SUMMER TRAINING PROJECT REPORT On”Understandin the Sales,Logistics and oher operations of Radico Khaitan Ltd” IN
ACKNOWLEDGEMENT My project dealing with “Understandin the sales,logistics and otheroperations of Radico Khaitan Ltd” provide me an exposure in the real world ofbusiness. I owe a heart-felt gratefulness to some of the people for being present allthe time whenever any help was required in completion of the report.At the outset, I would like to thank Mr. K.P.SINGH (Director - Operations) &Mr. S. Pande (AGM - HR) for giving me the approval to this project in theorganization. I wish to acknowledge the entire HR Team at Radico Khaitan Ltd.Special appreciation extended to Mr. Ashish Kumar Singh (Executive - HR)who helped me to shape the direction of my research work. This project wouldnot have been possible without his help.. and Mr. A RAHMAN[G.M. LOG.]ASISH PANDY; Mr .ARUN CHAUDHARYA heartfelt thanks to the respondents surveyed whose ideas, critical insights andsuggestions have been invaluable in the preparation of this report.Last but not the least a very warm thanks to all the faculty members of GurukulKangri vishvidwalya Haridwar. for providing me Guide lines in summertraining project.
PREFACEAs a part of the partial fulfillment of the MBA programme at Gurukul Kangri ,Summer Training was undertaken with the RAMPUR DISTILLERY a unit ofRADICO KHAITAN Ltd. RAMPUR (U.P.).Rampur distillery is one of the biggest distilleries in India and it has working onSAP technology in the present scenario. And also trying to be a biggest industryin the Asia. The company has now completed their 50years and now using newtechnology day by day to improving the quality of the product.The purpose of the training was to have the practical experience of working in aLogistics Departmentand to have the exposure to the various managementpractices in the field of working in Logistics Dept.
COMPANY PROFILERadico Khaitan is one of Indias oldest and largest liquor manufacturers. Formerlyknown as Rampur Distillery, which was established in 1943. It was only in 1999,that Radico decided to launch and market its own brands, thereby embarking on aperiod of phenomenal growth. To further boost its production capacity of bottledand branded products, the company has tied up with bottling units in various partsof the country. THE BRAND STORYRadico Khaitan Ltd today has three millionaire brands in its portfolio. Radicosflagship brand, 8 PM Whisky, launched in 1999, was a runaway success. In thefirst year alone, it sold one million cases - a record for any Indian or foreign brandoperating in India. This also made it the first brand in the liquor industry to makeit to the Limca Book of Records.Drinks International, the acclaimed international liquor magazine has rated 8 PMwhisky as the fastest growing whisky in the world in the regional category (2004-05). The other millionaire brands are: Contessa Rum has won the prestigiousMonde Selection award for its overall quality for the past three executive years.It has a large market share in the defense market... Old Admiral Brandy has alsobeen rated by Drinks International as the fastest growing Brandy in the world inthe regional category (2004-05 and 2005-06) also it has won the Monde Selectionaward for its overall quality in 2004-05.Today, Radico Khaitan has brands that straddle almost every market segment -whisky, rum, brandy, vodka & gin - and price category. Our fine blends,consistent quality, distinctive packaging and superior value have resonated withcustomers.
THE INTERNATIONAL LINKIn a significant move aimed at catapulting the Indian liquor industry tointernational standards, Radico Khaitan set up its international division - RadicoInternational - to distribute and market some of the worlds best-known liquorbrands, including Wines from Ernest & Julio Gallo (makers of the worlds largest-selling wine, Carlo Rossi), Famous Grouse Whisky (from Highland Distillers). STRONG FINANCIALSRadico Khaitan is not just a company of great brands; it is a company of greatfinancials. The equity shares of the company are quoted on the Mumbai andNational Stock Exchanges, and the company has more than 35,000 shareholders.It is the most profitable company in the domestic liquor industry.
RADICOS CORE VALUESRadicos Core Values are aimed at developing a customer-focused, high-performance organization, which creates value for all its stakeholders.FOCUS ON CUSTOMERRadico Khaitan believes that customer focus is very important. We giveimportance to deliver both value & quality to the customer.EXCELLENCERadico will strive for excellence in whatever we do. Radico will take the rightpath to do whatever we do and excel in the same.RESPECT FOR PEOPLERadico will value differences in individual perspectives. Radico want individualsto dream, create and experiment in pursuit of opportunities and achieve leadershipthrough teamwork. INNOVATION
Radico will constantly innovate and strive to better our processes, products,services and management practices.CORPORATE GOVERNANCECorporate Governance at Radico means the framework to encourage the efficientuse of resources and equally to require accountability for the stewardship of thoseresources. The aim is to align as nearly as possible the interests of individuals,corporations and society. • Ernst & Young are the internal auditors and strategic advisors and help to improve its operational efficiencies and control procedures. • Board of Directors consisting of eminent independent professionals. • Strict adherence to the accounting standards lay down by the Institute of Chartered Accountants of India. • Special attention being paid to the investors relations. Regular communication to the investors about the business developments and important vents impacting the operations. • Strict compliance with the requirement of Stock Exchanges, Securities and Exchange Board of India and other statutory authorities. • Liberal disclosures in the balance sheet over and above those required by the regulatory authorities.
CORPORATE SOCIAL RESPONSIBILITY PROGRAMMEHUNARIn accordance with Radicos mission to work towards the up-liftment of localartisans and to promote the UP handicraft, Zardozi and Chikan work it hadlaunched Radico- Chikankari Aur Zardozi Pratiyogita in association with theIndian Academy of Art & Culture, U.P.The competition was organized to bring out the creativity of the artisans and tolook for young talent in the field of Chikankari & Zardozi. The event waspromoted through mobile vans, pamphlet distribution in the areas where theartisans live. There were two levels of judging eminent personalities fromLucknow judged the first level and in the second level Mrs. Jaya Prada, Mrs.Kiran Khaitan, Mrs. Sucheta Merh & Mr. Swapan both designers from Kolkattajudged the first three winners.The artisans were awarded with cash prizes.The artisans have been empanelled by Radico Khaitan Ltd to form a group called"HUNAR”. To get employment for the artisans is the cause towards which thegroup Hunar is working.ENVIRONMENT FRIENDLYRadico Khaitan Ltd is an environment friendly company and follows all thenorms for its production facility at Rampur. It has also been awarded the ISO9001 certification for the Rampur distillery.
RAMPUR DISTILLERYRampur Distillery is one of the largest distilleries in India and a leadingmanufacturer of Extra Neutral Alcohol (used in manufacturing Indian Madeforeign Liquor) it also manufacturers Rectified Spirit (used in manufacturing oflower segments Country Liquor) and manufacturing of Anhydrous Alcohol orEthanol or Gasohol (used in Petrol Mixing) and the recent addition of graindistillery . Today with a production capacity of 60 million liters p. a and with therecent addition of the grain distillery which has taken the capacity up to 90million lit p.a. it is one of the largest distilleries in the country The Unit has aseries of firsts to its credit:It is the first Indian distillery to obtain ISO 9001:2000 certifications. It hasachieved capacity utilization of over 100% in the alcohol plant. It is the firstenvironment-friendly distillery in the country. CAPACITY • Molasses Distillery 60 million liters per annum. • Grain Distillery 30 million liters per annum. • Malt Distillery 720 thousand liters per annum. EFFLUENT TREATMENT PLANTThe effluent Treatment Facility in Rampur Distillery is unique in nature whencompared among and in the Industry. The Distillery complies with Zero
Discharge concept set up by CPCB. The treatment has varied by products, whichnot only improves operational stability of the plants but also adds on to companysprofitability. Primary Treatment of the Effluent yields Bio Gas, which is used asfuel in Cogen Boiler to generate steam and then Power through a backpressureTurbine. The backpressure steam is used again in the Distillation Plant to produceExtra Neutral Alcohol and Rectified Spirit. ENVIRONMENTALLY FRIENDLYMeeting out 100% Pollution Control norms, the Treated Effluent is not dischargedoutside and in turn is mixed and cured with organic mass like Press Mud of SugarMills and suitable organic manures to manufacture Bio Manure or Bio Compost, abio fertilizer used successfully in growing the crop of sugar canes etc. COGENERATION PLANTThe cogeneration plant of Rampur Distillery consist of 26 MT capacity Indiasfirst stand alone Bio Gas fired steam boiler and 2 MW Turbine Generator intandem to make Radico Khaitan self reliant on its requirement for power for itsnormal operation. BACKWARD INTEGRATIONThe very first backward integration project has come in the form of setting up afully automatic 750 ml Kidney shape PET bottle manufacturing plant in low costand tax benefited area like Uttranchal. The unit started with production rate of 85lacs bottle per year in October 2004 and is now geared up to produce 255 lacsPET bottles to cater Radicos own captive consumption of approx. 150 lacs bottleper year and rest is being sold to outside clients in similar businesses. The unit hasnot only eliminated the pressure of PET bottle suppliers but has also provided akind of diversified manufacturing base for future business exploration.
OWN BOTTLING UNITSRampur Distillery has 14 state-of-the-art bottling lines, including those importedfrom Italy, equipped with tunnel bottle washing, filling, sealing and labelingmachines with a capacity to produce 1500 cases (1 case = 12 bottles of 750 mleach) of liquor in a single shift of operation. Line capacities vary from 750 casesto 3,000 cases in a shift. To keep pace with the growing demand, Radico Khaitanhas significantly increased its bottling capacity by acquiring/setting up bottlingplants in the states of Rajasthan, Uttranchal and Andhra Pradesh. • Rampur Distillery, Rampur (Uttar Pradesh) • Whytehall (India) Ltd., Rampur (Uttar Pradesh) • Radico Khaitan Ltd., (Uttaranchal) • Radico Khaitan Ltd., Reengus (Rajasthan) • Radico Khaitan Ltd., Hyderabad (Andhra Pradesh)STRATEGIC BOTTLING UNITSRadico Khaitan Ltd is working continuously towards increasing itsreach through the strategic bottling units across the country. Thefocus underlines comprehensive quality control and enhanced marketpenetration. Strategic Bottling Units through out India. NORTH N V Distilleries & Breweries Ltd., (Punjab) Gwalior Distillers, Gwalior (Madhya Pradesh) Patiala Distillers & Manufacturers Ltd., Baddi (Himachal Pradesh) Oakland Bottlers (P) Ltd. (Jammu & Kashmir)
Welcome Distilleries, Bilaspur. (Chattisgarh) Silverstar Distillery, (Daman)HUMAN RESOURCESRadico Khaitan believes that the growth of a company depends on the collectiveefforts of its employees. The Human Resources Department seeks to create anenvironment that fosters the emergence of empowered leaders. We hire peoplewho have the fire to grow, the potential to lead and the zeal to excel. All newhires undergo a 7-day induction and familiarization program.MARKETINGIn the short span of time, Radico Khaitan has been able to make the transitionfrom being a manufacturer of Extra Neutral Alcohol to being a company with aportfolio of hugely successful brands. Our understanding of market demands andability to satisfy consumer needs has been responsible for this. Consistentlysuperior quality, a wide range of products, innovative packaging, pricing to suitall pockets, a nation-wide distribution network that covers 95% of retail points,clubs and bars in the country, effective advertising, and popular events andpromotions. All these elements go to making up Radico Khaitans winningmarketing mix.SALESRadico Khaitan’s young and enthusiastic sales force services retail outlets acrossthe country, understanding requirements and fulfilling them, thereby developingenduring relationships. The Sales team comprises professionals with vast domainexpertise, years of experience in the liquor industry and a deep understanding ofvaried markets.
ACCOUNTS FINANCERadico Khaitan Ltd has been continuously showing growth over previous yearsand registering healthy profits. This has been made possible through the stepstaken by the Finance department like bringing down the cost of borrowingssubstantially. The Efforts of the finance department has made Radico one of thebest prospects for timely repayment of debts and providing the highest safety offunds for lenders. The department also has excellent financial management withstrong fundamentals in the short and medium term.PRODUCTIONThe Production Department is responsible for operations in Radico Khaitansbottling units. It works towards the smooth production and delivery of all theRadico Khaitan brands as per market needs. BRANDSRadico made its foray into the International Market a fewyears back and today Radicos brands are present in more than30 countries. Radico has been consistently providing excellentquality in terms of both product and packaging along withoutstanding service. Two of our brands 8 PM Whisky and OldAdmiral brandy featured in Drinks International Magazine asthe fastest growing brands in the world in the regional category. Three of ourbrands, Contessa XXX Rum, 8 PM Bermuda White Rum and Old Admiral brandyhave won Silver Medal in prestigious Monde Selection for overall quality Ourbrands have already attained the leadership position in many countries.
Radico Khaitan is now breaking into newer and sophisticated markets with liquorbrands developed to appeal to a wider palate.SOME BRANDS OF THE COMPANY
BRANDS OF THE COMPANY WHISKYThe base for Indian whisky is ENA. The other ingredients used are maturedIndian malt sprit, Scotch whisky concentrate, added flavors, and caramel & dmwater. All these ingredients are not added at a time but different stages. 1. Special appointment whisky 2. 8pm Royale whisky 3. Whitefield whisky 4. 8pm whisky 5. Radico gold supreme whisky 6. Radico gold whisky 7. Contessa deluxe whisky 8. Rampur no.1 whisky BRANDYBrandy is a Dutch word means (Brunt Wine). In India we make brandy byblending with ENA, matured grape spirit, added flavoring. 1. Contessa Brandy 2. Old Admiral Brandy 3. White Field Brandy 4 8pm Excellency Brandy
RUMRum is distilled liquor made from sugarcane products, cane juice spirit along withbase ENA and flavoring. 1. Contessa rum 2. Largest Rum 3. 8pm Bermuda 4. Black Cat Rum 5. Rampur No.1 6. Big Hit Rum 7. Contessa White Rum GINGin is alcoholic liquor obtained by distilling grain mash or redistilling sprit withbotanicals such as juniper berries, angelica, lemon and orange peels, cassia bark,coriander and cardamom. 1. Contessa Gene 2. Big Hit Gene 3. Magic Moment GeneRAW MATERIALFor the production of alcohol, materials containing sustaining amount of glucoseContent can be used as a raw material. But for commercial production, commonraw materials used are as follows: 1. Molasses 2. Cane Juice
3. Sweet Potato 4. Sugar Beet 5. Grain (Barley, Rice)FUNCTIONS Purchasing of packing materials, engineering goods, and logistics etc. function is done here. The packing materials include carton, monochrome, bottles, and caps label etc. The procurement of packing materials is done on the basis of 1. Forecast from marketing department for the month. 2. Tentative planning based on last month. 3. Production schedule. Packing material accounts for 80% of all other. Material and it is the main requirement for distillery. Hence it is essential to have a proper stock of the material as per the requirement. Label is the most critical packing material as it involves different labels for the different states as the rules and regulations are different in different states. For finalization the vendor for packing material purchase committee where vendor is introduced and a vendor assessment from is made does it. There are number of suppliers for packing material and purchasing is done by share of business.
For the engineering material indenter raise the indent and the quotations are called for the same. Then comparative is done and after that finalizing the terms and conditions purchase order is released. Logistics of country liquor is taken care of here. The procedure for dispatch of country liquor is that the marketing department sends indent according to the demand. For the country liquor it is the policy of state govt. that distillers should have their own depots and this depots will sell to retail vendors who will sell called as CL2A. Transportation annual rate contract is done and the documents that are to be carried along with the CL includes excise pass PD25, invoice and challan. THE REPORTS ARE 1. Daily GPMRN register. 2. Daily statement for GPMRN sent for quality check. 3. Daily indent control registers. 4. Available stock item wise. 5. Complete item tracking. 6. Tracking of planning, scheduling and replenishment of inventory.
7. Item wise list of pending indents.8. Analysis reports.9. None / slow moving items analysis.
MOLASSES PROCUREMENTFor the purchase of molasses, final decision taken by molasses purchase committee,Headed by Mr. K.P.Singh (DIRECTOR PRODUCTION), Mr. Ajay Agarwal(Sr.VP Accounts & commercial), and Mr. J. Chaterjee (Sr. Mgr. Commercial).There are 6 storage tanks of molasses in Rampur Distillery. The total storagecapacity is 6.35 lack Quintals. There is a requirement of 27 lakhs quintal/year ofmolasses by Rampur Distillery.Molasses is the mother liquor left after the crystallization of sugar usually contains40 – 60 % sugar, which remains uncrystallized. It is the basic raw material used in adistillery.The department role is to have good coordination with all nearby sugar mills andfind out the best pricing to suit our requirement. The price variation in the molassesaffects both our alcohol sales price and production cost of IMFL and CL, hencebecomes focus point in reduction of production cost.Molasses purchase committee is formed to negotiate and finalize on the rates.Chemist are sent to the loading point to have check on the quality of the molassesloaded and composite and separated collected samples are analyzed in the lab tocheck TRS and other parameters: 25
TRS standard set by the Rampur Distillery: - • In Nov, Dec, Jan – Not less than 44.4 % • In Feb, Mar, Apr – Not less than 43.0 % • In May, Jun, July – Not less than 41.0 % • In Aug, Sep, Oct – Not less than 40.0 %Grades of Molasses: - • “A” Grade: - 50 % and above Molasses TRS. • “B” Grade: - 44 % to 49.9 % Molasses TRS. • “C” Grade: - 40 % to 43.9% Molasses TRS. • Below 40 % TRS is treated as Below Grade.BLENDINGThis department is headed by Mr.Anup Barikh (G.M. Blending) and assisted byMr. Rambir Singh (Dyt. Manager Blending) and Mr. Mukesh Sharma 26
In blending process ENA is reduced by mixing DM water and mixed with specificingredients including particular Synthetic Essences, Caramel, Special Spirit, VettedMalt Spirit, Matured Malt Spirit in specific volumes to produce a particular tasteand character concentration in order to prepare a particular characteristic liquor.Caramel is standardized coloring matter (reddish brow to yellow) used to color theliquors like Rum, Brandy, Whisky. It is prepared by controlling heat of sugar underspecified condition.Fermentation And Distillation: -This department is headed by Mr Devendra Singh,(VP Production)Mr Rajeev Rahlan (Sr. Manager-prod.), Mr Ompal Singh (Manager).Fermentation is the breakdown of glucose into ethyl alcohol and carbon-di-oxideby enzymes in yeast, in the absence of oxygen. Fermentation works best if the yeastand glucose solution are kept under control.The fermentation system takes about 22-30 hours to complete in a batch processwith yeast culture.Step 1: Yeast vessels are the vessels used for yeast culture build up under highlyacidic condition. These are closed vessels.Step 2: Prefermenters are open, mild steel vessels, providing mild aerobicconditions.Step 3: Coil cooling is providing to the fermenters to maintain suitable temperatureto draw highest yeast activity. 27
Step 4: Fermented wash contains 15-18 % ethyl alcohol.COMPUTER DEPARTMENTThe computer department headed by Mr. Neeraj Srivastav – AGM-IT and assisted by Mr. Vipin Agarwal – Dy. Mgr -ITThere are around 80 computers in Rampur Distillery and all are LAN connected with Outlook expressed on desktop for exchanging mails. The management of the company has taken a major IT initiative on 20 th September 2002. For its Enterprise Wide Information System the company has chosen world no. 1 package SAP (SYSTEMS APPLICATION PRODUCT OF DATA PROCESSING) To power the management of the business. All business units of Radico Khaitan Ltd. Including HO Delhi, all tie up units, regional offices, warehouses etc. now powered by SAP.Right now out of 11 modules of SAP has been implemented in Rampur Distillery in following department. Finance Department Accounts Department Material Department Sales & Distribution Department Production & Planning Department Human Resource Department 28
QUALITY ASSURANCE DEPARTMENTQuality assurance department headed Sandeep Kumar Lamba-Dyt. Manager QA.Quality Assurance department is very important department because it keepcontrols on the input (packing material) and the output (IMFL & CL)Packing material go through from certain parameters finalized by higher authority,consist following: Bottles • Glass Bottle • Pet Bottle Caps Boxes Monocartons Labels Glue Packing TapeFollowing parameters checked by QA Officers: Bottles fully filled or not / Leakage Any glass particles in bottles Other foreign particles/ Color Without caps/ Dirty bottles Proper sealing or not Labeling 29
Numbers of bottles in boxesCOMMERCIAL (ALCOHOL MARKETING)This department in Rampur Distillery headed by Mr D.Satheesan (PresidentAlcohol) and Mr. Rajesh Singh (Dyt. Manager). This department deals with salesof following types of alcohols to other units. ENA – Extra Neutral Alcohol RS – Rectified Spirit SDS – Special Denatured Spirit VMS – Vetted Malt Spirit CJS – Cane Juice Spirit MMS – Matured Malt Spirit HBS – High Bouqut Spirit MRS – Matured Rum SpiritDifferent taxes and levels on sales of spirit levied by UP Excise as followsSPIRIT TYPE INSIDE UP OUTSIDE UPENA Rs. 0.80 / BL Rs. 3.00 / BLRS Rs. 0.80 / BL Rs. 2.50 / BLSDS (With in the State) Purchase Tax – Rs. 0.80 / BL License Fee – Rs. 0.40 / BL Denaturation Fee – Rs. 0.15 / BL (for maximum purchase of 10 lack BL Spirit) 30
Process Of Sales: - Enquiry (Generated by the customer) Consent Letter NOC / Permit through concerned Excise officials of custom Application to Excise Commissioner, Allahabad Allotment (Permit-duty) Sales Done 31
Rampur Distillery enjoys the credit of one of the best suppliers of ENA & RS,since it supplies consistently best quality spirit in India and overseas.Our major customers for ENA, RS, & SDS are: - Balbir Distillery Ltd – Solan Bengali Chemical & Pharmaceuticals – Calcutta Central Distillery & Breweries Ltd – Meerut United spirit Ltd – Rosa United spirit Ltd – Meerut Mohan Meakin Ltd. – Ghaziabad United spirit Ltd – Hyderabad SBL Ltd. – Ghaziabad Trident Alco – Chem Ltd. – Ludhiana UB Group – Bangalore United Distillery – Calicut Ghaziabad Organics Ltd. – Ghaziabad Indian Glycols Ltd. – Kashipur VAMThis department is also responsible for washing and cleaning the tankers of thecustomers for quality satisfaction and dispatch the order with in the time boundframe. 32
SALES DEPARTMENTMr. A Rehman, Joint G.M (logistics & dispatches), Mr.Alok Rastogi & Mr. SanjayKumar saxena (Sr. comm.. officer) looks the sales department. This departmenthandles complete documentation, liasoning with excise officials & documentation,invoice, chalan required for dispatch of IMFL –civil, grain and defense along withseveral kind of spirits like ENA, ETHANOL, VMS etc. Container clearance andstuffing for overseas export is also handled by it.This department also looks into the operation of getting the manufactured goods i.e.IMFL & CL, dispatched to the specific destination inside and outside of U.P. within time bound frame.NAME OF PARTY IN UP1)INDEX FOODS2) AMETHYST TOWN PLANERS3)FLORA AND FAUNA HOUSING4)MAY FAIRSAP MATERIAL CODE USING IN RAMPUR DISTILLERY1001528101389101564104145104146 ETC. 33
TRANSPORTERS WORKING FOR RAMPUR DISTILLERY1) TIME AND SAPACE HAULERS PVT. LTD.DELHI2) SARASWATI TRANSPORT CO. DELHI3) S.P GOLDEN PVT. LTD. MUMBAI4) COSMO CARRYING (PVT)LTD. HYDERABAD.BILL USING IN RAMPUR DISTILLERY FOR IMFL , COUNTRY LIQUOR ANDSTOCK TRANSFER 34
U.P.T.T : RR 0000377 Dt. 14.08.1967 PH. 0595-2353277C.S.T : RR 5000435 Dt. 05.07.1957 DELIEVERY CHALLAN Gram: RADICOTIN NO 09260800001RAMPUR DISTILLERY CHALLAN NO 000003 Date : 03.06.2012(A UNIT OF RADICO KHAITAN LTD) E.C.ORDER NO. 5396 Date : 18.05.2012Regd Office & Works : RAMPUR (U.P.) EXP/FLB 11 PASS NO. 88 Date : 03.06.2012CONSIGNEE:- G.R.NO. 17747 Date : 03.06.2012VIJAY TRADERS FL1-7 Goods Delivered/Despatches Through:-BHOGAON NORTH M/S TASH- DELHISHOLA PUR From RAMPUR To SOLAPUR In Cases 412CST NO-27850601511 CTIN/LST NO-27850601511 V QTY. RATE AMOUNT P A R T I C U L A R S (IN B.L.) RS. P.MASTERSTROKE DW 42.8% 750ML MAHARASTRA 20 1302.89 26057.8MASTERSTROKE DW 42.8% 375ML MAHARASTRA 30 1452.36 43570.8MASTERSTROKE DW 42.8% 180ML MAHARASTRA 304 1400.07 425621.28MASTERSTROKE DW 42.8% 90MLPET MAHARASTRA 58 1350.73 78342.34 TOTAL C/S 412 573592.22RS. FIVE LAC SEVENTY THREE THOUSAND FIVEHUNDRED TOTAL 573592.22NINTY TWO AND TWENTY TWO PAISA ROUNDING OFF +/- 0TRUCK NO-- UP22T-1427 GRAND TOTAL 573592.221. All disputes shall be subject to the jurisdiction at Rampur (U.P.).2. Central Sales Tax charged @ 2% subject to the CST declaration form C/D.3. In case C/D form is not furnished,addictional sales tax alongwith interest as applicablein U.P. shall be charged.E.& O.E. FOR RAMPUR DISTILLERY (A UNIT OF RADICO KHAITAN LTD)Prepared By Checked By AUTHORISED SIGNATORY 35
U.P.T.T : RR 0000377 Dt. 14.08.1967 PH. 0595-2353277C.S.T BOTTLING DEPARTMENT : RR 5000435 Dt. 05.07.1957TIN NO 09260800001 DELIEVERY CHALLAN Gram: RADICORAMPUR DISTILLERY CHALLAN NO 000003 Date : 03.01.09(A UNIT OF RADICO KHAITAN LTD) E.C.ORDER NO. 5396 Date : 18.12.08Regd Office & Works : RAMPUR (U.P.) EXP/FLB 11 PASS NO. 88 Date : 03.01.09CONSIGNEE:- G.R.NO. 17747 Date : 03.01.09VIJAY TRADERS FL1-7 Goods Delivered/Despatches Through:-BHOGAON NORTH M/S TASH- DELHISHOLA PUR From RAMPUR To SOLAPUR In Cases 412CST NO-27850601511 CTIN/LST NO-27850601511 V QTY. RATE AMOUNT P A R T I C U L A R S (IN B.L.) RS. P.MASTERSTROKE DW 42.8% 750ML MAHARASTRA 20 1302.89 26057.8MASTERSTROKE DW 42.8% 375ML MAHARASTRA 30 1452.36 43570.8MASTERSTROKE DW 42.8% 180ML MAHARASTRA 304 1400.07 425621.28MASTERSTROKE DW 42.8% 90MLPET MAHARASTRA 58 1350.73 78342.34 TOTAL C/S 412 573592.22RS. FIVE LAC SEVENTY THREE THOUSAND FIVEHUNDRED TOTAL 573592.22NINTY TWO AND TWENTY TWO PAISA ROUNDING OFF +/- 0TRUCK NO-- UP22T-1427 GRAND TOTAL 573592.221. All disputes shall be subject to the jurisdiction at Rampur (U.P.).2. Central Sales Tax charged @ 2% subject to the CST declaration form C/D.3. In case C/D form is not furnished,addictional sales tax alongwith interest as applicablein U.P. shall be charged.E.& O.E. FOR RAMPUR DISTILLERY (A UNIT OF RADICO KHAITAN LTD)Prepared By Checked By AUTHORISED SIGNATORY 37
Bottling department is the core department of the distillery. Rampur Distillery hasthe best and automated bottling lines to produce potable liquor (IMFL & CL).The bottling department headed by Mr. S K Bhatt (Sr.Mgr.- Mfg.), Mr SatendraPawar (Manager Production), and several other chemists. Bottling Maintenancedepartment is responsible for the proper maintt and functioning of the m/cs and thisdepartment is supervised by Mr.G.B.Singh (Dy. Manager) .There are three bottling hall serving for Civil & Defense Requirement.Bottling HallsCivil Bottling Hall Defense Bottling Hall New Bottling Hall Or Rum HallNew Bottling Hall: -This bottling hall has 4 lines and caters for Country Liquor requirement.Line 1: Type – Fully Automatic Rated Speed – 240 bmp Filling – 40 Heads Sealing – 10 Heads Labeling – 10 HeadsLine 2: Type – Fully Automatic 38
Rated Speed – 180 bmp Filling – 40 Heads Sealing – 8 Heads Labeling – 10 HeadsLine 3: Type – Semi AutomaticLine 4: Type – Semi AutomaticDefense Bottling Hall: -This bottling hall is also called as Rum House, because both 2 lines dedicated toRums i.e. Contessa & Black Cat Rum serving for Defense Requirement.Line 1: Type – Fully Automatic Rated Speed – 240 bmp Filling – 40 Heads Sealing – 8 Heads Labeling – 10 HeadsLine 2: Type – Semi Automatic Filling – 12 Heads Sealing – Semi Auto Sealing 39
Labeling – 10 HeadsCivil Bottling Hall: -This bottling hall consists of 8 lines, Line 1 & 2 for Production of Country Liquor,Line 3, 4, 5, & 6 for IMFL, and Line 7 & 8 dedicated fro 8 PM production in allsize.Line 1 & 2: Type – Fully Automatic Rated Speed – 240 bmp Filling – 40 Heads Sealing – 10 Heads Labeling – 10 HeadsLine 3: Rated Speed – 120 bmp Filling – 20 Heads Sealing – 8 Heads Labeling – ManualLine 4: Rated Speed – 120 bmp Filling – 20 Heads Sealing – 8 Heads Labeling – Automatic 40
Line 5 & 6: Type – Semi Automatic Filling – In line 5 – 12 heads, in line 6 – 6 heads Sealing – Manual Labeling – ManualLine 7 & 8: Type – Fully Automatic Filling – 30 Heads Sealing – 5 Heads Labeling – MultiMaticThere are five important steps in bottling house: 1. Rinsing 2. Filling 3. Inspection: There are 2 visually inspection of the bottles. Firstly the inspection before the filling and secondly after the sealing. 1st Stage: • Foreign particles in bottle • Dirty bottle • Crack in bottle 2nd Stage • Leakage 41
• Proper sealing or not • Half filled or over filled • Without caps • Colour 4. Labeling: - After the inspection of Bottles the labeling are required for the identity of the product such as: Brand name, % of alcohol, Mrp, Batch no., Mfg date area of sale etc 5. Packaging: The last stage in the line is packaging. For packaging we use cartonsSTORE & PURCHASE DEPARTMENTThe store & purchase department headed by Mr. Ajay Sharma (GM Materials), Mr.Sanjay Guru (Dy. Mgr. Mtrls.)Mr. Neeraj Agrawal (Asst. Mgr.-stores). The main function of this department isPurchase, Storage, Availability of materials, Development of vendors andcontinuous co-ordination with all other departments for minimum/ maximuminventory level of storage.Store is a place where all the materials is kept and then distributed to the concerneddepartment on requirement basis.Purchase Department 42
Engineering Purchase Packing Material PurchaseOther than this the purchase department has a vital role in reducing the cost ofproduction by controlling minimum inventory levels, proper check on usage ofmaterial issued to have control on wastages, development of best vendor nearbyand further reducing cost of transportation, Business allocations, Co-ordinationwith accounts department for realization of bill in time.Steps For Purchase: - From consumer department showing the urgency1. Purchase Indent and details of application of material. Generated by stores department to know the rates2. Enquiry and availability of the material in the market. Vendors price rating.3. Quotation4. Comparative Sheet After receiving more than 4 quotations stores prepare comparative sheet showing the details viz rates, specifications and lowest vendor selection 43
list. Looking at the comparative statement lowest and5. Call for Vendor genuine party is called for negotiations. Selection and placing of purchase order, which mentions rates and terms and conditions of6. Purchase Order supply.Steps For Store Management: - • Receive the material at gate along with relevant challan / invoice from supplier. • Inform the concerned user / store personal about arrival of the material. • After verification allow the vehicle to enter inside the premises. • Verify the quantity in challan of vendor against purchase order. • Prepare Material Receipt Note (MRP) and verify the nos. • If any damage is observed at the time record the remarks in MRN. • Inform the QA or concerned user department for verification of the product. • If the material is found nonconforming due to quality or quantity take appropriate action. 44
• Transfer the material to designated location. • Send the original bill and challan to accounts and keep the records. • Receive the issue slip. Issue the material. • Insure adequate stock rotation First In First Out (FIFO) method.GRAIN SPIRIT PLANTGSP department is headed by VP Mr. Devendra Singh, assisted by Mr.RajivRalhan (Sr.Mgr.-prod.), Mr. Satish Kumar (Asst.Mgr – prod.) Mr. Satendra Panwar( Manager-Botling & Prodn.)In grain spirit plant the basic raw material is grains. Grains that are having thestarch are first converted into sugar then alcohol is produced by it.Alcohol produced by grains is of higher quality than the one which is produced bymolasses. The alcohol produced here is exported.In the process, the grains are first grinded and the powder so obtained is mixed withwater, which forms slurry. This slurry is then put into the cooker for cooking wherethe steam is passed at the rate of 8kg/cm square at 190 degree centigrade.Now it is transferred in liquification tank where the temperature is maintained at90 degree centigrade and the yeast (alpha-amylase) is added. Here we get dextrin.Dextrin so obtained is transferred into saccrification tank where the yeast(amyloglucoside) is added. This saccrified slurry is put for fermentation with bakeryeast and leave for about 50 hrs. Hence we get alcohol of 8 – 9 %. 45
Again the 8-9% alcohol obtained is put into amalyser added with steam and we get45-50% of alcohol. GRAIN SPIRIT PLANTThe newly set up grain spirit plant where rectified spirit is extracted from grainsthrough the process of liquefaction and scarificationGrain(starch) Sugar alcoholPowder + water Cooking 125 c liquification 90%Scarification <----------------------------------------------------------- 46
Scarified slurry Baker yeast Fermentor +yeast yeastMolasses + water fermented wash CONCEPT OF LOGISTICS ARRANGEMENTS 47
Logistics is the management of the flow of goods, information and other resources, includingenergy and people, between the point of origin and the point of consumption in order to meetthe requirements of consumers (frequently, and originally, military organizations). Logisticsinvolve the integration of information, transportation, inventory, warehousing, material-handling, and packaging.The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word,calculation, reason, speech, oration").The logistics chain includes the owners (wholesalers & retailers), manufacturers, agents &transportation channels, which an item passes through between initial manufacture & finalpurchase by a consumer. At each stage, goods belong (as assets) to the seller until the buyeraccepts them.Logistics management:Logistics management is that part of the supply chain which plans, implements and controlsthe efficient, effective forward and reverse flow and storage of goods, services and relatedinformation between the point of origin and the point of consumption in order to meetcustomers requirements. A professional working in the field of logistics management iscalled a logistician.Business logistics:Logistics as a business concept evolved only in the 1950s. This was mainly due to theincreasing complexity of supplying ones business with materials and shipping out products inan increasingly globalized supply chain, calling for experts in the field who are called SupplyChain Logisticians. This can be defined as having the right item in the right quantity at theright time at the right place for the right price and is the science of process and incorporatesall industry sectors. The goal of logistics work is to manage the fruition of project life cycles,supply chains and resultant efficiencies. 48
In business, logistics may have either internal focus (inbound logistics), or external focus(outbound logistics) covering the flow and storage of materials from point of origin to point ofconsumption (see supply chain management). The main functions of a qualified logisticianinclude inventory management, purchasing, transportation, warehousing, consultation and theorganizing and planning of these activities. Logisticians combine a professional knowledge ofeach of these functions so that there is a coordination of resources in an organization. Thereare two fundamentally different forms of logistics. One optimizes a steady flow of materialthrough a network of transport links and storage nodes. The other coordinates a sequence ofresources to carry out some project.Production logistics: The term is used for describing logistics processes within an industry. The purpose ofproduction logistics is to ensure that each machine and workstation is being fed with the rightproduct in the right quantity and quality at the right point in time.The issue is not the transportation itself, but to streamline and control the flow through thevalue adding processes and eliminates non-value adding ones. Production logistics can beapplied in existing as well as new plants. Manufacturing in an existing plant is a constantlychanging process. Machines are exchanged and new ones added, which gives the opportunityto improve the production logistics system accordingly. Production logistics provides themeans to achieve customer response and capital efficiency.Production logistics is getting more and more important with the decreasing batch sizes. Inmany industries (e.g. mobile phone) batch size one is the short term aim. This way, even asingle customer demand can be fulfilled in an efficient way. Track and tracing, which is anessential part of production logistics - due to product safety and product reliability issues - isalso gaining importance especially in the automotive and the medical industry. 49
CONCEPT OF SUPPLY CHAIN MANAGEMENTSupply chain management (SCM) is the process of planning, implementing and controllingthe operations of the supply chain as efficiently as possible. Supply Chain Management spansall movement and storage of raw materials, work-in-process inventory, and finished goodsfrom point-of-origin to point-of-consumption.The definition of Supply Chain Management encompasses the planning and management ofall activities involved in sourcing, procurement, conversion, and logistics managementactivities. Importantly, it also includes coordination and collaboration with channel partners,which can be suppliers, intermediaries, third-party service providers, and customers. Inessence, Supply Chain Management integrates supply and demand management within andacross companies. More recently, the loosely coupled, self-organizing network of businessesthat cooperates to provide product and service offerings has been called the ExtendedEnterprise.Supply chain management must address the following problems: • Distribution Network Configuration: Number, location and network missions of suppliers, production facilities, distribution centers, warehouses, cross-docks and customers. • Distribution Strategy: Including questions of operating control (centralized, decentralized or shared); delivery scheme (e.g., direct shipment, pool point shipping, Cross docking, DSD (direct store delivery), closed loop shipping); mode of transportation (e.g., motor carrier, including truckload, LTL, parcel; railroad; intermodal, including TOFC and COFC; ocean freight; airfreight); replenishment strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, private carrier, common carrier, contract carrier, or 3PL). • Information: Integration of and other processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, and potential collaboration etc. 50
• Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods. • Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain.Supply chain execution is managing and coordinating the movement of materials, informationand funds across the supply chain. The flow is bi-directional.Activities/functionsSupply chain management is a cross-functional approach to managing the movement of rawmaterials into an organization, certain aspects of the internal processing of materials intofinished goods, and then the movement of finished goods out of the organization toward theend-consumer. As organizations strive to focus on core competencies and becoming moreflexible, they have reduced their ownership of raw materials sources and distributionchannels. These functions are increasingly being outsourced to other entities that can performthe activities better or more cost effectively. The effect is to increase the number oforganizations involved in satisfying customer demand, while reducing management control ofdaily logistics operations. Less control and more supply chain partners led to the creation ofsupply chain management concepts. The purpose of supply chain management is to improvetrust and collaboration among supply chain partners, thus improving inventory visibility andimproving inventory velocity.The management components of SCM (Supply Chain Management)The SCM components are the third element of the four-square circulation framework. Thelevel of integration and management of a business process link is a function of the numberand level, ranging from low to high, of components added to the link (Ellram and Cooper,1990; Houlihan, 1985). Consequently, adding more management components or increasingthe level of each component can increase the level of integration of the business process link.The literature on business process reengineering, buyer-supplier relationships and SCMsuggests various possible components that must receive managerial attention when managing 51
supply relationships. Lambert and Cooper (2000) identified the following components whichare: • Planning and control • Work structure • Organization structure • Product flow facility structure • Information flow facility structure • Management methods • Power and leadership structure • Risk and reward structure • Culture and attitudeReverse Supply Chain Reverse Logistics is the process of planning, implementing andcontrolling the efficient, effective in bound flow and storage of secondary goods and relatedinformation opposite to the traditional supply chain direction for the purpose of recoveringvalue or proper disposal. Reverse logistics is also referred to as "Aftermarket CustomerServices". In other words, anytime money is taken from a companys Warranty Reserve orService Logistics budget that is a Reverse Logistics operation. Project Work Undertaken 52
Objectives of the StudyThe major objective of the study were Primary objective To study logistic handling procedures. To do a comparative market study of different brands To study the main factors affecting the logistic services , communication pattern between the two and in the dealer network, transport services Secondary objectives How should orders be handled? (Order Processing) Where should stocks be located? (Warehousing) How much stock should be held. (Inventory) How should goods be shipped? (Transportation) LOGISTICS SERVICES:Market LogisticsPhysical distribution starts at the factory. Managers choose a set of warehouses (stockingpoints) and transportation carriers that will deliver the goods to final destinations in thedesired time or at the lowest total cost. Physical distribution has now been expanded into thebroader concept of supply chain management (SCM). Supply chain management startsbefore physical distribution: It involves procuring the right inputs (raw materials, components, 53
and capital equipment); converting them efficiently into finished products; and dispatchingthem to the final destinations. The supply chain perspective can help a company identifysuperior suppliers and distributors and help them improve productivity, which ultimatelybrings down the company’s costs. Mission of the DepartmentTo make all Logistic arrangements with full compliance of law and procedures includingquality standards as laid down from time to time and to ensure full satisfaction of allcustomers both internal with safe delivery.INTERNAL WORKING MANUALThe internal working of the Logistics Department can mainly be understood as:1) Objective of the jobs:Objective of the jobs can be divided into its three defended categories. Thesecategories are as follows:A) Receiving of goods: The receiving of finished goods (LIQUOR)by the department includes following things. Size / Pattern / Quality: Different types of size of case as 750ml, 375ml, 180ml,90ml different patterns and various types of brands, which are manufactured by the company, are received by this logistics department. 54
(ii) Quantity: The quantities of finished goods i.e. liquor are measured in terms of number of units. Findings PROCEDURES OF THE DEPARTMENT Procedure Of Handling Logistic Headquarter [Headquarter sends weakly dispatch schedule] Production Finished Raw Go m Quality Checking [Warehouse located in the company] WarehouseNepal ExportRoad Transportation 55
Export Quality Co Sales Depot [Under the company]Comparative Study – LIQUER MARKET.1-UB GROUP2-SEGRAM CO.Sales Channel of Replacement MarketSales Channel of Replacement Market of RADICO follows a following pattern .: Rampur distillery FL2 Agents Depots RETAILERS End Customers Sub - DealersTransportation MeansRAMPUR DISTILLARY Plant mostly uses trucks as transport means to deliver finishedgoods through depots to FL2 dealers. 56
Findings in Depot & Dealer Network • Dealers receives good concession/ discounts to get profit • An active supply chain is maintained between depots, C/F Agents and dealers to meet urgent requirements of end consumers • Dealers prefer unconditional warranty scheme goods as they are highly demanded in the market. • Dealers get goods from depots on credit basis through SAS scheme. • Dealers enjoy market reputation of R.D..Market Position of RADICOIN THE LIQUER MARKET OUR POSION IS VERY GOOD WE ARE ON SECONDNUMBER. AFTER U.B.GRUPObservations Company is already maintaining the JIT (Just in time) delivery system with various transportation arrangements. However due to resource constraints in transport arrangements and other local hassle of road conditions. It is being met 57
with little higher cost. Market requirement and original equipment requirement do fluctuate due to there own reasons like production fluctuation, change in dispatch schedule. Due to which the logistic arrangements are required for frequent review and arrangements. The order schedule is given by the head office (Delhi). Due to some urgent order or some specific requirements the dispatches are delayed. Some time the consumption and a production cycle is not matched. Unconditional warranty is favorable & convincing to the customer. Dealers have active communication with RADICO management. Replacement policy of RAMPUR PLANT is convincing to dealers.Suggestions The company should give some special offers or discounts to the dealers which could increase the sales of RADICO in the region, as dealers were found to have high convincing power which could influence the buyer. To avoid delay in dispatch RADICO RAMPUR plant should have provisions to fulfill urgent & special requirements. The company should take some efforts to make effective transportation arrangements. Because it affect production pricing, on-time delivery performance and customer satisfaction. The company should centralized inventory in one place and use fast transportation to fulfill orders. It reduces warehousing and inventory duplication cost. 58
The company should shorten the order-to-payment cycle i.e. elapsed time between order’s receipt, delivery and payment. The company should manage effective logistics information management because it helps to link channel partners and share information to make better logistics decisions. Information flows such as customer’s orders, billing, inventories labels and customer data are closely linked with channel performance. DAVENDRA VATSAL MBA (B.E_) GURUKUL KANGRI VISHVIDWALYA HARIDWAR (U.K) 59
QuestionnaireTO STUDY & ANALYSE DEALERS OF RADICO & LOGISTIC SERVICESPROVIDED BY RAMPUR DISTILLERY TO THE DEALERSThis survey is conducted in order to study the main factors affecting the logistic services provided by R.D. to thedealers through their depots / C &F Agents, communication pattern between the two and in the dealer net work ,transport services and the after sales services of R.D.. Please give your valuable answer to the questionnairegiven below. The study is purely academic in nature and the information provided by you would be keptconfidential. QUESTIONNAIRE: 1. Do you have an active communication with Radico management? a) If yes, what is the mode of communication _________ b) If no, what mode of communication would you prefer? 60
2. The goods which are ordered are been timely arrived?Yes No3. The means of transport used?4. Are there any damages due to transport?Yes Noa) If yes, what type of damage is it ________b) How often these types of damages occur. _________5. What is the cycle time of the goods i.e. the time after which the goods are next ordered?6. What is the no. of order cycles/ year i.e. the no. of times the ordered is been made?7. Damaged goods are been timely replaced by radico brands? (End consumer, Retailer)Yes No8. How quickly does it take to respond to a change in demand to a customer?< 1 week <2 week 2-4 weeks 1month9. Is your urgent requirement is fulfilled by Radico on time? (stock availability) 61
10. Specify the product which are most demanded in the market.11. Do you receive goods from other competitive firms too?a) Name of the firmsb) Are you satisfied with pricing policy of Radico as compared to other firms?12. How much discount do you get from the of each of the variants that you stock?13. Suggestions which could help in increasing your profitability. 62
Bibliography BibliographyKotler Philip; Marketing Management; Prentice-Hall of India Private Limited; NewDelhi; 2001Saxena Rajan; Marketing Management; Tata McGraw-Hill, New Delhi; 2002Jhamb L.C.; Material and Logistics management; Everest Publishing House; Pune;2000Beri G.C.; Marketing Research; Tata McGraw-Hill, New Delhi; 2000Nargundkar Rajendra; Marketing Research; Tata McGraw-Hill, New Delhi; 2004RADICO World Web Site; www.radico.comWebsite: www.indiainfoline.com 63