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					              Bachelor of Management
                  Study ‘Div-A’
                   Semester III
                     (2011-12)

                  Submitted By
              SHAHNAAZ CHOUGLE


                  Project Guide
                 ARTI SHARMA




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                         Viva College of
                               Commerce

                             CERTIFICATE
                 This is to Certify SHAHNAAZ CHOUGLE of div A
             Roll. No.       Of bachelor of management study semester
     IV has successfully completed the project on QUALITY MANAGEMENT
                        Under the guidance ARTISHARMA




Prof in Charge:                                       Principle:

Date:
                                                  College Stamp
Presented By:

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         Introduction

         Parle Product’s fame and familiarity is undeniable. Considering its extensive reach, the
         brand Parle is known and recognized by everyone. Over the years, Parle’s sweets and
         biscuits have become a household name. From kids to adults, everyone loves and cherishes
         these treats. It gives us great pleasure to see our consumers enjoy and embrace Parle
         products on daily basis. Our confectioners and chefs have the utmost authority at Parle.
         Had it not been so, the beginning of Parle would have been quite different.

         In 1929 a small company by the name of Parle products emerged in British dominated
         India. The goal was to spread joy and cheer to children and adults alike, all over the
         country with its sweets and candies. Although, the company knew that it wouldn’t be an easy
         task, they decided to take the brave step. A small factory was set up in the suburbs of
         Mumbai to manufacture confectionery products. A decade later this factory was upgraded to
         manufacture biscuits as well. Since then, the Parle name has spread in all directions and
         has won international fame. Parle has been sweetening the lives of people all over India and
         abroad. Apart from the factories in Mumbai and Bangalore, Parle also has factories in
         Bahadurgarh, Haryana and Neemrana, Rajasthan. These are the largest biscuit and
         confectionery plants in the country. Additionally, Parle Products also has 10 manufacturing
         units and 75 manufacturing units on contract.

         History

         In the 1950s the undivided Chauhan family manufactured beverages, water, confectionery,
         biscuits, etc. under its registered brand name Parle.

         Over the years, the group split into three different companies – Parle Agro, Parle Bisleri
         and Parle Products. Currently, all three are separate companies with separate ownership
         and management. They also have different products manufactured under them. All three
         companies continue to use the family trademark name – ‘Parle’ under which the current
         companies are named. Parle agro commenenced operations in 1984. Starting with only
         beverages and diversifying to include bottled water in 1993 and confectionery in 2007.




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         Parle Agro commenced operations in 1984. Starting with only beverages and diversifying to
         include bottled water in 1993 and confectionery in 2007. Frooti was the first product that
         was rolled out of Parle Agro in 1985. It went on to become India’s favourite mango drink. It
         still has a leading market share.

         Mr. Prakash Chauhan is the Executive Chairman of Parle Agro....

         Brands

         Parle Agro Pvt. Ltd operates under three business verticals: • Beverages – fruit drinks,
         nectars, 100% Juice, sparkling drinks • Water – Packaged Drinking Water • Foods –
         confectionery, snacks

         1. BEVERAGES -

         Frooti: Launched in 1985 as a mango drink, Frooti is the first beverage to be launched in
         tetra packaging in India. Frooti is India’s favorite Mango drink and is ranked amongst the
         most trusted brands in numerous national surveys.

         Appy Classic: Launched in 1986 as apple nectar and originally available in a white tetra
         pack with an apple and leaf graphic, today it comes in black tetra packaging. Appy remains
         the first apple nectar to be launched in India.

         Appy Fizz: Launched in 2005, Appy Fizz is India’s first sparkling apple drink available in a
         champagne shaped PET bottle. Considered the ‘Champagne’ of Fruit drinks, Appy Fizz is a
         one of a kind product in the beverage market. Recently, Appy Fizz has been given a
         makeover in terms of a new packaging.

         Saint Juice: Launched in 2008, Saint Juice is available in three variants – Orange, Mixed
         fruit, Grape and Apple. Saint Juice is 100% juice with no added color, sugar or
         preservatives.

         LMN: Launched in 2009, LMN is a fresh take on nimbu pani. It contains real lemon juice
         and has no artificial flavors or preservatives. LMN works as an ‘Emergency Lemon
         Refresher’, and tastes closest to authentic nimbu pani.

         Grappo Fizz: Launched in 2008, Grappo Fizz is a sparkling grape juice drink. Credited with
         creating the sparkling fruit drinks category in India, Grappo Fizz is along the lines of
         existing product Appy Fizz. It is purple-red in color and has no close competition in the
         market.

         2. 3. Snacks & Confectionery


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         Hippo: HIPPO is a baked snack with the goodness of wheat. It is available in seven flavors
         from around the world - Italian Pizza, Chinese Manchurian, Hot-n-Sweet Tomato, Thai
         Chilli, Yoghurt Mint Chutney, Indian Chatpatta and Arabian Salted. These baked wheat
         munchies have no added MSG, no GMO, no cholesterol and zero trans-fat.

         Confectionery -

         Mintrox: Mintrox is a hard mint candy. It is available in two flavors - Hard Cinnamon Mint
         and Hard Menthol Mint.

         Buttercup: Buttercup is a hard boiled candy; it is targeted at kids and adults alike.

         Buttercup Softease: Buttercup Softease is a toffee which gives a uniquely chewy & smooth
         eating experience with a rich after taste. It is available in 4 variants – Strawberry, Coconut,
         Vanilla and Caramel.

         Softease Mithai: Softease Mithai is a toffee. It is available in three flavors: Kaju and Kesar.

         Parle's Frooti No 1 fruit drink

         Parle is 46 year old company initially started with bottling plant now it has made its base
         more stiff parle has three companies under its tree namely parle private limited, parle agro
         private limited and bisleri. Each of them with separate entity. After the bottling plant parle
         came into picture because of its biscuits and confectionary through which it capture good
         market and then the parle agro dealing with the fruit drinks and gradually also towards
         confectionary and mineral water. With bisleri having different business of its own.

         Frooti from Parle Agro is the largest distributed fruit drink with 61 % market share in India.
         It reaches more than 10 lakh retail outlets in up to class C towns through more than 1,500
         distributors

         Parle agro has the core business activity that is production in four different states such as
         BHOPAL, CHENNAI, GAZYIABAD and PHATHALAGN and fifth to be established in
         HYDRABAD.

         And parle agro has 12 franchises currently all over India




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                                       PRODUCTS

                               Frooti




                                                                                      The unit is
                               capable of producing 15 Million Liters of still fruit drinks per annum




         Appy Classic

                                                          Another veteran. Born
         in 1986, this premium apple drink has been everybody’s favorite when it
         comes to, well, apple drinks. Over the years, it has shaken off its trendy
         image to become a classy and premium drink. The aesthetic slick black
         packaging helped, of course. Thus, attracting not just the young, but
         also the adults.

                           Appy Fizz




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         Stock Keeping Unit (S K U) Strategy:

         The firm has formulated a SKU strategy, which caters to all the different needs of the
         consumer. To suit customer needs, Frooti is available in different sizes.

         The 250 ml handy bottle is targeted towards teens as a single serve.

         The Frooti Pet 500 ml is economical and ideal for consumers when there’s more than one.
         this handy bottle would also be popular in canteens, at offices and colleges.

         The Frooti family size 1 liter Pet is easy-to-store in the fridge, perfect for all occasions and
         parties.

                                                         Product mix:-

                                                         Frooti is available in 65ml and 200ml
                                                         TetraPak, 250ml, 500ml, 1Ltr. and 1.5 Ltr.
                                                         PET, and 200ml and 2Ltr PET (in select
                                                         markets).

                                                         Appy Classic is available in 200ml TetraPak
                                                         Appy Fizz is available in 300ml, 500ml and 1
                                                         Liter. PET
                                                         Quality control systems
                                                         The quality control systems at Parlé are
                                                         undertaken according to the standard
                                                         operating procedures under the aegis of the
                                                         quality assurance manager.

                                                         In the bottle washer compartment the various
                                                         parameters such as the gas volume, dilution
                                                         levels, sweetness levels and required
                                                         temperature levels have to be monitored. The
                                                         entire monitoring system is automated and any
                                                         discrepancies from the stipulations are taken
                                                         beverage’s plant to adopt methods
         guaranteeing precision in processes.

         In the beverage manufacturing process very stringent quality control systems are in place.
         Starting from the characteristics of the water used proper quality control systems are in
         place at Parle.

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         The sample of the ready syrup undergoes stiff tests - it is checked for proper dilution levels,
         sweetness, flavour and color. Only the rigidly verified sample is further processed.

         Also, in the paramix section quality standards are monitored regularly. The carbonation
         levels and the dilution is strictly monitored at every possible step. In the final inspection all
         these characteristics are taken care of through the sample taken at regular intervals. The
         PFA act stipulations are taken care of through these quality control systems.

         At Parlé, as of now ISO standards have not been adopted but are in the process of being
         implemented. Starting from the next year the implementation of these standards is to be
         undertaken and is planned to be in place by the year end

         care of by alarms in place. Yet unforeseen contingencies have to be taken care of so that
         adequate level of quality is maintained.

         The taking over of the brands by Coca Cola India Ltd., has made Parlé

         RAW MATERIAL AND PACKAGING MATERIAL DETAILS

         Raw materials for products

         1. Mangoes (totapuri)

         2. Apples

         3. Preservatives

         4. Added flavors

         Raw materials for packaging

         1. Corrugation boxes

         2. Bottles

         -Example

                       27 TETRAPAKS IN ONE TRAY / 3672 TRAYS IN 1 X 20'FCL

                                12-15 DAYS FROM THE DATE OF CONFIRMATION OF ORDER &
         PAYMEN

         Being an easily perishable fruit drink, Frooti’s packaging is designed in a unique manner.
         Frooti is packed in a Tetra Pack, which is lightweight yet strong, easy to transport, easy to
         store and keep. Frooti’s extended shelf life is due to the seven-layer combination of paper,
         plastic and aluminium foil in the packaging. The plastic layer makes it waterproof and light.

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         The aluminium layer protects the content from light, oxygen and odour. The paperboard in
         the pack helps it to stand up and maintain its shape. Unlike glass bottles the Frooti tetra
         pack was found to be unbreakable and safe. Being lightweight it was easy to carry around
         with no need of refrigeration to keep it fresh. In the manufacturing process, Frooti
         undergoes flash ultra heat treatment, which helps to destroy disease-causing bacteria and
         germs without over-heating and over-cooking the fruit pulp

         Enter the Pet Bottle

         Consumer research had indicated that the consumer’s need for a recap bottle had not yet
         been satisfied till date in the mango drink segment. Parle Agro identified this crucial need
         and launched Frooti in a hygienic, hotfill PET bottle. Frooti is thus the first mango drink to
         be available in a PET bottle.

         Manufacturing process

         Harvesting/collection

         `Oranges are harvested from large groves. Some citrus growers are members of cooperative
         packing and marketing associations, while others are independent growers. When the
         mature fruit is ready to pick, a crew of pickers is sent in to pull the fruit off the trees. The
         collected fruit is sent to packing centers where it is boxed for sale as whole fruit, or sent to
         plants for juice processing. The oranges are generally shipped via truck to juice extraction
         facilities, where they are unloaded by a gravity feed onto a conveyor belt that transports the
         fruit to a storage bin.

         Cleaning/Grading

         The fruit must be inspected and graded before it can be used. An inspector takes a 39.7 lb
         (18 kg) sample to analyze in order to make sure the fruit meets maturity requirements for
         processing. The certified fruit is then transported along a conveyor belt where it is washed
         with a detergent as it passes over roller brushes. This process removes debris and dirt and
         reduces the number of microbes. The fruit is rinsed and dried. Graders remove bad fruit as
         it passes over the rollers and the remaining quality pieces are automatically segregated by
         size prior to extraction. Proper size is critical for the extraction process.

         Extraction

         Proper juice extraction is important to optimize the efficiency of the juice production
         process as well as the quality of the finished drink. The latter is true because oranges have
         thick peels, which contain bitter resins that must be carefully separated to avoid tainting the
         sweeter juice. There are two automated extraction methods commonly used by the industry.
         The first places the fruit between two metal cups with sharpened metal tubes at their base.
         The upper cup descends and the fingers on each cup mesh to express the juice as the tubes
         cut holes in the top and bottom of the fruit. The fruit solids are compressed into the bottom
         tube between the two plugs of peel while the juice is forced out through perforations in the


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         tube wall. At the same time, a water spray washes away the oil from the peel. This oil is
         reclaimed for later use.

         The second type of extraction has the oranges cut in half before the juice is removed. The
         fruits are sliced as they pass by a stationary knife and the halves are then picked up by
         rubber suction cups and moved against plastic serrated reamers. The rotating reamers
         express the juice as the orange halves travel around the conveyor line.




         When the mature fruit is ready to pick, a crew of pickers pull the fruit off the trees. Once
         collected, the fruit is sent to plants for juice processing. Before extraction, the fruit is
         cleaned and graded.

         Some of the peel oil may be removed prior to extraction by needles which prick the skin,
         thereby releasing the oil which is washed away. Modern extraction equipment of this type
         can slice, ream, and eject a peel in about 3 seconds.

         The extracted juice is filtered through a stainless steel screen before it is ready for the next
         stage. At this point, the juice can be chilled or concentrated if it is intended for a
         reconstituted beverage. If a NFC type, it may be pasteurized.

         Concentration

         Concentrated juice extract is approximately five times more concentrated than squeezed
         juice. Diluted with water, it is used to make frozen juice and many RTD beverages.
         Concentration is useful because it extends the shelf life of the juice and makes storage and
         shipping more economical. Juice is commonly concentrated with a piece of equipment
         known as a Thermally Accelerated Short-Time Evaporator, or TASTE for short. TASTE uses
         steam to heat the juice under vacuum and force water to be evaporated. Concentrated juice
         is discharged to a vacuum flash cooler, which reduces the product temperature to about
         55.4° F (13° C). A newer concentration process requires minimal heat treatment and is used
         commercially in Japan. The pulp is separated from the juice by ultra-filtration and
         pasteurized. The clarified juice containing the volatile flavorings is concentrated at 50° F
         (10° C) by reverse osmosis and the concentrate and the pulp are recombined to produce the

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         appropriate juice concentration. The flavor of this concentrate has been judged to be
         superior to what is commercially available in the United States and is close to fresh juice.
         Juice concentrate is then stored in refrigerated stainless steel bulk tanks until is ready to be
         packaged or reconstituted.

         Reconstitution

         When the juice processor is ready to prepare a commercial package for retail sale,
         concentrate is pulled from several storage batches and blended with water to achieve the
         desired sugar to acid ratio, color, and flavor. This step must be carefully controlled because
         during the concentration process much of the juice's flavor may be lost. Proper blending of
         juice concentrate and other flavor fractions is necessary to ensure the final juice product
         achieves a high quality flavor.

         Pasteurization

         Thanks to its low pH (about 4), orange juice has some natural protection from




         The rind and pulp that is created as waste. Products made with these materials include
         dehydrated feed for livestock, pectin for use in making jellies, citric acid, essential oils,
         molasses, and candied peel. Certain fractions of orange oil (known as d-limonene), have
         excellent solvent properties and are sold for use in industrial cleaners. In an automated
         process, the juice is extracted from the orange while the peel is removed in one step.

         Bacteria, yeast, and mold growth. However, pasteurization is still required to further retard
         spoilage. Pasteurization also inactivates certain enzymes which cause the pulp to separate
         from the juice, resulting in an aesthetically undesirably beverage. This enzyme related
         clarification is one of the reasons why fresh squeezed juice has a shelf life of only a few
         hours. Flash pasteurization minimizes flavor changes from heat treatment and is
         recommended for premium quality products. Several pasteurization methods are
         commercially used. One common method passes juice through a tube next to a plate heat
         exchanger, so the juice is heated without direct contact with the heating surface. Another

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         method uses hot, pasteurized juice to preheat incoming unpasteurized juice. The preheated
         juice is further heated with steam or hot water to the pasteurization temperature. Typically,
         reaching a temperature of 185-201.2° F (85-94° C) for about 30 seconds is adequate to
         reduce the microbe count and prepare the juice for filling.

         Packaging/filling

          To ensure sterility, the pasteurized juice should be filled while still hot. Where possible,
         metal or glass bottles and cans can be preheated. Packaging which cannot withstand high
         temperatures (e.g., aseptic, multilayer plastic juice boxes which don't require refrigeration)
         must be filled in a sterile environment. Instead of heat, hydrogen peroxide or another
         approved sterilizing agent may be used prior to filling. In any case, the empty packages are
         fed down a conveyor belt to liquid filling machinery, which is fed juice from bulk storage
         tanks. The filling head meters the precise amount of product into the container, and
         depending on the design of the package, it may immediately invert to sterilize the lid. After
         filling, the containers are cooled as fast as possible. Orange juice packaged in this manner
         has a shelf life of 6-8 months at room temperature.

         Byproducts/Waste

         Byproducts from orange juice production come from

               Inventory management

               Warehousing

               Transportation and logistics

               Productivity and quality measures

               Special measures

               JIT and TQM and quality circles

               Financial results




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         Indian fruit juice market is an unorganized and newly developing market. Only recently this
         sector is getting more organized and attracting more players in the market. Though the
         unorganized corner shop vendors dominate this market, Indian consumers are moving
         towards branded fruit juice because of their improvement in health consciousness. Indian
         fruit juice market is having a net-worth of 275 crores as of now and increasing at a rate of
         35% to 40% per year.

         Juice market on the whole is about Rs. 1200 Crores. ($270 Million) Mango juice
         consumption will be at least 90% with about 250 million liters per year. Maaza leads in
         Brand followed by Frooti and Slice. Most of the market for Mango drinks is consumed in
         Returnable glass bottles (now 200ml). Another way of looking at juice market is 10-15% of
         total Indian Beverage market. Madhya Pradesh has 3 leading beverage bottlers with Coke,
         Pepsi and Godrej with 5 manufacturing plants for Fruit juices and carbonated drinks. Total
         juice production for them will be about 2-2.5 Million cases (24 Bottles of 200ml each) in
         Madhya pradesh. M.P. is propably 11th in Mango Production. Andhra Pradesh and U.P are
         the leaders.

         The non-carbonated soft drink (NCSD) market in India is considered to have huge potential.
         Within that the fruit juice category is expected to grow at 40 per cent perineum over the
         next five years. With an eye on the latent demand in NCSD, major players, like Parle and
         Godrej, are planning new launches during the current year. Health conscious consumers
         and use of juices in combination with breakfast cereals/ white drinks are cited as factors
         driving the growth.

         Growth in the juices segment is not at the expense of the colas or other carbonated soft
         drinks. Though it is true that more people are going in for the fruit-based products, there is
         little cannibalization taking place. It is just that the total market is expanding. A market like
         India, with per capita consumption as low as six bottles, offers a huge potential to expand,

         WHILE the consumer has been seen increasingly taking to health foods and everything and
         anything that delivers a `healthy' lifestyle, companies in the FMCG sector have figured out
         that this is the way to higher growth rates and are responding to enhanced consumer
         demand.

         The reason for all the action, perhaps, lies in the numbers. According to market watchers,
         the `health food products' segment is poised to grow at 15 per cent.

         "There is tremendous potential in the untapped market that constitutes consumers who are
         on the constant lookout for `healthy' products such as fruit juices, soups and wholesome
         variants of even products like noodles and biscuits," says an industry official.

         Retailers admit that consumers are increasingly reaching out for fruit-based drinks and non-
         carbonated soft drinks, sometimes even at the expense of a cola or any other brand of
         carbonated soft drink (CSD).



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         Though juices make up only five per cent of the estimated Rs 5,300-crore soft drink
         segment, choices in this category are plentiful.

                                               Conclusion
         With people turning more health conscious, the non-carbonated beverage segment has
         become one of the fastest growing and most exciting businesses at the moment

         While all segments of the beverage market are evolving, the growth seems to be directed
         more towards healthy, light and low-calorie drinks, in particular organic and fruit juice
         varieties.

         The Rs 500 crore non-carbonated beverage market in the country is composed of fruit
         drinks, nectar and juices. While the fruit drink segment is estimated at Rs 250-300 crore
         (branded and packaged), the juice market is valued at Rs 150 crore and the nectar is a small
         category of about Rs 35-50 crore. And the popular brands vying for a share in the sector are
         Parle's Frooti, Godrej's Jumpin, Coca Cola's Maaza, Pepsi's Tropicana, and Dabur's Real,
         Nestlé’s Milo, Soy milk from ProSoya and branded fruit juices from SuryaFoods among
         others.

                                             BIBLIOGRAPHY
         http://www.exchange4media.com/e4m/news/Fullstory1.asp?news_id=37920&tag=3499&se
         ction_id=42

         http://www.financialexpress.com/news/frooti-plays-a-chupa-rustam/616932/

         http://www.financialexpress.com/news/Packaged-drinking-water-cos-add-splash-to-
         marketing-plans/620567/

         http://www.business-standard.com/india/news/parle-agro-in-nature%5Cs-lap/377362/

         http://www.business-standard.com/india/news/parle-agro-looks-to-penetrate-home-
         consumption-market-for-lmn/63755/on




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