MOON BEVERAGES INDUSTRY VISIT REPORT

SUBMITTED BY: UMA SHANKAR ROY MBA IIInd SEMESTER SECTION- SM1, ROLL- 86 ID No. : D1012SSISBE-B10173(GGN-5B-GA-2080) BATCH: 2010-12

The Indian Institute of Planning & Management (NEW DELHI)

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INDUSTRIAL VISIT REPORT

ON 16 th July 2011, we (40 students) and 2 faculties went for industrial visit to Moon Beverages Ltd, Ghaziabad, Uttar Pradesh.

INTRODUCTION
Administrative management, IIPM academic managed a industrial visit tour to batch of 40 students of Section-SM1 TO Moon Beverages. We all student went to Moon Beverages industry by college bus. It was located in Sahibabad at Ghaziabad road on outskirts of Delhi. We all students enjoyed a lot on the way. In industry premises, we meet Mr. . He was working there from past seven years. He was experienced and intelligent man. He told us about every activities happening in the plant. He cleared ours every doubt and allowed us to go inside the work place. He was with us, when we are at the work floor. He was explaining each and every thing, which we were seeing. The plant which we visited was spread over 10 acres. It was having 4production lines and total assets of 350 cores. It produces 60,000 cases per day. Retainable glass bottles are produced at a rate of 600/day. Plastic bottles have production capacity of 200/day.200 Maaza bottles are produced in 1 minute and Limca production is 185/minute. The largest plant in INDIA is at Darsha (Gaziyabaad),U.P. This is having 10production lines. In India coca-cola can is produced in Pune only. Coca-cola has 400 products capturing the market of more than 200 countries.

COMPANY PROFILE Moon Beverages Limited

Established in 1987, the company is manufacturing soft drinks. The company started with manufacturing of THUMS UP, LIMCA, MAAZA, RIMZHIM, BISLERI, SODA GOLD SPOT under arrangement with Parle. However with the takeover of Parle soft drinks limited by Coca Cola Inc., USA in 1993, the company became the franchise manufacturer for Coca Cola Products. The existing installed capacity of the company is 10 million cases p.a. Other than the above, the group also has a Co-pack arrangement with CocaCola Inc. under its company Hindustan Aqua Ltd. Hindustan Aqua Ltd. Under which production and sale and marketing is done by Coca Cola India. At present the company has two state of the art plants in Kanpur and Rourkela with total installed capacity of 10 million cases a year wherein the complete civil construction cum erection of the plant and machinery and the bottling lines was carried out in a record time much to the satisfaction of the Coca Cola Standards. The plants are fully automatic with labor dependence only limited to carrying out ancillary activities. The MM Agrawal group owned by Shri Sanjeev Agrawal, is a multi crore group having pan India presence with diversified business interest such as Bottling and Marketing of Soft Drinks under arrangement with M/s Coca Cola, Offshore Operation, Defense supplied, Real Estate Development, Hotels, Education institution etc. The Group has its root from Kanpur and was incorporated in the year 1964 by our founder chairman Late Professor MM Agrawal (Ex-Member of parliament Rajya Sabha) Since then the group has not looked back and during its course of growth and development has not only diversified itself into business like Soft Drinks, Offshore Services, Real Estate Development, Education, Hospitality but also has expended its presence from Kanpur to all over India with offices in Delhi, Mumbai, Rourkela (Orissa), Noida, Sahibabad, Ahmedabad, Mathura Etc.

Contents
1. History 2. Coke in India 3. The Guiding Vision 3.1The Coca-Cola Management System(TCCMS) 4. The Quality Policy 5. Corporate Citizenship 6. Stewardship-the Coca-Cola Identity 7. Quality Commitment 7.1 A tour through the scientific manufacturing processes 7.2 Testing source water for plant site selection 8. Water Treatment-Know the chemistry of purity 8.1 The Purity of sugar is crystal clear 8.2 Carbon Dioxide Meeting International Purity Standard 9. The Automated Bottling Process 10. 11. 12. 13. 14. 15. Manufacturing Process Quality Control and Assurance Program Local Competitors Criticism Observation and Learning Summary 4

History
The Coca-Cola Company is the world's largest beverage company, largest manufacturer, distributor, and marketer of non-alcoholic beverage concentrates and syrups in the world, and is one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake CocaCola beverage, Coca-Cola currently offers more than 400 brands in over 200 countries or territories and serves 1.6 billion servings each day. The company operates a franchised distribution system dating from 1889 where The Coca-Cola Company only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory. The Coca-Cola Company is headquartered in Atlanta, Georgia. Its current chairman and CEO is Muhtar Kent.

Coke in India

Coca-Cola was the leading soft drink brand in India until 1977 when it left rather than reveal its formula to the government and reduce its equity stake as required under the Foreign Exchange Regulation Act (FERA) which governed the operations of foreign companies in India. After a 16-year absence, Coca-Cola returned to India in 1993, cementing its presence with a deal that gave Coca-Cola ownership of the nation's top soft-drink brands and bottling network. Cokes acquisition of local popular Indian brands including Thums Up (the most trusted brand in India21), Limca, Maaza, Citra and Gold Spot provided not only physical manufacturing, bottling, and distribution assets but also strong consumer preference. This combination of local and global brands enabled Coca-Cola to exploit the benefits of global branding and global trends in tastes while also tapping into traditional domestic markets. Leading Indian brands joined the Company's international family of brands, including Coca-Cola, diet Coke, Sprite and Fanta, plus the Schweppes product range. In 2000, the company launched the Kinley water brand and in 2001, Shock energy drink and the powdered concentrate Sunfill hit the market.

The guiding vision

Coca-Cola re-entered India in 1993. The vision of the company is to lead beverage revolution in the world and provide its consumer quality beverages at affordable price. As on June 2007, Company has 65 manufacturing locations across 18 states of the country. The company has one single environmental system, eKO system, implemented at all its operations across the world. The eKO system is a tool that integrates environment management with business planning cycle. The eKO system primarily comprises of two main facets namely: 1. Environment 2. Occupational Safety and Health (OSH) 3. The Hindustan Coca Cola Beverages Pvt Ltd. (Raninagar Unit), Siliguri, is TCCQS-Q4 certified zone. The Coca Cola Management System is ISO 9001 : 2001, ISO 14001 : 2004, ISO 22000 : 2005 certified.

The Coca-Cola Management System (TCCMS)

The Coca-Cola Company has only one quality system, called The Coca-Cola Management System (earlier referred to as The Coca-Cola Quality System), for its entire bottling operations (Company owned as well as Franchise owned) around the world.

The Coca-Cola Management System

The Coca-Cola Company exists to Benefit And Refresh everyone it touches. This is its promise. It strives to deliver on this promise every day, Creating a Stronger and More Sustainable Future for our business and for the communities it serves.

The Quality Policy

The Coca-Cola Company has only one quality system around the world, Quality is more than just something we taste or see or measure. It shows in our every action. We relentlessly strive to meet the worlds ever-changing expectations because keeping the Quality Promise in the marketplace is the highest business objective and its enduring obligation. More than a billion times a day, consumers choose its brand of refreshment because Coca-Cola is The Symbol of Quality. Customer and Consumer Satisfaction. A Responsible Citizen of the World.

Corporate citizenship
Seeking Everyones Support for Effecting Positive Environmental Contribution In its efforts to identify solutions to environmental challenges, it seeks the cooperation of public, private and governmental organizations. It directs its own company's skills, energies and resources toward activities and issues where it is confident of making a powerful and effective contribution.

Stewardship - The Coca-Cola Identity

Coca Cola stewards of brands universally recognized for quality and consistency. Maintaining an established standard of excellence in its business conduct is essential if they are to continue to be trusted neighbors in the communities where they do business. Its efforts towards environmental management exhibit this level excellence at the local, division, and corporate levels. It will take progressive actions that focus on minimizing its impact on the environment while striving towards continuous improvement. It acts responsibly, doing the right thing with regard to the local and global environment as it builds and nurture strong brands. As responsible stewards of the environment and its brands, Coca Cola will take progressive actions that focus on minimizing its impact on the environment and strive for continuous improvement. Its goal is to be environment management leaders in the communities where it conducts business. It provides leadership in three critical areas: 1. Water efficiency and water quality 2. Energy efficiency 3. Eliminating or minimizing solid waste. Its activities focus on community involvement based on understanding local and global environmental issues, leadership on research to provide innovative solutions, and open and ongoing dialogue on its environmental efforts. The company and operations share best practices on resource management techniques amongst each other and, where appropriate, with local communities.

Quality commitment A Tour through the Scientific Manufacturing Processes

The Coca-Cola Company ensures the supreme quality of its beverages by employing globally accepted and validated manufacturing processes and Quality Management Systems. Let us now take you through the processes and Quality Assurance Programs followed by the world-class manufacturing facilities in India.

Testing Source Water for Plant Site Selection

The sites for manufacturing plants are finalized only after the source water has been tested for all requirements of potable water. The analysis is always conducted by independent third party accredited laboratories. The source water is then properly protected and re-tested periodically to ensure that it conforms to international standards. The water is then drawn through sealed pipelines into the storage tanks placed in secured water treatment areas of the manufacturing plant.

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Water Treatment - Know the Chemistry of Purity

1. The first step in the process of manufacturing soft drinks is to disinfect the water using globally approved chlorination procedures. This ensures that all micro-organisms including pathogens are destroyed. It also removes organic and inorganic impurities caused by oxidation of heavy metal ions. 2. The second step is the filtration at the molecular level, which is achieved either by coagulation/flocculation or reverse osmosis. contaminants commonly removed by this process include: Dirt, clay and any other suspended matter in the water. Microbial matter (including bacteria, yeast, moulds, virus, protozoa). Heavy metals and compounds which may cause an off-taste. When coagulation/flocculation is used, colloidal materials and suspended particles are removed by settling plus enhanced filtration through multimedia. If needed, alkalinity reduction may also be achieved by lime softening or ion exchange filters. 3.The third step to stop potential contaminants is water purification using granular activated carbon filters. The granular activated carbon, with its large and porous surface area, ensures effective removal of trace levels of organic compounds (including pesticides and herbicides), colour, off-taste and odour- causing compounds using the principle of absorption. 4. The last step is polishing filtration, which is passing water through high efficiency 5-micron filters to ensure every drop of treated water is free from any activated carbon fines and is safe for use in beverages. The Purity of Sugar Is Crystal Clear The sugar selection process is as stringent as the water purification process. The sugar, bought from high- grade authorized mills, is cleaned with a globally acclaimed carbon treatment process. Purified sugar syrup is created which is then blended with the soft drink concentrate. Carbon Dioxide Meeting International Purity Standards Carbon-dioxide is procured, meeting international purity standards, from authorized suppliers. The gas then goes through stringent quality control checks before it used in the beverage.

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The Purity of Sugar Is Crystal Clear

The sugar selection process is as stringent as the water purification process. The sugar, bought from high- grade authorized mills, is cleaned with a globally acclaimed carbon treatment process. Purified sugar syrup is created which is then blended with the soft drink concentrate.

Carbon Dioxide Meeting International Purity Standards

Carbon-dioxide is procured, meeting international purity standards, from authorized suppliers. The gas then goes through stringent quality control checks before it used in the beverage. All the three primary ingredients used in beverage, the syrup, treated water and carbon-dioxide, are blended as per The Coca- Cola Company's specifications.

The Automated Bottling Process

Coca Cola uses a fully automated process to recycle the glass bottles returned from the market. These bottles are sanitized at high temperatures with specially formulated cleaning agents. They are then transported to the filler after a thorough visual inspection. After they are filled, in a high-speed automated filling machine, the bottles are capped/crowned, date coded and packed into crates/cartons. 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).

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Manufacturing Process
The Moon Beverages Pvt Ltd. Gazhiabad, Uttar Pradesh, produces ready syrup bottles. The pet fillers are produced at the rate of 100 bottles per minute and the returnable glass bottles are produced at the rate of 400 bottles per minute. The amount of production is dependent as per the requirements. The products manufactured are Coca Cola, Thums Up, Sprite, Limca, Nimbu Pani and Kinley Soda. The manufacturing process is shown as here under:

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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).

Local competitors Pepsi 7UP Gatorade Mountain Dew Nimbooz Slice Tropicana Mirinda Aquafina Real Juice

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Criticism
Coca-Cola has been criticized for alleged adverse health effects, its aggressive marketing to children, exploitative labor practices, high levels of pesticides in its products, building plants in Nazi Germany which employed slave labor, environmental destruction, monopolistic business practices, and hiring paramilitary units to murder trade union leaders. In October 2009, in an effort to improve their image, Coca-Cola partnered with the American Academy of Family Physicians, providing a $500,000 grant to help promote healthylifestyle education; the partnership spawned sharp criticism of both Coca-Cola and the AAFP by physicians and nutritionists.

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Observation and learning Observations

Coca-cola is worlds largest producer of cold drinks. It maintains every high standard of hygiene and purity. Each and every drop of coca-cola is pure. 1.25 lakhs of Indians are Indian are involved in coca-cola. It was launched in India in 1993, at Agra. It is engaged in many water conservation projects. The plant which we visited was spreaded in 10 acres of land. The total assets cost was 350 crores. In company employees are motivated by putting their names on notice board as assets of the month. High standard of disciple is maintained at work floor. The Coca-Cola Company has one global standard. Coca-Cola India follows the same international quality standard across all the bottling operations within India. Every ingredient use in the manufacturing of beverages meets all the local regulatory, Company and International standards. All ingredients undergoes extensive testing and inspection prior of being released for use.

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 On periodic bases external validation and testing is performed by independent and accredited laboratory in all our ingredients used in the manufacture of beverages. Coca-Cola India procures the ingredients from pre-selected lots approved from authorized suppliers. The Coca-Cola Company has only one quality system around the world.

Learning There is no possibility of pesticides contain in the coca-cola, as they maintain very high level of hygiene. New and innovated machinery, which are imported and used in production, gives very fast production and standard products. Taste slightly differs from place to place as, 94% is the water contain which taste changes from place to place. The plant we visited was best Coca-Cola franchise producer in India with 4 production lines.

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Summary
IIPM administrative management and academic team managed an industrial visit tour for a batch of 40 students of Section- SM1 to Moon Beverages. We all student went to Moon Beverages industry by college bus. It was located in Sahibabad at Gazhiabad road on outskirts of Delhi. We all students enjoyed a lot on the way. In industry we came to know many things about coca-cola. The plant which we visited is MM Agrawal group owned by shri Sanjeev Agrawal, is a 500 crore group having pan India presence with diversified business interest such as bottling and marketing of Soft Drinks under arrangement with M/s coca Cola, Atlanta Offshore Operation, Sponge Iron manufacture Defense supplied Real Estate Development, Hotels, Education institution etc. . It was having 4 production lines and spread over 10 acres . It produces 60,000 cartoons per day. Retainable glass bottles are produced at a rate of 600/day. Plastic bottles have production capacity of 200/day.200 Maaza bottles are produced in 1 minute and Limca production is185/minute. The largest plant in INDIA is at Dasha (Gaziyabaad), U.P. This has 10production lines. In India tin coca-cola is produced in Pune only.

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