MIT SCHOOL OF MANAGEMENT

S.No. 123, Saraswati Vishwa Building, 'A' Wing, 5th floor, Paud Road, Kothrud, Pune - 411 038 (India) Tel.: +91-20-30273568 / 32311064 Fax: +91-20-25442770

INDUSTRIAL VISIT
Manikchand Oxyrich Mineral Water Plant Wagholi, Pune

UNDER GUIDANCE OF: PROF. UJWALA BAIRAGI & PROF. SANTOSH GOPALKRISHNAN COURSE: MBA SHIFT 1 SEMESTER: II DIVISION: A & B DATE: 29-01-2013

TABLE OF CONTENTS 1. Introduction 2. Objectives 3. Event Participants 4. Event Details 5. Conclusion 6. Contributors

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INTRODUCTION
Industrial Visit to OXYRICH (Mineral Water plant of Manikchand Group) at Wagholi, Dist. Pune was conducted by MAEERs MITSOM College, Pune for its students of MBA 1st year under the guidance of Prof. Ujwala Bairagi and Prof. Santosh Gopalkrishnan on Tuesday the 29 th of January, 2013. Total 120 students visited this plant and learned about the manufacturing process of Oxyrich mineral water.

Location of Manikchand Oxyrich Mineral Water Plant

Manikchand Dhariwal Industries Ltd. F & B Division Factory: Gat No. 2 & 3, Vitachamala Grampanchayat, Post Wade Bolhai, Pune Nagar Rd, Wagholi, Pune 412207 +(91)-(20)-27052881; +(91)-(20)-27052477

About Manikchand Group

The Manikchand Group is a privately owned group of industries in India. It is a large business conglomerate, established in the year 1958, encompassing twelve industries, and has a presence across three continents. Its headquarter is in Pune city. It primarily started out as a company that produced chewable tobacco products called gutka around six decades ago. The group is diversified into Pan Masala, Mouth Freshner, Packaged Drinking Water, Offset Printing, Wedding Cards, Flexible Packaging, Electrical Switches, Flour Mills, Wind Farms and Real estate & Constructions. Some of the industry products act as a front for surrogate advertising through the audio-video media channels due to strict restrictions or bans on tobacco advertising in India. Its products are exported to more than 30 countries worldwide. The company is owned by Rasiklal Manikchand Dhariwal.

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Their business ventures include the revolutionary to the trendsetting; the innovative to the ingenious. The Group has leadership position across the industries with one of the widest and varied port folios in the industry.

They are the largest producers of Manikchand Oxyrich, which contains more than 300% Dissolved Oxygen, along with 100 to 120 ppm of essential minerals, at pH level between 6-7, right for the human body. Their revolutionary process of Oxygen Enrichment, has received a Patent in India and from several other countries. Their plant in Pune is the 1st Bottled Water Company to be awarded ISO 22000: 2005 certification by TUV, Germany, globally recognized, and the latest standard in food safety management system.

Dhariwal Industries Ltd. (F & B Division)

Corporate Office: "Manikchand House" 100-101, D. Kennedy Road, Pune - 411 001. Ph.: +91-20-26057099 Fax: +91-20-26057377 E-mail: df&b@manikchandgroup.com

Dhariwal Industries Ltd. has PET Preform manufacturing Division. PET Preforms find application in the Bottled Water, Beverages, Edible Oil, Foods and Pharmaceutical Industries. The plant is equipped with most modern technology driven machines, capable of producing varied range of Preforms. It is one of the largest in India. These preforms are produced by using Virgin PET Resin from Reputed International Suppliers. The Preforms produced are of uniform quality and have lowest AA level content.

Dhariwal Industries Ltd - Food & Beverages division has one of the most modern and comprehensive packaged drinking water facilities spread across India. The facilities are fully integrated with in house facilities for manufacturing of Preforms, Closures/Caps and Bottle Blowing. The labels and cartons are also made in the group companies to ensure total control on quality and Page | 4

processes. In a short time they have established themselves across the length and breadth of India. Their plants are spread over the western, southern and northern regions. They are continuously expanding their existing facilities and setting up newer plants at various locations. Their bottling capacities are not only the most modern but also amongst the largest too. They have existing capacity to bottle over 3.6 crore liters a year (360 lakh bottles of 1 liter each).

CLOSURES: Creative Plastics, associate of Dhariwal Industries, manufacture 3 lakh closures/caps for bottles of necksize 25x30 mm. The closures are of utmost importance in any bottling system. World renowned machines like Husky machine is used to produce superior quality leak proof closures. Apart from catering to in house requirements, they also provide these products to other companies. Patented Technology OXYRICH employs a patented oxygenation process to infuse more oxygen in water - 300% more. This is done by physically dissolving pure oxygen by a well researched scientific method, using state of the art equipments. It is the only packaged drinking water with extra oxygen for healthy living. This ensures that whenever you have a sip of OXYRICH, your body is enriched with more oxygen leading to improved metabolism, enabling higher energy levels and promoting wellness. The dissolved oxygen is more than 300% more than found in normal drinking water.

About Oxyrich
The production of OXYRICH follows a revolutionary technology that enables 300% more oxygen in the water. Pure oxygen is made to dissolve in water by a patented technology. The oxygenation process makes it the purest form of waterwith 300% more oxygen. This comes in view of the fact that along with the BIS certification, Oxyrich is the only bottled water to have received ISO 22000:2005 certification for their Pune Plant.

Oxyrich currently has plants situated at Pune, Bangalore, Chennai, Hyderabad, Haridwar, Aurangabad & Kolhapur. The current combined capacity of these plants is over billion litres per year. Oxyrich is currently available in 200 ml. pet Bottles, 200 ml pet Cups, 0.5 Ltr. 1 Ltr., 1.5 Ltr.

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and 2 Ltr. bottles as well as 20 Ltr. jars and is available in Maharashtra, Gujarat, Goa, Andhra Pradesh, Karnataka, Tamil Nadu, Delhi NCR & Uttaranchal.

OXYRICH PRODUCTS

OBJECTIVES
The objective of the Industrial Visit is to help students to gain first hand information regarding functioning of the Industry, which presents the students with opportunities to plan, organize and engage in active learning experiences both inside and outside the classroom. So to give a practical exposure and to understand the application of theory into practice, MITSOM students had visited Manikchand Oxyrich Mineral Water Plant, Dhariwal Industries Ltd., Pune.

The main purpose of the industrial visit is to let student learn practical aspect of Business operations and to make them familiar with organizational environment; to understand and take note of the working of the machinery, the discipline in the factory, the intricacy of the work; to give the students an insight to the business world, the kind of organization and planning that goes into it.

EVENT PARTICIPANTS
The participants were A and B division of MBA Shift1 Semester II. The industrial visit was successfully conducted under the valuable guidance of the class teachers of Division A and Division B Prof. Santosh Gopalkrishnan and Prof. Ujwala Bairagi respectively.

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EVENT DETAILS
8.30 am: All students reported at college. 9.15 am: Students along with the Professors boarded the bus arranged by college for the industrial visit 9.30 am: Departure from college. The Journey begins. 11.05 am: Arrival at Oxyrich Plant, Wagholi, Pune

As soon as we entered the plant premises, we noticed the plant from outside, the neat

landscaping and the water filtration and cooling towers. The staff of Oxyrich welcomed us with tea and biscuits and of course oxyrich mineral water with 300% more oxygen.

The

water

filtering

and

cooling

system

comprised of a raw water storage tank, activated carbon filter and cooling towers. We noticed that the raw water storage tank had a board on which was recorded the cleaning date and the next due date for cleaning. On enquiring we were informed by the supervisor that this water is not used as the product but used to cool the hot moulded bottles and for the two

compressors of the plant.

The strength of 120 students was divided into groups of 15 students each for the internal tour of the plant. We entered the factory in batches of 15 students, one batch after another after some interval of time so that we could be guided properly about the manufacturing process.

Oxyrich is very stringent about the hygiene norms and utmost care is taken to maintain hygienic, clean, safe and microbial free conditions to prevent any form of product contamination. In keeping

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with this, we were asked to remove our footwear outside the plant doors before entering. On entering we were provided with disposable caps to prevent the product from being adulterated with stray hair. We were asked to leave our belonging in a room before entering the main production area.

As soon as we entered the production area, we were greeted by the person who was to guide us around the plant and explain us the manufacturing process. We were first taken to the bottle blowing section. Here the raw material is the pet preform. The pet preform is heated upto 200o, then the hot performs are put in moulds and subjected to 40-70 kg air pressure to make the bottles for mineral water. They have two different bottle blowing lines for different capacities of bottles. The one litre production line uses 40 kg air pressure and produces 200 bottles per minute. The two litre production line uses 60 kg air pressure and produces 200 bottles per minute.

3600 two litre bottles are produced per hour on two machines and 6000 one litre bottles per hour are produced on two other machines. There are two other air blower machines that produce 4000 bottles per hour. The name on the machine was Tula Air Blower.

The bottles when moulded are very hot. So 10-15 degrees water is circulated in the moulds to cool the bottles. The bottles made are

transported by an air conveyor. Usually if there is any defect in the moulding of the bottle, it is mostly at the neck of the bottle. Thus such bottles cant be held by the air conveyor and automatically fall off the conveyor immediately after

emerging from the bottle blower. A Page | 8

cardboard carton was placed at the beginning of the air conveyor to collect all the falling defective bottles. The blower produces air for the air conveyor. There is a sensor on the air conveyor to control the flow of the bottles.

Next we were shown the automatic rinser, filler, caper machine. Here the bottles which are been transported by the air conveyor arrive, they are rinsed with water to remove dust particles. The water used for rinsing is the same clean purified water as the mineral water which is filled inside the bottles for consumption. In the second circle, the bottles are filled with mineral water. In the third circle, capping is done. Before this the caps are passed through ultra violet rays to remove microbial contamination. The automatic rinser, filler, caper machine we saw had a capacity of 180 bottles per minute. They also has an older machine with a capacity of 120 bottles per minute. But this is for the one litre bottles. Filling the two litre bottles is a slightly slower process of course.

On enquiring we were informed that daily they do a production of 3 lakh litres in 24 hours.

After filling and capping, the filled bottles are carried further on a

conveyor. Liquid soap is put on the conveyor for smooth passage. Next step is inspection which is carried out by two people. One person checks for

damaged bottles and caps by keeping vigil as the bottles are carried by the conveyor. He manually picks out any deformed, damaged or leaking bottles. The other person checks the bottles against a white light while they pass on the conveyor for any black particles or any other particles in the water. It is very rare to find any bottle containing suspended particles in the water, but in case of Page | 9

such a rare happening, the bottle is immediately picked out from the conveyor before it can be labeled. If the bottles are deformed or damaged then they are crushed immediately and not reused. They are sold off to companies who recycle them and make various plastic products. If only the cap of the bottle is damaged, the bottle is reused.

Post inspection the bottle goes through the automatic labeler machine. The capacity of this machine is 240 bottles per minute. The old labeler machines capacity is 120 bottles per minute. A program is fed into this machine which instructs it to cut different sizes of the labels for different size bottles i.e. one litre bottles, two litre bottles, etc. Glue at 150 degrees is applied to fix the labels.

We were told that this plant was started in the year 2000.

Post labeling, bottles on the conveyor move across a sensor that senses the bottles and sprays ink to print the batch number, MRP, manufacturing date, etc. on it.

For quality assurance, labourers check the bottles after every hour i.e. manual inspection.

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The next machine on the process line is the automatic carton erector machine. It uses vacuum for box formation. They also have another line on which the boxes are formed manually by the labourers. Next the bottles pass through the Case Over Packer Machine. This is the latest machine there. It automatically fills the boxes with bottles. At a time three boxes are packed by this machine. The machine has a sensor, if you come in the line of the sensor, the machine automatically stops. They also have another line where box filling is done manually. They dont clean off the liquid soap at the base of the bottles as it disappears on its own in 2-3 hours. The box or case is not affected by it.

Then the boxes pass through the final sealing machine where the boxes are taped. The box of 1 litre bottles contains 12 bottles. The 2 litre box has 9 bottles, 0.5 litre box has 24 bottles and 0.2 litre box has 50 bottles. The boxes are carried by conveyors.

The boxes containing bottles pass through a sensor printer which prints the date, batch no. and shift no. on the box. The sensor printer is updated daily.

They also have a jar filling machine which follows the same process as the bottle filling machine i.e., rinsing, filling, etc. Jars are not manufactured in house unlike the bottles. Jars are called from outside and only filling is done in the plant. The jars are reused five times before being disposed off. Extra rinsing is done for the jars; they undergo chemical treatments before filling. The capacity of the machine is 240 jars per hour. 1000-1500 jars are dispatched daily.

Jars are stored for two days before dispatch. Manual labeling is done for some jars whose labels have come off. Page | 11

All the boxes are stored in the final storage godown. They are kept there for three days before dispatch because it takes three days for the test results to come for microbial quality assurance. The storage godown has a huge capacity. One lakh boxes can be stored at a time.

The workers work in two shifts of 8 hours each, i.e. a total of 16 hours during off season and Saturday is kept closed for preventive maintenance. However, during peak season like summers, the workers work in two shifts of 12 hours each, i.e. a total of 24 hours and Sunday is kept closed for preventive maintenance.

The plant has two Quality control labs. One is the microbial lab and the other is a chemical lab. 42 out of 56 parameters are checked in-house in the labs. The remaining 14 tests mainly those for toxic material are outsourced. Among the in-house tests which are conducted, some are done once every 4 hours, some are conducted once daily e.g. test for certain minerals, while some are done on a weekly basis like test for zinc and nitrate.

The tests that are outsourced to outside labs are those that are required to be conducted either semiannually like test for alpha beta levels or annually like test for toxic materials. Oxyrich had fulfilled all the norms set by the Bureau of Indian Standards.

Oxyrich is processed by the Manikchand Group at its plant near Wagholi, about 30 km from Pune, after drawing groundwater from a depth of 300 feet. Water is sourced from borewells, wells and sometimes from the nearby Bhimanadi river. Usually water drawn from borewells is sufficient. The daily intake is 5 lakh litres of water out of which 3 lakh litres are used and 2 lakh litres is the wastage.

Next we were shown the water processing i.e. purification plant also known as the RO Area (Reverse Osmosis Area). The procedure followed is that the raw water goes through sand filtration. Then the water is stored in a 3 lakh litre tank to stabilize the water. Then 0.1 to 0.18 chlorination is done. Now this water is passed through activated carbon filter i.e. through charcoal. After this, water comes in the filtration bag where it is passed through a filtration membrane. Next the water is passed through UV light cabinet to reduce microbial contamination. Then it passes through jar filters. The filters size is 0.000025. This is known as ultrafiltration after which the waters microbial content is brought down to less than 10%. Filter has Reverse Osmosis Process. Initially, the raw water has high TDS (total dissolved solids) levels which are greater than 400-500. Before RO process TDS levels are 1000 and after the RO process TDS levels are lowered to 80 -90. Then water is stored in tanks. After Page | 12

this in the reaction tanks, ozone i.e. O3 is added to the water to kill any remaining microorganisms. Finally oxygen is added to the water by a pressurized procedure in which agitator is used and this is patented by Oxyrich. Thus their water contains 300% more oxygen. Normal waters oxygen level is 7-8 but after this process waters oxygen levels rise to 40-50.

PURIFICATION (THE PROCESS IN DETAIL)

The Empowerment of Life
A robust framework enables precision and adds value to a process. Equipped with the right tools and techniques, goals are achieved and perfection attained. The process of manufacturing packaged drinking water through internationally employed methodologies at OXYRICH is supported by the most modern and sophisticated infrastructure. Right from sourcing the raw water to various stages of filtration and the final packaging, global standards are followed to ensure purity, quality, and superiority.

Source Water
The water used is from protected well, an approved source which meets the Indian standard IS: 10500. The source is situated in an unpolluted area and well protected from external contamination.

Purification
The water is processed with multi-stage purification processes such as - Sand Filter, Activated Carbon Filter, Ultraviolet Disinfection, Ultra Filtration, Reverse Osmosis, Ozonation.

Activated Carbon Filter (ACF) Activated carbon is prepared by slowly heating coal or Sand Filter Eliminates load of total suspended solids in the raw water. coconut shell. This filter removes most of the organic contamination and pesticide residuals from the water. It also controls taste and odour of water. Page | 13

Ultraviolet Disinfection (UV) Water is exposed to UV light of wavelength 245 nanometers (nm). A dosage of 16000 microwatt/sq.cm. at 40C for effective disinfection.

Ultra Filtration Ultra filtration is a low pressure membrane process that removes dissolved organic macro molecules, viruses, Pyrogen

enzymes etc.

Ozonation Reverse Osmosis A high pressure membrane process to eliminate dissolved impurities like Ozonation is the strongest oxidizer and disinfection agent which acts on broad spectrum of microbiological organisms.

unwanted salts and retain minerals which are essential to human body. This done by carefully selecting the membrane by a technology developed by DIL.

Oxyrich is disinfected by 0.3 ppm of ozone. Ozone is 30000 times more effective than chlorine. Use of chlorine is eco unfriendly and produces THMs (tri-halomethanes) in water, which can cause cancer. Page | 14

After this purification process, the purified mineral water with added oxygen is filled in bottles for final consumption. The water is not consumed for one day after processing because ozone remains in water for one day and this ozone not only kills microorganisms but is also harmful for us i.e. human beings.

The TDS levels (in unit ppm), pH levels (ideally maintained between 7 and 7.5), dissolved oxygen levels (should be 30-40) and ozone levels (levels of ozone is found on the basis of chemical colour change) are checked for once every half hour.

After seeing and being guided through the entire manufacturing process, we left the production area. We then returned the caps, collected our belongings and were asked to give our feedback in writing in their register. While filling in the feedback, our guide showed us the ISO certification and the patent certificate that were hung on the wall in the cabin.

ISO 22000 CERTIFIED

Manikchand Oxyrich is the only bottled water with ISO 22000 certification. ISO 22000 is the latest and most stringent standard for safety in the food supply chain. It is a reflection of Oxyrichs commitment to provide excellence at all levels.

PATENTED TECHNOLOGY
OXYRICH employs a patented oxygenation process to infuse more oxygen in water - 300% more. This is done by physically dissolving pure oxygen by a well researched scientific method, using state of the art equipments. It is the only packaged drinking water with extra oxygen for healthy living. This ensures that whenever you have a sip of OXYRICH, your body is enriched with more oxygen leading to improved metabolism, enabling higher energy levels and promoting wellness. The dissolved oxygen is more than 300% more than found in normal drinking water.

No. Name of Country 1 India

Patent No. Application No. 204086

Status / Period Granted 2002 to 2022 Page | 15

The internal tour took about one hour. 12.55 pm: Exit from production area and filling the feedback form. Then we had our lunch on the premises while waiting for the remaining groups to complete their tour. Thereafter we had a group photo taken and got into our respective buses along with the professors.

2.00 pm: Departure from Oxyrich plant.

CONCLUSION
All 120 students which attended this industry visit were very much satisfied with the automatic processes seen in the industry. We realized the passion, pains, competition and hard work involved in running a business and also their managerial skills as well as the areas in which they need to work more. We witnessed business processes that are dynamic, quality that is world class, and an innovative approach to understanding market dynamics. We learnt to aim to be right at the top, where path-breaking technologies and resources will create a centre of excellence that is geared to meet any challenge, and successfully take us to a dominating and everlasting leadership position. Page | 16

The objective of this visit to help students to gain first hand information regarding functioning of the Industry and to present the students with opportunities to plan, organize and engage in active learning experiences both inside and outside the classroom were successfully met. We got a practical exposure and understood the application of theory into practice. After the visit, we could relate more with subjects like Manufacturing & Operations Management and Materials & Logistics Management.

We learnt practical aspects of business operations and became familiar with manufacturing and operations environment. We understood working of the machinery, the discipline in the factory, the intricacy of the work. We got an insight to the business world, the kind of organization and planning that goes into it.

CONTRIBUTORS
Faculty Coordinators:
Prof. Ms. Ujwala Bairagi (Class In-Charge MBA 1st Year Div B) Prof. Santosh Gopalkrishnan (Class In-Charge MBA 1st Year Div A)

Volunteers:
Mr. Swapnil (Class Representative Div. A) Ms. Kalyani Joshi (Class Representative Div. B)

Report Prepared by:

Ms. Anu Om Alreja (Div B)

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