EXECUTIVE SUMMARY

Over the last few years hundreds of companies have greatly improved their
performance &the graph of growth through superior sales promotion services. Today
many companies are building on these foundations and are tuning their products in Soft
drink segment into a formidable competitive weapon. Sales Promotion services have
become a subject of huge interest in recent years.
Sales Promotion Services is growing because:

 In the face of ever increasing competition in organizations feel it is important to

build reliable & sustainable processes with focus on strong relationships with
customers.

 Significant revenue & profit gains can be made from successful Sales Promotion
Activities that improve efficiency & help serve customers better & faster.
The different distribution channels are as follows:"
1. Eating & Drinking 2. Convenience 3. Grocery
 Activation is the key part of coca-cola marketing strategy
 Company believes that soft drink sell is not a planned sell it's a impulse buying,
and activation create impulse for buying

 For improvement of Coca-cola market, a proper research work has done.

Sales Promotion Strategies are offering new & better ways of addressing industries
objectives.
Coca-Cola has developed a unique sales promotion strategy that offer a unique way
to increase the sales of the soft drink.

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 INTRODUCTION
THE PRODUCT COCA COLA

Coca-Cola is a carbonated soft drink sold in stores, restaurants and vending machines
in more than 200 countries. It is produced by The Coca-Cola Company and is often referred to
simply as Coke. Originally intended as a patent medicine when it was invented in the late 19th
century by John Pemberton, Coca-Cola was bought out by businessman Asa Griggs Candler,
whose marketing tactics led Coke to its dominance of the world soft drink market throughout the
20th century.

The company actually produces concentrate, which is then sold to various licensed
Coca-Cola bottlers throughout the world. The bottlers, who hold territorially exclusive contracts
with the company, produce finished product in cans and bottles from the concentrate in
combination with filtered water and sweeteners. The bottlers then sell, distribute and
merchandise Coca-Cola in cans and bottles to retail stores and vending machines. Such
bottlers include Coca-Cola Enterprises, which is the largest single Coca-Cola bottler in North
America and western Europe. The Coca-Cola Company also sells concentrate for fountain sales
to major restaurants and food service distributors.

The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke
brand name. The most common of these is Diet Coke, which has become a major diet cola.
However, others exist, including Diet Coke Caffeine-Free, Cherry Coke, Coca-Cola Zero, Vanilla
Coke and special editions with lemon and with lime and even with coffee.

In response to consumer insistence on a more natural product, the company is in the

process of phasing E211 or Sodium Benzoate, the controversial additive linked to DNA damage
and hyperactivity in children, out of Diet Coke. The company has stated that it plans to remove
the controversial additive from its other products - including Sprite, and Oasis - as soon as a
satisfactory alternative is discovered.

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 THE AUTOMATED BOTTLING PROCESS
The glass bottles returned from the market are thoroughly cleaned and sanitized with
specially formulated cleaning agents at high temperature that use sophisticated state-of-the-art
Bottle Washers or Bottle Risers(in case of PET). These bottles are then transported to the filler
using a fully automated conveyor system after a thorough visual inspection. The beverage is
then filled into glass containers or virgin food grade PET bottles using a high-speed automated
filling machine. The entire filling operation is fully automated and untouched by human hands.

The bottles are finally capped/crowned, date coded and packed into crates/cartons to
make them available to our consumers.

The complete manufacturing process has a well defined and structured Quality Control
and Assurance Program. All the manufacturing facilities employ qualified, experienced and
trained professionals for manufacturing and testing of our products.

All the bottling facilities follow the Good Manufacturing Practices requirements as
applicable to the food industry. All manufacturing equipment fulfills the stringent requirements of
GMP and sanitary design.

The entire quality management system of each plant is documented, managed and
continually improved through a world-wide accepted system of TCCQS (The Coca-Cola Quality
System).

CORE PRODUCTS OF COCA-COLA

THUMS UP

Thums up is a leading carbonated soft drink and most trusted brand in India. Originally
introduced in 1977 Thums up was acquired by coca-cola company in 1993.

Thums up is known for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. This brand clearly seeks to separate the men from the boys. Thums up is
available in the market in the different packs i.e.200 ml, .500 ml, 1lts, 1.5 Lts, & 2 Lts.

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COKE

It is the heart product of the coca-cola company. It has covered the entire globe i.e. it is
the market leader in more than 70 nations. In the introduction phase, it was the mixture of
cocaine and alcohol but later on due to the demand of consumer, it was converted in to soft
drink with the name of coca-cola. Before the alliance this product was the biggest competitor of
the parle product Thums up. Coke is available in the market in the different packs i.e. 200ml,
300ml, 500ml 1.5lts. & 2 Lts.

LIMCA

Lime n’ lemon Limca, the drink that can cast and tangy refreshing spell on anyone,
anywhere. Born in 1971, Limca has been the original thirst choice, of million of consumers for
over 3 decades. The brand has been displaying healthy volume growths year on year and
Limca continues to be the leading flavor soft drink the country.

The sharp fizz and lemon bite combined with the single minded positioning of the brand
as the ultimate refresher has continuously strengthened the brand franchise. Limca energizes
refreshes and transforms. Dive in to the zingy refreshment of Limca and walk away a new
person.

FANTA

Internationally Fanta the orange drink of the coca-cola company is seen as on of the
favorite drink since 1940. Fanta entered the Indian market in the year 1993. Over the year Fanta
has occupied a strong market place and is identified as “the fun catalyst”.

Perceived as a fun youth brand Fanta stand for it vibrant color tempting taste and
tingling bubbles. This positive image is associated with happy cheerful and special times with
friends.

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 Fanta advertising over the time has had highest association with fun and friends that has
reflected through past TY commercials like Masti ka taste, bajao masti ki ghanti to the recent
commercials dil kohl ke at the airport. Rani Mukerjee as the brand ambassador for Fanta is
the perfect embodiment of the brand character vis fun, vivacious and energetic.

Fanta is available around the country 200ml, 300ml 500ml+100free 1L+200ML FREE 2L
and 330ml cans.

SPRITE

Worldwide sprite is ranked as the no.4 soft drink and is sold in more than 190 countries.
In India, sprite was launched in year 1999 and today it has grown to be one of the fastest
growing soft drink, leading the clear lime category.

To day sprite is perceived as a youth icon. With a strong appeal to the youth, sprit has
stood for a straight forward and honest attitude. Its clear crisp refreshing taste encourages the
today’s youth to trust their instincts influences than to be true to who they are and to obey their
thirst.

Sprite advertising for has always been memorable with very high recall value, especially
amongst the youth. With popular TV commercials like Lisa ray market research and its latest
take on it competitor- “I don’t want to do” sprite has stood in the minds of the youth as “sprite
bujhaye only pyaas, baki all bakwaas” , which has became recognizable around the country.
Sprite is available around the country in 200ml, 300ml, 500ml 500+100ml free, 1.5L, 2L, 2.25L
and 330ml cans. Sprite ice (blue) launched in June 2005 and sprit zero is launched in mid of
July.

MAAZA

Maaza was launched in 1976. Here was a drink that offered the same real taste fruit
juices and was available throughout the country. In 1993 Maaza was acquired by coca-cola
India. Maaza currently dominates the fruit drink category.

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 Over the year brand Maaza has become synonymous with mango. This has been the
result if such successful campaigns like “taaza mango, Maaza mango” and “boatel main
aam, Maaza hai naam “, consumers regard maaza as wholesome natural fun drink which
deliver the real experience of fruit. The current advertising of Maaza position it as an enable of
fun friendship moment between moms and kid as moms trust the brands and kids love its taste
the campaign build on existing equity of the brands and delivers relevant emotional benefits to
the moms rightly captured in the tagline “yaari dosti taaza Maaza”. It is available in SKU’s of
250ml RGB 65ml 125ml 200ml tetra pack. Launched in 2005 is the new packing of Maaza
1.2ltrs 600ml (PET).

KINLEY

It is well known that water is essential for life but it should be mineral also. Before
launching this product the R&D department of coca-cola company has don the research and
find that all available mineral water introduces by different companies are not well refined. So to
safeguard the human life it was made to 5target the customer who wants to drink the query and
refined water in sealed bottles.

MINUTE MAID (PULPY ORANGE)

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REFRESHINGLY ORANGE SURPRISINGLY PULPY

A 62 years success area

A history of the minute maid brand goes as afar back as 145 when the Florida Foods
Corporation developed orange juice powder. The company develops a process that eliminated
80 % of the water in orange juice, forming a frozen concentrates that when reconstituted
created orange juice. They branded it Minute Maid, a name connoting the convince and the
case of preparation (in a minute). Minute Maid thus moved from a powered concentrate to the
first ever orange juice form concentrate.

Minute Maid is one of the world largest juice and juice drinks brand over the years,
through innovations and unmatched consumer experiences. Available in two pack size:

400ml, 1ltr, 1.25ltr.

TEA, COFFEE GEORGIA GOLD

In the company’s journey towards the vision leading the beverage revolution in India now
even “Garam Matlab Coca-Cola”. A hot new launch from state of the art vending machines is
positioned to tap into the nation’s biggest beverage category. Georgia which promises a great
tasting, consistent, hygienic and affordable cuppa is available in range of 7 sizzling flavor:
Adrak, Iliechi, Masala, Plain Tea, Cappuccino, Mocha chino and regular coffee. Georgia is
currently in the roll out stag offer a successful launch in Delhi & Kolkata. Georgia aims to
become the consumer preferred choice of hot beverage when he is on the go. The brand is well on course
to achieving its vision.

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 COMPANY PROFILE

Brings Back The Fizz To India Coca-Cola, the corporate

nourishing the global community with the worlds largest
selling soft drink concentrates since 1886, returned to
India in 1993 after a gap of 16 years giving a new thumbs
up to the Indian Soft Drink Market. In the same year, the
Company took over ownership of the nation's top soft-
drink brands and bottling network. No wonder, our
brands have assumed an iconic status in the minds of the
consumers.

Dr. John Stith Pemberton for the first time produced the syrup for Coca-Cola on May 8,
1886

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 BEVERAGE INDUSTRY IN INDIA: A BRIEF INSIGHT
In India, beverages form an important part of the lives of people. It is an industry, in which the
players constantly innovate, in order to come up with better products to gain more consumers
and satisfy the existing consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

The beverage industry is vast and there various ways of segmenting it, so as to cater the
right product to the right person. The different ways of segmenting it are as follows:

 Alcoholic, non-alcoholic and sports beverages

 Natural and Synthetic beverages

 In-home consumption and out of home on premises consumptions.

 Age wise segmentation i.e. beverages for kids, for adults and for senior citizens

 Segmentation based on the amount of consumption i.e. high levels of consumption and
low levels of consumption.

If the behavioral patterns of consumers in India are closely noticed, it could be observed
that consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest challenges
faced by the beverage industry. In order to leverage the beverage industry, it is important to

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address this issue so as to encourage regular consumption as well as and to make the industry
more affordable.

Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

 The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.

 The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.

 Consumer education is a must to bring out benefits of beverage consumption whether in

terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant
to the category.

 Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for brand
and sales growth in turn to add up to the overall growth of the food and beverage industry in the
economy.

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 HISTORY OF COCA COLA
The first Coca-Cola recipe was invented in Columbus, Georgia at a drugstore by
John Stith Pemberton, originally as a cocawine called Pemberton's French Wine Coca
in 1885. He may have been inspired by the formidable success of European Angelo
Mariani's cocawine, Vin Mariani.

In 1886, when Atlanta and Fulton County passed prohibition legislation,

Pemberton responded by developing Coca-Cola, essentially a carbonated, non-
alcoholic version of French Wine Cola.

The first sales were at Jacob's Pharmacy in AtlantaGeorgia, on May 8, 1886. It

was initially sold as a patent medicine for five cents a glass at soda fountains, which
were popular in the United States at the time due to the belief that carbonated water
was good for the health. Pemberton claimed Coca-Cola cured many diseases, including
morphine addiction, dyspepsia, neurasthenia, headache, and impotence. Pemberton
ran the first advertisement for the beverage on May 29 of the same year in the Atlanta
Journal. For the first eight months only nine drinks were sold each day.

By 1888, three versions of Coca-Cola — sold by three separate businesses —

were on the market. Asa Griggs Candler acquired a stake in Pemberton's company in
1887 and incorporated it as the Coca Cola Company in 1888. The same year, while
suffering from an ongoing addiction to morphine, Pemberton sold the rights a second
time to four more businessmen: J.C. Mayfield, A.O. Murphey, C.O. Mullahy and E.H.
Bloodworth. Meanwhile, Pemberton's alcoholic son Charley Pemberton began selling
his own version of the product.

Coke concentrate, or Coke syrup, was and is sold separately at pharmacies in small
quantities, as an over-the-counter remedy for nausea or mildly upset stomach.

NEW COKE

On April 23, 1985, Coca-Cola, amid much publicity, attempted to change the
formula of the drink with "New Coke." Follow-up taste tests revealed that most
consumers preferred the taste of New Coke to both Coke and Pepsi. Coca-Cola
management was unprepared, however, for the nostalgic sentiments the drink aroused
in the American public. The new Coca-Cola formula caused a public backlash. Protests
caused the company to return to the old formula under the name Coca-Cola Classic on
July 10, 1985.

21ST CENTURY

On February 7, 2005, the Coca-Cola Company announced that in the second

quarter of 2005 they planned a launch of a Diet Coke product sweetened with the
artificial sweetener sucralose ("Splenda"), the same sweetener currently used in Pepsi

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One. On March 21, 2005, it announced another diet product, "Coca-Cola Zero",
sweetened partly with a blend of aspartame and acesulfame potassium. Recently Coca-
Cola has begun to sell a new "healthy soda" Diet Coke with Vitamins B6, B12,
Magnesium, Niacin, and Zinc, marketed as "Diet Coke Plus".

On July 05, 2005, it was revealed that Coca-Cola would resume operations in
Iraq for the first time since the Arab League boycotted the company in 1968.

In April 2007, in Canada, the name "Coca-Cola Classic" was changed back to
"Coca-Cola". The word "Classic" was truncated because "New Coke" was no longer in
production, eliminating the need to differentiate between the two. The formula remained
unchanged.

USE OF STIMULANTS IN FORMULA

When launched Coca Cola's two key ingredients were cocaine (benzoylmethyl
ecgonine) and caffeine. The cocaine was derived from the coca leaf and the caffeine
from kola nuts - Coca-Cola (the 'K' in Kola was replaced with a C for marketing
purposes).

COCA – COCAINE
Pemberton called for five ounces of coca leaf per gallon of syrup, a significant
dose, whereas, in 1891, Candler claimed his formula (altered extensively from
Pemberton's original) contained only a tenth of this amount. Coca Cola did once contain
an estimated nine milligrams of cocaine per glass, but in 1903 it was removed. Coca
Cola still contains coca flavouring.

After 1904, Coca Cola started using, instead of fresh leaves, "spent" leaves - the
leftovers of the cocaine-extraction process with cocaine trace levels left over at a
molecular level. To this day, Coca Cola uses as an ingredient a cocaine free coca leaf
extract prepared at a Stepan Company plant in Maywood, New Jersey.

In the United States, Stepan Company is the only manufacturing plant authorized
by the Federal Government to import and process the coca plant. Stepan laboratory in
Maywood, New Jersey, is the nation's only legal commercial importer of coca leaves,
which it obtains mainly from Peru and, to a lesser extent, Bolivia. Besides producing the
coca flavouring agent for Coca Cola, Stepan Company extracts cocaine from the coca
leaves, which it sells to Mallinckrodt, a St. Louis, Missouri pharmaceutical manufacturer
that is the only company in the United States licensed to purify cocaine for medicinal
use. N.J. Stepan buys about 100 metric tons of dried Peruvian coca leaves each year,
said Marco Castillo, spokesman for Peru's state-owned National Coca Co.

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KOLA NUTS – CAFFEINE

Kola nuts act as a flavouring in Coca Cola, but is also the beverage's source of
caffeine. In Britain, for example, the ingredient label states "Flavourings (Including
Caffeine)". Kola nuts contains about 2 to 3.5 percent caffeine, is of bitter flavour and is
commonly used in cola soft drinks. In 1911 The US government initiated United States
v. Forty Barrels and Twenty Kegs of Coca-Cola, hoping to force Coca Cola to remove
caffeine from its formula. The case was decided in favour of Coca Cola. Subsequently,
in 1912 the US Pure Food and Drug Act was amended, adding caffeine to the list of
"habit-forming" and "deleterious" substances which must be listed on a product's label.

Coca Cola contains 34 mg/12 fl oz of caffeine, while Diet Coke Caffeine-Free

contains 0 mg. Caffeine may be used by athletes as ergogenic aid - to increasing the
capacity for mental or physical labor. The ergogenic qualities of caffeine are contested,
although there is strong evidence that it may significantly enhance endurance
performance. For this reason, caffeine is listed as a restricted substance by the
International Olympic Committee (IOC). Nevertheless Coca Cola was the leading
sponsor of the 1996 summer Olympic games.

PRODUCTION

Bottles of Coca-Cola Zero and Coca-Cola Light

FORMULA

The exact formula of Coca-Cola is a famous trade secret. The original copy of
the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the Trust
Company, was the underwriter for the Coca-Cola Company's initial public offering in
1919. A popular myth states that only two executives have access to the formula, with
each executive having only half the formula. The truth is that while Coca-Cola does
have a rule restricting access to only two executives, each knows the entire formula and
others, in addition to the prescribed duo, have known the formulation process.

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FRANCHISED PRODUCTION MODEL

The actual production and distribution of Coca-Cola follows a

franchising model. The Coca-Cola Company only produces a syrup
concentrate, which it sells to various bottlers throughout the world
who hold Coca-Cola franchises for one or more geographical
areas. The bottlers produce the final drink by mixing the syrup with
filtered water and sugar (or artificial sweeteners) and then
carbonate it before filling it into cans and bottles, which the bottlers
then sell and distribute to retail stores, vending machines,
restaurants and food service distributors.

The Coca-Cola Company owns minority shares in some of

its largest franchises, like Coca-Cola Enterprises, Coca-Cola
Amatil, Coca-Cola Hellenic Bottling Company (CCHBC) and Coca-
Cola FEMSA, but fully independent bottlers produce almost half of the volume sold in
the world. Since independent bottlers add sugar and sweeteners, the sweetness of the
drink differs in various parts of the world, to cater for local tastes.

BOTTLE AND LOGO DESIGN

The famous Coca-Cola logo was created by John Pemberton's bookkeeper,

Frank Mason Robinson, in 1885. It was Robinson who came up with the name, and he
also chose the logo’s distinctive cursive script. The typeface used, known as
Spencerian script, was developed in the mid 19th century and was the dominant form of
formal handwriting in the United States during that period.

Earl R.Dean's original 1915 concept drawing of the contour

Coca-Cola bottle

Dean reduced the middle diameter...and the famous Contour

Coca-Cola Bottle was born.

The prototype never made it to production since its

middle diameter was larger than its base. This would make it unstable on conveyor
belts.

Chapman The equally famous Coca-Cola bottle, called the "contour bottle" within
the company, but known to some as the "hobble skirt" bottle, was created in 1915 by
bottle designer, Earl R. Dean. In 1915, the Coca-Cola Company launched a competition

14
among its bottle suppliers to create a new bottle for the beverage that would distinguish
it from other beverage bottles... "a bottle which a person could recognize even if they
felt it in the dark, and so shaped that, even if broken, a person could tell at a glance
what it was". J. Root, president of the Root Glass Company, turned the project over to
members of his supervisory staff including company auditor T. Clyde Edwards, plant
superintendent Alexander Samuelsson and Earl R. Dean, bottle designer and
supervisor of the bottle molding room.

Root and his subordinates decided to base the bottle’s design

on one of the soda’s two ingredients, the coca leaf or the cola nut, but
were unaware of what either ingredient looked like. Dean and
Edwards went to the Emeline Fairbanks Memorial Library and were
unable to find any information about coca or cola. Instead they were
inspired by a picture of the gourd-shaped cocoa pod in the
encyclopædiaBritannica which Chapman Root approved as the model
for the prototype.

Faced with the upcoming scheduled maintenance of the mold-

making machinery, over the next 24 hours Dean sketched out and
created the mold for the bottle. Dean then molded a small number of
bottles before the glass-molding machinery was turned off.

Chapman Root approved the prototype bottle and a design

patent was issued on the bottle in November, 1915. The bottle was chosen over other
entries at the bottler’s convention in 1916 and was on the market the same year. By
1920, Dean’s contoured bottle became the standard for the Coca-Cola Company.
Today, the contour Coca-Cola bottle is one of the most recognized packages on the
planet..."even in the dark!"

Although endorsed by some, this version of events is not considered authoritative

by many who cite its implausibility as difficult to believe. One alternative depiction has
Raymond Loewy as the inventor of the unique design, but although Loewy did serve as
a designer of Coke cans and bottles in later years, he was in the French Army in the
year the bottle was invented and did not migrate to the United States until 1919. Others
have attributed inspiration for the design not to the cacao pod, but to a Victorian hooped
dress.

In 1997, Coca-Cola also introduced a "contour can", similar in shape to their

famous bottle, on a few test markets, including Terre Haute, Indiana. This new can was
however never widely released.

A new slim and tall can has begun to appear in Australia as of December 20,
2006, which costs an average of $2AUD. The cans have a distinct resemblance to
energy drinks that are popular with the teenage demographic. It is unknown if this
design is of limited edition or may soon replace the current 355 ml cans that have been

15
used in the past (the new slim cans are 300 ml, making the volume to cost ratio even
smaller).

OBJECTIVE OF THE STUDY

 To know the reason behind low RED (Right Execution Daily) score.
 To know the availability of activation element in RED outlet.
 To know the problem in the distribution of activation element.
 To identify suitable activation element according to the outlet's location.
 To know the impact of activation element on sell when keep it outside.
 To know the impact of activation element on customer.
 To help M.D. (Market Developer) in outlet activation.

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 ABOUT THE ORGANIZATION
HISTORY OF UDAIPUR BEVERAGES LIMITED [UBL]

Coca-Cola was the leading soft drink brand in India until 1977, when it left rather
than reveals its formula to the Government and reduces its equity stake as required
under the Foreign Exchange Regulation Act (FERA) which governed the operations of
foreign companies in India. Coca-Cola re-entered the Indian market on 26th October
1993 after a gap of 16 years, with its launch in Agra. An agreement with the Parle
Group gave the Company instant ownership of the top soft drink brands of the nation.
With access to 53 of Parle’s plants and a well set bottling network, an excellent base for
rapid introduction of the Company’s International brands was formed. The Coca-Cola
Company acquired soft drink brands like Thumps Up, Goldspot, Limca, Maaza, which
were floated by Parle, as these products had achieved a strong consumer base and
formed a strong brand image in Indian market during the re-entry of Coca-Cola in
1993.Thus these products became a part of range of products of the Coca-Cola
Company.

In the new liberalized and deregulated environment in 1993, Coca-Cola made its
re-entry into India through its 100% owned subsidiary, UBL, the Indian bottling arm of
the Coca-Cola Company.

Udaipur Beverages Limited has started from 2004. The unit is franchisee of coca
cola India owner of regd. Trade marks coke and soda products. Udaipur Beverages
Limited has own fully automatic plant for manufacturing the Coca-Cola products. They
produce all major products of Coca-Cola. The capacity of bottling unit in M.P. is 5600
carats of 24 bottles of each, per eight hour schedule. Utilizing capacity is about 75% of
the total capacity. Originally all the flavors were bottled in 300 ml. container bottling of
the process carried out under a technically qualified production plant. Now a day it also
produces 200 ml, and 300 ml. RGB, along with the PET bottles. The plant has the
support of 40 qualified and skilled technicians, having capacity to operate various
equipment of the plant. It also has a modern laboratory for sample testing and quality
control of the manufactured product, along with a huge and properly ventilated godown
attached to the plant to store the finished products and raw material. Total of the project
at the time of installation was Rs. 1.26 cores. Mr. Vikas Mital Director & Mr. Deepak
Kumar factory head UBL has give their experience to the company for the success.
Udaipur Beverages Limited has largest production capacity and highest sale in central
M.P. And now it is having a largest production capacity and highest sale in central M.P.
for the last several years.

The U.B.L. has a management board and the managing director is the executive
head of the board, and holds the top position in the organization. Mr. Vikas Mittal is
presently the managing director of U.B.L. , but overall policies regarding management
decision and the executive function are performed and looked after by director Mr. V.
Mittal, who is well assisted and advised by the managing director. The director looks

17
after all functional departments i.e. sales, production, finance and accounts, purchase,
and administration.

Every department head report directly to the director and are responsible of their
working. The plant engineer is the head of production department and looks after
bottling process inspection, storage of raw material, maintenance etc. he is also the
head of quality control department.

FIGURE: LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN INDIA

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 FUNDS FLOW STATEMENT

Meaning of Funds Flow Statement:

Funds flow statement is a statement which discloses the analytical information about the
different sources of a fund and the application of the same in an accounting cycle. It deals with
the transactions which change either the amount of current assets and current liabilities (in the
form of decrease or increase in working capital) or fixed assets, long-term loans including
ownership fund.
It gives a clear picture about the movement of funds between the opening and closing dates of
the Balance Sheet. It is also called the Statement of Sources and Applications of Funds,
Movement of Funds Statement; Where Got—Where Gone Statement: Inflow and Outflow of
Fund Statement, etc. No doubt, Funds Flow Statement is an important indicator of financial
analysis and control. It is valuable and also helps to determine how the funds are financed. The
financial analyst can evaluate the future flows of a firm on the basis of past data.
This statement supplies an efficient method for the financial manager in order to assess
the:
(a) Growth of the firm,
(b) Its resulting financial needs, and
(c) To determine the best way to finance those needs

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 OBJECTIVE OF PREPARING A FUND FLOW
STATEMENT

The main purpose of preparing a Funds Flow Statement is that it reveals clearly the important
items relating to sources and applications of funds of fixed assets, long-term loans including
capital. It also informs how far the assets derived from normal activities of business are being
utilized properly with adequate consideration.
Secondly, it also reveals how much out of the total funds is being collected by disposing of fixed
assets, how much from issuing shares or debentures, how much from long-term or short-term
loans, and how much from normal operational activities of the business.
Thirdly, it also provides the information about the specific utilization of such funds, i.e. how
much has been applied for acquiring fixed assets, how much for repayment of long-term or short-
term loans as well as for payment of tax and dividend etc.
Lastly, it helps the management to prepare budgets and formulate the policies that will be
adopted for future operational activities.

Significance and Importance of Funds Flow Statement:

Since traditional reports (i.e. Income Statement/Profit and Loss Account, and Balance Sheet) are
not very informative, a financial analyst has to depend on some other report—Funds Flow
Statement. In other words, along with the traditional sources of information, some other sources
of information are absolutely required in order to take the challenge offered by modern business.
Funds Flow Statement, no doubt, caters to the needs of management. This is because a Funds
Flow Statement not only presents the Balance Sheet values for consecutive two years, it also
ascertains the changes of working capital—which is a very important indicator.
It not only reveals the source from which additional working capital has been financed but also,
at the same time, the use of such funds. Moreover, from a projected funds flow statement the
management can easily ascertain the adequacy or inadequacy of working capital, i.e., it helps in
decision-making in a number of ways.

Statement of changes in working capital

The different between current assets and current liabilities is called net working capital. In other
words, working capital is the excess current assets over the current liabilities. Current assets are
those assets which can be converted into cash within short time period (generally one year)
without any adverse effect in their value. The examples of current assets are cash in hand, bank
balance, prepaid expenses, accrued income, bills receivable, marketable securities, debtors,
short-term investment, inventories/ stock and other short term assets.  
Similarly, current liabilities are those outsiders' obligation which must be repaid within short
notice and includes creditors, bills payable, advance incomes, bank overdraft, outstanding
expenses, short-term loan and other short term liabilities. On the basis o current assets and
current liabilities reported on two balance sheets, the change in net working capital is determined
as bellows:

20
Net working capital = current assets - current liabilities
 
The changes in the amount of any current asset or current liability in the current year's balance
sheet as compared to previous year's balance sheet result either increase or decrease in net
working capital. The rule for identifying such increase or decrease is as below:
Increase in current asset – increase in working capital.
Decrease in current asset – decrease in working capital.
Increase in current liability - decrease in working capital.
Decrease in current liability – increase in working capital.

Funds Flow Statement: Advantages and Limitations

The funds flow statement has a number of uses, however, it has certain
limitations also, which are listed below:

1. It should be remembered that a funds flow statement is not a substitute of an income

statement or a balance sheet. It provides only some additional information as regards
changes in working capital.
2. It cannot reveal continuous changes.
3. It is not an original statement but simply are-arrangement of data given in the financial
statements.
4. It is essentially historic in nature and projected funds flow statement cannot be prepared
with much accuracy.
5. Changes-in .cash-are more important and relevant for financial management than the
working capital.

21
22
 UDAIPUR BEVERAGES LIMITED ,DELHI
BALANCE SHEET AS AT 31ST MARCH ,2018

PARTICULAR NOTE AS AT 31ST MARCH AS AT 31ST MARCH

No. 2018 2017
1.EQUITY AND LIABILIRIES
1)Shareholder funds
a)Share capital 2.1 45370000.00 45370000.00
b) Reserve and surplus 2.2 175922215.00 161350580.00
2) Non current liabilities
a) Long term borrowing 2.3 524552879.00 569816905
3) current liabilities
b)Trade payables 2.4 190679034.00 229842144.00
c)Other current liabilities 2.5 68095549.00 98368180.00
d) Short term provision 2.6 17700000.00 12870000.00
Total 1022319677.00 1117617809.00
II. ASSETS
1. Non-current assets
a) Fixed assets 2.7
i) Tangible assets 546006657 627433775.00
ii) intangible assets 88244.00 175486.00
b) non –current investments 2.8 102150075.00 92150075
2) Current Assets
a) inventories 2.9 154137720.00 166218988.00
b) Trade receivables 2.10 6336952 1737755.00
c) cash and cash equivalents 2.11 1788188706.00 195946083.00
d) short –term loans and advances 2.12 1254431.00 20779355.00
e) other current assets 2.13 22256892.00 13176292.00
Total 1022319677.00 1117617809.00s
Significant accounting policies and notes
to accounts forming integral part of 1 and 2
financial statements

23
 SCHEDULE CHANGES IN WORKING CAPITAL
PARTICULAR PREVIOUS YEAR CURRENT YEAR INCREASE DECREASE
2017 2018
Current assets
a) inventory 166218988.00 154137720.33 12081267.7
b)trade 1737755.00 6336951.74 4599196.74
receivables
c)cash and 195946083.00 178818706.7 17127376.3
cash
equivalents
d)short term 20779355.00 23329515.38 2550160.38
loan and
advances
e) other 13176292.00 11451806.97 1724485.03
current assets
A 397858473 374074701.2

Current
liabilities
a) trade payble 229842144.00 190679034.40 39163109.6
b) other 98368180.00 68095548.82 3027631.2
current
liabilities
c) short term 12870000.00 17700000.00 4830000
provision
B 341080324 276474583
Working 56778149 97600118.2 13576968.9
capital
CA-CI
49340097.92 49340097.92

24
 FUNDS FLOW STATEMENT

SOURCE OF FUND AMOUNT

Reserve and surplus 14571634.7

Decrease in w.c 13576968.9

Sale of fixed assets

a) tangible assets 81427118

b) intangible assets 87242

TOTAL SOURCES 55264025.8

APPLICATION OF FUND

a) investment 10000000

b) long term borrowing 45264025.8

TOTAL USES 55264025.8

25
26
 UDAIPUR BEVERAGES LIMITED ,DELHI
BALANCE SHEET AS AT 31ST MARCH , 2019
PARTICULAR NOTE AS AT 31ST MARCH AS AT 31ST MARCH
No. 2019 2018
I.EQUITY AND LIABILIRIES
1)Shareholder funds
a)Share capital 2.1 45370000.00 45370000.00
b) Reserve and surplus 2.2 184697843.75 175922215.00
2) Non current liabilities
a) Long term borrowing 2.3 461940724.80 524552879.00
3) current liabilities
a)Short term borrowings 2.4 15056603.25
b)Trade payables 2.5 217965046.02 190679034.00
c)Other current liabilities 2.6 62580407.55 68095549.00
d) Short term provision 2.7 23450000.00 17700000.00
Total 1011060624.65 1022319677.00
II. ASSETS
1. Non-current assets
a) Fixed assets 2.8
i) Tangible assets 472062258.00 546006657
ii) intangible assets 723749.00 88244.00
iii) capital work in progress 2578213.00
b) non –current investments 2.9 102150075.00 102150075.00
2) Current Assets
a) inventories 2.10 143097484.97 154137720.00
b) Trade receivables 2.11 5968705.12 6336952
c) cash and cash equivalents 2.12 251473833.51 1788188706.00
d) short –term loans and advances 2.13 8967316.87 1254431.00
e) other current assets 2.14 24038989.18 22256892.00
Total 1011060624 1022319677.00
Significant accounting policies and
notes to accounts forming integral part 1 and 2
of financial statements

27
SCHEDULE CHANGES IN WORKING CAPITAL

PARTICULA PREVIOUS CURRENT INCREAS DECREAS

R YEAR YEAR E E
2018 2019
Current
assets
a) inventory 154137720.0 143097484. 11040235
0 97
b)trade 6336952 5968705.12 368246.88
receivables
c)cash and 1788188706. 251473833. 1.5367148
cash 00 51 7
equivalents
d)short term 1254431.00 8967316.87 7712885.8
loan and 7
advances
e) other 22256892.00 24038989.1 1782097.1
current assets 8 8
A 1972174701 433546329.
7

Current
liabilities
a)short term 15056603.2 15056603.2
borrowings 5 5
b) trade payble 190679034.0 217965046. 27286012
0 02
c) other 68095549.00 62580407.5 5515141.4
current 5 5
liabilities
d) short term 17700000.00 23450000.0 5750000
provision 0
B 276474583 319052056.
8

Working 1.69570012 114494273 32990971.

capital 1
CA-CI
28 53751097. 53751097.1
1
 FUND FLOW STATEMENT

SOURCE OF FUND AMOUNT

Reserve and surplus 8775628.75

Sale of fixed assets

a) tangible assets 73944399

b) intangible assets 635505

TOTAL SOURCES 95603126

APPLICATION OF FUND AMOUNT

a) long term borrowing 62612154.9

b) increase in w.c 32990971.1

TOTAL USES 95603126

29
 DATA ANALYSIS
&
INTERPRETATION

30
 DATA ANALYSIS & INTERPRETATIONS

1. WHICH COMPANY SOFT DRINK DO YOU PREFER

60

50
50

40

30
30

20
20

10

0
COCA COLA PEPSI PARLE AGRO

INTERPRETATION -

 Many people prefer COCA COLA.

31
 2. WHICH PRODUCT DO YOU LIKE OF COCA COLA

35

30
30

25

20

15 15 15 15
15

10
10

0
COCA COLA FANTA MAZA SPRITE MINUTE LIMCA
MAID

INTERPRETATION –

 Many people prefer COCA COLA.

32
 3. CUSTOMER GRADING REPORT FOR COCA COLA PRODUCTS

50
45
40
35
30
25
20
15
10
5
0
EXCELLENT GOOD AVERAGE BELOW AVERAGE

INTERPRETATION –

 Many people grade Good.

33
 4. WHICH BRAND BOTTLED WATER YOU PREFER

35

30
30

25 25
25

20

15

10 10
10

0
KINLEY BISLERI AQUAFINA HIMALAYAN RAIL NEER

INTERPRETATION –

 Many people prefer Bisleri.

34
 5. WHICH FLAVOUR JUICE DO YOU PREFER

30

25

20

15

10

0
ORANGE APPLE FRUIT PUNCH PINAPPLE ALL MIX

INTERPRETATION –

 Many people prefer All Mix.

35
 6. WHICH COMPANY SODA DO YOU PREFER

35

30

25

20

15

10

0
KINLEY HAYWARDS KINGFISHER 100 PIPERS

INTERPRETATION -

 Many People prefer KINLEY.

36
 FINDINGS

The current assets for the month of April 2010. Comes out to be Rs. 318.53
lakhs, and the current liability is Rs. 256.65 lakhs, therefore after subtracting current
assets from current liability we get the working capital of Rs. 61.88 lakhs for the month
of April.

The current ratio comes out to be 1.24:1, which is slight low to the optimum of
2:1; therefore the firm may have difficulty in meeting the current obligations, but will not
affect the firm on the high scale.

The acid test ratio is ascertained as 1.20:1, which is close to the optimum of
1.33:1. This indicates that the firm is able to meet its short term obligations without
relying upon realization of stock.

The debtor’s turnover ratio is 1, which determines the efficiency with which the
trade debtors are managed. This ratio is computed by dividing net credit sales by
average trade debtor.

The creditor turnover ratio is 1.55, which determines the efficiency with which
creditors are managed. This ratio is calculated by dividing net credit purchase by
average trade creditors.

37
 SUGGESTIONS

(1) All the sources of fundflow statement permanent (fixed) or temporary

(variable) should properly be handled.

(2) Debts should be recovered from sundry debtors in time.

(3) All the inventories should be effectively and efficiently be used so that there is
no loss of stock.

(4) The money should be properly utilized where needed, it should not be
unnecessarily blocked.

(5) Short term investments should be properly done so that the risk of losing the
money is minimized.

(6) All the payments should be made in time so that there is no Burdon later if the
firm is in deficit.

(7) Prepare and analysis of Raw Material & other in respect of cost-benefit
applying Comparative Statement of Quotation, EOQ level and ABC analysis.

(8) Try to have different alternative sources of fund and stock, so that if one is not
available we can use the other.

38
 QUESTIONNARIRES

1. In the context of Funds Flow Analysis, the word “funds” is used to define 

a) Net Working capital 

b) Total current assets-Total current liabilities 
c) Both a and b
d) None of the above.

ANSWER: c) Both a and b

2. Which of the following is/are examples of Funds Flow Statement?

A) Collection of debtors 
B) Shares issued for cash
C) Shares issued against the purchase of machinery
D) Shares issued for property

a) A and B
b) A and C
c) A and D
d) A, B, C and D

ANSWER: a) A and B

3. Which of the following are current assets? 

A) Fixed investments 
B) Trade Payables
C) Short-term loans and advances
D) Furniture

a) Only A
b) Only B
c) Only C
d) A, B, C and D

ANSWER: c) Only C

39
4. Bond, debentures and term loans falls under

a) Current assets
b) Non-current assets
c) Non-current liabilities
d) Current liabilities

ANSWER: c) Non-current liabilities

5. Funds flow statements are prepared so as to

a) To identify the changes in working capital 

b) To identify reasons behind change in working capital
c) To know the item-wise outflow of funds during given period
d) All of the above

ANSWER: d) All of the above

6. Which of the following are sources of funds?

A) Issue of bonus shares 

B) Issue of shares against the purchase of fixed assets
C) Conversion of debentures into shares
D) Conversion of loans into shares

a. A and C
b. A and D
c. A, B, C and D
d. None of the above

ANSWER: None of the above

40
 BIBLIOGRAPHY
BOOKS: -

 Pandey I.M.; Financial management; Vikas publishing house pvt.

Ltd. New Delhi; ninth edition 2004; reprint 2006; P.P. - 579, 584.

 Shash Paresh; Financial Management; Biztantra, New Delhi;

reprint edition 2008; P.P...- 153,155,161.

 Khan M.Y.; Jain P.K.; Management Accounting; Tata McGraw Hill

publishing company limited. New Delhi; fifteenth reprint 2006;
P.P...- 4.2, 4.26

 Kothari C.R.; Research Methodology; new age international

publishers (p) ltd., New Delhi; second revised edition 2004; reprint
2008; P.P..- 31, 95, 122.

MAGAZINES:-

 ICFAI journal,

(Management of working capital) Applied Finance, Vol. 13, No.

1, pp. 46-81, January 2007.

DATA SOURCES / REFERENCES :-

 http://www.thecoca-colacompany.com

 http://www.coca-cola.com

 http://www.coca-colaindia.com

 http://www.coca-cola.co.in

 Monthly circular for the month of March, Udaipur Beverage Limited

 Actual processes in which training was received have been defined.

 With the help of the senior executives of the company an attempt has been made
in order to define the processes and procedures followed.

41
 CONTENTS

 EXECUTIVE SUMMARY 1

 INTRODUCTION 2-7

 COMPANY PROFILE 8-10

 HISTORY OF COCA COLA 11-15

 OBJECTIVE OF THE STUDY 16

 ABOUT THE ORGANIZATION 17-18

 FUNDS FLOW STATEMENT 19-28

 DATA ANALYSIS & INTERPRETATION 29-35

 FINDINGS 36

 SUGGESTIONS 37

 QUESTIONNARIRES 38-39

 BIBLIOGRAPHY 40

42