`
Industrial Project report
On
“PEPSICO”
Submitted to
College Code: 385
College Name: Government B.B.A. College
Under the Guidance of
Prof. Jyoti Jain
In partial Fulfillment of the Requirement of the award of the degree
Of
Bachelor of Business Administration (BBA)
Offered by
Gujarat University
Ahmedabad
Prepared by:
Name: Pandey Anchal Anand
Second Year
Division: A
Roll No: 4009
Acknowledgement
I wish to express my gratitude to Gujarat University for giving me an
opportunity to be a part of such kind of learning experience, which will surely
enhance my knowledge and skills.
I am grateful Prof. Jyoti Jain for their valuable guidance and cooperation
during the course of the project.
She provided me with her assistance and support whenever needed that has
been instrumental in completion of the project
The project has been a great experience, the learning, and the exposure, I got
through this project was immense and will surely help in my future pursuits.
I would like to give my heartful thanks to my parents who always gave me moral
support.
PREFACE
This Project Report has been prepared in partial fulfilment of the requirement
for the Subject: Practical Studies of the programmer B.B.A. (Sem. IV) in the
academic year 2021-2022.
For preparing the Project Report, we have visited the Manufacturing
Company, to avail the necessary information. The blend of learning and knowledge
acquired during the visit at the company is presented in this Project Report.
The rationale behind visiting the manufacturing company and preparing the Project
Report is to study the production basics, and its functional areas
like marketing department, services, human resource department and financial
department.
Project Completion Certificate
This is to certify that Ms. Pandey Anchal Anand second year student of
Government B.B.A. College (Self-financed), Maninagar (Batch: 2020-2023) has
carried out the project work as per the syllabus of Gujarat University. She
prepared this Annual Project Report entitled “PEPSICO”.
Under the guidance and contribution of Prof. Jyoti Jain in making this report
during the Academic year 2021-2022 is highly appreciated.
To the best of my knowledge the details presented by her are original in nature
and have not been copied from any other source.
Prof: Jyoti Jain
Date:
INDEX
1.
COMPANY PROFILE .............................................................................................................................. 7
1.1
HISTORY: - ......................................................................................................................................... 9
1.2
MISSION & VISION: - ...................................................................................................................... 12
1.3
FORM OF ORGANIZATION STRUCTURE ......................................................................................... 14
1.4
AWARDS AND ACHIEVEMENTS: -................................................................................................... 15
1.5
FINANCE: - ....................................................................................................................................... 16
BALANCE SHEET: ......................................................................................................................................... 18
2.
PRODUCTION: -................................................................................................................................... 20
2.1
PLANT LAYOUT: - ............................................................................................................................ 21
2.2
ISSUES FOR PRODUCTION: - ........................................................................................................... 22
2.3
ORGANIZATIONAL STRUCTURE OF PRODUCTION DEPARTMENT: - ............................................. 23
2.4
PRODUCTION PROCESS: - ............................................................................................................... 24
2.5
CAPACITY PLANNING: - .................................................................................................................. 27
2.6
RAW MATERIAL PROCUREMENT: - ................................................................................................ 28
2.7
MATERIAL HANDLING: - ................................................................................................................. 29
2.8
STORE MANAGEMENT: - ................................................................................................................ 31
2.9
EFFLUENT TREATMENT OF FOOD INDUSTRY: - ............................................................................. 32
2.10
EFFLUENT TREATMENT FACILITIES EXISTING IN FOOD INDUSTRY: - ............................................ 34
Section:1
1. COMPANY PROFILE
PepsiCo, Inc. is an American multinational food, snack, and beverage
corporation headquartered in Harrison, New York, in the hamlet of Purchase.
PepsiCo's business encompasses all aspects of the food and beverage market.
It oversees the manufacturing, distribution, and marketing of its products.
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola
Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake
product Pepsi Cola to an immensely diversified range of food and beverage
brands. The largest and most recent acquisition was Pioneer Foods in 2020 for
$1.7bn and before that it was the Quaker Oats Company in 2001, which added
the Gatorade brand to the Pepsi portfolio and Tropicana Products in 1998.
As of January 2021, the company possesses 23 brands that have over $1 billion
in sales.[4] PepsiCo has operations all around the world and its products were
distributed across more than 200 countries, resulting in annual net revenues of
over $70 billion. Based on net revenue, profit, and market capitalization, PepsiCo
is the second-largest food and beverage business in the world, behind Nestlé.
Type
Traded as
Public
•
•
•
•
Nasdaq: PEP
Nasdaq-100 component
S&P 100 component
S&P 500 component
Industry
Beverages
Food processing
Founded
August 28, 1898; 123 years ago,
New Bern, North Carolina, United States
Founder
Caleb Bradham
Headquarters
Harrison, New York (in the hamlet of Purchase),
United States
Area served
Worldwide
Key people
Ramon Laguarta
(Chairman and CEO)
Products
See list of PepsiCo products
Revenue
US$70.37 billion (2020)
Operating income
US$10.29 billion (2020)
Net income
US$7.353 billion (2019)
Total assets
US$78.55 billion (2019)
Total equity
US$14.87 billion (2019)
Owners
•
•
The Vanguard Group (8.8%)
BlackRock (7.3%)[2]
Number of
employees
267,000 (2019)[1]
Subsidiaries
List of subsidiaries
Website
pepsico.com
1.1 HISTORY: -
The soft drink Pepsi was developed by Caleb Bradham, a pharmacist and
businessman from Duplin County, North Carolina. He coined the name "PepsiCola" in 1898 while marketing the drink from his pharmacy in New Bern, North
Carolina. As his drink gained popularity, Bradham founded the Pepsi-Cola
Company in 1902 and registered a patent for his recipe in 1903. The company
was incorporated in Delaware in 1919. Bradham's company experienced years
of success leading up to World War I. However, sugar rationing during the war
and a volatile sugar market in the war's aftermath damaged the company's
financial health to such a degree that in 1923, Bradham
declared bankruptcy and returned to running pharmacies in North Carolina.
In 1965, Donald Kendall, the CEO of Pepsi-Cola, and Herman Lay, the CEO of
Frito-Lay, recognized what they called “a marriage made in heaven,” a single
company delivering perfectly salty snacks served alongside the best cola on
earth. Their vision led to what quickly became one of the world's leading food
and beverage companies: PepsiCo.
PepsiCo products are enjoyed by consumers more than one billion times a day
in more than 200 countries and territories around the world. PepsiCo generated
$70 billion in net revenue in 2020, driven by a complementary beverage and
convenient foods portfolio that includes Lays, Doritos, Cheetos, Gatorade,
Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product
portfolio includes a wide range of enjoyable foods and beverages, including
many iconic brands that generate more than $1 billion each in estimated annual
retail sales.
On June 8, 1923, the company trademark and secret recipe were purchased by
Craven Holding Corporation. In 1931, Roy Megargel, a Wall Street broker,
purchased the Pepsi trademark, business, and goodwill from Craven Holding in
association with Charles Guth. Guth was also the president of Loft, Incorporated,
a leading candy manufacturer based in Long Island City, New York. Loft ran a
network with 115 stores across the Mid Atlantic at the time of Guth's acquisition.
Guth used Loft's labs and chemists to reformulate the Pepsi syrup recipe, and
he used his position as president of the company to replace Coca-Cola with
Pepsi Cola at Loft's shops and restaurants. Guth also used Loft resources to
promote Pepsi and moved the soda company to a location close by Loft's own
facilities in New York City.
In 1935, the shareholders of Loft sued Guth for his 91% stake of Pepsi-Cola
Company in the landmark case Guth v. Loft Inc. Loft won the suit and on May
29, 1941, formally absorbed Pepsi into Loft, which was then re-branded as
Pepsi-Cola Company that same year. Loft restaurants and candy stores were
spun off at this time.
In the early 1960s, Pepsi-Cola's product lines expanded with the creation of Diet
Pepsi and purchase of Mountain Dew. In 1965, the Pepsi-Cola Company
merged with Frito-Lay, Inc. to become PepsiCo, Inc. At the time of its foundation,
PepsiCo was incorporated in the state of Delaware and headquartered
in Manhattan, New York. The company's headquarters were relocated to the
present location of Purchase, New York in 1970, and in 1986 PepsiCo was
reincorporated in the state of North Carolina. After 39 years trading on the New
York Stock Exchange, PepsiCo moved its shares to Nasdaq on December 20,
2017.
Between the late-1970s and the mid-1990s, PepsiCo expanded via acquisition
of businesses outside of its core focus of packaged food and beverage brands;
however it exited these non-core business lines largely in 1997, selling some,
and spinning off others into a new company named Tricon Global Restaurants,
which later became known as Yum! Brands, Inc. PepsiCo also previously owned
several other brands that it later sold so it could focus on its primary snack
food and beverage lines, according to investment analysts reporting on the
divestments in 1997.
1.2 MISSION & VISION: MISSION
•
FOR CONSUMERS:
By creating joyful moments through our delicious and nourishing
products and unique brand experiences.
•
FOR CUSTOMERS:
By being the best possible partner, driving game-changing innovation,
and delivering a level of growth unmatched in our industry.
•
FOR ASSOCIATES AND OUR COMMUNITIES:
By creating meaningful opportunities to work, gain new skills and build
successful careers, and a diverse and inclusive workplace.
•
FOR PLANET:
By conserving nature’s precious resources and fostering a more
sustainable planet for our children and grandchildren.
•
FOR SHAREHOLDERS:
By delivering sustainable top-tier TSR and embracing best-in-class
corporate governance.
VISION
Winning in the marketplace, being more consumer-centric and accelerating
investment for topline growth.
•
•
•
Broaden PepsiCo portfolios to win locally in convenient foods and
beverages
Fortify our North American businesses
Accelerate international expansion, with disciplined focus on 'right-towin' markets
Transforming PepsiCo capabilities, cost and culture by operating as one
PepsiCo, leveraging technology, winning locally and globally enabled.
•
•
•
Drive savings through holistic cost management to reinvest to win in the
marketplace
Develop and scale core capabilities globally through technology
Build differentiated talent and culture
Integrating purpose into PepsiCo business strategy and doing even more for
the planet and for people.
•
Leveraging PepsiCo scale, reach and expertise across the areas where it
can have the greatest impact
– Agriculture, Water, Packaging, Products, Climate and People – to help
build a more sustainable food system.
1.3 FORM OF ORGANIZATION STRUCTURE
1.4 AWARDS AND ACHIEVEMENTS: PepsiCo proud of the recognitions we have received from numerous
organizations. Below are some of our recent awards and honors. PepsiCo group
is recognized as one of the Top Employers in Serbia and Bosnia and
Herzegovina, as an organization that delivers the highest standards in employee
conditions, with particular excellence in the areas of finding and retaining talent,
learning and leadership development and career management. This is
confirmed by Top Employer certification for 2017 which has been awarded to
PepsiCo Serbia for the third time by The Top Employers Institute, an
independent organization that analyses the practices of employers around the
world.
Pepsico brands are ranked among top brands in the region and Pepsico TVC's
won many awards for the best commercials according to consumers opinion.
The company’s food products like potato wafers, Banana wafers and other salty
products are prepared in its fully automatic plant with bacteria-free and stringent
hygienic standards. The use of computer system ensures uniform quality and
obviates the necessity for touch of human hands.
The production environment makes it possible to make the products less lily and
more nutritive.
1.5 FINANCE: It is noted that the sources of finance should be less risky, and we should get
maximum benefit at low
cost. Financial resources are classified as follows:
➪ Long Term Sources: -
Equity shares capital, Debentures, Long term loan etc.
➪ Short Term Sources: -
Advances from Commercial Banks, Public Deposits, Trade Credit etc.
Ownership Capital: The value of shares of different classes. “PepsiCo.” issued only equity share and
their total amount of share capital is $52,38,000.
Borrowed Capital: The values of hands and debenture “PepsiCo.” not issued bars and debenture.
Surpluses: The value of surpluses i.e., accumulated profit. Reserves and surpluses of PepsiCo.
is $1,96,87,349.
BALANCE SHEET:
Section:2
2. PRODUCTION: PepsiCo's product mix as of 2015 (based on worldwide net revenue) consists of
53 percent foods, and 47 percent beverages. On a worldwide basis, the
company's current products lines include several hundred brands that in 2009
were estimated to have generated approximately $108 billion in cumulative
annual retail sales.
The primary identifier of a food and beverage industry main brand is annual
sales over $1 billion. As of 2015, 22 PepsiCo brands met that mark,
including: Pepsi, Diet Pepsi, Mountain Dew, Lay's, Gatorade, Tropicana, 7
Up, Doritos, Brisk, Quaker Foods, Cheetos, Mirinda, Ruffles, Aquafina, Naked,
Kevita, Propel, Sobe, H2oh, Sabra, Starbucks (ready to Drink Beverages), Pepsi
Max, Tostitos, Sierra Mist, Fritos, Walkers, and Bubly. The structure of PepsiCo's
global operations has shifted multiple times in its history as a result of
international expansion, and as of December 2021 it is separated into seven
main divisions: PepsiCo Beverages North America (PBNA), Frito-Lay North
America (FLNA), Quaker Foods North America (QFNA), Latin America, Europe,
Africa, Middle East, South Asia (AMESA) and Asia Pacific, Australia/New Zealand,
China (APAC). As of 2015, 73 percent of the company's net revenues came from
North and South America; 17 percent from Europe and Sub-Saharan Africa; and
10 percent from Asia, the Middle East, and Africa. PepsiCo and its combined
subsidiaries employed approximately 263,000 people worldwide as of
December 2015.
2.1 PLANT LAYOUT: -
2.2 ISSUES FOR PRODUCTION: During the manufacturing process, there are many production issues that can
occur: poor quality, long lead times, high on-hand inventory, supply chain
interruptions, etc. These things all affect the product you’re putting out there,
which in turn affects the public’s perception of your brand.
he most common problems tend to fit into four categories:
1. Quality problems: High defect rate, high return rate and poor
quality.
2. Output problem: long lead time, unreasonable production
schedule, high inventory rate, supply chain interruption.
3. Cost problem: Low efficiency, idle people, or machines.
4. Management problem: Potential safety hazard, bad working
conditions.
The legal tussle between four potato farmers in Gujarat and global food and
beverages giant PepsiCo India Holdings Pvt Ltd (PIH) MAY be headed for an
out-of-court settlement.
Alleging Intellectual Property Rights (IPR) infringement, PepsiCo India had sued
the farmers from Saba kantha district for buying seeds and selling potato of the
FL 2027 variety, also known as FC-5, which the former has registered under the
Protection of Plant Varieties and Farmers’ Rights (PPV&FR) Act, 2001. The variety
is used for PepsiCo's chips product Lay's.
2.3
ORGANIZATIONAL STRUCTURE OF PRODUCTION
DEPARTMENT: -
2.4 PRODUCTION PROCESS: As public perception placed additional scrutiny on the marketing and
distribution of carbonated soft drinks to children, PepsiCo announced in 2010
that by 2012, it will remove beverages with higher sugar content from primary
and secondary schools worldwide. It also, under voluntary guidelines adopted
in 2006, replaced "full-calorie" beverages in U.S. schools with "lower-calorie"
alternatives, leading to a 95 percent reduction in the 2009 sales of full-calorie
variants in these schools in comparison to the sales recorded in 2004. In 2008,
in accordance with guidelines adopted by the International Council of
Beverages Associations, PepsiCo eliminated the advertising and marketing of
products that do not meet its nutrition standards, to children under the age of
12.
In 2010, Michelle Obama initiated a campaign to end childhood
obesity (titled Let's Move!), in which she sought to encourage healthier food
options in public schools, improved food nutrition labeling, and
increased physical activity for children. In response to this initiative, PepsiCo,
along with food manufacturers Campbell Soup, Coca-Cola, General Mills, and
others in an alliance referred to as the "Healthy Weight Commitment
Foundation", announced in 2010 that the companies will collectively cut one
trillion calories from their products sold by the end of 2012 and 1.5 trillion
calories by the end of 2015.
The popularity of potato chips quickly spread across the country, particularly in
speakeasies, spawning a flurry of home-based companies. Van de Camp's
Saratoga Chips opened in Los Angeles on January 6, 1915. In 1921, Earl Wise, a
grocer, was stuck with an overstock of potatoes. He peeled them, sliced them
with a cabbage cutter and then fried them according to his mother's recipe and
packaged them in brown paper bags. Leonard Japp and George Gavora started
Jays Foods in the early 1920s, selling potato chips, nuts, and pretzels to
speakeasies from the back of a dilapidated truck.
The chips were commonly prepared in someone's kitchen and then delivered
immediately to stores and restaurants or sold on the street. Shelf-life was
virtually nil. Two innovations paved the way for mass production. In 1925, the
automatic potato-peeling machine was invented. A year later, several
employees at Laura Scudder's potato chip company ironed sheets of waxed
paper into bags. The chips were hand-packed into the bags, which were then
ironed shut.
2.5 CAPACITY PLANNING: -
Capacity
planning is
the
process
of
determining
the
production capacity needed by an organization to meet changing demands for
its products.[1] In the context of capacity planning, design capacity is the
maximum amount of work that an organization is capable of completing in a
given period. Effective capacity is the maximum amount of work that an
organization is capable of completing in a given period due to constraints such
as quality problems, delays, material handling, etc.
Capacity planning is long-term decision that establishes a firm's overall level
resources. It extends over a time horizon long enough to obtain resources.
Capacity decisions affect the production lead time, customer responsiveness,
operating cost and company ability to compete. Inadequate capacity planning
can lead to the loss of the customer and business. Excess capacity can drain the
company's resources and prevent investments into more lucrative ventures.
2.6 RAW MATERIAL PROCUREMENT: Procurement of raw material plays a very critical role in a supply chain. In the
era where organizations are searching for cost saving innovative ideas due to
the increasing cost pressures, the procurement function provides an
opportunity to these organizations to remain competitive. Procurement of raw
materials in a food supply chain has to face the problems like shortage of raw
material, quality, lack of continuous supply of seasonal raw material,
inadequately trained labor force, costly imported packing material,
infrastructure, and technological deficiencies. This demands that the food
industry needs to manage the risk/cost trade-off without disregarding
freshness, sustainability, and corporate social responsibility issues. This paper
presents a case study of a food processing plant in India manufacturing potato
chips, with potato as the main raw material.
2.7 MATERIAL HANDLING: Materials taking care of is characterized as the coordinated development of a
particular material starting with one spot then onto the next, at the ideal time,
and in the correct amount. It might include lifting, moving evenly or vertically,
and putting away materials. It is a significant factor in the smooth activity of any
food handling plant and can incredibly influence the nature of the item and the
expense and productivity of the activity.
Material taking care of assumes an imperative part in practically all parts of the
inventory network measure, from crude materials and assembling to
appropriation and utilization. Obviously, legitimate consideration of your stock
is consistently significant, however, one region where protected and successful
material-taking care of frameworks are particularly basic is in food stockpiling
warehousing and appropriation.
Material dealing with is an arrangement of cycles that guide in the development,
stockpiling, insurance, and control of items.
Chips are prepared by slicing potatoes and frying the chips in vessel contained
oil at controlled temperature using the furnace. The crisp of chips depends on
a number of factors including the quality of oil, the temperature of the oil, frying
time, quality of potato and moisture contained in the chips.
List of machinery required for potato chips manufacturing
1. Batch Fryer.
2. Dewatering Machine.
3. Plastic Trays.
4. Washing and Peeling Machine.
5. Salting Drum with Inert Gas Flushing Unit.
6. Slicing Machine (With Arrangement to Adjust Slice Thickness)
7. Spice/Flavoring Coating Machine.
8. Spin Dryer / Hydro Extractor.
2.8 STORE MANAGEMENT: -
 New technology is supporting better monitoring and tracking of food
through cloud-based inventory management systems. With a strong
inventory management solution, you can:
 Optimize food safety and can decrease food health-risk problems
 Make processes more efficient and reduce the chances of perishable
goods going to waste
 Get food products onto shelves quicker so the product is still ripe for
customers
 Optimize transit and packaging processes that can reduce costs

Moreover, inventory management systems can communicate with
members of your supply chain and can yield access to information about
the products in real-time. This provides heightened visibility and allows
you to track certain shipments should a problem arise. There is a
significant amount of data being shared that can provide insight for
safety, shipping, and overstock issues.
2.9 EFFLUENT TREATMENT OF FOOD INDUSTRY: -
The food industry is a complex, global network of diverse businesses that
supplies most of the food consumed by the world's population. The term food
industries covers a series of industrial activities directed at the
production, distribution, processing,
conversion,
preparation,
preservation, transport, certification and packaging of foodstuffs. The food
industry today has become highly diversified, with manufacturing ranging from
small, traditional, family-run activities that are highly labor-intensive, to large,
capital-intensive, and highly mechanized industrial processes. Many food
industries depend almost entirely on local agriculture.
There are three stages of food processing, where the value addition on products
keeps increasing with the stage.
1. Primary– When the raw materials are modified by a small degree,
like milling of grains drying of fruits and nuts, sorting, cleaning,
butchering animals, sterilizing eggs, etc
2. Secondary– When the products obtained from the primary stage
are also subjected to changes like juicing, etc. For example,
making bread from flour, extracting juice from fruits, etc.
3. Tertiary- When the food is sold in ready-to-eat or preserved,
canned, frozen form, etc. to extend its shelf life. This stage is what
we recognize as the food processing industry.
In India, a large population and its ever-increasing demands coupled with the
country’s suitable climatic, geographic factors, intelligent human asset, have
led to the development of many types of food processing industries. These are
listed below.
•
•
•
•
•
•
Grain milling
Fruits and Vegetable Processing
Dairy (milk and milk products)
Eggs and Poultry
Meat and meat products
Fish and other marine food processing
•
•
•
Bakeries
Beverages (tea/coffee/wineries)
Convenience foods (ready to eat or ready to cook foods)
2.10 EFFLUENT TREATMENT FACILITIES EXISTING IN
FOOD INDUSTRY: -
Conclusion
PepsiCo. is one of the world's leading food and beverage companies.
PepsiCo's product portfolio includes a wide range of enjoyable foods and
beverages, including many iconic brands that generate more than $1 billion
each in estimated annual retail sales.
Guiding PepsiCo is PepsiCo’s vision to Be the Global Leader in Beverages and
Convenient Foods by Winning with PepsiCo Positive (pep+). pep+ is strategic
end-to-end transformation that puts sustainability at the center of how
PepsiCo will create value and growth by operating within planetary
boundaries and inspiring positive change for planet and people.
PepsiCo is made up of seven divisions: PepsiCo Beverages North America;
Frito-Lay North America; Quaker Foods North America; Latin America;
Europe; Africa, Middle East, and South Asia; and Asia Pacific, Australia/New
Zealand, and Greater China. Each of these divisions has its own unique history
and way of doing business.
BIBLIOGRAPHY
Websites:
 www.pepsico.com
 www.asiapacificfoodindustry.com
 www.indiamart.com
 www.factsfiguresandfuture.com