Ankita Gupta _09XQCMA011

1

MP BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN)

A REPORT

ON

ORGANISATIONAL STUDY

At

HINDUSTAN COCA – COLA BEVERAGES PVT LTD, MOULA ALI (HYDERABAD)

Project submitted in partial fulfilment for the award of Post Graduation Degree

in Management

By

ANKITA GUPTA

Register No.- 09XQCMA011

Under the guidance of

Mrs. Hema Harsha

M.P BIRLA INSTITUTE MANAGEMENT

Associate Bharatiya Vidya Bhavan

#43, Race Course Road, Bangalore-590001

AUGUST 2010

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GUIDE’S CERTIFICATE

I hereby certify that this internship report entitled “ORGANISATION STUDY AT

HCCBPL (HINDUSTAN COCA COLA BEVERAGES PVT. LTD.) AND RESEARCH ON

SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES”, has been

prepared by ANKITA GUPTA (bearing USN 09XQCMA011) under my guidance and supervision.

Place: Bangalore

Date: (Mrs. Hema Harsha)

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PRINCIPAL'S CERTIFICATE

This is to certify that this internship report entitled '' ORGANISATION STUDY AT


SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES” has been

prepared by ANKITA GUPTA (bearing register number 09XQCMA011) under the guidance of Mrs.

Hema Harsha, M P Birla Institute of Management, Bangalore

Place: Bangalore

Date: (Dr Nagesh

Malavalli)

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DECLARATION

I hereby declare that this Project Report titled “ORGANISATION STUDY AT


SATISFACTION LEVEL OF EMPLOYEES WITH THE WELFARE ACTIVITIES” ,

submitted by me is a bonafide work undertaken by me and it is not submitted to any other

institution or university for the award of any degree/diploma certificate or published any time

before.

(ANKITA GUPTA)

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ACKNOWLEDGEMENT

The ideal way to begin this research would be, to extend my heartfelt

gratitude to everyone who has encouraged and guided me all through my project in particular,

I would like to thank Mr. Rajesh Pebbilli (Human Resource Manager), Hindustan Coca-

Cola Beverages Pvt. Ltd, who gave me opportunity to learn the subject in a more practical

manner in this organization. I extend my thank to Mr. P.Srinivasa Rao (HR Team

leader) and Ms.Komali (HR Executive), HINDUSTAN COCA – COLA BEVERAGES

PVT LTD, Moula-Ali, Hyderabad, who in spite of their busy schedule helped and guided me

throughout the project .

All those employees of HINDUSTAN COCA – COLA BEVERAGES PVT LTD deserve

special thanks for their cooperation and help in the collection of necessary and relevant

material for the project.

I take this opportunity to thank the management and staff of MP Birla Institute of

Management for giving this opportunity to do this project and for their endless support.

(ANKITA GUPTA)

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EXECUTIVE SUMMARY

Coca-Cola, the product that has given the world its best-known taste was born in

Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading

manufacturer, marketer and distributor of non-alcoholic beverage concentrates and

syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates

and syrups to bottling and canning operators, distributors, fountain retailers and

fountain wholesalers. The Company’s beverage products comprises of bottled and

canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder

products. In addition to this, it also produces and markets sports drinks, tea and

coffee. The Coca-Cola Company began building its global network in the 1920s.

Now operating in more than 200 countries and producing nearly 400 brands, the

Coca-Cola system has successfully applied a simple formula on a global scale:

“Provide a moment of refreshment for a small amount of money- a billion times a

day.”

In this project I intend to study about the satisfaction levels of the employees of

HCCBPL (Hindustan Coca-Cola Beverages Pvt. Ltd), Moula Ali related to the

welfare activities.

“Employee welfare is a comprehensive term including various services, benefits and

facilities offered to employees & by the employers. Through such generous fringe

benefits the employer makes life worth living foe employees”.

Welfare includes anything that is done for the comfort and improvement of

employees and is provided over and above the wages. Welfare helps in keeping the

morale and motivation of the employees high so as to retain the employees for

longer duration. The welfare measures need not be in monetary terms only but in

any kind/forms. Employee welfare includes monitoring of working conditions,

creation of industrial harmony through infrastructure for health, industrial relations

and insurance against disease, accident and unemployment for the workers and their

families. Employee welfare entails all those activities of employer which are

directed towards providing the employees with certain facilities and services in

addition to wages or to salaries.

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The very logic behind providing welfare schemes is to create efficient, healthy, loyal

and satisfied labour force for the organization. The purpose of providing such

facilities is to make their work life better and also to raise their standard of living.

The important benefits of welfare measures can be summarised as follows:

• They provide better physical and mental health to workers and thus promote a

healthy work environment.

• Facilities like housing schemes, medical benefits, and education and recreation

facilities for workers’ families help in raising their standards of living. This makes

workers to pay more attention towards work and thus increases their productivity.

• Employers get stable labour force by providing welfare facilities. Workers take

active interest in their jobs and work with a feeling of involvement and participation.

• Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

• The social evils prevalent among the labours such as substance abuse, etc are

reduced to a greater extent by the welfare policies.

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CONTENTS

Page no.

PART A

1. Introduction 02

1.1 Objective of the Study 02

1.2 Scope of the Study 02

1.3 Limitation of the Study 02

2. Industry Profile 04

2.1 Food and Beverage: Background 04

2.1.1 History 04

2.1.2 Leaders 05

2.1.3 Trends 06

2.2 Challenges in the food and beverage industry 07

2.3 Growth Prospects 07

2.4 Future Outlook 08

2.5 Key findings 08

2.6 Beverage Industry in India: A brief insight 09

3. Company Profile 11

3.1 History 13

3.1.1 Fast facts 14

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3.1.2 History of bottling 15

3.2 Values and mission of coca cola 18

3.2.1 Values 18

3.2.2 Mission 18

3.2.3 Vision for sustainable growth 18

3.3 Corporate social responsibility 19

3.4 HCCBPL 21

3.4.1 About the company 21

3.5 Mission and values of HCCBPL 23

3.5.1 Values 23

3.5.2 Mission 23

3.5.3 Quality policy 24

3.6 Manufacturing unit at HCCBPL 24

3.7 Manufacturing process at HCCBPL 25

3.8 Business plan model at HCCBPL 26

3.9 Distribution network 27

3.9.1 Distribution routes 27

3.9.2 Distribution system 28

3.9.3 Departments involved in the

Distribution Process 28

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3.10 Company’s Product mix 29

3.11 Packaging details 31

3.12 Competitors to HCCBPL 35

3.13 SWOT Analysis 36

3.13.1 Strengths 36

3.13.2 Weakness 36

3.13.3 Opportunities 37

3.13.4 Threats 37

PART B

4. Employee Welfare 39

4.1 Introduction 39

4.2 Employee welfare schemes 40

4.2.1 Statutory welfare schemes 40

4.2.2 Non Statutory welfare schemes 40

5. Research Methodology 42

5.1 Need for the study 43

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5.2 Objectives of the study 43

5.3 Scope of the study 44

5.4 Methodology 44

5.4.1 Primary data collection 44

5.4.2 Secondary data collection 45

5.5 Sampling 45

5.5.1 Size 45

5.5.2 Scaling technique 46

5.6 Limitations of the study 46

6. Findings and Inferences 47

6.1 Findings 60

6.2 Suggestions 61

7. Conclusion 63

8. Bibliography 65

9. Annexure 67

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LIST OF FLOWCHARTS

1. Beverage Industry in India 09

2. Chain followed from Manufacture to distribution 24

3. Business Plan Model at HCCBPL 27

4. Organisational Structure of Coca Cola in India 32

5. Organisational Structure at the regional level 33

6. Organisational Structure of the Sales Department 34

LIST OF FIGURES

1. Vision for sustainable growth 19

2. Location of COBO, FOBO and Contract packaging in India 22

3. Manufacturing Process at HCCBPL 25

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LIST OF GRAPHS

1. Graph showing that welfare schemes play an important

role in increasing the employee’s loyalty and motivation 48

2. Graph showing satisfaction with physical conditions 49

3. Graph showing satisfaction with safety measures 50

4. Graph showing satisfaction with drinking water facility 51

5. Graph showing satisfaction with no. of lavatories 52

6. Graph showing satisfaction with restroom facilities 53

7. Graph showing satisfaction with sanitary conditions 54

8. Graph showing management of grievances by organisation 55

9. Graph showing facilities provided by company 56

10. Graph showing satisfaction with canteen facility 57

11. Graph showing satisfaction with first-aid facility 58

12. Graph showing satisfaction with welfare activities 59

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ORGANIZATIONAL STUDY

AT

HINDUSTAN COCA COLA BEVERAGES

PRIVATE LIMITED,

MOULA ALI

HYDERABAD

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1. INTRODUCTION

1.1 OBJECTIVES OF THE STUDY (INTERNSHIP)

· To examine the organization structure of the company.

· To understand functions of various departments such as Production, Marketing,

Human resource management and finance.

· To gain necessary interpersonal and managerial Skills.

· To gain well rounded view of Management operations.

· To gain firsthand experience from industry.

· To make assessment of the organization in the industry.

1.2. SCOPE OF THE STUDY

The scope is limited to the extent of the place, time, organization and their information

collected during the internship. It is done as a part of academic study.

The scope of the study limited to information supplied by the Department Heads and

information collected by standing order and settlement copies of the company.

The information collected is limited to the academic knowledge gained during the study of

the course.

The study is confined only to Hindustan Coca Cola Beverages Pvt. Ltd. Maula Ali,

Hyderabad.

1.3 LIMITATION OF THE STUDY

The study is not proposed to be an expert study as it was done by a student for the purpose

of a partial fulfilment of the course in the in plant training, which is an integral part, in

completion of the MBA Degree Course.

The study was conducted in a short period of six weeks, and so the finding cannot be

generalized for all times. Some of the information being confidential was not included in the

study. The scope of the study by and large is very vast. It is difficult to cover all the areas;

therefore an attempt is made to cover the crucial issues as much as possible.

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INDUSTRY PROFILE

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2. INDUSTRY PROFILE

2.1 FOOD AND BEVERAGE: BACKGROUND

The food and beverage industry is composed of companies involved in processing

raw food materials and manufacturing, packaging or distributing food or drink – the

steps in food production after harvest and before retail purchase. In the food

industry, the dairy sector is the largest, followed by baked and cereal items, and

chilled foods. The beverage segment is composed of alcoholic and non-alcoholic

beverages. For alcoholic beverages, beer, cider and other flavored alcoholic

beverages make up the bulk of the market, followed by wine and spirits. In the

nonalcoholic segment, soft drinks far outsell coffee, tea, juice and water. The food

and beverages industry is considered a mature industry; it is very competitive and

relies strongly on advertising to promote brand names.

The food and beverage industry used to be considered the production of food,

which we now distinguish agriculture as a separate industry. Now, the industry is

much more focused on technology and mechanical manipulation of raw foods to

create more value-added food products. Reliance on transport has increased as the

industry has developed to be more global in nature, with most food products being

offered by a handful of globe-spanning corporations.

2.1.1 HISTORY

In the late 18th and early 19th centuries, the Industrial Revolution contributed largely

to the production and distribution of food and beverage. The results were the ability

to mass produce food products at a lower cost and improved transportation, such as

railroads and barges, enabled many food products to be enjoyed in regions where

food cannot be grown.

During wartime, the food and beverage industry shifted, as food is often a

precious commodity. Prices were determined by availability and regulation. After

World War I, the U.S. Federal Government established the U.S. Food

Administration to regulate the contents of domestically produced food. Most

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countries involved in World War II rationed food and regulated prices in order to

stabilize the economy.

After World War II the Food and Beverage Industry began branding products

through advertising to increase popularity. In many instances, product advertising

costs more than the cost of production, and branding is partially responsible for the

emergence of radio and television. The Cola Wars, a campaign of mutually-targeted

television advertisements and marketing campaigns between soft drink

manufacturers The Coca-Cola Company and PepsiCo, was one example of extensive

advertising.

In the 1950s and 1960s, the concept of franchised restaurants was promoted.

This enabled franchisers to expand with limited capital investment. One such

franchise is McDonalds, currently the World’s largest chain of fast food restaurants.

Since the 1980s there were many mergers and acquisitions of Food and Beverage

Companies. This trend continues today, with many companies actively buying and

selling brands. Some of the Industry’s biggest growth spurts have come from mega-

mergers between Food Industry giants. For example, Kraft Foods and Nabisco and

General Mills and Pillsbury were two major mergers.

India’s Food and Beverage Industry is valued at Rs. 3584 billion. India

produces above 600 million tons of food products every year and is one of the major

producers of food in the World.

The Food and Beverage Industry registered a growth rate of 8.5% in 2005-06.

According to McKinsey’s report, the total beverage consumption will grow at 9%

over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage

will see a spurt of 9.6% and 8.8% respectively.

2.1.2 LEADERS

In the Food and Beverages Industry, diversification, whether into many

different types of food or beverage or into different preparations, has been shown to

be a key to ensuring future growth. Nestle, the largest Food and Beverage Company

in the World, Unilever and Kraft Foods have all diversified well and performed well,

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becoming leaders in their market. The non-alcoholic beverage segment is led by

Coca-Cola with PepsiCo and Cadbury Schweppes.

The key players currently operating in the Indian Food and Beverages

Industry including Dabur India Limited, Godrej Industries Limited, Hindustan Lever

Limited, Britannia Industries Limited, ITC Limited, Nestle, PepsiCo, Inc., Cadbury

Schweppes PLC, Future Group, RPG Enterprise and Godrej Agrovet Limited.

2.1.3 TRENDS

Recently, Companies have spent a lot of money researching consumers eating

habits and preferences. Statistics shown that more people are dining out and food

producers are finding themselves devoting more attention to products designed for

restaurants, vending machines, and other food service providers. Although this is

bad news for grocery retailers, food makers realize food eaten away from home is

still food they can provide, many times at higher margins.

Another trend in the Industry has been the development of health foods, such

as those containing less trans-fat or fewer calories, or those containing only organic

ingredients. Bottled water has become well established in the market as many

beverage companies, and enhanced waters containing vitamins or supplements are

gaining popularity, Energy drinks, such as Red Bull, have also burst forth onto the

scene.

Rising costs have become an issue in the Food and Beverage Industry, as the

rising costs of petroleum cause a twofold increase in cost for companies in the Food

Industry; costs have increased at the agriculture end, which increases raw materials

costs for food processors who also deal with increased production and transportation

costs at their end. Since the Industry is so competitive, it is difficult for these

companies to raise their prices accordingly and profit margins have suffered as a

result.

Quality control and assurances are vital to this Industry. Food safety programs

have been adopted recently as issues of chemical and bacterial contamination and

new food-borne pathogens remain a public health concern.

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2.2 CHALLENGES IN THE FOOD AND BEVERAGE INDUSTRY

· Poor infrastructure

· Lack of adequate facilities for storage, transportation and cold chain facilities

· No common food law

· Food standards are confusing and contradictory

· High cost of raw material and packing material and high railway freight puts

pressures on margins.

· Different rules and regulations and licensing are defined for different

commodities

2.3 GROWTH PROSPECTS

With increase in disposable income of consumers, growing awareness among

consumers about health products, rapid urbanization and increasing popularity of

convenience foods, food and beverage sector is expected to grow at a high rate. This

sector holds a huge potential to grow because of the increase in advertisement

spending, awareness campaign about products in urban as well as rural areas and

large scale transformation.

India’s Food and Beverage Industry is valued at Rs. 3584 billion. India

produces above 600 million tons of food products every year and is one of the major

producers of food in the World.

The Food and Beverage Industry registered a growth rate of 8.5% in 2005-06.

According to McKinsey’s report, the total beverage consumption will grow at 9%

over the next 20 years. Of which, alcoholic beverage and non-alcoholic beverage

will see a spurt of 9.6% and 8.8% respectively.

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2.4 FUTURE OUTLOOK

RNCOS “Indian Food and Beverages Forecast (2007-2011)” report gives an

in-depth analysis of the present and future prospects of the Indian Food and

Beverages Industry. It looks into the Industry in detail with foci on organized food

retailing, consumer food purchasing behavior, food processing Industry and

packed/convenience food Industry. This report helps clients to analyze the factors

and examine the opportunities critical to the success of food and beverage industry

in India.

2.5 KEY FINDINGS

· It is expected that fruit consumption will increase at a CAGR of 4.33% for the

period spanning from 2007-201

· The processed-food market is the main focus for foreign companies as this

segment is underdeveloped and presents enormous potential for growth

· Rising household incomes, increasing urbanization, changing lifestyles and the

rapid growth of the private-sector and dairy-processing Industry should lead to

greater demand for value-added, milk-based products, such as processed cheese,

table butter and ice cream

· The growth rate of soft drink sales will decelerate during the forecasted period

due to pesticide contamination issues and growing popularity of fruit juice drinks

and bottled water

· Coffee consumption is likely to expand at a rapid rate during the forecasted

period. It is expected that it will increase at a CAGR of 10.05% for the period

spanning from 2007-2011

· The rapidly developing and full of potential processed food market will attract

foreign companies

· Consumption of soft drinks expanded at an average annual rate of 11% by

volume during 2002 to 2006, and this is forecast to accelerate only slightly to 12%

during 2007 to 2011

· Production of branded snack food is estimated to be growing at an annual rate

of 20% in coming 2-3 years, albeit it has a small base of consumers

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· Being the world’ largest market for whisky, India will remain major global

spirits market in the coming 3-4 years

2.6 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.

FLOWCHART 1. BEVERAGE INDUSTRY IN INDIA

BEVERAGES

ALCOHOLIC NON-ALCOHOLIC

CARBONATED NON CARBONATED

COLA NON COLA NON COLA

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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 consumption.

· 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 behavioural 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 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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COMPANY

PROFILE

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3. THE COCA COLA COMPANY

Coca-Cola, the product that has given the world its best-known taste was born in

Atlanta, Georgia, on May 8, 1886. Coca-Cola Company is the world’s leading

manufacturer, marketer and distributor of non-alcoholic beverage concentrates and

syrups, used to produce nearly 400 beverage brands. It sells beverage concentrates

and syrups to bottling and canning operators, distributors, fountain retailers and

fountain wholesalers. The Company’s beverage products comprises of bottled and

canned soft drinks as well as concentrates, syrups and not-ready-to-drink powder

products. In addition to this, it also produces and markets sports drinks, tea and

coffee. The Coca-Cola Company began building its global network in the 1920s.

Now operating in more than 200 countries and producing nearly 400 brands, the

Coca-Cola system has successfully applied a simple formula on a global scale:

“Provide a moment of refreshment for a small amount of money- a billion times a

day.”

The Coca-Cola Company and its network of bottlers comprise the most sophisticated

and pervasive production and distribution system in the world. More than anything,

that system is dedicated to people working long and hard to sell the products

manufactured by the Company. This unique worldwide system has made The Coca-

Cola Company the world’s premier soft-drink enterprise. From Boston to Beijing,

from Montreal to Moscow, Coca-Cola, more than any other consumer product, has

brought pleasure to thirsty consumers around the globe. For more than 115 years,

Coca-Cola has created a special moment of pleasure for hundreds of millions of

people every day.

The Company aims at increasing shareowner value over time. It accomplishes this

by working with its business partners to deliver satisfaction and value to consumers

through a worldwide system of superior brands and services, thus increasing brand

equity on a global basis. They aim at managing their business well with people who

are strongly committed to the Company values and culture and providing an

appropriately controlled environment, to meet business goals and objectives. The

associates of this Company jointly take responsibility to ensure compliance with the

framework of policies and protect the Company’s assets and resources whilst

limiting business risks.

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3.1 HISTORY

Coca-Cola was first introduced by John Syth Pemberton, a pharmacist, in the year

1886 in Atlanta, Georgia when he concocted caramel-colored syrup in a three-legged

brass kettle in his backyard. He first “distributed” the product by carrying it in a jug

down the street to Jacob’s Pharmacy and customers bought the drink for five cents at

the soda fountain. Carbonated water was teamed with the new syrup, whether by

accident or otherwise, producing a drink that was proclaimed “delicious and

refreshing”, a theme that continues to echo today wherever Coca-Cola is enjoyed.

Dr. Pemberton’s partner and book-keeper, Frank M. Robinson, suggested the name

and penned “Coca-Cola” in the unique flowing script that is famous worldwide even

today. He suggested that “the two Cs would look well in advertising.” The first

newspaper ad for Coca-Cola soon appeared in The Atlanta Journal, inviting thirsty

citizens to try “the new and popular soda fountain drink.” Hand-painted oil cloth

signs reading “Coca-Cola” appeared on store awnings, with the suggestions “Drink”

added to inform passersby that the new beverage was for soda fountain refreshment.

By the year 1886, sales of Coca-Cola averaged nine drinks per day. The first year,

Dr. Pemberton sold 25 gallons of syrup, shipped in bright red wooden kegs. Red has

been a distinctive color associated with the soft drink ever since. For his efforts, Dr.

Pemberton grossed $50 and spent $73.96 on advertising. Dr. Pemberton never

realized the potential of the beverage he created. He gradually sold portions of his

business to various partners and, just prior to his death in 1888, sold his remaining

interest in Coca-Cola to Asa G. Candler, an entrepreneur from Atlanta. By the year

1891, Mr. Candler proceeded to buy additional rights and acquire complete

ownership and control of the Coca-Cola business. Within four years, his

merchandising flair had helped expand consumption of Coca-Cola to every state and

territory after which he liquidated his pharmaceutical business and focused his full

attention on the soft drink. With his brother, John S. Candler, John Pemberton’s

former partner Frank Robinson and two other associates, Mr.Candler formed a

Georgia corporation named the Coca-Cola Company. The trademark “Coca-Cola,”

used in the marketplace since 1886, was registered in the United States Patent Office

on January 31, 1893.

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The business continued to grow, and in 1894, the first syrup manufacturing plant

outside Atlanta was opened in Dallas, Texas. Others were opened in Chicago,

Illinois, and Los Angeles, California, the following year. In 1895,three years after

The Coca-Cola Company’s incorporation, Mr. Candler announced in his annual

report to share owners that “Coca-Cola is now drunk in every state and territory in

the United States.”

As demand for Coca-Cola increased, the Company quickly outgrew its facilities. A

new building erected in 1898 was the first headquarters building devoted exclusively

to the production of syrup and the management of the business. In the year 1919, the

Coca-Cola Company was sold to a group of investors for $25 million. Robert W.

Woodruff became the President of the Company in the year 1923 and his more than

sixty years of leadership took the business to unsurpassed heights of commercial

success, making Coca-Cola one of the most recognized and valued brands around

the world.

3.1.1 FAST FACTS

Established: 1886

Ranking: Owns 4 of world’s top 5 non-alcoholic brands i.e Coca-cola, sprite, diet

coke and Fanta

Company associates: 90,500 worldwide

Operational reach: 200+ countries

Consumer Servings (per day): 1.5 billion

Beverage variety: Offers more than 2800 products including diet and regular

sparkling beverages, and still beverages such as 100% juices, juice drinks, sports

drinks, teas, coffee and milk and soy-based beverages.

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3.1.2 HISTORY OF BOTTLING

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a

glass. Early growth was impressive, but it was only when a strong bottling system

developed that Coca-Cola became the world-famous brand it is today.

Year 1894: A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage

called Coca-Cola impressed the store's owner, Joseph A.Biedenharn. He began

bottling Coca-Cola to sell, using a common glass bottle called a Hutchinson.

Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler

thanked him but took no action. One of his nephews already had urged that Coca-

Cola be bottled, but Candler focused on fountain sales.

Year 1899: The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a

business around bottling Coca-Cola. In a meeting with Candler, Benjamin F.

Thomas and Joseph B. Whitehead obtained exclusive rights to bottle Coca-Cola

across most of the United States for a sum of one dollar. A third Chattanooga

lawyer, John T. Lupton, soon joined their venture.

Years 1900-1909: Rapid growth

The three pioneer bottlers divided the country into territories and sold bottling rights

to local entrepreneurs. Their efforts were boosted by major progress in bottling

technology, which improved efficiency and product quality. By 1909, nearly 400

Coca-Cola bottling plants were operating, most of them family-owned businesses.

Some were open only during hot-weather months when demand was high.

Year 1916: Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with

imitators. A group representing the Company and bottlers asked glass manufacturers

to offer ideas for a distinctive bottle. A design from the Root Glass Company of

Terre Haute, Indiana won enthusiastic approval. The Contour Bottle became one of

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the few packages ever granted trademark status by the U.S. Patent Office. Today, it

is one of the most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were operating in the

U.S. Their ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit

starting in 1923. A few years later, open-top metal coolers became the forerunners of

automated vending machines. By the end of the 1920s, bottle sales of Coca-Cola

exceeded fountain sales.

In the 1920s and 1930s: International expansion

Led by Robert W. Woodruff, chief executive officer and chairman of the Board, the

Company began a major push to establish bottling operations outside the U.S. Plants

were opened in France, Guatemala, Honduras,Mexico, Belgium, Italy and South

Africa. By the time World War II began,Coca-Cola was being bottled in 44

countries.

In the 1940s: Post-war growth

During the war, 64 bottling plants were set up around the world to supply the troops.

This followed an urgent request for bottling equipment and materials from General

Eisenhower's base in North Africa. Many of these war-time plants were later

converted to civilian use, permanently enlarging the bottling system and accelerating

the growth of the Company's worldwide business.

In the 1950s: Packaging innovations

For the first time, consumers had choices of Coca-Cola package size and type-the

traditional 6.5 ounce Contour Bottle, or larger servings including 10, 12 and 26

ounce versions. Cans were also introduced, becoming generally available in 1960.

30


In the 1960s: Introduction of new brands

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the 1960s. Mr. Pibb and

Mello Yello were added in the 1970s. The 1980s brought diet Coke and Cherry

Coke, followed by PowerAde and Fruitopia in the 1990s. Today scores of other

brands are offered to meet consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers

Advancement in technology led to global economy, retail customers of The Coca-

Cola Company merged and evolved into international mega chains. Such customers

required a new approach. In response, many small and medium-size bottlers

consolidated to better serve giant international customers. The Company encouraged

and invested in a number of bottler consolidations to assure that its largest bottling

partners would have capacity to lead the system in working with global retailers.

In the 1990s: New and growing markets

Political and economic changes opened vast markets that were closed or

underdeveloped for decades. After the fall of the Berlin Wall, the Company invested

heavily to build plants in Eastern Europe. As the century closed, more than $1.5

billion was committed to new bottling facilities in Africa.

21st Century: Coca-Cola today

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the Company well today as consumers seek

brands that honor local identity and the distinctiveness of local markets. As was true

a century ago, strong locally based relationships between Coca-Cola bottlers,

customers and communities are the foundation

on which the entire business grows.

31


3.2 VALUES AND MISSION OF COCA COLA

3.2.1: VALUES:

Coca-Cola is guided by shared values that both the employees as individuals

and the Company will live by; the values being:

· LEADERSHIP: The courage to shape a better future

· PASSION: Committed in heart and mind

· INTEGRITY: Be real

· ACCOUNTABILITY: If it is to be, it’s up to me

· COLLABORATION: Leverage collective genius

· INNOVATION: Seek, imagine, create, delight

· QUALITY: What we do, we do well

3.2.2: MISSION

· To Refresh the World... In body, mind, and spirit

· To Inspire Moments of Optimism... Through our brands and our actions

· To Create Value and Make a Difference... Everywhere we engage.

3.2.3: VISION FOR SUSTAINABLE GROWTH

· PROFIT: Maximizing return to shareowners while being mindful of our

overall responsibilities.

· PEOPLE: Being a great place to work where people are inspired to be the

best they can be.

· PORTFOLIO: Bringing to the world a portfolio of beverage brands that

anticipate and satisfy peoples’ Desires and needs.

· PARTNERS: Nurturing a winning network of partners and building mutual

loyalty.

· PLANET: Being a responsible global citizen that makes a difference.

32


Fig1. VISION FOR SUSTAINABLE GROWTH

3.3 CORPORATE SOCIAL RESPONSIBILITY

As one of the largest and most global companies in the world, Coca-Cola took

seriously its ability and responsibility to positively affect the communities in which

it operated. The company’s mission statement, called the Coca-Cola Promise, stated:

“The Coca-Cola Company exists to benefit and refresh everyone who is touched by

our business.” The Company has made efforts towards good citizenship in the areas

of community, by improving the quality of life in the communities in which they

operate, and the environment, by addressing water, climate change and waste

management initiatives. Their activities also included The Coca-Cola Africa

Foundation created to combat the spread of HIV/AIDS through partnership with

governments, UNAIDS, and other NGOs, and The Coca-Cola Foundation, focused

on higher education as a vehicle to build strong communities and enhance individual

opportunity Coca-Cola’s footprint in India was significant as well. The Company

33


employed 7000 citizens and believed that for every direct job, 30-40 more were

created in the supply chain.

Like its parent, Coke India’s Corporate Social Responsibility (CSR) initiatives were

both community and environment-focused. Priorities included education, where

primary education projects had been set up to benefit children in slums and villages,

water conservation, where the Company supported community-based rainwater

harvesting projects to restore water levels and promote conservation education, and

health, where Coke India partnered with NGOs and governments to provide medical

access to poor people through regular health camps. In addition to outreach efforts,

the company committed itself to environmental responsibility through its own

business operations in India including:

· Environmental due diligence before acquiring land or starting projects

· Environmental impact assessment before commencing operations

· Ground water and environmental surveys before selecting sites

· Compliance with all regulatory environmental requirements

· Ban on purchasing CFC-containing refrigeration equipment

· Waste water treatment facilities with trained personnel at all company-owned

bottling operations

· Energy conservation programs

· 50% water savings in last seven years of operations

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3.4 HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

(HCCBPL)

3.4.1 ABOUT THE COMPANY

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 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, HCCBPL, the Indian bottling

arm of the Coca-Cola Company. However, this was based on numerous

commitments and stipulations which the Company agreed to implement in due

course. One such major commitment was that, the

Hindustan Coca-Cola Holdings would divest 49% of its shareholding in favour of

resident shareholders by June 2002.

Coca-Cola is made up of 7000 local employees, 500 managers, over 60

manufacturing locations, 27 Company Owned Bottling Operations (COBO),17

Franchisee Owned Bottling Operations (FOBO) and a network of 29 Contract

Packers that facilitate the manufacture process of a range of products for the

company. It also has a supporting distribution network

consisting of 700,000 retail outlets and 8000 distributors. Almost all goods and

services required to cater to the Indian market are made locally, with help of

technology and skills within the Company. The complexity of the Indian market is

35


reflected in the distribution fleet which includes different modes of distribution,

from 10-tonne trucks to open-bay three wheelers that can navigate through narrow

alleyways of Indian cities and trademarked tricycles and pushcarts.

“Think local, act local”, is the mantra that Coca-Cola follows, with punch lines like

“Life ho to aisi” for Urban India and “Thanda Matlab Coca-Cola” for Rural India.

This resulted in a 37% growth rate in rural India visa-vie 24% growth seen in urban

India. Between 2001 and 2003, the per capita consumption of cold drinks doubled

due to the launch of the new packaging of 200 ml returnable glass bottles which

were made available at a price of Rs.5 per bottle. This new market accounted for

over 80% of India’s new Coca-Cola drinkers. At Coca-Cola, they have a long

standing belief that everyone who touches their business should benefit, thereby

inducing them to uphold these values, enabling the Company to achieve success,

recognition and loyalty worldwide.

COBO

FOBO

CONTRACT

Fig2. LOCATIONS OF COBO, FOBO & CONTRACT PACKAGING IN

INDIA

36


3.5 MISSION AND VALUES OF HCCBPL

3.5.1: VALUES

The values that the employees in the Company are expected to keep up to and work

by regularly are as follows:

· LEADERSHIP: To take an initiative and lead, motivate and drive the team

with energy and zeal, to deliver outstanding results.

· INNOVATION: To continuously strive for progress and reach the next level

of excellence in everything we do.

· PASSION: To be deeply committed and display drive and energy in the quest

to deliver outstanding performance.

· TEAMWORK: To unite for greater strength and work collectively as a group

towards the achievement of common goals.

· OWNERSHIP: To think and act like owners at all levels; to have decisions

taken at the lowest appropriate level.

· ACCOUNTABILITY: To be individually and transparently accountable to

our colleagues for delivering agreed targets and goals.

3.5.2: MISSION

To create consumer products, services and communications, customer service and

bottling system strategies, processes and tools in order to create competitive

advantage and deliver superior value to;

· Consumers as a superior beverage experience

· Consumers as an opportunity to grow profits through the use of

finished drinks.

· Bottlers as an opportunity to grow profits in volumes

· Bottlers as a trademark enhancement and positive economic value added

· Suppliers as an opportunity to make reasonable profits when creating real

value-added in an environment of system-wide team work, flexible business system

and continuous improvement.

· Indian society in the form of a contribution to economic and social

development.

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3.5.3: QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts, deeds and

actions by continually improving our processes…Every time.”

3.6 MANUFACTURING UNIT OF HCCBPL

There are 2 manufacturing units in Hyderabad one based at Ameenpur and one at

Moula-Ali, Ameenpur has 3 CSD (carbonated soft drinks) lines and Moula-Ali has 2

CSD and 1 PET line. There are 3 more units, one each in Vizag, Vijaywada and

Nellore. The total turnover of AP is over 750 crores with 3 plants, 2 Green fields and

1500 associates.

FLOWCHART 2. CHAIN FOLLOWED FROM MANUFACTURE TO

DISTRIBUTION

MANUFACTURING PLANT, MAULA ALI

SALES AND DISTRIBUTION

DISTRIBUTORS OUTLETS

OUTLETS

38


3.7 MANUFACTURING PROCESS AT HCCBPL

Fig 3. MANUFACTURING PROCESS

The manufacturing of the products of Coca-Cola involves the following steps:

· Water is received and it passes through the water treatment plant, further

passing through the sand filter and the activated carbon filter, so as to attain pure

cleansed water.

· In the syrup room, the concentrate received from another bottling plant

situated at Pune, is blended with the sugar syrup.

· Once both the water and the final syrup are ready, they are both mixed

together and sent to the carbonator section where Carbon Dioxide is added to the

mixture to form the final product.

· On the other hand, simultaneously, the returnable glass bottles are

depalletized, inspected and washed for the purpose of filling in the final product in

39


it. This step does not take place in the PET bottle line as the bottles once used are

disposed.

· The product is finally filled in the bottles, crowned (in case of RGB)/ capped

(in case of PET bottles), labeled and cased in order to be sent into the warehouse for

distribution.

3.8 BUSINESS PLAN MODEL AT HCCBPL

FLOWCHART 3

Manufactures Concentrate, Beverage

base and Syrup

Coca-Cola India division

Regional Bottlers

COBO/FOBO

Customers

Consumers

Manufactures finished Bottles/Cans/Fountain

Syrup

40


3.9 DISTRIBUTION NETWORK

HCCBPL has a wide and well managed network of salesmen appointed for taking up the

responsibility of distribution of products to diverse parts of the cities. The distribution

channels are constructed in such a way that the demand of customers is fulfilled at the right

place and the right time when it is needed by them.

A typical distribution chain at HCCBPL would be:

Production --- Plant Warehouse --- Depot Warehouse --- Distribution---Warehouse ---

Retail Stock --- Retail Shelf --- Consumer

The customers of the Company are divided into different categories and different routes, and

every salesman is assigned to one particular route, which is to be followed by him on a daily

basis. A detailed and well organized distribution system contributes to the efficiency of the

salesmen. It also leads to low costs, higher sales and higher efficiency thereby leading to

higher profits to the firm.

3.9.1: DISTRIBUTION ROUTES

The various routes formulated by HCCBPL for distribution of products are as follows:

· Key Accounts: The customers in this category collectively contribute a large chunk

of the total sales of the Company. It basically consists of organizations that buy large

quantities of a product in one single transaction. The Company provides goods to these

customers on credit, payments being made by them after a certain period of time i.e. either a

month of half a month.

Examples: Clubs, fine dine restaurants, hotels, Corporate houses etc.

· Future Consumption: This route consists of outlets of Coca-Cola products, wherein

a considerable amount of stock is kept in order to use for future consumption. The stock

does not exhaust within a day or two, instead as and when required stocks are stacked up by

them so as to avoid shortage or non-availability of the product.

Examples: Departmental stores, Super markets etc.

· Immediate Consumption: The outlets in this route are those which require stocks on

a daily basis. The stocks of products in these outlets are not stored for future use instead, are

exhausted on the same day and might run a little into the next day i.e. the products are

consumed at a fast pace.

Examples: Small sized bars and restaurants, educational institutions etc.

41


· General: Under this route, all the outlets that come in a particular area or an area

along with its neighboring areas are catered to. The consumption period is not taken into

consideration in this particular route.

3.9.2: DISTRIBUTION SYSTEM

· Direct distribution: In direct distribution, the bottling unit or the bottler partner has

direct control over the activities of sales, delivery, and merchandising and local account

management at the store level.

· Indirect distribution: In indirect distribution, an organization which is not part of

the Coca-Cola system has control on one or more of the distribution elements (Sales,

delivery, merchandising and local account management)

· Merchandising: Merchandising means communication with the consumer at the

point of purchase to convey product benefit, value and Quality. Sales people and delivery

personnel both have this responsibility. In certain locations special teams who go into

business locations to specifically merchandise our products.

3.9.3: DEPARTMENTS INVOLVED IN THE DISTRIBUTION PROCESS

The Distribution process mainly consists of three departments:

· Distribution Department: It appoints distributors and establishes a distribution

network, processes approved sale orders and prepares invoices, arranges logistics and ship

products, co-ordinates with distributors for collections and monitors distribution stocks and

their set-up.

· Finance Department: It checks credit limits and approves sales orders in compliance

with the credit policy followed by the firm, records collections from distributors,

periodically reconciles outstanding balances from distributors, obtains balance confirmation

from distributors and follows up outstanding balances.

· Shipping or Warehousing Department: It dispatches goods as per approved by

order, ensures that stocks are dispatched on a FIFO basis, ensures physical control over load

out area and updates warehouse stock records in a timely manner.

42


3.10 COMPANY’S PRODUCT MIX

The Coca-Cola Company offers a wide range of products to the customers including

beverages, fruit juices and bottled mineral water. The Company is always looking to

innovate and come up with, either complete new products or new ways to bottle or

pack the existing drinks. The Coca-Cola Company has a wide range of products out

of which the following products are marketed by HCCBPL:

· In the Cola section

· In the Lemon section

· In the Orange section

43


· In the Juice section

· In the Soda water and Bottled Mineral Water section

· In the Coffee section

44


3.11 PACKAGING DETAILS

· Coca-Cola, Thums Up, Fanta Limca and Sprite: 330 ml can, 200 ml and 300

ml returnable glass bottles; 500+100 ml free, 1.5 litre and 2 litre PET bottles

· Diet Coke: 330 ml can and 500 ml PET bottle

· Maaza: 200 ml and 250 ml Returnable Glass Bottle; 500+100 ml free and

1litre+200 ml free PET bottles and the newly introduced 200 ml Tetra Pack

· Minute Maid Pulpy Orange: 400 ml and 1 litre PET bottles

· Schweppes Soda Water: 300 ml returnable glass bottles, 500+100 ml free PET

bottles

· Schweppes Mineral Water: 750 ml PET bottles

· Schweppes Tonic Water: 330 ml can

45


FLOWCHART4. ORGANISATIONAL STRUCTURE OF COCA COLA IN

INDIA

Chief

Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Regional Vice President (Central)

46


FLOWCHART5. ORGANISATIONAL STRUCTURE AT THE REGIONAL

LEVEL

Region Vice president

AGM/AOD (Unit 1)

AGM/AOD (Unit 2)

AGM/AOD (Unit 3)

AGM/AOD (Unit 4)

Region Finance

Region Human resource

Region Customer service

Region External Affairs

Region Cold drink

Region Legal

Region BSG

Region Capability Management Region Channel

Region Director/Manager

47


FLOWCHART6. ORGANISATIONAL STRUCTURE OF THE SALES

DEPARTMENT

AGM/AOD

Plant Manager

Route to Market

Human Resource Manager

Finance Manager

General Sales

Manager

Area Sales

Manager

Channel Manager

Area Capability Manager

Sales Executive

Marketing Sales Trainers

Market Developers

Key Accounts

Distributors and Salesmen

48


3.12: COMPETITORS TO HCCBPL

The competitors to the products of the company mainly lie in the non-alcoholic beverage

industry consisting of juices and soft drinks. The key competitors in the industry are as

follows:

· PepsiCo: The PepsiCo challenge, to keep up with archrival, the Coca-Cola

Company never ends for the World's # 2, carbonated softdrink maker. The company's soft

drinks include Pepsi, Mountain Dew, and Slice. Cola is not the company's only beverage;

PepsiCo sells Tropicana orange juice brands, Gatorade sports drink, and Aquafina water.

PepsiCo also sells Dole juices and Lipton ready-to-drink tea. PepsiCo and Coca-Cola hold

together, a market share of 95% out of which 60.8% is held by Coca-Cola and the rest

belongs to Pepsi.

· Nestlé: Nestle does not give that tough a competition to Coca-Cola as it mainly deals

with milk products, Baby foods and Chocolates. But the iced tea that is Nestea which has

been introduced into the market by Nestle provides a considerable amount of competition to

the products of the Company. Iced tea is one of the closest substitutes to the Colas as it is a

thirst quencher and it is healthier when compared to fizz drinks. The flavored milk products

also have become substitutes to the products of the company due to growing health

awareness among people.

· Dabur: Dabur in India, is one of the most trusted brands as it has been operating

ever since times and people have laid all their trust in the Company and the products of the

Company. Apart from food products, Dabur has introduced into the market Real Juice which

is packaged fresh fruit juice. These products give a strong competition to Maaza and the

latest product Minute Maid Pulpy Orange.

49


3.13 SWOT ANALYSIS

SWOT stands for Strengths Weakness Opportunities and Threats. SWOT analysis is

a technique much used in general managements as well as marketing scenarios.

SWOT consists of examining the current activities of the organisation in strengths

and weaknesses and then using the external research data to set out the opportunities

and threats that exist.

3.13.1 STRENGTHS

Coca-cola has been a complex part of world culture for a very long time. The

product’s image is loaded with over-romanticizing, and this is an image many

people have taken deeply to heart. The Coca-cola image is displayed on T-shirts,

hats, memorabilia. This extremely recognizable branding is Coca-Cola’s greatest

strengths. It is enjoyed more than 685 million times in a day around the world and

thus stands as a simple yet powerful symbol of quality and enjoyment.

Additionally, the bottling system of Coca-Cola is one of their greatest strengths. It

allows them to conduct business at a global scale while at the same time maintain a

local approach. The bottling companies are locally owned and operated by

independent business people who are authorised to sell products of Coca-Cola

company. Because coke does not have outright ownership of bottling networks, its

main source of revenue is sale of concentrate to its bottlers.

3.13.2 WEAKNESS

Weakness of any business needs to be both minimised and monitored in order to

effectively achieve productivity and efficiency in their business activities. Coke is no

exception. Although domestic businesses as well as many international markets are

thriving, coke has reported decline in unit case volume in some parts of the world

because of reduction in consumer purchasing power and none of these markets are

performing upto the expectations.

Coca-Cola on the other hand has effects on the teeth which is an issue for health

care. It also contains sugar which with continuous drinking may cause health

50


problems. Being addicted to Coca-Cola also is a health problem, because drinking of

Coca-Cola daily has an effect on your body after few years.

3.13.3 OPPURTUNITIES

Brand recognition is the significant factor affecting Coke’s competitive positioning.

Coca-Cola’s brand name is known well throughout 94% of the world. The primary

concern has been to get this brand name to be even better known. Packaging changes

have also affected sales and industry positioning, but in general the company has

tended not be affected by new products. Coca-Cola’s bottling system also allows the

company to take advantage of infinite growth opportunities around the world. This

strategy gives coke the opportunity to service a large geographic and diverse area.

3.13.4 THREATS

Currently, the threat of new viable competitor in the carbonated soft dring industry is

not very substantial. The threat of substitutes however is a very real threat. The soft

drink industry is very strong but customers cant be faithful to it. Possible substitutes

that put continuous pressure on both coke and pepsi are tea, coffee, juices, milk and

hot chocolate. Even though Coke and Pepsi cover 40% of the entire beverage

market, the changing health consciousness of the consumers may have an adverse

affect. Of course both Coke and Pepsi have diversified into these markets, allowing

them to have further significant market shares and offset any losses incurred due to

fluctuations in the market. Consumer buying behaviour also represents a key threat

in the industry. The rivalry between coke and pepsi has produced a very slow

moving industry in which management must continuously respond to the changing

attitudes and demands of their consumers or face losing market share to the

competitors. Furthermore, consumers can easily switch to other beverages with little

cost or consequence.

51


SATISFACTION LEVEL OF EMPLOYEES WITH

WELFARE ACTIVITIES IN HCCBPL

52


4. EMPLOYEE WELFARE

4.1 INTRODUCTION

Welfare includes anything that is done for the comfort and improvement of

employees and is provided over and above the wages. Welfare helps in keeping the

morale and motivation of the employees high so as to retain the employees for

longer duration. The welfare measures need not be in monetary terms only but in

any kind/forms. Employee welfare includes monitoring of working conditions,

creation of industrial harmony through infrastructure for health, industrial relations

and insurance against disease, accident and unemployment for the workers and their

families. Labour welfare entails all those activities of employer which are directed

towards providing the employees with certain facilities and services in addition

wages or salaries.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal

and satisfied labour force for the organization. The purpose of providing such

facilities is to make their work life better and also to raise their standard of living.

The important benefits of welfare measures can be summarized as follows:

· They provide better physical and mental health to workers and thus promote a

healthy work environment

· Facilities like housing schemes, medical benefits, and education and recreation

facilities for workers’ families help in raising their standards of living. This makes

workers to pay more attention towards work and thus increases their productivity.

· Employers get stable labour force by providing welfare facilities. Workers

take active interest in their jobs and work with a feeling of involvement and

participation.

· Employee welfare measures increase the productivity of organization and

promote healthy industrial relations thereby maintaining industrial peace.

· The social evils prevalent among the labours such as substance abuse, etc are

reduced to a greater extent by the welfare policies.

53


Labour welfare refers to all those efforts of employers, trade unions voluntary

organizations and governmental agencies which help employees feel better and

perform better.

Welfare means faring or doing well. It is a comprehensive term it refers to-

Ø Physical.

Ø Mental.

Ø Moral.

Ø Emotional well being of an individual..

4.2 EMPLOYEE WELFARE SCHEMES

Organizations provide welfare facilities to their employees to keep their motivation levels

high. The employee welfare schemes can be classified into two categories viz. statutory and

non-statutory welfare schemes. The statutory schemes are those schemes that are

compulsory to provide by an organization as compliance to the laws governing employee

health and safety. These include provisions provided in industrial acts like Factories Act

1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non

statutory schemes differ from organization to organization and from industry to industry.

4.2.1 STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:

1) Drinking Water.

2) Facilities for sitting.

3) First aid appliances.

4) Latrines and Urinals.

5) Canteen facilities.

6) Spittoons.

7) Lighting.

8) Washing places.

9) Changing rooms.

10) Rest rooms.

54


4.2.2 NON STATUTORY WELFARE SCHEMES

Many non statutory welfare schemes may include the following schemes:

1) Personal Health Care.

2) Maternity & Adoption Leave.

3) Housing facility.

4) Transport facility.

5) Medical insurance.

55


RESEARCH

METHODOLOGY

56


5. RESEARCH METHODOLGY

5.1 NEED FOR THE STUDY

Labour is one of the important factors of the production process. Other factors

are land, capital and management. Without labour, other factors of production

cannot complete the production cycle and they will become incomplete.

Labour is not only resource that is necessary to produce goods and services to

satisfy our needs. Each society has its own unique store of resource that differs in

type, quantity and quality. Labour in many cases is the most plentiful resource,

although many factors influence its productivity.

Ø To win over employees loyalty and increases their moral.

Ø To build up stable labour force, to reduce labour turnover & absenteeism.

Ø To develop efficiency and productivity among workers.

Ø To save oneself from heavy taxes on surplus profit.

Ø To earn goodwill and enhance public image.

5.2 OBJECTIVES OF THE STUDY

· To understand the welfare measures undertaken in HCCBPL.

· To know how far the welfare measures have served the purpose.

· To know whether the employees are making use of the welfare facilities

provided.

· To understand the employees perception on implementation of welfare

measures.

· To know if the employees require more facilities.

· To study how the welfare measures help in increasing the productivity and job

satisfaction.

· To learn how the welfare services provided to employees helps organization to

build up a stable work force by reducing absenteeism and labour turn over.

· To offer useful suggestion for improving the effectiveness of the welfare

measures.

57


5.3 SCOPE OF THE STUDY

The study covers all the statutory welfare measures namely canteens, washing

facility, rest rooms, storing facility, sanitary and drinking water facilities. And the

non statutory welfare measures namely housing facility, transport facility and

recreation it also includes a study on issues like grievance handling and working

environment.

The study is conducted only on employees of HCCBPL, Maula Ali, which forms

universe of the study.

5.4 METHODOLOGY

Employee satisfaction cannot be defined on the basis of two single words-satisfied

and dissatisfied. If the welfare measures gratified his needs in the way he expects it

to, without any short falls, he is satisfied. Any deviation from his intended

expectation could leave him dissatisfied thus causing a grievance. Hence, it is safe to

conclude that no single factor or attribute of the service can be held responsible for

how the employee feels about it, every employee has his own expectations and the

resulting idea he forms about the measure is his own prerogative.

Enough care was taken to make sure that the department in which the employees

operated in are into way affected the survey or cause the finding to be skewed.

The data collected basically depends on:

Ø Primary data

Ø Secondary data

5.4.1 PRIMARY DATA COLLECTION

The information collected directly with out any reference is primary data. In the

study, it is mainly through conversation with concerned change of officers and staff

members, either individually or collectively.

58


The data includes:

Ø Conducting personal interaction with the department of the company.

Ø Individual observation.

Ø Interactions of employees directly the information gathered or questionnaire.

5.4.2 SECONDARY DATA COLLECTION

Secondary Data is that data which has been gathered for purposes other than

addressing the issue or problem currently under study.

The various sources of secondary data collection are:

Ø Text books.

Ø Web sites.

Ø Journals.

5.5 SAMPLING

Sampling is the process of selecting units (e.g., people, organizations) from a

population of interest so that by studying the sample we may fairly generalize our

results back to the population from which they were chosen. Here I have chosen

random sampling method to carry out the research.

5.5.1 SIZE:

A sample of 30 employees has been selected at through it looks to be a small sample

keeping in view the large number of employees, it has to be limited because of time

constraint even than the sample size is not considered to be small it is enough to

draw conclusion.

59


5.5.2 SCALING TECHNIQUE

Scaling technique used is Likert’s scale. A Likert item is simply a statement which

the respondent is asked to evaluate according to any kind of subjective or objective

criteria; generally the level of agreement or disagreement is measured. Often five

ordered response levels are used. Likert scaling is a bipolar scaling method,

measuring either positive or negative response to a statement.

5.6 LIMITATION OF THE STUDY:

There were some limitations with respect to the analysis and data that may affect the

accuracy of the results.

· One month is major constraint in collecting data.

· I have interviewed very few employees in the organization. However it is

feared that any error occurred in selection of sampling will directly affect the final

outcome/conclusion.

· Employees generally may not speak anything against management.

· More so when an open questionnaire is given they fear of possible discipline

at a client if they speak anything unpalatable.

· Like any other project report my report also is subject to human fallacies.

· Lastly I wish to conclude that the project report is applicable to the company

under study only and also to the particular period of study.

60


FINDINGS

AND

INFERENCES

61


6. FINDINGS AND INFERENCES

1) Do you agree that welfare schemes play an important role in increasing the

employee’s loyalty and motivation?

No. of Respondents Percentage

Strongly agree 13 44

Agree 17 56

Cannot say 0 0

Disagree 0 0

Strongly disagree 0 0

GRAPH 1

Inference:

All the respondents agree that welfare activities play an important role in increasing

loyalty and motivation. Welfare activities increase the satisfaction levels of the

employees, which leads to increase in motivation. A well motivated employee would

always be loyal towards its organisation and work towards improving the

productivity.

62


2) Are you satisfied with the physical conditions at the work place?


Highly Satisfied 10 34

Satisfied 17 56

Cannot say 0 0

Dissatisfied 3 10

Highly Dissatisfied 0 0

GRAPH 2

Inference:

Most of the respondents are satisfied with the physical conditions at the work place.

Only 10% are dissatisfied. Thus it can be inferred that the physical conditions at

HCCBPL are good. Proper safety measures are taken by the organisation for the

employees working in the plant. Cleanliness is maintained in the entire place.

63


3) Sufficient safety measures are taken in the plant?


Strongly agree 4 14

Agree 20 66

Cannot say 0 0

Disagree 6 20

Strongly Disagree 0 0

GRAPH 3

Inference:

Most of the respondents agree that proper safety measures are taken in the plant.

Very few disagree. Thus it can be inferred that respondents are happy with the safety

measures which are taken.

The employees who work in hazardous areas, like inside the plant are trained on

safety measures and all the required safety equipments are provided to them. The

machineries are checked on regular basis for any defects.

64


4) Are you satisfied with the drinking water facility?



Satisfied 17 56

Cannot say 0 0

Dissatisfied 4 14


GRAPH 4

Inference:

Maximum number of the respondents are satisfied with the drinking water facilities.

Only few are dissatisfied. Drinking water facilities is available for employees near

their working places itself.

65


5) Sufficient number of lavatories are provided.


Strongly Agree 4 14

Agree 13 43

Cannot say 2 7

Disagree 11 36


GRAPH 5

Inference:

Many respondents disagree that sufficient lavatories are provided. The number of

lavatories were in accordance with the Factory’s Act 1948, but still some

respondents were unsatisfied because they needed more lavatories.

66


6) Mention your level of satisfaction to the facility of restroom provided by

HCCBPL?



Satisfied 12 40

Cannot say 0 0

Dissatisfied 13 43


GRAPH 6

Inference:

Maximum number of respondents were satisfied with the restroom facility but quite

a lot were unhappy also. Thus it is inferred that management should provide more

restrooms and maintain it in good condition.

67


7) Proper sanitary conditions are maintained in the lavatories


Strongly agree 4 13

Agree 12 40

Cannot say 0 0

Disagree 14 47


GRAPH 7

Inference:

Many respondents were unhappy with the sanitary conditions provided in the

lavatories. The lavatories were cleaned just once in a day. Thus it is inferred that the

lavatories should be cleaned more frequently for the satisfaction of the employees.

68


8) Management accepts and responds positively for the demands of employees

regarding welfare activities and acts accordingly.


Strongly Agree 2 7

Agree 23 76

Cannot say 0 0

Disagree 5 17

Strongly disagree 0 0

GRAPH 8

Inference:

Maximum number of the respondents agreed that the management responds

positively to their demands regarding welfare activities. Thus it is inferred that

grievance handling of the management is good.

69


9) Mention/Tick on the facilities provided to you by the company


Regular Medical Check-ups 27 90

Maternity and adoption leave 13 44

Medi-claim insurance scheme 24 80

Employee referral scheme 20 67

GRAPH 9

Inference:

a) 90% of the employees agree that the company gets them regular medical

check-ups.

b) 44% of employees get maternity and adoption leaves.

c) 80% of employees agree that they get medi-claim insurance schemes.

d) 67% of the employees benefit from the employee referral scheme.

70


10) Are you satisfied with the canteen facility provided?



Satisfied 18 60

Cannot say 0 0

Dissatisfied 4 13


GRAPH 10

Inference:

Maximum number of the respondents were satisfied with the canteen facilities

provided. The food provided is prepared in hygienic conditions and variety is

provided.

71


11) Mention your level of satisfaction with first-aid facilities.



Satisfied 18 60

Cannot say 0 0

Dissatisfied 4 13


GRAPH 11

Inference:

Maximum number of the employees are satisfied with the first-aid facilities

provided. A separate first- aid room is provided and the first-aid facilitator is

available during the working hours.

72


12) Are you satisfied with the welfare activities conducted by HCCBPL?



Satisfied 15 50

Cannot say 0 0

Dissatisfied 3 10


GRAPH 12

Inference:

Maximum number of the respondents are satisfied with the welfare activities

provided at HCCBPL. Thus the welfare activities provided by the organisation are

good.

73


6.1 FINDINGS

· The organization has good working environment provided by the

management.

· Staff and workers were fully involved in their work during shift hours.

· Canteen facility is very good.

· Most of the people have positive attitude towards the organization.

· Management is very much concerned for the workers welfare.

· HCCBPL was maintaining good relation between employee and employer.

· Different welfare programs are conducted in different departments.

· The welfare programs improve self confidence and imbibe positive thinking

among the employees.

· The employer- employee relations in this HCCBPL is very good.

· They maintain good safety measures to their employees as well as for the

workers in the organization under the welfare programs.

· The HCCBPL provides various non-statutory welfare schemes also such as

medi-claim insurance and regular medical check-ups.

74


6.2 SUGGESTIONS

Some of the employees think that welfare activities should be improved by the management

in following:

Ø Detailed welfare facilities should be more.

Ø The frequency of the employee welfare facilities should be more.

Ø The notices should be put up in regional language also.

Ø Depending on the department the employee welfare facilities should be

conducted for the employees.

Ø Organization should be able to understand the needs of every department

welfare facilities.

Ø Organization has to improve the continuous employee welfare facilities like

safety measures.

75


CONCLUSION

76


7. CONCLUSION

Coca Cola is a multinational company and a leader in the non-alcoholic beverage in

the world. In 2005 it was divided into CCI (Coca Cola India) and HCCBPL

(Hindustan Coca Cola Beverages Private Ltd.) in India. CCI produces the syrups for

the production of the beverages. HCCBPL is into bottling of the beverages

produced.

The welfare activities carried out in HCCBPL are very good and the employer-

employee relations are maintained in good terms. The organisation has good

working conditions and the employees were highly motivated. Various welfare

activities are conducted in different departments of the company to maintain the

employee’s loyalty and keep them motivated.

77


BIBLIOGRAPHY

78


8. BIBLIOGRAPHY

BOOKS

1) Malik P.L Industrial Law Volume 2- Eastern Book Company Publications-1998

WEBSITES

1) About the Coca- Cola company. 8 JULY 2010

<www.coca-colaindia.com>

2) History of the Coca- cola company. 10 JULY 2010

<en.wikipedia.org/wiki/The_Coca-Cola_Company>

3) About labour laws in India. 15 JULY 2010 <en.wikipedia.org/wiki/Labour_law>

4) Article on employee welfare. 18 JULY 2010

<http://www.articlesbase.com/human-resources-articles/employee-welfare-999627.html>

5) About Food and beverage industry. 22 JULY 2010

<http://food-beverages.exportersindia.com/>

6) About Food and beverage industry. 22 JULY 2010

<http://www.indianfoodindustry.net/>

79


ANNEXURES

80


QUESTIONNAIRE

Name:_________________________________________

1) Are you satisfied with the welfare activities conducted by HCCBPL?

(a) Highly satisfied

(b) Satisfied

(c) Cannot say

(d) Dissatisfied

(e) Highly dissatisfied

2) Do you agree that welfare schemes play an important role in increasing the

employee ‘s loyalty and motivation.

(a) Strongly agree

(b) Agree

(c) Cannot say

(d) Disagree

(e) Strongly disagree

81


3) Are you satisfied with the physical conditions at the work place.


(b)Satisfied

(c) Cannot say

(d) Dissatisfied


4) Sufficient safety measures are taken in the plant.

(a) Strongly Agree

(b) Agree

(c) Cannot say

(d) Disagree

(e) Strongly Disagree

5) Are you satisfied with the drinking water facility provided


(b) Satisfied

(c) Cannot say

(d) Dissatisfied


6) Sufficient number of latrines and urinals are provided

(a) Strongly agree

82


(b) Agree

(c) Cannot say

(d) Disagree


7) Mention your satisfaction level to the facility of restroom provided by HCCBPL


(b) Satisfied

(c) Cannot say

(c) Dissatisfied

(d) Highly dissatisfied

8) Proper sanitary conditions are maintained in the lavatories

(a) Strongly agree

(b) Agree

(c) Cannot say

(d) Disagree


83


9) Management accepts and respond positively for the demands of employees

regarding welfare activities and acts accordingly

(a) Strongly Agree

(b) Agree

(c) Cannot say

(d) Disagree


10) Mention/Tick on the facilities provided to you by the company

Regular medical check ups

Maternity and adoption leave

Medi-claim insurance scheme

Employee referral scheme

11) Are you satisfied with the canteen facility provided?


(b) Satisfied

(c) Cannot say

(d) Dissatisfied

(e) Highly Dissatisfied

12) Mention your level of satisfaction for first-aid facilities


(b) Satisfied

84


(c) Cannot say

(d) Dissatisfied

(e) Highly Dissatisfied

Documents

Ankita Gupta _09XQCMA011