This report summarizes Bisleri International's material costing and strategies to reduce costs. It provides an overview of the company and its products. Material costs typically represent 65-70% of production costs. The report analyzes Bisleri's material costing methodology and identifies areas for cost reduction, including labor costs, vendor selection, inventory management, and procurement savings. It recommends opportunities like price restructuring, periodic purchasing during price lows, and perpetual inventory tracking to optimize material management and lower costs. Effective material control and cost reduction are crucial to ensure steady supply and production for the company.

1. A Report
on
Material Costing & Cost Reduction
In
BISLERI INTERNATIONAL PVT. LTD.
Submitted By –
Shakshi panwar
MBA 3rd sem
Submitted To –
Mrs. Smriti sharma

3. Company Profile
• Bisleri, an Italian mineral water company created by Bisleri
feliece , was launched in India in the year 1965 .
• Mr. Ramesh Chauhan is the current M.D of Bisleri
international pvt. Ltd.
• Head quarter – Mumbai.
• Current turnover of Bisleri – 250 crores .
• The slogan of Bisleri is – “The sweet taste of purity”.
• Brand color – blue

4. • Mission- have world class quality, at the lowest production
and distribution cost.
• Vision- the dominant player in the branded water business
where the second player is less than 20% of our business.
• Bisleri Powered by 17 owned plants, 33 co-packers, 11
franchisees and a wide distribution India ,bisleri is at the
center of the aqua green revolution.
• Bisleri use ERP software for all the material received and
issued .
• FIFO method is used by bisleri for costing of material .
• Bisleri is launching a cold drink after 23 years .
• PET used for filling bottles. Pet is safe for storing water.

5. Products are as follows –
• Bisleri mineral added mountain
water
• Urzaa an energy drink
• Bisleri Soda
• Vedica mineral water

7. • The report title “Material costing & cost reduction”
deals with optimum utilization of material with the
resources available in the company.
• This project report explains - to identify cost drivers,
manage vendor selection. material is the main component in
manufacturing project .
• PROJECT Objective - The purpose of the project is to
study in the different areas of cost reduction.

8. Material costing :
• The material costs form probably the highest proportion
of the total cost.
• The term material is a very broad term and could include:
Direct material
Indirect material
• To maintain a proper availability of raw material there is a
need for a proper material management .

9. • The percentages of costing may differ from industry to
industry, but for the manufacturing sector material costs are
of greatest significance .
• In accounting terms, material costing involves the
determination of the cost of material acquired, the cost of
material issued and the cost of the inventory .
• The raw materials include-
Preform , caps, cartons, handles , tapes, labels, holosleves ,
glue.

10. Material costing = Direct material + Direct labor + Factory overhead

11. Cost reduction :
• Cost reduction is a planned positive approach to reduce
expenditure incurred.
Cost reduction in following critical areas are-
• By Design
• By fully utilization in factory layout and equipment.
• By changing and improving the plant and machinery in
the production plant.
• By proper utilization in utility services.
• By proper investing of funds.
• By timely availability of the resources.

12. FINDINGS AND RECCOMENDATION
According to my investigation, the major areas of
weakness are :
• Reduction the labor cost
• Revising the prices of amount and selection of vendor.
• Reducing prepayments and perhaps increasing
inventory levels.
• Lack of planning
• Problem of funds

13. • All the work done here through ERP.
• The FIFO method is used by the company.
• Warehouse problem
• High freight cost
• Need for procurement savings in manufacturing of a
product because in some cases losses are coming and it is
one of the main part & plays an important role in a
manufacturing company.
• Careful designs and arrangements of storerooms can result
in significant cost savings.

14. • Price restructuring should be carried out.
• It is recommended for the opportunity buying which is help
in purchasing of raw material has a seasonal cycle of prices
as they peak and fall in intervals. Hence we can book
maximum amount of our requirement when prices are low.
• Use of perpetual inventory method instead of physical
counting is recommended.
• The good planning should be to order in just the right
quantities so that the situation of over-stocking or under-
stocking is avoided.

15. CONCLUSION
• Control over materials is very necessary to assure a steady
supply of each item of material. Materials represent nearly
65-70% of the costs of production .
• cost reduction is an effective tool that can be responsive to a
company’s need.
• Importance of cost reduction strategies never changes.
• material management is very necessary and the main aim of
material management should be to get right quality of a
product; to get right quantities of supply; and to get right
time with the reasonable price.