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Industry Profile

Introduction to Soft Drink Industry

The main production of soft drink was stored in 1830s & since then from those experimental
beginning there was an evolution until in 1781, when the worlds first cola flavored beverage
was introduced.

These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This
drinks do not contains alcohol & broadly specifying this beverages, includes a variety of
regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks,
sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean
carbonated drinks.
A Brief Insight - Beverage Industry in India

In India, beverages form an Beverages


important part of the lives
of people. It is an industry,
in which the players Alcoholic
Non-
constantly innovate, in alcoholic
order to come up with
better products to gain
Non-
more consumers and Carbonated
carbonated
satisfy the existing
consumers.
Cola Non-cola Non-cola
The beverage industry is vast and there various ways of segmenting it, so
as to cater the right product to the right person. The different ways of
segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages.


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
Company Profile
Introduction
The brand name SOSYO was derived from the Latin word
Socious which is related to society. From Socio it gradually evolved
in to SOSYO, a distinctive thirst quencher with a unique taste that
defies definition and has been relished over generations.

The brand has been given a new, contemporary look ever since its
repositioning as a specialty drink in January 2010 with the catchy
base line Apna Desh Apna Drink. Besides SOSYO Hajooris
has other brands like, Kashmira Jeera Masala Soda, Lemee Lemon,
Orange flavor, Ginlim Soda-a gingerly lemon flavor and Hajooris
plain Soda.
History
The Foundation was laid when a young boy in his teens Abbas Abdul Rahim Hajoori
began his career selling aerated drinks made by various British Bottlers. Young Hajoori had
the tremendous vision to prove the competence of Indian brands VIS a- VIS foreign brands.

It was this vision that laid the foundation of a new era in the Indian soft drink industry in
the form of Hajoori & Sons which later came out with one of the phenomenal brands in
India- SOSYO.

Since, 1923 saw the foundation of Hajoori& Sons in Surat, Gujarat; but fate did not deem
to let the founder enjoy the success. The reins were taken over by Mr. Mohsin Abdul
Rahim Hajoori, after the untimely demise of his elder brother. He did not have to look back
since then. With the renewed vigor of the next generation, the business reached new
heights in the 70s and 80s. Today SOSYO has become a formidable brand and is all set
grow further.
Mr. Abbas Abdul Rahim Hajoori Mr. Mohsin Abdul Rahim Hajoori
Vision Mission

With A stronger base of over 50,000 Our mission is to build over selves a
retailer outlet, 5 sophisticated full fledge beverages company having
manufacturing plants (4 in Gujarat and an exceptional hold on peoples taste.
1 in Mumbai) seven franchises and With is unique and exclusive flavor.
over 150 distributors network, Sosyo
is now looking for trade to share its
vision. Sosyo Now has a vision to
grow as a National Brand through
Franchising Network with 40
Manufacturing Franchisees all over
India.
Franchise Network
Sosyo is now looking for business partners to share its vision. The
profile we are looking for is growth desirous, progressive with an open
mind and ready to take on the challenges.

What we offer is full technical support and guidance in erection and


commissioning of the plant in selection and training of man power,
advertising and marketing support and of course world class specialty
products.
Setups
Hajoori and Sons has a fully automated state- of-the-art plant in Surat, Gujarat.
To cater to its demands in every district, cities, town and villages the company
has setup plants in Mumbai, Surat, Vadodara, another in Rajkot to cater to
surendranagars, Kachchh Ahmadabad, Rajkot, and Porbander. To cater to the
demands in the U.S market the company has setup contract filling in 2 major
places in the U.S.
Contact
Hajoori & Sons
Plot no 243/244, Bhatpore G.I.D.C., Ichchapore, Hazira
Road, Surat, Gujarat-394 510, India
Ph. No - +91-0261-2915266
Email: marketing@hajoori.com
Website: http://www.hajoori.com
Human Resource Department
1. Introduction to Human Resource
Management
In Hajoori & sons the main activities in HRM are employee welfare activities, because company believes that if
worker are fit, happy, satisfied with company they feel better in working in company and gives best of them. So
for that mission company performs many different activities.
Human Resource Management is that part of management which is concerned with people at work and their
relationship within the organization. The term Human Resource Management refers to the management of
personnel in the organization of any company to achieve the predetermined goal. The duty of the personnel
manager is to look after the personnel department and various functions of the personnel like recruitment,
selection, promotion, transfer, etc.
A formal definition of HRM is as follows:
Human Resource Management is the planning, organizing, directing and controlling of the procurement,
development, compensation, integration, maintenance and reproduction of human resources to the end that
individual, organization and societal objectives are accomplished.
1.1 Activities of Human Resource
Department
To formulate HR policy of the company.
Plan for the workforce required in the company.
To recruit and select healthy and wide spectrum of people.
Provide welfare facility to enhance the occupational skill of
employees.
To maintain good relationship with personal for smooth running of
functions in the organization.
To maintain good relationship with other organization.
To carried out administrative activities like transport & security
1.2 Human Resource Planning
Human resource planning is the process of details of manpower recruitment and mean of meeting the
recruitment in order to carry out the integrated plan of the organization.
Human resource planning is very important task for HR department

HR department decides right number of people and right kind of people at the right place at the right
time.

HR department is planning the necessary program of recruitment selection etc.

Now a day the HRP department of the Hajoori & sons is very busy in the HRP process because it has to
maintain the day to day activities of the current unit. Moreover in new manufacturing unit is under
construction as company is expanding its manufacturing activities because of the growth of the business.
The HRP process is done in the company for various department like in production, sale, finance etc.
generally in the company the HRP process contents the documents called STRENGTH REPORT
which includes information such as serial no, workers, strength including all unit and staff.
1.3 Recruitment and Selection
A. Recruitment:
Recruitment is the process of searching for
prospective employees and stimulating and encouraging them
to apply for jobs in an organization.
Sources of Recruitment Sources of
The company has mainly two type of manpower which is Recruitme
divided into labor work force and managerial staff. nt
The sources of recruitment are broadly categorized into:
1.Internal recruitment Internal External
2.External recruitment Recruitmen Recruitmen
t t
1. Internal Recruitment
In the internal recruitment the main sources are present employees, employees referrals. The
executives, technicians, salesman, loader, etc. are promoted internally so they become internal
source of recruitment. Salesman also bring their relatives, friends, etc as the need arise in the
company. So it does not require much time and can be done as and when required. The internal
source is reliable as they are in direct contact with the company from long time

2. External Recruitment
External source of recruitment are also equally used by the company. Here in the company the
main external source of recruitment consist of walk-ins, talk-ins, advertisement, and
competitors. For the labor work force walk-ins and talk-ins is used. Advertisement and
competitor are also used as source of recruitment. The company gives advertisement in the
local newspaper and television. The company gives advertisement in the SHIV CHANNEL,
DEV CHANNEL. They give advertisement in the local Guajarati newspaper.
B. Selection
Selection is the process of Application
Form
differentiating between applicants in order
to identify and hire those with the greater
likelihood of success in selection process Preliminary
begins with the rise in the requirement of Interview
manpower. As there is rise in requirement
of manpower the company uses the internal Reference
and external source of recruitment. check
According to the requirement of the post
the sources are used. Thereafter the
selection is done. Final
Approval

Various stages involved in the selection


Selection
process are:
1.3.1 Application Form
After various sources are used then various application are received. An applicant is required to give full bio-data with
educational qualification, experience. Thereafter all the application are scrutinized and thereafter all the applicants are called for
the interview process.

1.3.2 Preliminary Interview


In the interview process the applicants are judged on different factors as their communication skills, convincing power because
the salesman is required to convince the customer when they go for selling, also trustworthiness and honesty is judged because it
is mainly cash business, etc.

1.3.3 Reference Check


Thereafter the reference check process follows. It is mainly carried out for the higher post i.e. for executives, manager,
supervisors, and technicians. For the labor work force all the steps are not followed as they are sometimes recruited informally.

1.3.4 Final Approval


The above steps are completed the selection committee than decides as whom- a point. The applicant to be appointed must meet
the required standard then and only he can be appointed. The committee takes the decision and gives the final approval.

1.3.5 Selection
After the above steps are completed the selection committee then decides as whom to appoint. The applicant to be appointed must
meet the required standard then and then only he can be appointed. The committee takes the decision and gives the final approval.
The applicant is offered job and fulfilling some legal formality the employee join the job.
1.4 Induction Training
Induction, also called orientation, is designed to provide a new employee with the
information he or she need to function comfortably and effectively in the organization. The
main purpose of the induction training is to make employees feel at home in the new
environment. Organizations are known to spend few days or weeks for induction training. It
is known that employees feel anxious on entering the organization. The employees worry
about their performance on the new jobs.

In Hajoori & Sons Company, induction training is provided mainly to the employee of
the production and marketing department. Here the employees are made to work with
experienced employee for two-three day and are provided with all the information needed
for efficient working in the organization. They are made to interact with different
employees with whom they are to work also with the other employees of the company.
1.5 Training and Development
The newly employed candidate is given training for the job he is to do. This
training is being given by the manager of the department in which he works.
Personal attention is also given on him so that he can cope up with his job as soon
as possible.

Now a days mostly all the company imparts the training to the fresher
although they posses specialized knowledge because training provides the practical
knowledge and if the employee is not fresher then also training helps to know the
working of the company, its employees and many other things required for the
efficient and effective working of the company. Training is one of the best tools for
increasing the performance of the employees and overall performance of the
company.

In Hajoori & Sons Company training is imparted to the employees but in a


particular department only. Most of the trainees are from the marketing department
also there are trainees from other department but small in number.
1.6 Employee Welfare & Corporate Social
Responsibility (CSR)
1.6.1 Employee Welfare

The workers and the staff in SOSYO works together like a family. Special attention is
also given on the workers. If a worker meets with an accident in or outside the
company, the company takes the responsibility to cure the worker from the accident by
admitting him/her in the hospital. All the expenses are incurred by the company during
the workers treatment.

1.6.2 Corporate Social Responsibility

Build a Sosyo circle to reduce the number of accidents, take active part in sponsorship
for sports activity, tree plantation program (from Sub jail to Athwa gate to Parle point),
other.
1.7 Performance Appraisal
Performance appraisal is also an important part of the human resource management as it encourages, boost the performance of
the employee which overall improves the performance of the company. So performance appraisal is carried out in almost all
the company because it is not only for the benefit of employee but also for company.

Firstly various standards are set up considering all the factors. These factors consist of honesty, work quality, job knowledge,
attendance, physical condition and health, etc. these standards are then communicated to the employees. For e.g. the salesman
is given the target to sell 1200 carats in a week. So before hand the employees are instructed with the standards so they can
also put up to the standards.

After the performance standards are established and communicated it is measured. Daily record to attendance and sales by
each salesman is kept. Also how much time the leave is taken by the employee, his relation with the customer, honesty, etc. are
all taken into in the consideration. Thereafter all the standards are compared with the actual standards. Actual standards
achieved are positive as well negative. These standards are discussed with the employees so that they come to know about
their strengths and weakness. Also the reason are analyzed and discussed. The reasons for the positive deviation can be going
to all the stores in the interior regions regularly at distant place and fulfilling the requirement of the customer thus increasing
the sale. Similarly there can be negative reason also. Therefore all the reasons are taken into consideration for the
improvement of the employees.

The results of the appraisal are discussed with the employees and deviations in the standards are also taken care of the
company takes the corrective action for the improvement in the performance of the employees and also company.

3.10union
There is no trade Labour
as it isRelation
a small scaleAnd
privateTrade Union
company. As there is no labor
union all the decisions regarding the employees are taken by the company directly
interacting with the employees labor relation means the relation between the
company and the employee. All the company maintains good relation with the
employees and laborer which increases the laborers efficiency. Good relation
helps to develop and maintain harmonious relation between the management and
labor. Also all the forms of the industrial conflicts are avoided and to ensure
industrial peace by providing better working and living standards to workers.

In Hajoori & Sons company good labor relations are maintained with all the
employees in all the departments. Good labor relation includes satisfying the
employees with the occasional needs. The employee must have job satisfaction of
what he does and also from what is being provided by the company. The
employees are provided with the occasional leave, also urgent cash withdrawal of
small amount. All these points also matter as they develop and maintain the
labour relation. All the decisions are taken in confirmation with employees.
1.8 Welfare Activities

The basic welfare service includes the following:

Adequate and clean washing facility separately for males and females.
Medical aid to worker and employees.
First aid box to all transport vehicles.
Lockers and sanitary latrines separately for males and females.
Clean drinking water facility.
The company also carried out some special welfare activities.
Once year picnic arranged by the company for the employees.
Blood donation once in year.
Marketing Department
2. Introduction to Marketing Management

Marketing is a societal process by which individuals and group obtain what


they need and want through creating, communicating, offering and freely
exchanging product and services of value with others. For a managerial
definition, marketing is often described as Art of Selling product. But
people are surprised when they hear that the most important part of
marketing is not selling! Selling is not only the tip of the marketing iceberg.

The marketing concept holds that the key to achieving its organizational
goals consists of the company being more effective than competitors in
creating, delivering and communicating superior customer value to its
chosen target market.
2.1 Organizational Structure of Marketing
Department

Marketing Manager

Sales Executive Sales Supervisor Sales Men


2.2 Responsibilities of a Marketing Manager
Promote Sales

Development Of New
Product

Getting Feedback From


Customers

Setting New Target


Markets

Getting Knowledge
About New Competitors
2.3 Customer Segmentation
Business marks can be segmented with some variables used in
customer market segmentation, such as geography, benefits and
usage rate. But business marketers also use other variables.

Hajoori and Sons is a soft drink company. It is medium scale company.


The company serves to middle class people and also to some of the
upper class people. The company is not serving only to some stores
with which it has strong relationship quality and price. The company
serves those two need both quick and sudden delivery and services.
The company gives equal importance to large and small orders. The
company serves to risk avoiding customers. The company is serving to
those who are loyal enough to their supplier and customers.
2.4 Target Market

Indias middle class population is as big as entire USs population. The


standard of living of Indians has been steadily increasing. A suitable GDP
growth of around 8%-9% is going to take India into a different league in the
coming years. The rise in disposal incomes of Indian population is expected
to spur demand for the most of the consumer goods. To take the
advantage of this consumer boom of the 21st century, Hajoori & Sons is
embarking on a new venture to make a dent in the city of Mumbai and
then slowly expanding to the other parts of the country.
2.5 Industrial Buying Behavior
In Hajoori & Sons the finished goods are sold to the customer directly by going at
their store and as such no orders are taken expect special orders. Here the
salesman regularly goes to the customers and supply them the goods as per their
requirement.

If the customers need the goods urgently, they contact directly at the company
through telephone. They specify the quantity of brand they need, place to
deliver, data and time of delivery, etc also the order of marriage, party,
inauguration, meeting etc is taken. If any customer has to give a large order, they
give order before 2-3 days so that company can manage efficiently. The customer
checks the order and verify and signature of the customer is taken on the sales
bill. So in such manner customer orders are processed.
2.6 4ps Marketing
Product Price Place Promotion
1. Product
With success in soft drink markets, Hajoori & Sons has developed
into a full spectrum Soft Drinks Company with a variety of
products. We dont call these as mere products but tastes of
people. Our products are:

A. Sosyo
The oldest and one and only all Indian fizz drink. For decades, it
has retained its unique taste and rules hearts of millions. Sosyo is
the only indigenously made soft drink in India. People feel Sosyo
tastes like alcohol, but it is not. Sosyo is a cider-type fruit drink
made of heady apple and grape cocktail that packs quite a punch
when has absolutely chilled.
B. Kashmira Soda

Jeera masala soda is very popular among people as


a digestive drink has a different satisfaction
after a heavy meal. Kashmira is traditional Indian
Spicy flavor having many spices. It has an
Authentic -Ethnic, Taste which also helps
indigestive. Digestive hub), especially with people
who eat rich, oily and spicy foods.

C. Lemee

Lemee Orange
Lemee Orange with orange tangy
Flavor, its cool Tangy Soothing
D. Hajoori Soda
The soda with extra sparkle, extra bubbles, extra
power-refreshing on its own, great in company.
2. Price (Policy):

Deciding the pricing policy is an important decision in any organization. As usual every firm sets
the price for its product or service whether it is manufacturing or service firm. Financial
managers with the help of the production and other department set up the price. Generally pricing
policy is decided after considering several factors.

Company decides per unit price of product by following formula:

Per unit price = Variable Cost + Fixed Cost/ Unit Sales

Here, variable costs are raw material cost, administration cost, packing cost and distribution cost.
Here, fixed costs are processing cost and machinery cost.
3. Place
Channel of distribution is the chain through which the product of the company passes from
factory to final consumer so marketing channel performs the work of moving goods from
purchaser to consumers. Different companies are using different channels. It overcomes the
time, place and possession gap that separates goods from services for those who need or want
them. The company should have the flexible channel for distribution so that in future it can be
easily changes according to the requirement.

The distribution channel of Hajoori & Sons in Surat city and parts of Gujarat state is undertake
by J.S. Distributors.

They gather information about potential and current customers, competitors and other factor
and forces in the environment.

They reach agreement on once and others terms so that transfer of ownership or possession
can be affected.
They place orders with manufactures. They acquire the funds to financial
inventories at different levels in the marketing channel.

They provide for buyers payment of their bills through banks and other financial
institutions.

The channel of distribution in Hajoori & Sons is of one-level channel. In one-level


channel there is 1 only one intermediary, the retailer. This is the best channel level
to sell the products in the rural market.
In the 0-level channel the companys salesman
directly sells the product to the consumer The
company follows three types of distribution
channel as 0-level, 1-level and 2-level channel at Manufacturer
their home. In the 1-level distribution channel the
salesman sells the products to the retailer who
thereafter sells to the end consumer. Here the
salesman daily goes to the retailer and consumer at Distribution
their shops and home according to the routes.

In 2-level distribution channel the companys


Retailer

product is exported to the franchisee holder in


Dubai, Sharjah, Abu-Dhabi and various other cities
of UAE, Lila, UK, USA, New Zealand and Africa
who thereafter sell to the retailer and to the end
consumer. For Hajoori & Sons, this is best because Consumer
everything is managed by the company itself. As
selling is done directly, the company have its own
salary paid and trained salesman at every place.
4. Promotion
Promotion refers to sales promotion, advertising, Sales force. Public relation, direct marketing,
advertising in any paid form of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor. All the soft drink Co. does advertising according to their
suitability. Hajoori & Sons does advertising in the form of Newspaper ads, ads in magazine,
Ads on TV channel, etc. The multinational Co. does satellite TV ads with celebrity,
Newspaper, magazine ads, Banners, Hoardings, etc. The local brands does give ads in
newspaper, magazine. Etc.

Hajoori & Sons has made Sosyo Circle on Udhna Magdalla road for the purpose of promoting
their products. Also the Co. offers some free sample when they launch a new product in the
market.

Hajoori & Sons organized and sponsor some events like Blood donation camp, Sports Day
program. For the purpose of direct marketing all the companies have their web-sites, E-mail id,
and telephone no. to contact or communicate directly with or solicit response or dialogue from
specific customers and prospects.
2.7 Packaging
Packaging is defamed as all activities of designing and producing the container of the
product. Most of the packaging includes up to three levels of materials. People at
Sosyo believe that packages can build brand equity and drive sales. The packages are
buyers first encounter with product and it must be capable of turning on or off.
Packaging also affects the consumers later product experiences.
Sosyo soft drink comes in a bottle, which is the primary pack. In case of the local
distribution the bottles are being sold directly but for the outside sales it comes in the
crates and each crates contains 24 bottles. The bottles are packed by pressurized
crowns. And in the case of overseas sales they use cardboard box. And each cardboard
box contains 12 bottles. This cardboard box is packed into the corrugated box
containing six dozen boxes.
The brand and logo of Sosyo is as shown under:
The various packaging include 200ml; 500ml; 300ml in glass bottles (returnable)
and 500ml and 1.5ltr in PET segment (non-returnable).
2.8 Labeling
Label may be a simple tag attached to the product or an elaborated graphic that is part of
package. It might carry only the brand name, or a great deal of information. Even if the
seller prefers a simple label, the law may require more.

According to the marketing manager of the Sosyo the labels are important tools to market
their product in the following ways.
A.It identifies the product and the brand name SOSYO
B.It grades the product in several categories.
C.It describes the special features of the product.

Sosyo uses plastic labels to promote the product. They use this label for the PET bottles and
for glass bottles they use printed logo of Sosyo as the brand label.
2.9 Brand Sosyo
The brand name SOSYO was derived from the Latin SOCIOUS meaning
that is related to society. From SOCIO it gradually evolved into SOSYO, a
distinctive thirst quencher with a unique taste that defines definition and has been
relished over generation.

Originally Sosyo was called WHISKY NO, to attract alcoholics in the dry state
of Gujarat, India. It was sealed with a marble in a factory in Salabatpura by
Hajoori & Sons. The present name was derived from Latin word Socious, since
it became a social drink. The name Whisky No was derived from the fact that
Sosyo tastes like alcohol

The brand has been given a new, contemporary look ever since its responding, as
a specialty drink in November-98 with the catchy base line THE TASTE WITH
THE TWIST.
2.10 Promotional & Advertising Policy
Hajoori & sons faces a lot of competition. Each day the customers requirement,
the taste of the customer is changes. Although the company is very much old in
the soft drink industry, it has a promotion and advertisement policy to sells its
product.

The company is using many policies to promote their product. They promote by
advertising in daily local newspaper such as Gujarat Mitra, local cable channels
like city link, hind channels, Samay channels and Eye witness. Now a days
company is giving their products advertising on the radio.

The most effective way to promote their soft drinks is by participating in


exhibition or any fairs. Sosyo circle at the Udhana Magdalla road is also one of its
promotional activities. They also promote their soft drink by supplying their soft
drink in various international conventions held in Surat like Giant club meeting.
Necessary information about different product is also on the companys website
www.hajoori.com

The company also gives credit period to the customers after sales. They provide
5 days credit period to their customers and 15 days credits period to their
suppliers. The company has the objectives of efficient performance and
excellent quality which holds the good will of company in promoting it.
Company has led customer satisfaction as its foremost priority. It also gives
guidance to its customers if they are new to it. Thus a strong promoting policy
is backing the company.
2.11 Respecting Our Environment
We have been proactive in safeguarding the environment as a mark to respect our
communities. We give an attention to pollution control activities to produce minimum waste,
recycle waste and disposal of waste at proper location.

2.12 Respecting Our Communities


As a part of our brand promotion program and good corporate citizenship, we regularly
organize various contests and events such as Sosyo cricket tournaments in which various
teams from entire South Gujarat participate, Power-building competitions, Painting
competitions at school level and various others.
Finance Department
Organizational structure of Finance
Department:
Introduction to Finance Management
The financial system is one of the most important inventions of
modern society. Inventory economic system, there exists an
imbalance in the distribution of capital. There are people with surplus
fund and there are those with a deficit. A financial system functions
as a intermediary and facilitates the flow of funds from the areas of
surplus to the area of deficits. It provides the means by which saving
are transformed into investment.
Working Capital Management
Working capital referred to as the life and the blood of business firm.
In the event of working being, ill-managed, the flow of money gets
choked, raw material and suppliers are interrupted, dues and
payment gets delay and clamor for clearance. Outstanding obligations
and commitments gather momentum. Working capital management
conceded with the problems that arise in attempting to manage
current asset, current liabilities and the inter relationship that exist
between them.
Factors Affecting Working Capital in Hajoori and
Sons:
Seasonal And Cyclical Fluctuation
Sales depend on the demand condition. Hajoori & sons experience seasonal and cyclical
fluctuation in the demand for their products. These business variations affect the working
capital requirement specially the temporary working requirement of the firm. So when there is
boom, sales increases and firms investment in inventories and debtors will also increases and
vice-a-versa in depression.

Very Less Credit Period


The company sells the goods mainly on the cash and cheque basis. The company offer very
less credit period of 1 to 2 weeks. So the investment in debtors is less. This also affects the
working capital requirement.
Credit Period For Suppliers

The credit period available to the company varies from suppliers to suppliers. Hajoori & Sons
buys some goods on cash and some on credits. Some suppliers ask for the draft along with
the purchase order while some supplier gives the credit period to suppliers for 30 to 45 days.

Fluctuation Of Raw Material Price

Price level change affects the working capital requirement. Hajoori & Sons follows just in
time inventory system. So when there is rise in the price of the raw material the company has
to pay for it whatever the price may be.
Production Department
4.1 Introduction
Production is the process of converting the raw
material or the other inputs into the product for the
further production or the finished goods or services so
at the utility of inputs is created or enhanced and the
needs of consumer are satisfied.
Example: the process of converting the raw materials
such as water, Sugar, CO2, Crown, Caustic Soda,
Syrup, Carmon Color, Citric acid, etc. into finished
good(SOSYO).
4.2 Organization Structure of Production
Department
Production
Department

Chief
Laboratory Forman Engineer
Chemist

Supervisor Diploma Expense


Assistant Holder Holder
Laboratory
Chemist

Helper Laborer Helper


Helper

Checking Washing

Fig. Structure of Production Department


4.3 Raw Material
Raw materials are material which is used to manufacture finished goods.
Raw materials of Hajoori & Sons are water, Sugar, Syrup, Carbon dioxide,
Caustic Soda, Crown, Citric Acid, Carmon Color, Pre Form, Added flavors etc.
4.3.2 Production Process
Raw Material Washing Stage

Empty
Inspection Filling Stage
Stage

Filled
Capping Stage
Inspection

Final
Inspection
4.3.2.1 Washing Stage
Production process starts with the loading of empty bottles in the washing machine.
Before that empty bottles are taken from the carat and are placed on the conveyor which
reaches the washing machine bottles are arranged properly and enters the machine in lots
of 10 bottles. In the washing machine bottles are passing through 4 compartments.
In the 1st compartment all the dust and sand is removed with plain water.
In the 2nd compartment the oil, bacteria, etc are removed with chlorine water.
In the 3rd compartment bottles gets washed with caustic solution.
In the 4th compartment the second time bottles are washed with plain water.
After the bottles are washed, they are moved for the next stage.
4.3.2.2 Inspection Stage
In the stage, the 2 time bottles are inspected.
1st time the empty bottles are inspected.
2nd time filled inspection is done.
If any defect is found then the bottles is disposed and other bottles are
allowed to move for the next stage.
4.3.2.3 Filling and Capping Stage
The filling and sealing of bottles is done on filling and
crimping machine. It is a combined activity. The
bottles are conveyed to filler machine on conveyor.
The filler machine keeps on revolving. It fills the
beverage in the bottles and sends it to crimping
machine where the bottles are sealed with a crown.
If the operator finds the improper level, he level the
bottles manually and let go the bottles for crowning
and then for the next stage.
4.3.2.4 Final Inspection Stage

After crowning the bottles are checked again whether there is any dirt left.
One person checks the bottles after crowning in light.
If any impurity is found the bottle is immediately disposed off and rests of
the bottles are sends at store.
4.4 Plant Location
The company is in the industrial area so this also effects the plant
location. There is store room for raw material which is underground of
production department. There is a separate store area for the finished
product at the back side of production area.

In the production process co2, citric acid, etc. this gas are dangerous to
health so the production area is separated than other department.

As this is mass production unit some decision are taken in advance


regarding layout. The production process is machine base so in future if
new machine is installed then it requires large space. So all this is taken
care.
First it was in Zampa Bazaar but because of problems in transportation and
conjunction they shifted their plant in Hajoori& Sons Plot no.243-244
Bhatpore GIDC, Near ITI College, Hazira Magdalla Road, Surat-394510
that is in Food area. In this area they get 24 hours electricity and water
facility, availability of material and easy transportation which are beneficial
to company.
4.5 Plant Layout
Plant Layout

Terrace

Common Hall
Refreshment
Room/Canteen Rest Room

Stairs

Quality Checking Syrup Room


HR Department Sales &
Lab Marketing
P
i
p
e Owners
Room

Account
Pet Blowing Roomt Department Nescafe
Stall
L
i
Stairs
n
e

Storage Room RO Water


Production Plant Plant
Office
Room
Dispatching Changing
Center Room
4.6 Material Handling
The company uses different types of material handling equipment like
Conveyors, Trolley, Pipelines, Carats and Trucks. It can be further
explained as below:

4.6.1 Conveyor

The company has different types of conveyors to carry the bottles to be


processed into different machines. Right from starting of production
process the bottles are moved to the next process through conveyor.
Company has motor driven conveyor that has one metallic belt on the
rolling wheels and those conveyor that works on gravity i.e. no electric
motor is needed to run them.
4.6.2 Pipelines
Pipeline is also treated as material handling equipment as it carry and
gaseous material. It is used to transfer the carbon dioxide from cylinder in
the manufacturing unit where it is compressed to make it in the liquid form,
then to shift it in the mixer where all the materials are mixed and then the
final liquid is prepared separately is brought from the main syrup tank to
small tank and then to filler machine through pipeline.

4.6.3 Trolleys
Trolleys are mainly used for transferring heavy carats with bottles from the
store to the trucks. Also when the carats are unloaded from trucks and
moved from one place to another trolley is used. For convenience trolleys
are manually run by workers to carry heavy loads.
4.6.4 Carats
Carats are a very important material handling equipment as it is used to
carry the bottles in the lot of 24. Carats are mainly used for safety purpose
so as to prevent the breakage of bottles. So when the bottles are to be taken
from one place to another it is kept in carats and then taken. It is also
convenient to carry bottle in group.

4.6.5 Trucks
Trucks can also be considered as the material handling equipment as it is
used for transporting finished products. They carry carats from
manufacturing place to the whole sellers and retailers and also to the port
for the export through steamers in the foreign countries.
4.7 Stores Function

In store function two important procedures are consider.


They are material receipt procedure, material issue
procedure.
4.7.1 Material Receipt Procedure

Material receipt procedure begins when the purchase order


is placed. The suppliers send the material within a day or
two. Thereafter the material is received and the production
manager is informed. The material received is checked
whether it is according to the purchase order. Firstly the
quantity checking is done. Thereafter the quality control
manager checks the quality of the material received and
gives information. Sometime there can be material which
cannot be taken for production because its poor quality.
After the confirmation is received from quality control manager, entries for
both accepted and rejected material is done in the register and thereafter all
the material is send to the store. Accepted and rejected material is stored
separately. As and when material is requires for production it is issued and
according the entry is done, rejected material is send back to the supplier
and is replaced. Production manager takes the bill does the signature and
after all the process gets completed payment is done.

4.7.2 Material Issue Procedure


The material issue procedure begins with requirement of production in
change. Production in charge tells the production manager the authorized
person and thereafter allows the issue of material. The entry for the material
issued is made in the register and that much stock is deducted from the
present stock of materials.
4.8 Purchase Function
Purchase function begins with the preparation of purchase order. Production
manager prepares this purchase order. This purchase order is to the
authorized person for checking. After the authorized person sign the
purchase order, order is placed though mail, telephone or by fax. After
receiving purchase order from company supplier checks it with the
availability of material and sends the material within a day or two and
informs the company on sending the material.

On receiving all the material from the supplier, all the material passes
through the process of quantity & quality. After all the material is accepted
by the production manager then and then only the payment is done. Payment
is done by cash, cheques or by demand draft. Some suppliers demand the
payment along with the purchase order. So, demand draft is send along with
the purchase order to the suppliers.
4.9 Production Planning
First of the entire production plan is not prepared very formally but it is prepared on basis
of daily sales. At the end of the day when salesman returns to the factory after whole day
selling, report to the supervisor of distributor. These include the total number of sold and
unsold carats. The supervisor then calculates and total number of carats that are sold on
particular day of all salesman. He then gives that calculation to the plant manager. Plant
manager then look after it.

For example:-
If 50 carats of Sosyo are sold on particular days then manager dont start the plant to take
production of 50 carats. So he does the stock of 200 to 300 carats of a particular product
and then does the production. The same is followed for the other entire product (Kashmira,
Lemee, Soda, etc.) here the production is done in batch using manner and each batch
contains minimum of 200 carats but in exception case it can be low. Also if there is any
additional order (party order, marriage order, inauguration order etc.) on the basis of this
production plan is prepaid. Such orders are also important because it is in the big lot.
4.10 Quality Control

Quality control includes various method of controlling the quality of the


product. They are as under:

H2O Analysis includes following parameters

pH Hydrogen and Concentration

Th Total Hardness

Ca Calcium Content

Mg Magnesium Content

Cl Chloride Content

Alk Phenolothepelien Alkalinity

Cl2 Residual Chlorine

TDS Total Dissolve Solute

Alk Total Alkalinity


4.10.2 Micro Biology Testing
4.10.3 Ready Syrup Quality Checking
Ready syrup includes the following parameters:
Standard Volume
and Brix

Sugar Purity

Citric Acid Purity

Sodium Benzoate
Purity

It includes proper syrup making method, Pasteurization System, Flavor Wise Mixing.
10.4 Bottle Washer
One of the goals of quality control is to present the consumer with a product and for that
clean and sanitized bottle also plays an important role. Hence proper washing must be
ensured with the appropriate testing which includes:

Caustic Strength

Temperature

Caustic Carry
Over

Addictives
Percentage

Filled Water
Chlorine Content
4.10.5 Finished Product Quality Checking
Finished product includes product checking and packaged quality checking. Once the
bottles are filled in the carats it becomes the finished product.
Product quality checking includes following parameter:

Brix

Gas Volume i.e. Co2


Consumption

Crown Crimping

Fill Height
Packaged Quality checking considers the following points:

Crown Specification as per norms

Apparent of Bottle
- Cheeps Mix
- Scufoi
- nRust

Cartoons

Levels of Per Bottles

Attractive Packing
4.11 Inventory Control
In Hajoori & Sons, ABC Analysis technique is used for
controlling the inventory. Usually a firm has to maintain the
several types of inventory. It is not desirable to keep the same
degree of control on all the items. The Hajoori & Sons play the
maximum attention to those items whose value is highest. The
companies therefore identify which item should receive the
most effort in controlling.

The firm is selecting and its approach to control investment in


various types of inventory. It uses the analytical approach,
which is called ABC Analysis.All items are divided into 3 parts.
A-class of items:
In the A class of item the major material consist of 65% of the
consumption value and 25% of total number of items. This
item requires strict control over receipt, storage and issue
should be exercise over such items. As A class of items
require very less time for inventory but the company maintains
low stock of inventory for all items. The A class of the item
includes Sugar, Citric Acid, Sodium Benzoate used in beverage
and CO2 used only in Soda. All these items have major value
wise contribution. So are including in A class of item.

B-class of items:
In the B class of items the major material consists of 25% of
consumption value and 20% of the total number of item. It
includes ascorbic acid (Vitamin C), Oil Grease, Lubricants, Spare
Parts of machine and maintenance cost.
C-class of items:

In the C class of item the major material consists of 10% of


consumption value and 55% of the total number of item
include essence (Taste, Color, and Ordure), Water, Crown and
other consumption items.