PROJECT REPORT

INVENTORY MANAGEMENT
AT
COCACOLO, HYDERABAD
MASTER OF BUSINESS ADMINISTRATION

Submitted by

(Student Name)

HT NO: 21WJ1E****

Under the Guidance of

Mr. K. SANDEEP REDDY

ASSISTANT PROFESSOR

School of Management studies

GURUNANAK INSTITUTIONS TECHNICAL CAMPUS

(Autonomous)
 INDEX

PAGE
CHAPTER CONTENTS
NO.
INTRODUCTION
 Objectives of the study

CHAPTER - I  Need for the study

 Scope of the study

 Research Methodology

CHAPTER -
REVIEW OF LITERATURE
II
CHAPTER -
COMPANY PROFILE
III
CHAPTER -
THEORETICAL FRAMEWORK
IV
CHAPTER - DATA ANALYSIS &
V INTERPRETATION
 Findings
CHAPTER -
 Suggestion
VI
 Conclusion
Annexure / Questionnaire
 Abstract
With the ongoing revolution in electronic and communication where Innovations are taking at
the blink of eye; it is impossible to keep the pace with the emerging trends.

Excellence is an attitude that that whole of human race is born with. It is the environment that
makes sure that whether the result of this attitude is visible or otherwise. A Well planned,
properly executed and evaluated Industrial training helps a lot in inculcating a professional
attitude. It provides a linkage between the student and industry to develop an awareness of
industrial approach to problem solving, based on a broad understanding of process and
mode of Inventory of organization.

During this period, the student gets the real experience for working in the actual Industry
environment. Most of the theoretical knowledge that has been gained during the course of
their studies is put to test here. Apart from this the student gets an opportunity to learn the
latest technology , which is immensely helps in them in building their career .

I had the opportunity to have a real experience on many ventures, which increased my sphere
of knowledge to great extent. I got a chance to learn many new technologies and was also
interfaced to many instruments. And all this credit goes to organization.
 CHAPTER – I
INTRODUCTION
Inventory management is primarily about specifying the size and placement of stocked
goods. Inventory management is recurred at different locations within a facility or within
multiple locations of a supply or network to protect the regular and planned course of
production against the random disturbance of running out of materials or goods. The scope of
Inventory management also concerns the fine lines between replenishment lead time, carrying
costs of inventory, asset management, Inventory forecasting, physical inventory, available
physical space for Inventory, quality management, returns and defective goods and demand
and forecasting.

Types of inventory

Normally the inventory has divided into two types. These,

1. Merchandising inventory,
2. Manufacturing inventory.
The manufacturing inventory has been subdivided into three types. These,
1. Raw materials,
2. Work in process,
3. Finished goods.
 Raw materials: Everything the crafter buys to make the product is classified as raw
materials. That includes leather, dyes, snaps and grommets. The raw material
inventory only includes items that have not yet been put into the production process.
 Work in process: This includes all the leather raw materials that are in various stages
of development. For the leather crafting business, it would include leather pieces cut
and in the process of being sewn together and the leather belts and purse etc. that are
partially constructed.

In addition to the raw materials, the work in process inventory includes the cost of the
labor directly doing the work and manufacturing overhead. Manufacturing overhead is
a catchall phrase for any other expenses the leather crafting business has that indirectly
relate to making the products. A good example is depreciation of leather making fixed
assets.
  Finished goods: When the leather items are completely ready to sell at craft shows or
other venues, they are finished goods. The finished goods inventory also consists of
the cost of raw materials, labor and manufacturing overhead, now for the entire
product.

INVENTORY MANAGEMENT

Every enterprise needs inventory for smooth running of activities. It serves, as a link between
production and distribution. For every process there is, generally, a time lag between the
recognition of a need and its fulfillment. The greater the time lag, the higher the requirement
for inventory. The unforeseen fluctuations in demand and supply of goods also necessitate the
need for inventory. It provides a cushion for future price fluctuations.

The investment in inventories constitutes the most significant part of current assets/working
capital in most of the undertakings. Thus, it is very essential to have proper control and
management of inventories. The purpose of inventory management is to ensure availability of
materials in sufficient quantity as and when required and also to minimize investment in
inventories.

The investment in inventory is very high in most of the undertakings engaged in

manufacturing, wholesale and retail trade. In India, a study of 29 major industries has revealed
that the average cost of materials is 65paise and the cost of labour is 10 paise and overheads is
15paise of a rupee, 10%is profit. It is necessary for every management to give proper attention
to inventory management. A proper planning of purchasing, handling, storing and accounting
should form a part of inventory management.

An efficient system of inventory will determine,

• What to buy
• How to buy
• Where to buy
• Where to store
There are conflicting interests of different departmental heads over the issue of inventory. The
finance manager will try to invest less in inventory because to him it is an idle investment,
where as production manager will emphasis to acquire more inventory as he does not want
any interruption in production due to shortage of inventory. The purpose of inventory
management is to keep the stocks in such a neither way that there is over-stocking nor under-
stocking. The over-stocking will mean a reduction of liquidity and starving of other
production processes whereas under-stocking, on other hand, will result in stoppage of work.
The investments in inventory should be kept in reasonable limits.

MEANING AND NATURE OF INVENTORY

There are different meanings of inventory in different languages. In accounting language it
may mean stocks of finished goods only. In a manufacturing concern, it may include raw
materials; work in process and stores, etc., to understand the exact meaning of the work
“inventory”
Inventory may include the following things:

1. RAW MATERIALS:
Raw materials form a major input into the organization. They are required to carry out
production activities uninterruptedly. The quantity of raw materials required will be
determined by the rate of consumption and the time required for replacing the supplies. The
factors like the availability of raw materials and government regulations, etc., too affect the
stock of raw materials.

2. WORK-IN-PROGRESS:
The work-in-progress is that stage of stocks, which are in between raw materials and finished
goods. The raw materials enter the process of manufacturing but they are yet to attain a final
shape of finished goods. The quantum of work-in-progress depends upon the time taken in the
manufacturing process. The greater the time taken in manufacturing, the more will be the
amount of work-in-progress.

3. CONSUMABLES:
These are the materials, which are needed to smoothen the process of production. These
materials do not enter directly into production but they act as catalysts. Consumables may be
classified according to their consumption and criticality. Generally, consumables stores do not
create any supply problem and form a small part of production cost. There can be instances
where these materials may account for much value than the raw materials. The fuel oil may
form a substantial part of the cost.

4. FINISHED GOODS:
These are goods, which are ready for the consumers. The stock of finished goods provides a
buffer between production and market. The purpose of maintaining inventory is to ensure
proper supply of goods to the customers. In some concerns the production is under taken on
order basis. In these concerns there will not be a need for finished goods inventory. The need
for finished goods inventory will be more when production is undertaken in general without
waiting for specific orders.
5. SPARES:
Spares also form a part of inventory. The consumption pattern of raw materials, consumables,
finished goods are different from that of spares. The stocking policies of spares are different
from industry to industry. Some industries like transport will require more spares than the
other concerns. The costly spare parts like engines, maintenance spares etc., are not discarded
after use. Rather they are kept in ready positions for further use. All decisions about spares are
based on the financial cost of inventory on such spares and the cost that may arise due to their
non-availability efficiency, aggressively expand its reach to customers, continue to invest in
brand building activities and ensure customer and shareholder delight.
NEED FOR THE STUDY

• Inventory management helps companies identify which and how much stock to order
at what time.
• It tracks inventory from purchase to the sale of goods.
• The practice identifies and responds to trends to ensure there's always enough stock to
fulfill customer orders and proper warning of a shortage
SCOPE OF THE STUDY
• The scope of an inventory system can cover many needs, including valuing the
inventory, measuring the change in inventory and planning for future inventory levels.
• The value of the inventory at the end of each period provides a basis for financial
reporting on the balance sheet.
OBJECTIVES OF THE STUDY

 To study the inventory management followed in Hindustan coca cola beverages ltd
.

 To identify the existing inventory management and its effectiveness.

 To calculate analysis for their performance in inventory management.

1.5 RESEARCH METHODOLOGY
1.5.1 RESEARCH DESIGN
The Descriptive type of research has been applied in the study. In this research the
researcher has no control over the variables. He only reports what has happened or what is
happening. The research can only discover causes but cannot control the variables.
1.5.2 DATA COLLECTION
This study purely based on secondary sources of information. The necessary data
calculated from annual report, books, journals and websites.
1.5.3 PERIOD OF STUDY
This study covers a period of five years from 2016 – 2019. The accounting year
commenced from April and ending with March of the next year.
1.5.4 AREA OF STUDY
This study was conducted in Hindustan coca cola beverages ltd pvt.ltd Ranaga Reddy.

1.5.5 TOOLS FOR ANALYSIS

The following tools have been applied in the present study.
They are listed below
 Ration analysis (inventory) and
 EOQ analysis

1.5.5.1 RATIO ANALYSIS (INVENTORY)

The percentage of a mutual fund or other investment vehicle's holdings that have been "turned
over" or replaced with other holdings in a given year. The type of mutual fund, its investment
objective and/or the portfolio manager's investing style will play an important role in
determining its turnover ratio.

1.5.5.2 ECONOMIC ORDER QUANTITY (EOQ)

Economic order quantity is that level of inventory that minimizes the total of
inventory holding cost and ordering cost. The framework used to determine this order quantity
is also known as Wilson EOQ Model. The model was developed by F. W. Harris in 1913.The
most economical quantity of a product that should be purchased at one time. The EOQ is
based on all associated costs for ordering and maintaining the product. EOQ refers to the size
of the order which gives maximum economy in punches of materials.

EOQ=
√ 2 Ao
C1
Where
A=Annualusageinunit
O=Orderingcost
C 1=Carriyingcost
LIMITATIONS OF THE STUDY

• The inventory details of company are collected for 5 years only

• The information taken from the company was limited
• In this study only limited ratios are used
 CHAPTER – II
REVIEW OF LITRAURE

Amrit Raj has reported that beverage industry is a focusing on technology revamp by having
tie ups with US based EBR racing and with Austria based engine maker AVL these moves are
with an ultimate aim to extend arm in R&D as the company has decided not to run the
existing brands on Honda engines.

Abhijeet Singh and Brijesh Kumar has mentioned that Hero Motors Ltd, is running a
program With an objective to create an innovative environment for interaction between Hero
Honda and its customers. Members of this program are given a magnetic card in which all
information is stored and this card is swiped when using any service at a showroom or
workshop and it works like a loyalty benefit card.

Joseph George is of the opinion about the hero tie up with Engines Engineering to improve
design that while hero needs good research and development support, it should ensure it finds
right partners, unlike Bajaj and TVS who pursued in house research and development, hero
seeking outside help is fraught with risks as it could be tough for hero to synergize diverse
inputs from variety of partners.

Plinere, D. &Borisov, A. (2015). concluded that. inventory management is necessary to

every company, having inventories. Companies have stock, but so much as to keep away from
overstock and out-of-stock situations. Inventory management can better company inventory
control existing condition and reduce costs of the company.

Jose, T.. Jayakumar. A., &Sijo. M. T. (2013) found the difference between EOQ & number
of pieces purchased. It is observed that the company is not using EOQ for buying the
materials. Therefore, inventory management is not reasonable. From estimate of safety stock.
company can decide how much inventory the company can keep in back stock per annum.

Mohamad. S. J. A. N. bin S.. Suraidi. N. N.. Rahman. N. A. A.. &Suhaimi. R. D. S. R.

(2016) concluded that efficiency of inventory management is a major concern area of
business. Suggestions are given to improve the performance of inventory management.
demand forecasting, scattered inventory & cycle counting
Lwiki et al (2013) A survey conducted and established that there is generally positive
correlation between each of inventory management practices. Specific performance indicators
were proved to depend on the level of inventory management practices. They established that
Return on Equity had a strong correlation with lean inventory system and strategic supplier
partnerships. As such, they concluded that the performance of sugar firms could therefore be
stated as being a function of their inventory management practices.

Panigrahi (2013) Undertook an in-depth study of inventory management practices. The study
also investigated the relationship between profitability and inventory conversion days. The
study, using a sample of the top five cement companies of India over a period of 10 years
from 2001 to 2021, concluded that a considerable inverse linear relationship existed between
inventory conversion period and profitability.

Madishetti and Kibona (2013) Found that a well designed and executed inventory
management contributes positively to a small or medium-sized enterprises (SMEs)
profitability.Regression analysis was adopted to determine the impact of inventory conversion
period over gross operating profit. The results cleared out that significant negative linear
relationship occurred between inventory conversion period and profitability.

Srinivas Rao Kasisomayajula(2014) The study concluded that all the units in the
commercial vehicle industry have significant relationship between Inventory and Sales.
Proper management of inventory is important to maintain and improve the health of an
organization. Efficient management of inventories will improve the profitability of the
organization.

Sunitha, K. V. (2023) in her thesis. inventory management is vital for keeping costs down,
when meeting regulations. It is difficult to balance demand and supply and inventory
management to make sure that the balance is untouched. The trained inventory management
and good quality software will help make inventory management a victory. The ROI of
Inventory management has seen better revenue and profits, positive employee ambiance and
increase in customer satisfaction.
Atnafu. D. &Balda, A. (2018) focuses on inventory management & explains the relationship
between inventory management practices competitive advantage & organizational
performance. The finding of the study on basis of data analysis is that there is a positive
relationship between competitive advantages and inventory management performance. And
better organizational performance gives a firm bigger capital to apply various inventory
management techniques

HongShen. Qiang. Deng. Rebbaca Lao, Simon Wu (2016) focused on boosting the
inventory management to improve the supply chain of the company. Drop in inventory is
considered one of the most significant aspects of inventory management. In practice, small
Inventory level is not always a better solution, so manufacturers need to maintain the correct
amount of inventory at the correct level

Gaur and Bhattacharya (2021) Attempted to study the linkage between the performance of
the components of inventory such as raw material, work in progress and finished goods and
financial performance of Indian manufacturing firms. The study revealed that finished goods
inventory as inversely associated with business performance while raw material inventory and
work in progress did not have much effect on same. They emphasised that instead of focusing
on total inventory, an attempt should be made to concentrate on individual components of
inventory so as to adequately manage the same. They concluded that managers not paying
heed to inventory performance may become weak in combating competitors.

Pradeep singh (2018) In his study made an attempt to examine the inventory and working
capital management of Indian Farmers Fertilizer Cooperative Limited (IFFCO) and National
Fertilizer Limited (NFL). He concluded that the overall position of the working capital of
IFFCO and NFL is satisfactory. But there is a need for improvement in inventory in case of
IFFCO. However inventory was not properly utilized and maintained bay IFFCO during study
period. The management of NFL must try to properly utilize the inventory and try to maintain
the inventory as per the requirements. So that liquidity will not interrupt

Lal (2017) his study focused on inventory management. He originated a model which involve
price variable in inventory management; earlier price variable in inventory was not considered
in that company. The analysis recommended solid policies, which would look after internal
and external factors, ultimately it would help in bringing in efficient working capital
management

Farzaneh (2018) Presented a mathematical model, to assist the companies in their decision to
switch from EOQ to JIT purchasing policy. He defines JIT as “to produce and deliver finished
goods just in time to be sold, sub-assemblies just in time to be assembled in goods and
purchased material just in time to be transformed into fabricated parts”. He highlights that the
EOQ model focuses on minimizing the inventory costs rather than minimizing the inventory.
Under the ideal condition where all the conditions meet, it is economically better off to choose
the JIT over the EOQ because it results in purchase price, ordering cost

Rich Lavely (2019) Asserts that inventory means “Piles of Money” on the shelf and the profit
for the firm. However, he notices that 30% of the inventory of most retail shops is dead.
Therefore, he argues that the inventory control is facilitate the shop operations by reducing
rack time and thus increases profit. He also elaborates the two types of inventory calculations
that determine the inventory level required for profitability. The two calculations are “cost to
order” and “cost to keep”. Finally, he proposes seven steps to inventory control.

Gaur, Fisher and Raman (2015) In their study examined firm-level inventory behaviour
among retailing companies. They took a sample of 311 public-listed retail firms for the years
1987–2000 to examine the relationship of inventory turnover with gross margin, capital
intensity and sales surprise. They observed that inventory turnover for retailing firms was
positively related to capital intensity and sales surprise while inversely associated with gross
margins. They also suggested models that yield an alternative metric of inventory
productivity, adjusted inventory turnover that can be used in study of performance analysis
and managerial decision-making.

S. Singh (2016) Analysed the inventory control practices of single fertilizer company named
IFFCO. He statistically examined the inventory system with consumption, sales and other
variables along with growth of these variables and inventory patterns. He concluded that an
increase in components of inventory lead to an increase in the proportion of inventory in
current assets. A special focus was made on stores and spares in order to calculate excess
purchases resulting in loss of profit.
D.Hoopman 2019 In this article he said that inventory optimization recognize that different
industry have different inventory profiles and requirements. Research has indicated that
solutions are priced in a large range from tens of thousands of dollars to millions of dollars. In
this niche market sector price is definitely not an indicator of the quality of solution, ROI and
usability are paramount.

Silver,EdwardA 2020 (Articlefromproductionandinventorymanagementjournal)This article

considers the context of a population of items for which the assumption underlying the EOQ
derivation holds reasonably well. However as is frequently the cash in practices there is an
aggregate constraint that applies to the population as a whole. Two common forms of
constraints are:

The existence of budget to be allocated among the stocks of the items and a purchasing
production facility having the capability to process almost a certain number of
replenishment per year. Because of the constraint the individual replenishment quantities
cannot be selected independently.

Bernatde William 2018 This study tells that the main focus of inventory management is on
transportation and warehousing. The decision taken by management depend s on the
traditional method of inventory control models. The traditional method of inventory
management is how much useful in these days the author tell about it. He is also saying
thatthe traditional method is not a cost reducing, it is so much expensive. But the managing
the inventory is most important work for any manufacturing unit.
 CHAPTER – III
INDUSTRIAL PROFILE
A soft drink (also called soda, pop, coke,
soda pop, fizzy drink, tonic, seltzer, mineral,
sparkling water, lolly water or carbonated
beverage) is a beverage that typically contains
water (often, but not always, carbonated
water), usually a sweetener and usually a
flavoring agent. The sweetener may be sugar,
high-fructose corn syrup, fruit juice, sugar
substitutes (in the case of diet drinks) or some
combination of these. Soft drinks may also
contain caffeine, colorings, preservatives and
other ingredients
Soft drinks are called "soft" in contrast to "hard drinks" (alcoholic beverages). Small amounts
of alcohol may be present in a soft drink, but the alcohol content must be less than 0.5% of the
total volume if the drink is to be considered non-alcoholic. Fruit juice, tea and other such non-
alcoholic beverages are technically soft drinks by this definition but are not generally referred
to as such.
Soft drinks may be served chilled or at room temperature, and some, such as Dr. Pepper, can
be served warm.
The first marketed soft drinks in the Western world appeared in the 17th century. They were
made of water and lemon juice sweetened with honey. In 1676, the Compagnie des
Limonadiers of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors
carried tanks of lemonade on their backs and dispensed cups of the soft drink to thirsty
Parisians
The entry of carbonated soil drink into the Indian soil is relatively new. The credit for
introducing branded soil drink goes to pure drinks private Ltd, Delhi. Later this company
became the franchised bottler of Coca-Cola Export Corporation. Accordingly, in 1950 Coca -
Cola made its first debut in the Indian market. This is the story about the origin of soft drinks
in India. After Coca-Cola, Pepsi entered into the market. The exit of Pepsi made coke the
undisputed leader in the soft drinks market. This company too was forced to leave India due to
its non-compliance with the rules and regulations of the Government in 1977. The exit of coke
becomes a boom to national manufactures and all the players started increasing their business.
Among the many national players like pure drinks Me Dowels, Modem foods, Spencer's and
parley, Parle emerged as the leader in the Indian soft drink market. It is believed that by the
end of 1989. Parle captured more than 75% of the national soft drink market.

In 1990, Pepsi reentered India and started making more noise in the market. All the same, it
grabbed considerable market share from parley. Besides this, Coke also reentered India after
16 years of exile, fearing that, it cannot cling to its market leadership. Parle sold itself to
Coca-Cola for $40 Million November, 1993.

By buying over local competition the two American Cola giant share cleared up the arena and
are packing all their power behind building the Indian franchise of their global girdling
brands. If Pepsi invests Rs. 300 core, Coke will be investing more than that and vice versa.
The total investment is of a size and scale that the Rs. 3048 cork soft drink businesses have
never seen before.
Both players see enormous potential in this country. Where swigging a carbonated beverage is
still considered as treat virtually a luxury. Consequently by world standards India's per capita
consumption of three servings is rock bottom less even than over neighbors Pakistan and
Bangladesh. Where is four times as much so, the cola giants feel that per caps can only go up
and up. As incomes improve so do life styles a pattern they have seen in many of the 195
countries they sell their universal products.

This report is highly focused on providing insights about the Carbonated Soft Drinks in India
where the market consists of cola products and non-cola products of which the cola segment
constitutes 62%, non-cola segment is bagged with 30% and Energy Drinks Segment is 8%
which has been growing at a CAGR of 29% from 2020. Furthermore the urban areas report a
dramatically high consumption of aerated drinks as compared to rural areas, where Delhi is on
the top of the list for Carbonated Soft Drink consumption. The report reveals the market share
and size of the top players in the Industry being Coke and Pepsi with a combined Market
share of 95%.

The research further reveals that the Western region accounts for 32% of the Carbonated Soft
drink Industry in India, in spite of a never ending rivalry, between the major players. Porter’s
five force model has been effectively used to understand the competition situation prevailing
in the Industry coupled with PEST analysis to understand the macro economic conditions of
the Industry
Market Segmentof Food Industries
Food Industries Shares
Fruits, Vegetables, Meat, Fish, Oil 40%
Dairy Products 5%
Grain Mill Products 10%
Beverages Soft drinks 12%
20% Fruit beverages 5%
Others 3%
Others 25%
TOTAL 100%

Market Share of Various Food Processing Industries

Market Segment
Fruits, Vegetables, Meat, Fish,
Oil
25%
40% Dairy Products
Grain Mill Products
20%
Beverages
10%
Others
5%

Market Share of Different Beverages

Share

others
15%

fruit bev-
erages Soft drinks
25% 60%
COMPANY PROFILE

COCA – COLA Pvt. Ltd

Coca-Cola originated as a soda fountain beverage in 1886 selling for five cents a glass. Early
growth was impressive, but it was only when a strong bottling system developed that Coca-
Cola became the world-famous brand it is today

1894 … A modest start for a bold idea

In a candy store in Vicksburg, Mississippi, brisk sales of the new fountain beverage called
Coca-Cola impressed the store's owner, Joseph A. Biedenharn. He began bottling Coca-Cola
to sell, using a common glass bottle called a Hutchinson.
Biedenharn sent a case to Asa Griggs Candler, who owned the Company. Candler thanked
him but took no action. One of his nephews already had urged that Coca-Cola be bottled, but
Candler focused on fountain sales.

1899 … The first bottling agreement

Two young attorneys from Chattanooga, Tennessee believed they could build a business
around bottling Coca-Cola. In a meeting with Candler, Benjamin F. Thomas and Joseph B.
Whitehead obtained exclusive rights to bottle Coca-Cola across most of the United States --
for the sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon joined their
venture.

1916 … Birth of the Contour Bottle

Bottlers worried that Coca-Cola's straight-sided bottle was easily confused with imitators. A
group representing the Company and bottlers asked glass manufacturers to offer ideas for a
distinctive bottle. A design from the Root Glass Company of Terre Haute, Indiana won
enthusiastic approval. The Contour Bottle became one of the few packages ever granted
trademark status by the U.S. Patent Office. Today, it's one of the most recognized icons in the
world - even in the dark!
1920s … Bottling overtakes fountain sales
As the 1920s dawned, more than 1,000 Coca-Cola bottlers were operating in the U.S. Their
ideas and zeal fueled steady growth. Six-bottle cartons were a huge hit starting in 1923. A few
years later, open-top metal coolers became the forerunners of automated vending machines.
By the end of the 1920s, bottle sales of Coca-Cola exceeded fountain sales.
1920s and '30s … International
expansion
Led by Robert W. Woodruff, chief
executive officer and chairman of the
Board, the Company began a major push to
establish bottling operations outside the
U.S. Plants were opened in France,
Guatemala, Honduras, Mexico, Belgium,
Italy and South Africa. By the time World
War II began, Coca-Cola was being bottled
in 44 countries.
1950s … Packaging innovations
For the first time, consumers had choices
of Coca-Cola package size and type-the
traditional 6.5 ounce Contour Bottle, or
larger servings including 10-, 12- and 26-
ounce versions. Cans were also introduced,
becoming generally available in 1960.
1960s … New brands introduced
Sprite®, Fanta®, Fresca® and TAB® joined brand Coca-Cola in the 1960s. Mr. Pibb® and
Mello Yello® were added in the 1970s. The 1980s brought diet Coke® and Cherry Coke®,
followed by POWERaDE® and Fruitopia® in the 1990s. Today scores of other brands are
offered to meet consumer preferences in local markets around the world.

1990s … New and growing markets

Political and economic changes opened vast markets that were closed or underdeveloped for
decades. After the fall of the Berlin Wall, the Company invested heavily to build plants in
Eastern Europe. As the century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century …
The Coca-Cola bottling system grew up with roots deeply planted in local communities. This
heritage serves the Company well today as consumers seek brands that honor local identity and
the distinctiveness of local markets. As was true a century ago, strong locally based relationships
between Coca-Cola bottlers, customers and communities are the foundation on which the entire
business grows.

At the core of our business in India, as in the rest of the world is our production and distribution
network, which we call the “Coca-Cola system”. Globally, the Coca-Cola system includes our
Company and more than 300 bottling partners. The Coca-Cola Company manufactures and sells
concentrate and beverage bases. Our authorized bottlers combine our concentrate or beverage
bases as the case may be with sweetener (depending on the product), water or carbonated water
to produce finished beverages. These finished beverages are packaged in authorized containers
bearing our trademarks -- such as cans, refillable glass bottles, non-refillable PET bottles and
tetra packs -- and are then sold to wholesalers or retailers. In India, additionally, the Company
also sells certain powdered beverage mixes such as Vitingo.
Our beverages reach our ultimate consumers through our customers: the grocers, small retailers,
hypermarkets, restaurants, convenience stores and millions of other businesses that are the final
points of distribution in the Coca-Cola system. What truly defines the Coca-Cola system, and
indeed what makes it unique among businesses, is our ability to create value for our customers
and consumers.

In India, the Coca-Cola system comprises of a wholly owned subsidiary of The Coca-Cola
Company namely Coca-Cola India Pvt Ltd which manufactures and sells concentrate and
beverage bases and powdered beverage mixes, a Company-owned bottling entity, namely,
Hindustan Coca-Cola Beverages Pvt Ltd; thirteen licensed bottling partners of The Coca-Cola
Company, who are authorized to prepare, package, sell and distribute beverages under certain
specified trademarks of The Coca-Cola Company; and an extensive distribution system
comprising of our customers, distributors and retailers. Coca-Cola India Private Limited sells
concentrate and beverage bases to authorized bottlers who use these to produce our portfolio of
beverages. These authorized bottlers independently develop local markets and distribute
beverages to grocers, small retailers, supermarkets, restaurants and numerous other businesses.
In turn, these customers make our beverages available to consumers across India.

LOGO OF COCA-COLA LTD

VISION
Our vision serves as the framework for our Road map and guides every aspect of our business by
describing what we need to accomplish in order to continue achieving sustainable, quality
growth.

People: Be a great place to work where people are inspired to be the best they can
 be
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people’s desires and needs
Partners: Nurture a winning network of customers and suppliers, together we create
mutual, enduring value
Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities
Profit: Maximize long-term return to share owners while being mindful of our
overall responsibilities
Productivity: Be a highly effective, lean and fast-moving organization

MISSION
Our Road map starts with our mission, which is enduring. It declares our purpose as a Company
and serves as the standard against which we weigh our actions and decisions.
 To refresh the world...
 To inspire moments of optimism and happiness...
 To create value and make a difference

VALUES
They are guided by shared values that they will live by as a company and as individuals.
 Leadership: "The courage to shape a better future"
 Passion: "Committed in heart and mind"
 Integrity: "Be real"
 Accountability: "If it is to be, it’s up to me"
 Collaboration: "Leverage collective genius"
 Innovation: "Seek, imagine, create, delight"
 Quality: "What we do, we do well"

Organization Structure
Article I. James Quincey
a) Chairman and Chief Executive Officer
James Quincey is Chairman and CEO of The Coca-Cola Company. Quincey, who first joined the
company in 1996, has held a number of leadership roles around the world. He became CEO in
2017 and Chairman of the Board in 2019.

Quincey is leading Coca-Cola in its continuing evolution as a total beverage company. Coca-
Cola is a growth company that provides brands and beverages that make life’s everyday
moments more enjoyable, all while doing business the right way. The result is shared opportunity
for communities, customers, employees and shareowners.
Before becoming CEO, Quincey served as President and Chief Operating Officer of the company
from 2015 to 2017.

From 2013 to 2015, he was President of the company’s Europe Group. Under his leadership, the
group expanded its brand portfolio and improved market share. Quincey also played a key role in
the creation of Coca-Cola European Partners, one of the largest independent Coca-Cola bottlers
 in the world. Quincey served as President of the Northwest Europe and Nordics business unit
from 2019 to 2023. This role included leading the acquisition of innocent juice in 2020.

Quincey joined the company in Atlanta in 1996 as director of learning strategy for the Latin
America Group. He went on to serve in a series of operational roles in Latin America, eventually
leading to his appointment as President of the South Latin division in 2003. He was President of
the company’s Mexico division from 2005 to 2019, where he led the acquisition of Jugos del
Valle.

“We’re building this business for the next century, not just the next quarter.”
Prior to joining Coca-Cola, Quincey was a partner in strategy consulting at The Kalchas Group, a
spinoff of Bain & Company and McKinsey.

Quincey serves as vice co-chair of The Consumer Goods Forum and is a founding member of the
New York Stock Exchange Board Advisory Council. He is also a director of Pfizer Inc.
Quincey, who speaks English and Spanish, received a bachelor's degree in electronic engineering
from the University of Liverpool. He is a native of Britain.
Person subject to the reporting requirements of Section 16 of the Securities Exchange Act of
1934, as amended.

PRODUCTS AND SERVICES

COKE PRODUCTS IN INDIA:
 Coca-Cola
 Diet Coke
 Thums Up
 Sprite
 Fanta
 Limca
 Maaza
 Burn
 Kinley Water
 Kinley Soda
 Schweppes
 GEORGIA Gold
 Minute Maid
 Pulpy Orange
 Nimbu Fresh
 Guava
 Apple
 Mango
 Mixed Fruit
 100% Grape Juice
 100% Apple Juice
 100% Orange Juice

Out of which
 Coca-Cola, Maaza, Kinley water, Sprite, Minute Maid, GEORGIA Goldand Kinley sodaare
Coca-Cola products
 Thums up, Limca, Fanta are the products of Parle which are purchased by the Coca-Cola Co.
 Schweppes was launched in India in 1999 after the international takeover of the brand from
Cadbury Schweppes.

Section I.02 Beverage Categories

 PROFITABLE BRANDS ARE:
 300ml - Maaza, Coke, Sprite
 600 ml - all brands
 2 liters – All brands

Evolution in Coca-Cola bottles over the years

Various products of Coca-Cola

PROFILE OF BUSINESS IN HYDERABAD
Hyderabad is a historic city in Hyderabad District in Telangana state, India. Hyderabad has a
semi-arid climate. The city stands in the midst of a wide, level plain of black cotton soil. As the
city lies in the rain shadow region of the Western Ghats, it receives little rain from the southwest
monsoon. Temperatures remain high from the months of March to mid-June, with highest
temperature recorded at 44.9 °C (110 °F).

In this hot region there is a huge demand for cold drinks especially during summers where the
water availability is very less. So Mr. GOPAL KRISHNA AGARWAL decided to open a small
retail outlet named “RADHIKA SWEETS”. This outlet was opened 30 years ago. This outlet had
both cold drinks and a verity of sweets and it is located at mothi circle of Hyderabad city which
is also a main pass by and commercial area.
HEALTH EFFECTS AND CRITICISMS

The consumption of sugar-sweetened soft drinks is associated with obesity, type 2 diabetes,
dental caries, and low nutrient levels. Experimental studies tend to support a causal role for
sugar-sweetened soft drinks in these ailments, though this is challenged by other researchers.
"Sugar-sweetened" includes drinks that use high-fructose corn syrup, as well as those using
sucrose.

Many soft drinks contain ingredients that are themselves sources of concern: caffeine is linked to
anxiety and sleep disruption when consumed in excess, and some critics question the health
effects of added sugars and artificial sweeteners. Sodium benzoate has been investigated by
researchers at University of Sheffield as a possible cause of DNA damage and hyperactivity.
Other substances have negative health effects, but are present in such small quantities that they
are unlikely to pose any substantial health risk provided that the beverages are consumed only in
moderation.

In 1998, the Center for Science in the Public Interest published a report titled Liquid Candy:
How Soft Drinks are Harming Americans' Health. The report examined statistics relating to the
increase in soft drink consumption and claimed that consumption is "likely contributing to health
problems." It also criticized marketing efforts by soft drink companies.

Coca-Cola was India's leading soft drink until 1977 when it left India after a new government
ordered the company to turn over its secret formula for Coca-Cola and dilute its stake in its
Indian unit as required by the Foreign Exchange Regulation Act (FERA). In 1993, the company
(along with PepsiCo) returned after the introduction of India's Liberalization policy

In India, there exists widespread concern over how Coca-Cola is produced. In particular, it is
feared that the water used to produce Coke may contain unhealthy levels of pesticides and other
harmful chemicals. It has also been alleged that due to the amount of water required to produce
Coca-Cola, aquifers are drying up and forcing farmers to relocate.
 CHAPTER – IV
THEORETICAL FRAME WORK
Inventory consists of stock of raw materials, work-in-progress, spare pa consumables for
production and finished goods for sale. Thus, inventory com includes control over raw materials,
spare parts, consumables, partly finished goods, and finished goods. The following are the
common techniques of inventory control:

1. Determination of various levels of materials.

2. Economic Order Quantity.

3. ABC Analysis.

4. Perpetual Inventory System.

1. Determination of various Levels of Materials :

The store-keeper plays an important role in deciding upon the various levels materials. In
order to ensure that the optimum quantity of materials is purchased stocked neither less nor
more, the store keeper applies scientific techniques of materials management. Fixing of certain
levels for each item of materials in one of techniques.

These levels are not permanent but require revision according to the change in the factors
which determine these levels. The following levels are generally fixed.

(a) Re-order Level.

(b) Maximum Level.
(c) Minimum Level.
(d) Average Level.
(e) Danger Level

(a). Re-order Level :

This level is that level of material at which it is necessary to initiate purchase requisition
for fresh supplies. This is normally the point lying between the maximum and the minimum
levels. Fresh orders must be placed before the actual stocks touch the minimum level.
 This level is fixed in such a manner that the quantity of materials represented by the
difference between the re-order level and the minimum level will be sufficient to meet the
requirement of production till such time as the order materializes and materials are delivered.

(b). Maximum Level:

The maximum level is that level of stock which can be held at any time. In other words, it
is the level beyond which stock should not be maintained. The purpose is to avoid over-
stocking and thereby using working capital in a proper way.

(c) Minimum Level:

This is the level below which the stock of an item should not fall. This is known as safety
or buffer stock. An enterprise must maintain minimum quantity of stock so that the
production is not hampered due to non-availability of materials

(d) Average Level:

Average level can be calculated by applying the following formula:

Maximum level + Minimum Level Average Level = ……………………………..

Or Average level = Minimum level + of Re-order Quantity.

(e) Danger Level:

Usually stack should not be lower than the minimum level. But if for any reason, stock
comes down below the minimum level, it is called danger level. When the stock reaches danger
level, it is necessary to take urgent action on the part of the management for immediate
replenishment of stock to prevent stock-out situation. The danger level can be calculated by
applying the following formula:

Danger Level = Average consumption x Maximum Re-order period for emergency

purchases.

2. Economic Order Quantity (EOQ):

 The economic order quantity, known as EOC, represents the most favorable quantity to
be ordered each time fresh orders are placed. The quantity to be ordered is called economic order
quantity because the purchase of this size of material is most economical. It is helpful to
determine in advance as to how much should one buy when the stock level reaches the re-order
level. If large quantities arc purchased, the carrying costs would be large.

On the other hand, if small quantities are purchased at frequent intervals she ordering
costs would be high. The economic order quantity is fixed at such a level as to minimize the cost
of ordering and carrying the stock. It is the size of the order which produces the lowest cost of
material ordered.

On the other hand, if orders are placed for small quantities, the ordering cost is more but
the carrying cost would be less. Thus the economic order quantity is determined at a point when
the ordering costs and the carrying costs are equal. Only at this stage the total of ordering cost
and carrying cost is minimum.

3. ABC Analysis:

This technique of inventory control is also known as always Better Control technique.
ABC analysis is an analytical method of control which aims at concentrating effects on those
areas where attention is needed most.

According to this approach to inventory control high value items are more closely
controlled than low value items. Each item of inventory is given A, B or C denomination
depending upon the amount spent for that particular item. “:A” or the highest value items should
be under the tight control and under responsibility of the most experienced personnel, while “C”
or the lowest value may be under simple physical control.

It may also be clear with the help of the following examples:

“A” Category – 5% to 10% of the items represent 70% to 75% of the money value.

“B” Category – 15% to 20% of the items represent 15% to 20% of the money.

“C” Category – The remaining number of the items represent 5% to 10% of the money
value.

4. Perpetual Inventory System:

 Another method of inventory control is the maintenance of inventory control on a
continuous basis. After the material are received into the stores, the storekeeper will arrange for
the storing of each item in the allotted rack, bin, shelf or other receptacles and attach a card to
each bin for the purpose of making entries there in relating to the receipt, issues and balance. The
bin card or the locker card, this becomes a perpetual inventory record for each item of stores.
Thus the perpetual inventory is a method of recording store balance after every receipt and issue
to facilitate regular checking and to obviate closing down for stock locking.

Under this method of stocktaking, the verification of the whole of the stock and its
valuation are accomplished only once at the close of the financial year and difference in stock is
adjusted only once. Nevertheless, the periodic inventory has its own disadvantage. In the first
place, it becomes necessary to close down the factory on the day of stock taking. Secondly,
discrepancies in stock cannot be corrected by an executive action immediately as and when they
occur. Thirdly, since all the items are checked only once in a particular day, a surprise
verification will not be possible. Lastly, reason for the discrepancies cannot be found out because
of the long interval between two consecutive verifications.

The advantages of a continuous stocktaking where perpetual inventory records are

maintained may thus be summarized as follows:

(i) The elaborate and costly work involved in periodic stock taking can be avoided.
(ii) The stock verification can be done without the necessity of closing down the factory.
(iii) The preparation of interim financial statement becomes possible.
(iv) Discrepancies are easily located and corrected immediately.
(v) It ensures a reliable check on the stores.
(vi) It exercises a moral influence on the stores staff.
(vii) Fast and slow moving items can be distinguished and the fixation of proper stock levels
prevents not only over-stocking, but under-stocking also.
(viii) A perpetual inventory record of the nature of the bin cards enables the storekeeper to
keep an eye on the stock levels and replenish the stock of every item whenever the limit
falls to the recorded level.
(ix) It provides reliable information to the management of the number of units and the value
of every item of stores.
(x) It ensures secrecy of the items that are verified.

Pricing of Raw Materials:

When issues are made out of various lots purchased at varying prices, the problem arises
to which of the receipt price should be adopted for valuing the materials requisitions.

1. First in first out :

Materials received first will be issued first. The price of the earliest consignment if taken
first and when that consignment is exhausted the price of the next consignment is adopted
and so on. This method is suitable in times of falling prices, because the material charge
to production will be high while the replacement cost of materials will be low.

2. Last in first out :

Materials received last will be issued first. The price of the last consignment is taken first
and when that consignment is exhausted the price of the second last consignment is
adopted and so on. In timing of rising prices this method will show a charge to
production, which is closely related to current price levels provided that the last purchase
is made recently.

3. Weighted average cost method :

Under this method material issued is priced at the weighted average cost of material in
stock.

WAC= Value of material in stock / quantity in stock.

4. Standard price method :

Under this method a standard price is predetermined. The price of issues predetermined
for a stated period taken into account all the factors affecting price such as anticipated
market trends, transportation charges, and normal quantity of purchase. Standard prices
are determined for each material and material requisitions are priced at standard
irrespective of the actual purchase price. Any difference between the standard and actual
price results in materials price variance.

5. Current Price :
According to this method, material issued is priced at their replacement or realizable
price at the time of issue. So the cost at which identical material could be purchased from
the market should be ascertained and used for valuing material issues.
 CHAPTER-V
DATA ANALYSIS AND INTERPRETATION
INVENTORY TURNOVER RATIO:

Inventory turnover ratio establishes efficiency of the firm in selling its product. It

establishes relationship between sales and inventory of a particular period. The ratio reveals

number of times finished stock is turned over during a given accounting Period. Higher the ratio

better it is because it shows that finished stock is rapidly Turnover. A Low stock turnover is not

desirable because it reveals that obsolete stock or the carrying of too much stock. This ratio is

calculated as follow.

Inventory turnover ratio = sales/inventory

TABLE – 4.1

SHOWS THE INVENTORY TURNOVER RATIO OF ISTF 2020-2023

Particula 2020 2021 2022 2023

rs

Sales 175,796,009. 258,694,641. 373,826,449. 423,857,386.

92 34 69 25

Closing 40,959,736.0 52,695,097.0 50,230,003.0 45,241,744.0

inventory 0 0 0 0

Ratio 4.291 4.965 7.442 9.363

 GRAPH – 4.1

SHOWS THE INVENTORY TURN OVER RATIO OF ISTF 2020-2023

1400000000

1200000000

1000000000
Series6
423857386.25 Series5
800000000
Series4
Series3
600000000
Series2
373826449.69
Series1
400000000

258694641.34
45241744
200000000
50230003
9.3630000000
52695097
2022
2023
2021
2020
0 0 7.442
175796009.92
0 409597364.965
0001
4.291
0
0

ANALYSIS
The above table shows the inventory turnover ratio. Year 2019-2020 is taken
as base year having 4.291 times. In 2020-2021 it’s 4.965 times. In 2021-
2022 it is 7.422 times, and in the current year it is9.363 times.
There is increase in turnover time compared from base year to in current
year.

INTERPERATION
The inventory turnover is increasing over the years. There is increase in
turnover time compared from base year to in current year (2022-2023).
 INVENTORY CONVERSION PERIOD:
TABLE 4. 2:
Showing Inventory Conversion Period :

PARTICULARS 2019-2020 2020-2021 2021-2022 2022-

2023

INVENTORY 4.291 4.965 7.422 9.363

TURNOVER
RATIO

INVENTORY 85.06 73.51 49.17 38.98

CONVERSION
PERIOD

Note:
Inventory conversion period = 365(days in a year)/inventory turnover ratio.
 GRAPH4. 2:
Showing Inventory Conversion Period :

4.2
91

7.4
22 PARTICULARS
2019-2020
2020-2021
2021-2022
2021-2022 2022-2023

4.9
65

ANALYSIS
The above table shows the inventory conversion period. Year 2019-2020 is taken as base
year, 85.06 days, in 2020-2021, 73.51 days, in 2021-2022, 49.17 days, in & in current
year it is 38.98days.

INTERPETATION
The inventory conversion period shows decreasing from base year to current year on
continuously. 2021-2022 & it is good for inventory management, and in the current year
2022-2023 it is showing the least decreasing of the table.
1. PERCENTAGE OF INVENTORY IN CURRENT ASSETS
Inventory generally means stock of goods involved in current assets. Current
assets is those assets which change their form and substances and which are
converted into cash during the normal operating cycle of business.
Table 3: showing the percentage of inventory in current assets for the period
2019-2020 TO 2022-2023

TABLE 4. 3 SHOWING PERCENTAGE OF INVENTORY IN

CURRENT ASSET

Years Inventory current assets Percentage

2019-2020 4.09 6.91 59.18

2020-2021 5.2 9.55 54.44

2021-2022 5.02 10.5 47.8

2022-2023 4.52 9.5 47.57

Percentage of inventory to current assets=inventory/current assets*100

ANALYSIS

The above table shows the percentage of inventory in current assets. Year
2019-2020 is taken as a base year, 59.81% in base year, 54.44% in 2020-
2021, 47.8 in 2021-2022, and finally current having raised to 47.57 .
GRAPH 4.3 SHOWING :

Inventory
4.52 4.09

2019-2020
2020-2021
2021-2022
2022-2023

5.2
5.02

INTERPERATION
It shows amount of inventory in 2019-2020 there was an increase in
inventories which is locked up, there is a decrease in inventories and the
amount of inventory is locked up in current asset again.
 TABLE-4.4
RAW MATERIALS

YEAR RS. IN CRORES

2019-2020 7.62

2020-2021 12.87

2021-2022 14.96
2022-2023 17.93

ANALYSIS:
The stock of raw materials in the 2019 is 7.62, and in the next year i.e. 2020 the
company’s raw material increased and gradually. Also in the year year 2023 it again increase up
to 17.93
 GRAPH-4.4
Graph representing stock raw material for four years
20
17.93
18
16 14.96
14 12.87
12
Series1
10 Series2
7.62 Series3
8
6
4
2
00 0 0 0 0
0

INTERPRETATION
. The stock has been increased from 2020 to 2023 which shows the company maintaining good
stock to avoid the shortage of raw material and to avoid wastages.
STORES AND SPARES TURNOVER:

It is the value of stores and spares inventory consumed during the year.

TABLE 4.5 SHOWING STORES AND SPAIRS:

RS. IN
CROR
Years E

2019-2020 0.37

2020-2021 0.46

2021-2022 0.42

2022-2023 0.77

ANALYSIS
The above table shows the stores and spares turnover ratio. Year 2019-2020
is taken as the base year. It’is 0.37crore ,in 2020-2021 0.46 crore in 2021-
2022, its 0.42 crore and 0.77 crore in the current year. It is fluctuating over
years.
GRAPH 4.5 SHOWING THE STORES AND SPARES:

0.37

0.77000
000000
0001
Years
2019-2020
2020-2021
2021-2022
0.46 2022-2023

0.42

INTERPRETATION
Stores and spares turnover ratio is fluctuating over the years. This shows that
there is inefficiency in managing the stores and spares inventory. But in
year 2021-2022 it has decreased compared to previous year.
 TABLE4.6 SHOWING RAW MATERIAL TURNOVER RATIO:

Average
Year Total Consumption Consumption Times
2019-2020 7.62 2.6 2.93
2020-2021 12.87 3.5 3.67
2021-2022 14.96 3.8 3.93
2022-2023 17.93 4.2 4.26

ANALYSIS
The above table shows the raw material turnover ratio. Year 2019-2020 is taken as
the base year having 2.93 as turn over times and there is gradual increase in
succeeding year 2020-2021, 3.67 times. In 2020-2021 its 3.93 times, and increased
by 4.26 times in the current year .

GRAPH6 SHOWING RAW MATERIAL TURNOVER RATIO:

 20
17.93
18
16 14.96
14 12.87 Series1
12 Series2
Series3
10
Series4
8 7.62
Series5
6 Series6
3.93
3.8 4.26
4.2
3.67
3.5
4 2.93
2.6
2
0 000 0 0 0 0 0
0

INTERPRETATION
Raw material turnover ratio is increasing over one year to another year.
This shows that there is efficiency in managing the raw materials.

. WORKING CAPITAL TURNOVER RATIO

 This ratio reveals number of times working capital is turned over in a stated period. The

Ratio of sales to working capital can be judged as follows:

Working capital ratio = sales/working capital

The higher the ratio lowers the investment in working capital and greater are the profit.

However, a very high turnover of working capital is a sign of over trading and may put The

concern to financial difficulties a low working capital is not effectively used.

TABLE – 7

SHOWS THE WORKING CAPITAL TURNOVER RATIO OF ISTF 2020-

2023

Particula 2020 2021 2022 2023

rs

Sales 175,796,009. 258,694,641. 373,826,449. 423,857,386.

92 34 69 25

Net 31,710,746.2 57,115,333.7 55,413,901.8 61,035,858.7

working 8 3 3 5

capital

Ratio 5.543 4.529 6.746 6.944

ANALYSIS:

The table shows the working capital turnover ratio it is 2019 is taken as a base year it was 5.543

and in 2020 it was 4.529 and in the current year it was 6.944.

GRAPH – 6

SHOWS THE WORKING CAPITAL TURNOVER RATIO OF ISTF 2020-

2023

31710
746.2 5.543
2020
8

Particulars

Sales
Net working capital
Ratio

17579
6009.
92 g

Interpretation:
 During the period understudy ratios are not very high. This ratio is increased every year

because increase in working capital every year therefore the ratio was notably increase highest

in 2023-6.944.
NET PROFIT RATIO:-

This ratio is very useful to the proprietors and prospective investors because it reveals the

overall profitability of the concern. This is the ratio of net profit after taxes to net Sales. Sales are

calculated as follows.

Net profit ratio = Net profit/sales *100

TABLE – 4.7

SHOWS THE NET PROFIT RATIO OF2020-2023

Particular 2020 2021 2022 2023

Net profit 2,081,094.84 2,127,573.65 8,350,610.67 6,240,268.73

Sales 175,796,009.92 258,694,641.3 373,826,449.69 423,857,386,95

Ratio 1.183% 8.224% 2.233% 1.472%

ANALYSIS:

The above table shows the net profit turnover ratio 2019 is taken as a base year it was

1.183 and in 2020 it was 8.224 and in the current year it was 1.472.
 GRAPH – 4.7

SHOWS THE NET PROFIT RATIO OF ISTF 2020-2023

1.47% 1.18%

Particulars Net profit

2.23 Sales
% 2020 20,81,094.84
17,57,96,009.92
2021 21,27,573.65
25,86,94,641.34
2022 83,50,610.67
37,38,26,449.69
2023 62,40,268.73
423,857,386,95

8.22
%

Interpretation:

From the above chart there is increase in the net profit ratio in first two year it was

highest in 2020-8.22 & and it decreased to 1.47 in 2023.

TABLE 8:
Showing Average Collection Period:

PARTICULARS 2019-2020 2020-2021 2021-2022 2022-2023

DEBTORS 24.839 17.188 11.547 13.725

TURNOVER
RATIO

AVERAGE 14.69 21.23 31.60 26.59

COLLECTION
PERIOD

NOTE:
Average collection period = days in a year / debtors turnover ratio
ANALYSIS:
The above table shows the average collection period 2019 is taken as a base year and it was
14.69 days and in 2020 it was 21.23 and in the current year it was 26.59.
 GRAPH 8:
Showing Average Collection Period:

11.5
47

24.8 PARTICULARS
39 2019-2020
2020-2021
2021-2022
2021-2022 2022-2023

17.1
88

INTERPRETATION:

The average collection period has been increased from 14.69 days in 2019-2020 to 21.23 days in
2020-2021. The reason was to fall in the debtors turnover ratio over the years. Though it’s at a
satisfactory level but a higher collection period implies as inefficient collection performance
which in turn may adversely affect the liquidity or short term paying capacity of the firm out of
its current liabilities, which reduces in the next year 2021-2022.
 CHAPTER-VI
FINDINGS, SUGGESTIONS AND CONCLUTION
 FINDINGS
1. ISTF uses standard norms for Inventory Management for all the materials as been

maintained.

2 Material planning is done based on orders obtained from different customers. The material

requirement plan is processed is to give exact requirements of materials to be produced.

3 Vendors are related based on their performance with respect to delivery, a quality price

standard.

4 The received material are inspected as per standard plan is finished products are tested on

100% basis no material is released is handled properly.

5 Physical verification of high value materials in holding store is conducted in accordance

with predetermined programmers.

6 All material is stored in right condition at respective locations and The Company has items,

which are slowing moving and non-moving, which are disposed off at regular intervals.

7. The scrap obtained in the process is comparatively very low.

8. As the production cycle is very high, and leads to accumulation of WIP, in turn increase

the cost, the company should flow the sub-contracting method where some part of the

work is done by other contracts and only assembling and furnishing of the product is

done. This leads to systematic and distributed work.

9. The production layout may be changed to cellular manufacturing concept. I.e. Raw

materials fed in one end and finished products are received in another end where every

step is automatic and mechanized.

10. FIFO method is being adopted to issue the materials to production department
 SUGGESTIONS

1. To follow just in time (JIT) technique

 The concept of JIT means that virtually no inventories are held at any stage of production

and that exact number of units is bought to each successive stage of production at the

right time is also called zero inventories.

2. It is found that in every ward there is A, B, C items. It is suggested keep the materials a
class items in some ward and C class items in some wards, so that it is easy to keep
attention on every ward according to their importance.

3. Method of analysis;
It is found that ABC analysis is followed to a large extent; hence it is suggested to follow

the different methods.

 CONCLUSION

The research topic inventory management and control, has a greater implication on Indian

industries. From the analysis of inventory management and control in ISTF, it is very clear that,

it has achieved greater importance in production control to a large extent, it also enhance the

arising need of the organization, in respect of inventory management and control.

The inventory management and control in ISTF is very complex function. The functions of

stores depot, its inventory control technique to achieve the effective production program,

necessitates the importance of inventory management and difficult task in today’s business world

in spite of complex function, ISTF has maintained a very good system of inventory management

and control has achieved great progress in production program year to year.
 REFERENCES:
BIBILOGRAPHY
S.N TITLE AUTHOR PUBLISHER YEAR
O
1. Financial Management Prasanna Chandra TMH New Delhi 2017

2. Financial Management Khan & Jain TMH New Delhi 2016

3. Financial Management V.K.Bhalla ANMOL, New Delhi 2014
4. Production & operation S.N.Charry TMH New Delhi 2018
Management
5. Production & operation B.L.Goel Pragathi, New Delhi 2017
Management

OTHER REFERENCES:
1. Manuals of Hindustan Coca-Cola Beverages Private Limited.
2. Manuals of Stores Department.
3. Five year Balance sheets (2019-2023).
4. CocaColaBeverages Private Limited.

Economic Administration - By IM Pandey

2. Monetary Management - By Prasanna Chandra

3. Complete Quality that is Control that is top by Shridhara Bai

4. Company’s storage handbook

5. Company’s Annual Research

Websites:
www.google.com
www.inventory.in
www.cocacola.com
www.retail.in