marketing researches and monitoring customer needs
 Promotion and advertisement
 Establishes and enforces the policies and procedures.

30
 ASSOCIATE PRESIDENT MARKETING
TEA & COFFEE

MARKETING MARKETING
MARKETING MARKETING
MANAGER- MANAGER-
MANAGER- MANAGER-GOLD
CHAKRA& PREMIUM
GEMINI &KD &TETLEY
GEMINI &COFFEE

BRAND BRAND BRAND BRAND

MANAGER- MANAGER- MANAGER- MANAGER-
BRAND
COFFEE&AGNI TATA TEA KANNAN DEVAN TETLEY
MANAGER-AGNI
PREMIUM

FIGURE 8: LEVELS IN MARKETING DEPT.

OPERATIONS MANAGEMENT DEPARTMENT

Functions are as follows:
 Turning inputs into finished outputs effectively through a series of production processes.
 Set standards and targets for each section of the production process.
 Responsible for providing the materials required to keep the production process running smoothly. A vital
aspect of this role is ensuring stocks arrive on time and to the right quality.
 Responsible for stocking all the necessary tools, spares, raw materials and equipment required to service the
manufacturing process.
 Maintenance of the production line and other necessary repairs.

31
  The works department may also have responsibility for quality control and inspection.

VICE
PRESIDIENT
OPERATIONS

VICE
PRESIDIENT
PROCUREME
NT

CHIEF CHIEF
CHIEF CHIEF
MANAGER MANAGER-
MANAGER- MANAGER-
PRODUCTION
LOGISTICS NEW PROJECTS ENGG
& OPERATION

FIGURE 9: LEVELS IN OPERATIONS MANAGEMENT DEPARTMENT

PROJECTS AND DEVELOPMENT DEPARTMENT

FUNCTIONS OF THE DEPARTMENT:

1. Business functions
 Market analysis
 New Product Ideas
 Coordinate product launches
 Feasibility
2. Development functions
 Architecture & design
32
  Coding
 Hardware design
 Unit testing
 Deployment
 Maintenance.

3. Testing functions
 Test case design
 Compliance
 Quality assurance
 Defect tracking
 Reporting

4. Project Management functions

 Project tracking
 Communications planning
 Scheduling
 Budgeting
 Resource allocation

5. Support functions
 Customer issue resolution
 Defect reporting
 Sales training
 Documentation functions

6. Create all product documents

7 Online and office help documents

33
 DIRECTOR OF PROJECTS&
DEVELOPMENT

SENIOR MANAGER
SENIOR MANAGER

FIGURE 10: LEVELS IN PROJECT & DEVELOPMENT DEPARTMENT

RESEARCH AND DEVELOPMENT (R&D):

FUNCTIONS:
Development of new products:
The primary function of the R&D department is to develop new products, which are essential if the company is to
generate profits in the medium and long term. All products have a finite commercial life .The key factors that both
the R&D managers and their staff are responsible for, when developing new products are:-
 Ensuring the new product meets the product specification
 Developing products to budget
 Developing products on time
 Developing products that can be produced quickly and economically
 Developing products that meet specified quality levels as detailed in the product quality plan

34
 CHIEF MANAGER
(TEA &COFFEE)

GENERAL DEPUTY
MANAGER GENERAL
MANAGER
CHIEF MANAGER
(WATER &COLD
DRINKS)

FIGURE 11:LEVELS IN RESEARCH AND DEVELOPMENT (R&D)

QUALITY MANAGEMENT DEPARTMENT

FUNCTIONS ARE AS FOLLOWS:
 Analyzing current project standards, researching external methods and combining them with the experience
of quality assurance standards to further improvement as guardian of client interests
 Operating as a communicator between the business needs and the technical implementers, providing both
with a framework to enable successful quality control
 Ensuring the technical solutions exactly match the QA standards
 Finding ways for preventing and minimizing potential losses
 Planning and setting quality standards which are measurable, realistic and achievable
 Maintaining and improving upon all quality records and ensuring good document control.

35
 QUUALITY
ASSURANCE
DIRECTOR

QUUALITY
ASSURANCE
SUPERVISOR

QUUALITY
ASSURANCE
SPEACIALIST

FIGURE 12:LEVELS IN QUALITY MANAGEMENT DEPARTMENT

SUPPLY CHAIN MANAGEMENT

FUNCTIONS:
1 Production
 Minimize product quality.
 Minimize waste or rework.
 Delivery within fixed and variable budget cost

2 Sales and Operations

 Outputs from this function triggers procurement, production and delivery flows.
 Single link between all internal and external stakeholders to ensure product availability at the right place and
right time.

3 Materials

 Vendor development and management

36
  Costing, budgeting and cost control through cost models and market intelligence.
 Timely delivery of packing, consumables, engineering spares and capital goods.
 Inventory control and management

4 Logistics New product development

 Timely availability of Lorries

 Timely delivery as per planned lead time.
 Delivery within budgeted cost.

5 Engineering and Establishment

 Monitor the engineering expenditure and energy consumption against budget
 Monitor the Statutory compliance related to electricity, environment, and weights and measures.
 Machine replacement policy- analyze the performance of machines and make recommendations for the
capital expense

CHAPTER 4
SWOT ANALYSIS
37
STRENGTH :
Brand Loyalty
The customers have high degree of brand loyalty; hence even though the company has a lot of competitors, they still
managed to capture a large part of the market share.
Distribution Channels
Due to its efficient distribution channels, there is always sufficient supply of its products to match the demand in the
market.
Innovative flavors for Indian taste buds
The company has a wide range of flavors to match the tastes of Indians, which other brands don't have much,
because of which its products have an upper hand in the Indian market.
Advertising strategy
The company's advertising strategies are also very unique and eye catching, which enhances the demand for its
products.
Experience
The company also has years of experience in the tea industry and hence it’s specialized in the production and supply
of tea.

WEAKNESS:
Technological effectiveness
The technology that the company uses is not that effective and hence they are unable to control the cost of
production.
Cost control
The company's cost of production is quite high and hence they cannot reduce the price of their products beyond
particular point.
No product differentiation
The company doesn't have much of product differentiation. It is concentrating only on the beverage sector.

OPPORTUNITY:
Unexploited rural markets
The demand for tea in the rural markets are increasing, hence if they can concentrate a bit more on the rural markets,
they will be able to expand their business more.
Increasing number of working youth who prefer tea
The number of consumers of tea is increasing day by day, especially among the working youth who consume a large
amount of tea at their work places.
38
Export market
The demand for the company's products is increasing in the international markets also, so they can export more and
increase their earnings.
Mergers and Acquisitions
The company can become stronger and reduce competition by taking over other companies in the same field.

THREAT:
Strong presence of regional competitors
The regional competitors in for instance, China and Sri Lanka are able to sell products at lower prices due to the
cheaper labor facilities available there.
Competitive pricing
There are so many competitors selling at lower prices that people that competition has become very severe.
Globalization
As a result of globalization, the competition from a lot of foreign companies is increasing
Rise in import duty
Due to the rise in import duty, the overall cost of production increases, hence increasing the price of the products.
Competition from complementary goods like Coke, Pepsi etc
Nowadays a lot of people prefer find it refreshing to drink soft drinks rather than hot ones like tea and coffee.

39
 SECTION 2
ROUTINE WORK

CHAPTER 5
ROUTINE WORK

40
5.1 OBJECTIVE OF THE ROUTINE WORK

 Getting familiarized with concepts and principles in corporate finance

 To understand the functioning of treasury department
 To learn the procedure involved in processing vouchers
 To learn about documentation regarding investment
 To learn the procedure for addition of signatories in the demat account
 To prepare a document for comparing the competitor’s operational revenue

5.2 CASH MANAGEMENT OF TATA GLOBAL BEVERAGES

Cash management is a crucial function of any firm as it helps in attaining the goal of wealth of maximization. This is
done through proper planning and execution. Planning is done on the basis of data analysis. It starts with finding
firm’s operating and cash to cash cycle. Budgeting and forecasting is then done by sales, production, procurement,
labour and finance department in that order. Once the budgeting is done sources of funds and investment of surplus
fund is planned by the treasury and management approval is taken for the same. Stages for an effective cash
management are depicted below:

 Cash to cash cycle

 Annual budgeting
 Sources of fund
 Investment of surplus fund
Firm’s requirement for cash is determined by its cash to cash cycle which takes into account each element of
working capital. This cycle is also the basis of budgeting processes of firms. Forecast and planning of
operations are done and subsequently sources of investment are determined.

Activities for cash management

For an efficient cash management and wealth management team has to perform allied activities such as:

 Management of currency/interest and commodity risks

 Negotiation with banks
 Maintenance of periodic credit rating on discussion with agencies
41
  Liquidity planning/control
 Finance procurement or investment

Negotiation with banks

Treasury group transact with banks on daily basis. Banks act as facilitator and help the firms in financial matters.
Following are the areas for which the company negotiates with bank:

 To facilitate cash management system

 To raise fund- working capital and term loan
 To hedge the foreign currency exposure
 To invest surplus fund in fixed deposits
 To issue bank/ guarantees/ securities
 To issue employee credit for official expenses

Credit Rating

 As per SEBI rule firms have to maintain credit rating for raising funds whether long term(including
debentures) or short term (including working capital borrowing). For the long term debt reting need to be
obtained based on the specific debt programme, and the rating remains effective for the entire tenor of the
debt, with an annual surveillance exercise undertaken by the rating agency. Whereas for short term debt
programme the rating needs to be obtained under BASEL II norms and is generally valid for a tenor of 1 year
and the same need to be revalidated each year. These ratings are used by investors to assess the riskiness of
the firm.
Liquidity Planning/control

Treasury manages various rupee denominated bank account based on the requirement of the business with the banks
under its multiple bank arrangements. In addition the entity also has USD, GBP and LKR denominated oversea
accounts. The list of banks with which the entity operates is appended below:

 State Bank of India

 Citibank N A
 Standard Chartered Bank
 The Royal bank of Scotland N .V
 HDFC Bank
 ICICI Bank
 Hong Kong and Shanghai Banking Corporation Limited

42
  Deutsche Bank
 Bank of America
 State Bank of Travancore
 Yes Bank Limited
 AXIS Bank
All the accounts maintained with a bank have a day end sweep in arrangement, whereby the entire day end surplus/
deficit gets swept into the main account, enabling the entity to efficiently manage and utilize funds, thereby reducing
the interest cost.

Treasury has a mechanism for forecasting and monitoring the daily fund requirements, which dovetails in the annual
cash budget. The forecasting of funds is done on a daily basis to ascertain the requirement of the various businesses
for the entity and the net surplus/net deficit is arrived. The net surplus is deployed in Board approves investments
either liquid or short term or long term based on the projected funds requirements. Net deficit, if any, is repaid out of
the liquid investments or through availing of borrowings.

To manage and monitor the cash, treasury prepares:

 Budgeted month-wise cash forecast based on budgeted financials

 Estimated cash forecast for the year, on a rolling monthly basis
 Rolling weekly cash forecast
 Month end actual cash flow to compare with budget and estimate
The entity also has cash management arrangements (CMS) with its main multiple banks, covering the entire
domestic collection. The entire collections for the bigger dealers i.e. the Consignee Agents (Covering the North and
East of India) covering the 60%-70% of the total domestic turnover, are on electronic payment method
(RTGS/NRFT/Fund Transfer) and the balance of the domestic turnover under the stockiest and C&F model, where
the collection comes in electronic payment method or cheques in order to present CMS arrangement with the bank,
the entity discounts the cheque in order to get the respective credit on the due dates. This helps in releasing the
working capital.

Cash management System

Company has different terms of payment for different stockiest. This also varies from region to region. Under
Integrated Receivable Solutions of HSBC and Collection Service of HDFC, TGBL manages fund inflow from its
wide network of customers. Banks provide solutions to collect payments form both the type of customers.

 Customers paying through cheque

43
TGBL has different payment for its customers. For last 5 years the average collection of TGBL is 21 days. As per the
industry rule customers keep their cheque leave with TGBL, which contains customer code at the backside. TGBL in
turn hand over these cheque leaves to bank for managing the collection. Three days prior to getting the payment due,
TGBL sends the complete list of customer to bank giving details of customer name, customer code, amount due. On
the same day company informs its customer about the net amount bank will debit on 3rd day from their account. On
3rd day bank pulls out the cheque, cross checks the customer code mentioned at the back of leave with the no.
mentioned in the sheet provided by company. Once this is done bank provide conformation of total amount credited
in company’s account. If cheques gets bounced, bank debit that amount from the list in next statement.

 Customers paying through RTGS

As more and more customers are now shifting from cheque system to RTGS, banks help companies to provide
advance solutions to maintain transparency while managing the fund flow efficiently. Under this service banks
provide unique Virtual Account Number to each of TGBL’s customers. These unique numbers are linked to TGBL’s
main account. Through this system banks are able to provide details of every inflow. Prior to shifting to the Virtual
account system, direct credit to main account of TGBL was followed. The process of direct transfer lacks
transparency, as all the details of transactions are not mentioned. With 70 to 80 RTGS transaction every day it is
difficult to keep track without Virtual account System. Company receives the statement of collection received in
every two hours through e-mail.

Cash management system has benefited TGBL in the following ways:

 Faster realization of receivables through their strong logistics management and geographic reach
 Savings in interest costs and bank charges through rationalization of account structure and local clearing at
various locations across the country
 Simplification of process through online querying on receivables
 Simplification and automated bank reconciliation

Banks also give comprehensive MIS that helps the company in reconciliation:

 Daily report of deposits made at various locations

 Location-wise report
 Credit forecast report
 Monthly cumulative report-data wise/location wise
 Monthly charging statement
 Monthly cheque return statement
 Customised reports is received at every 2 hours
44
Investment of surplus cash

Treasury manages and invests surplus cash based on the requirement of entity. Team can invest only in the
instruments authorized by the management. These instruments are:

 Various schemes of approved mutual fund houses

 Inter corporate deposit and loans
 Certificate of deposits with banks
 Small savings scheme and other securities issued by central government or any state government, loans and
bonds as approved.

The overall limits for the investment of the company has been capped up to a limit of RS.200 lakhs by way of inter-
corporate deposits and Rs.500 lakhs by way of investments in units of mutual funds and certificate of deposits of
approved banks. Subsequently investments in mutual funds may go up to Rs. 700 lakhs with a corresponding
reduction of limit in inter-corporate deposits.

Investment in mutual funds

Investment in mutual funds in TGBL is made in various schemes as given below:

 Liquid funds- Investment in liquid fund is done for temporary parking of funds. The papers have an average
maturity of less than 60 days.
 Liquid Plan Fund- This is done for temporary parking of funds. The papers have an average maturity between
60 to 90 days. It generates higher returns than liquid fund.
 Fixed Maturity Plan (FMP) - This scheme gives fixed rate of return over a specified tenor.
 Short term Income/Debt Funds- This is duration product capable of generating higher return in the scenario
of falling interest rates. The horizon based on economic factors can be in the range of 6 months to 2 years.
 Guilt Fund- This is a kind of fund that invests in several different types of medium and long term government
securities. This is long duration product.

Any investment in units of approved mutual funds is governed by the following guidelines:

 Investment in a single mutual fund scheme should not exceed the approved limit
 Maximum exposure per mutual fund house or AMC should be limited to approved limit (in lakhs) or
approved percentage of the total portfolio, whichever is lower.
 Investment should be made in the schemes of mutual funds where the total corpus of the scheme exceeds
management specified limit.

45
  Investment to be made in top performing approved mutual fund schemes and performance is monitored on
regular basis along with the quality of paper in the investment is being made by the mutual fund scheme.

Investment Inter-Corporate Deposits/ Loans

Investments by way of inter corporate deposits/ loans to be made only within the approved list of companies subject
to the following:

 Total investment by way of inter corporate deposits with a single company should not exceed the approved
limit.
 The rate of interest for loans/ inter corporate deposits shall not be lower than the prevailing bank rate.
 The investments by way of inter corporate deposits made are within the overall limit as prescribed by section
372A of the Companies Act.
 The tenor of investment should not be beyond a period of 1 year.
 Periodic updates of the financial position are obtained for the companies with which inter corporate deposits/
loans are placed.

Investment in certificate of deposits with banks

The investment in certificates of deposits or fixed deposits to be placed only with the approved list of banks within
the multiple banking arrangements or as may be approved by the board from time to time. The investments in single
certificates of deposit should not exceed board’s approved limit.

Other long term investments

Any long term/ strategic investment/ non fund based support is made/ provided based on the specific approval from
the board. The treasury then arranges to provide the appropriate funding in terms of tenor and currency as advised by
the Group and Regional CFO. It is ensured that all other regulatory compliances including the availability of
adequate head room under section 372A of the Companies Act are adhered to.

5.3 ACTIVITIES

 Classification and sorting of RTGS and cheques

The RTGS and Cheques must be separated from the bundle of vouchers for processing it.

46
  Classification and sorting of vouchers vendors
This is sorted on the basis of date first and later it is sorted according to the serial numbers. And also
urgent payments are classified and done immediately.
 Classification and sorting of vouchers vendors
These vouchers will contain the travel and other expenses of the employees. This requires the sorting based
on the employee code.
 Processing of RTGS
First, the total fund required for the transaction is calculated by summing up the amount specified in the
vouchers. This calculation is done in excel.
The payments are made through HDFC bank. After the transaction, the vendors will be debited and bank will
be credited. If any details are not available, then that payments will be blocked. SAP software is used to
process these vouchers. SAP will generate document number for each voucher and it is written manually over
them for filing purpose.
 Documentation regarding investments
Every day the manager will make the decision about investments and redemptions. He will specify the
schemes and amount that is needed to invested or redeemed. Based on this information, I have to fill the
forms and get it authorized by the officers.
 Helped in preparing cash closing summary
I helped in making cash closing summary. The data in ledger were analyzed and based on this, the summary
was made. The main aim of preparing the summary is to count the number of SBNs (Specified Bank Notes)
during the period of 8th November to 31st March, 2017.

 Helped in maintaining the mutual fund balance sheet

Based on daily investment, a sheet is maintained to keep track the amount of investments and redemption.

 Helped in doing the bank reconciliation

At first the bank statements are downloaded from the bank's website.Then it is uploaded into SAP. Then each
entries are made individually. At the end, the closing book balance and the bank balance must be matched. If
its not matching, then it must be rectified.
 Helped my team in the procedure of addition of signatories in the demat account
 Prepared document for comparing the competitor’s operational revenue
I prepared a report for comparing the competitor's operational revenue. It includes the comparison of revenue
of other companies like Godrej, HUL,..etc.

5.4 ACHIEVEMENTS ON COMPLETION OF WORK

47
  Understood the procedure for processing the vouchers of vendors and employees.
 Understood the division of work amongst the other team members and representatives in order to finfish the
work faster and efficiently.
 Learned the procedure of documentation of investment forms
 I helped my team in the procedure of addition of signatories in the demat account.
 Done the paper works for the addition of signatories
 Prepared a document for comparing the competitor’s operational revenue. This is used for preparing the
annual report. The revenue generated by other companies of the same segment were given. These companies
includes HUL, Godrej,..etc. Their revenues were compared and then the report was made.
 Learned the fact that comparison with the competitor is very important for a company to expand and operate.
 Mutual fund balance sheet entries are done on daily basis.This sheet is maintained tot know how much about
on money is invested and redeemed.

5.5 LIMIATATION OF THE WORK

There were some limitations in conducting the organization study at Tata Global
Beverages LTD.
 There were difficulties in obtaining data from executives and managers due to their busy work schedule.
 An in-depth study of the company could not be carried out due to shortage of time.
 The reliability of data used for study is largely depends upon the company’s reports and information given by
the executives.
 The company has limitation to disclose their essential details, so a detailed analysis of performance of the
company is not possible.
 Manual sorting of the vouchers are very time consuming.

5.6 LEARNING FROM THE WORK

By doing internship in finance department, I was able to learn the functioning of the department. Also, the duties and
responsibilities of a manager were learned. I could experience on how a manager works to get things done. Steps in
management like planning, directing, controlling, ..etc were closely observed and studied. I got could experience on
how these principles are applied in the work life.

5.7 HOW ROUTINE WORK LEARNINGS CAN BE INCORPORATED AS

PART OF ORGANIZATIONAL STUDY?
The internship at Tata Global Beverages Limited has brought knowledge and gained experience for me in the field of

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corporate finance. It helped me to get familiarization with concepts and principles in finance.
I was assigned to prepare a document that contains the competitor’s operational revenue. So by making comparison
with the competitors, I was able to get to know the performance of the organization.
By the documentation of the investment forms, the amount of money they invest was understood.
The routine work has helped me to identify the organizational structure. The reporting patterns of staffs were
observed. Hence, the routine work has helped me to learn about the organization in general.

5.8AREAS OF IMPROVEMENT IN THE WORK FOR THE ORGANIZATION

 If the vouchers numbers are entered in an excel sheet before processing, the manual sorting of vouchers can be
avoided. This will save time.

5.9 TIME DURATION OF THE WORK

The time duration of my routine work in Tata Global Beverages was from 3rd April, 2017 to 31st May, 2017.

Week 1: (3/04/2017- 7/04/2017)

 Getting familiarized with the concepts and principles in finance

Week 2: (10/04/2017- 14/04/2017)

 Classification and separation of RTGS and Cheques

 Classification and separation of vouchers of vendors and employees

Week 3: (17/04/2017- 21/04/2017)

 Processing of RTGS

Week 4: (24/04/2017-28/04/2017)

 Documentation regarding investment

 Processing of RTGS

Week 5: (2/05/2017- 5/05/2017)

 Helped in preparing cash closing summary

 Documentation regarding investment
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  Processing of RTGS

Week 6: (8/05/2017 -12/05/2017)

 Helped in maintaining the mutual fund balance sheet

 Documentation regarding investment
 Processing of RTGS

Week 7: (15/05/2017 -19/05/2017)

 Helped in doing the Bank Reconciliation

 Investment form filling

Week 8: (22/05/2017 -26/05/2017)

 Helped my team in the procedure of addition of signatories in the demat account

 Documentation regarding investment
 Helped in doing the Bank Reconciliation

Week 9: (29/05/2017- 31/05/2017)

 Documentation regarding investment

 Prepared document for comparing the competitor’s operational revenue
 Helped in maintaining the mutual fund balance sheet

CONCLUSION

I got a wider perception about the non alcoholic beverages industry as a whole and the role played by Tata Global
Beverages Limited. This two months working with TGBL has given me more insight about working at a corporate,

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and attitude that should be followed by an individual in a workplace. Further, it is important to maintain a patient and
perseverant aura to get good results in this work- space. I am grateful for having such a knowledgeable experience
thanks to my guide Mr. Aayush Lohia.

BIBLIOGRAPHY

PRIMARY SOURCE

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  Interview
 Data from organization
 Observation

SECONDARY SOURCE

 http://www.tataglobalbeverages.com/

 http://en.wikipedia.org/wiki/Tata_Global_Beverages

 http://www.tata.com/pdf/TGBL_AR_content_100613.pdf

 www.google.com

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