2. OVERVIEW
Varun Beverages Limited (‘VBL’) is a private company, which holds franchise rights
for PepsiCo for the manufacturing and bottling of various Pepsi products.
It is the second largest franchisee in the world (outside US) of carbonated soft drinks
(“CSDs”) and non-carbonated beverages (“NCBs”) sold under trademarks owned by
PepsiCo and a key player in the beverage industry
It produce and distribute a wide range of CSDs, as well as a large selection of NCBs,
including packaged drinking water.
It is part of the RJ Corp group, a diversified business conglomerate with interests in
beverages, quick-service restaurants, dairy and healthcare.
Its association with PepsiCo is over two and a half decade old with quite a number of
PepsiCo licensed territories and sub-territories covered by them, including the
production and distribution of a range of PepsiCo beverages.
3. KEY PLAYER IN THE BEVERAGE
INDUSTRY
Production optimization
Other raw
materials
Bottling
Concentrat
e
(PepsiCo)
MANUFACTURING
DISTRUBUTION &
WAREHOUSING
CUSTOMER
MANAGEMENT
IN-MARKET EXECUTION
COST EFFICIENCIES
CASH MANAGEMENT
21 state-of-the-art production facilities
71 owned depots
2,024 owned vehicles
1,186 primary distributors
VBL - local level promotion and in-store activation
Installed 458,000 visi-cooler
PepsiCo - brand development & consumer marketing
Experienced region-specific sales team
Responsible for category value/volume growth
Production optimization
Backward integration
Innovation (packaging etc)
Working capital efficiencies
Disciplined capex investment
Territory acquisition
SOLID
INRASTRUCTURE
ROBUST SUPPLY
CHAIN
DEMAND
DELIVERY
MARKET SHARE
GAINS
MARGIN
EXPANSION
FUTURE
GROWTH
4. COMPANY STRUCTURE
The Company chairperson is “RAVI KANT JAIPURIA”
• Organizational structure of company is a multi divisional
structure.
• The Board of company have 10 members consisting the chairman,
4 whole-time directors and 5 independent directors.
• The company tries to maintain the most effective combination of
wholetime and independent directors.
Chairman :- Ravi Kant Jaipuria
Whole-time Directors :-
1. Varun Jaipuria
2. Raj Pal Gandhi
3. Kapil Agarwal
4. Rajinder Jeet Singh Bagga
Independent Directors:-
1. Dr. Naresh Trehan
2. Pradeep Sardana
3. Dr. Ravi Gupta
4. Rashmi Dhariwal
5. Sita Khosla
5.
6. EMPLOYEES MOTIVATION
Employee motivation is a critical aspect at the workplace which leads to the performance of the
department and even the company.
Motivated employees can lead to increased productivity and allow an organisation to achieve
higher levels of output.
For motivation, VBL awards its employees with monetary as well as non-monetary incentives.
Monetary incentives include:
Pay raise
1. Bonuses
2. Retirement Benefits
3. Health Insurance
4. Travel allowances
Non-Monetary incentives include:
Recognition
Flexibility
Extra work leaves
7. SOURCE OF RECRUITMENT
Internal Sources:-
• Transfer of employees.
• Promotion of employees.
• Retired Employee.
• Relatives of working and retired employees.
External Sources:-
• Advertisements.
• Educational Institutes.
• Referral of Employees.
• Working Interns
8. RECRUITMENT PROCESS
Vacancy Identification
• It is work of manager to identify the vacancy and report it to the concerned HR
department as soon as possible.
• HR will review the ways of how to fill the vacancy in best proper way for the company.
Job Specification
• HR and the Department head in which vacancy is there decides the job description.
9. Written Applications
• CV’s of candidate ,who applied online or through applications, are verified and screening is done
considering aspects like vacancies and time constraint.
• Sometimes aptitude test is also considered is number of applicants is high.
Screening
• Applicants are then checked if they have the specialized skills required for the vacancy.
Interview rounds
• Interview comprises of different rounds such as technical and HR.
• Interview panel is made depending upon the vacancy.
The applicants who qualifies all these rounds are selected and employment offer is given to them.
If the candidates agrees, he/she is hired and a date of joining is given to them to start working.
10. TRAINING POLICIES
• Training and Development of the employees is driven by the top leadership.
• Inductive session for the new employees are conducted, which covers the guidelines of the
company.
• It is emphasized that the needs of the employees are aligned with organization goals.
• Technical training session are organized for employees to keep them updated of technological
advancements in their respective fields.
11. PROMOTION POLICIES
VBL follows a set of rule made by the board for the promotion of employees. The criteria of
promotion are:-
• Length of service of employee.
• Performance and potential of the employee.
• Tenure in particular position.
With promotion, Transfer is also done of the employee either in department or in some other
facility in another area.
12. FINANCIAL STATEMENT
After every quarter and year VBL releases their financial report which compromises
factors like: -
• Revenue from sales of goods
• Foreign services income
• Rent Income.
• Borrowing cost on acquisition of properties.
• Various Tax expenses
13.
14.
15. BUSINESS ENVIRONMENT AND
COMPETITOR ANALYSIS
• In a marketing environment, a competitor analysis is a crucial part of a business’s overall
strategy and should include a thorough assessment of the strengths, weaknesses, opportunities
and threats of current and prospective competitors as well as the political, economic and
technological influences that affect the way in which a business competes.
• A PESTEL analysis or more recently named PESTELE is a framework or tool used by
marketers to analyse and monitor the macro-environmental (external marketing environment)
factors that have an impact on an organisation. The result of which is used to identify threats
and weaknesses which are used in a SWOT analysis.
16. PESTEL ANALYSIS
Political factors:-
• Have to comply by
standard laid out by
FDA.
• Corporate tax will be
reduced to 25%, which
was 35% before,
allowing to have more
cash at disposal
Economic factors: -
• Inflation in country will
result in less sales.
• Depreciation of rupee
will increase the cost of
product imported from
other countries, this will
make company to rise
their goods value.
Social factors: -
• People shifting towards
healthy food can result in
decreased sale.
• Pesticide in cola uproar of
2003 have effected the
sale, then company started
to put ‘one quality
worldwide’ stamps.
Technological factors: -
• Streamlined their R&D
process using machine
learning and data
analysis.
• Increase marketing by
entering the social
media.
Environmental factors: -
• Sustainable ways are
adopted due to environment
conscious consumer base.
• Using plastic in packing is
necessary for the company
and it gives bad impression.
Legal Factors: -
• Has to navigate through
government regulations.
• Copyright infringement needs
to tackle on regular basis.
• Change in labor laws have
caused the problems in the past.
17. SWOT ANALYSIS
It is a proven management
framework which enables a
company to benchmark its business
and performance.
18. CORPORATE SOCIAL RESPONSIBILITIES
• The Board of Directors of Varun Beverages Limited (“the Company”) constituted the “Corporate
Social Responsibility Committee” at their Meeting held on 20th March, 2015 with immediate
effect, consisting of three (3) Directors of which one is an Independent Director.
• In every financial year, the Company shall spend at least two per cent of the average net profits
of the company made during the three immediately preceding financial years.
• Current members of CSR committee are Ravi Kant Jaipuria(Chairman), Rajpal Gandhi(Member)
and Rashmi Dhariawal(Member).
19. CSR ACTIVITIES TO BE UNDERTAKEN BY
THE COMPANY
Eradicating hunger, poverty and malnutrition, promoting health care including preventive
health care and sanitation.
Promoting education, including special education and employment enhancing vocation
skills especially among children.
Promoting gender equality, empowering women, setting up homes and hostels for women
and orphans.
Ensuring environmental sustainability, ecological balance, protection of flora and fauna,
animal welfare.
Protection of national heritage, art and culture including restoration of buildings and sites of
historical importance.
Rural development projects.
Slum area development.
20. CSR ACTIVITIES
• 2.4 Crores Rupees Donated to Champa Devi Jaipuria Charitable trust towards Contribution
for “Shiksha Kendra” for education of poor and underprivileged children.
• 60 Thousand Rupees Donated to Diagno Labs Private Limited for free health check-ups in
the same area in which “Shiksha kendra” were operating.
• An activity named The free school under the Yamuna metro bridge which teaches hundreds
of poor children who live in shacks & hutments dotting the banks of the Yamuna.
• Donated 50 sets of tables & chairs to School under the Tree- Gaurav Foundation, which
teaches children in age group of 5-16 for free.
21. MARKETING
As VBL makes their products under the name of Pepsi, their marketing is also done
under the same name.
Energy drink
Sports drink
Ice Tea
Drinking water
Ambient Temperature value-added diary Beverages
Fruit pulp / Juice-based drinks
22. VBL – Demand Delivery
Investment in Production
Facilities – manufacturing plants
Sales & Distribution – Vehicles
In-outlet Management – Visi-
Coolers
Market Share Gains –
Consumer Push Management
Owner of Trademarks
Investment in R&D
Product & Packaging
innovation
Concentrate Supply
Brand Development –
Consumer Pull Management
25 yrs +
Association
45% of
PepsiCo India
Sales Volume
in 2019
PepsiCo – Demand Creation
23. TARGETED CUSTOMERS
• Mirinda advertisements presents it as a family product.
• Pepsi advertisements shows it as thing between friends.
• 7up is an aerated drink for parties and special occasions.
• Mountain dew targets people who embrace excitement, adventure and fun.
24. CAMPAIGNS
• Pepsi tied up with Swiggy under a campaign named “save our restaurants”.
• Pepsi advertised with a tag line “har ghoot mein swag hai” meaning swag to each
sip.
• Mirinda advertised with tagline “pagalpanti” and “release the pressure”.
• Pepsi was also associated with Rendezvous, which is the annual cultural festival of
Indian Institute of Technology Delhi.