This document discusses Bisleri's PET bottle supply chain and options to make or buy bottles. It provides an overview of the PET bottle industry, manufacturing process, and costs associated with in-house bottle production equipment versus outsourcing. Integrating bottle production could reduce costs, increase control over inputs, and create barriers to entry for competitors, but maintaining production in-house is more expensive at Rs. 4-5 per bottle compared to outsourcing for 80 paise. An decision must consider costs as well as opportunities for differentiation and expanding competencies.

1. PET BOTTLES for BISLERI

2. Present supply chain

3. Present Supply Chain

4. Backward Integration

5. Pet Bottles Industry Overview
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Introduction
Market
Raw Material
Manufacturing process
Technology
Investment

8. Make or Buy
During 1980 Bisleri adopted PET bottle concept
Due to it features
• Environment friendly
• Cost effective
• Increased competition
Manufacturing process
Blowing
Rinsing
Filling
Capping
Labeling

9. Make or Buy
Particulars Labeling
machine
Capacity
Cost
Water purification plant .
5000 lt.
20 lac.
Automatic blowing
machine
4000 BPH
45-50. lac.
Automatic filler
4000 BPH
40 lac.
Labeling machine
4000 BPH
20 lac.
• In house per bottle manufacturing cost is Rs 4-5.
• Outsourcing cost in case of high demand is 80 paise provided with Raw
material.

10. Advantages
• Reduce transportation costs if common ownership results in closer geographic
proximity.
• Provide more opportunities to differentiate by means of increased control over
inputs.
• Capture upstream or downstream profit margins.
• Increase entry barriers to potential competitors
• Gain access to downstream distribution channels that otherwise would be
inaccessible.
• Facilitate investment in highly specialized assets in which upstream or
downstream players may be reluctant to invest.
• Lead to expansion of core competencies.

11. Thank you!