CHAPTER-III

PROFILE OF THE STUDY AREA

This section is devoted to describe the profile of the study area

namely Nagapattinum District.

3.1 PROFILE OF THE NAGAPATTINAM DISTRICT

District of Nagapattinam has been carved out as a separate District
due to bifurcation of Thanjavur District. According to this division, seven
Taluks namely Sirkazhi, Tharangampadi, Mayiladuthurai, Kilvelur,
Thirukuvalai, Nagapattinam and Vedaranniyam were detached from their
parent District i.e. Thanjavur to form this new District. The earlier history of
this District is more or less the same as of its parent District i.e. Thanjavur
being its part till recently. Tamil and Telugu are the main languages spoken
in the District.

Figure 3.1 Taluks in Nagapattinam District

Chapter III Profile of the Study Area

Figure 3.2 Map in Nagapattinam District

3.2 GEOGRAPHICAL LOCATION

Geographical Location of the District
The Nagapattinam District lies on the east coast to the south of
Cuddalore District and another part of the Nagapattinam District lies to the
south of Karaikkaland Tiruvarur Districts. Its northern boundary is about 75
Km southwards from the Head Quarters of the Cuddalore District.
Thanjavur District and Tiruvarur District flank it on the west and on the
south and east it is bordered by the Bay of Bengal. The Cauvery and its
offshoots are the principal rivers. Rising in the Co org Mountains, this river
bifurcates about nine miles at the west of Trichy into two branches, of which
the northern one takes the name of Coleroen and the southern one retains
that of the Cauvery. All along the course of Cauvery and its distributaries,
on both the banks numerous narrow strips of river porombokes lands called
Paduagais that are cut up by countless patta lands.

94
Chapter III Profile of the Study Area

These strips ranging in width from about 3 meters to 100 meters are
made up of bits of lands. Even though the Padugais and Poromboke lands
are very dry they are very fertile. Flood banks of Cauvery and its
distributaries are away from the watercourses in the upper reaches where the
river is wide and closer in the lower reaches and the river become narrow
gradually. The marine land or coastal land has plain lands except for few
sand dunes. However there is a general tilt from coastal line to inland area.
The Vederanyam salt swamp, which is the largest swamp in Tamil Nadu,
runs along the coast from Point Calimere westwards to Muthupet.
Consequently extensive lagoons have been formed in these areas. The
terrain is an open plain, sloping towards the east and devoid of any hills. In
south and Southwest of Thanjavur the country rises and forms a small
plateau known as Vallam table land, broken by small ridges of grits and
sandstones. Most of the rivers flow to the east into the Bay of Bengal. The
most important feature of the District is the Cauvery River spread over with
its numerous branches.

There are no less than eleven ports on the coast Nagapattinam

District, of which eight are open to foreign trades. The coastline has a
number of harbours of which mention may be made of Nagore, Point
Calimere, Nagapattinam. The significant small ports are Kilvellore,
Thirumulaivasalam, Nagapattinam, Velankanni, Topputturai, Muttupet and
Adiramapatnam. The Nagapattinam District is made up the 7 Taluks of
Sirkazhi, Tharangampadi, Mayiladuthurai, Kilvelur, Thirukuvalai,
Nagapattinam and Vedaranniyam. The East Side faces the Bay of Bengal.
The District is the most part of a flat plain, slopping very gently to the sea on
the east. The total geographical area of the District is about 3536.38 Sq.km.
The details of the name of the Taluks with area in Sq.km. are given in the
following table.

95
Chapter III Profile of the Study Area

Table No. 3.1

Table Showing the Taluks of Nagapattinam District
S. No. Name of the Taluks
1 Nagapattinam
2 Kilvelore
3 Vedaranniyam
4 Mayiladuthurai
5 Sirkazhi
6 Tharangampadi
7 Thirukuvalai
Source: District Collectorate, Nagapatinam(2015)

Vedaranniyam salt swamp forms another great natural division. It

runs along the coast from Point Calimere for about 48 km sand is about 7 to
8 km. wide. This is the longest swamp of its kind in the state. It is filled by
two periodical high tides during the full moon of months, May and June and
retains sea water to a depth of two feet over a considerable area enclosed by
low earthen banks, which when closed prevent the water from flowing back
into the sea after the tide recedes. It is in this manner the well-known
Vedaranniyam spontaneous salt is produced.

i) Location

Nagapattinam District is bounded by the Thanjavur and Tiruvaraur

District on the east by South Arcot Vallalar District on the north and by Palk
Strait on the south. It is a coastal region and the coastline has a number of
harbors of which mention may be made for Nagorre, point Calimere,
Nagapattinam. The administrative Headquarters of this District is located at
Nagapattinam town, and it is spread fover an area of 4614 sq.kms.

ii) Climate
The District lies on the east coast of Tamil Nadu. It is situated
between 10.10 and 11.20 of
eastern longitude. The District has a geographical area of 4217.34 square

96
Chapter III Profile of the Study Area

kms. IT is bounded by South District in north, Thanjavur District in the

west, palk Strait in South and Bay of Bengal in the East. The new District
has about 170 kilometers of sea coast which is ideal for prawn farming. The
salt swamps in South East Corner of the largest of these kinds in the state.
The District does not have any hill of prominent height.

iii) Rainfall
The District gets more rains from the south-west monsoon. The
average annual ranges from 800mm to 1200mm. The atmosphere of the
delta is somewhat damp. The hot season begins from March and heat
subsidies after June. The rainy season is from September to November. The
Cauvery is the chief river of the District for irrigation.

iv) Administrative Set Up

The District consists of 20 blocks. It has got 1185 Revenue villages.

The old port city of Kaveripoompattinam at the confluences of Cauvery is an
important tourist center of the District. Other important tourist centers
include Velankanni, Nagore the point Calimere bird sanctuary and the
40,000 acre Muthdupet Langoon with its unique Magrove system. The
Basilica of our Lady of Health at Velankanni, the Nagore Durgah, and
Markandeyar temple at Thirkadayurarre the proof of religious sensibilities
and communal harmony in the region.

v) Population
According to 2001 census the total population of the District was
14,80,804 among them 740871 were Male population and 739933 were
female. People living in rural area were level 1174703 and the urban area
306101 the main languages spoken in the District were Tamil, Telugu and
Urdu. There were 781877 literates as per 2001 census.

97
Chapter III Profile of the Study Area

vi) Water Resources

River water is the only source of irrigation in the District. The net
area irrigated in the District was 273434 hectares being 91.5 per cent of the
net area sown. River Cauvery, Vennar and Grand Anikat canal respectively
irrigate 43.6 percent, 51.3 percent and 5.1 percent of the net area under
irrigation source wise net area under irrigation in Nagapattinam District is
given in table 3.2.

Table No. 3.2

Table showing the Source Wise Net Area under Irrigation in
Nagapattinam
Irrigation Source Area (Ha) Percentage to Total
Cauvery 1,19,269 43.6
Vennar 1,40,345 51.3
Grand Anikat Canal 13,820 5.1
Total 2,73,434 100.00
Source: A.C.P. of Nagapattinam District (2015)

vii) Occupational Pattern

Occupational pattern tells upon the economic and social status of the
people an area. Table gives the occupation pattern of workers in
Nagapattinam District. Around 47 percent of the workers were farmers and
30 percent were agricultural labourers.

In other words, about 80 percent of the total working population of

the study area is engaged in agriculture. This picture confirms the fact that
the economy of the District is primarily agrarian in character and
occupation. Other occupations like trade and commerce, transport, services,
manufacturing and processing have comparatively little significance in the
occupational pattern of the District.

98
Chapter III Profile of the Study Area

viii) Area of Land holding and their Distribution

According to the latest data available (Agriculture census 2001 there

are 329318 farmers in Nagapattinam District having 336533 hectares of land
under them. The average land holding is 1.02 hectares. About 72 percent of
the holdings are marginal i.e. below one hectare and they account for 24
percent of the total area. Around 15 percent of the farmers are small framers
and their holdings account for 21.3 percent of the total area. On the other
hand, holdings, of 2 hectares and above account for only 12.4 percent; where
as their share in the total area is as high as 54.7 percent.

Table No. 3.3

Table showing the Land Holding Pattern

Farmer Size Nos. % to Total Extent in % to Total

Ha.
Marginal 238092 72.3 80832 24.0
Farmers
Small Farmers 50415 15.3 71656 21.3
Medium Farmers 27257 8.3 74960 22.3
Big Farmers 13554 4.1 109085 32.4
Total 329318 100.00 336533 100.00
Source: A.C.P. of Nagapattinam District (2015)

ix) Land Use Pattern

Land is the most important natural resource for the development of

the economy. The economic development of the District largely depends on
how its land resources are utilized.

Table 3.4 reveals that about 75 percent of the total reported area is
utilized for agriculture. Net area sown accounts for about 64 percent and
current fallows come around 5 percent of the total reported area.

99
Chapter III Profile of the Study Area

Table No. 3.4

Table showing the Land Use Pattern
Land Use Classification Area (Ha) % to total

Forest 11,023 2.34

Barren and uncultivable 30,821 6.56

Land put to Non-Agricultural 78,581 16.71

use

Cultivable Waste 9,264 1.97

Permanent Pastures 1,768 0.38

Land under Misc. tree crops 10,436 2.22

Current fallows 8,276 1.76

Net Area Sown 21,134 4.49

Total Area 4,70,214 63.57

100.00
Source: A.C.P. of Nagapattinam District (2015)

x) Cropping Pattern

Cropping pattern has a significant bearing on development of

agriculture. It can be observed from table that the crops in the District were
paddy, groundnut, sugarcane and pulses. The percentage of double cropped
area to the net area sown was about 74 percent. Resultantly, the cropping
intensity of the District was 174 percent. Also the cropping intensity of was
about 130 percent i.e, the percentage of area under paddy cultivation to the
irrigated area. The high cropping intensity pointed out towards a developed
agriculture and better availability of irrigation facilities.

100
Chapter III Profile of the Study Area

Table No. 3.5

Table showing the Area under Cultivation of Different Crops and
Nagapattinam District
Crop Name Years
1991-92 1992-93 1993-94
Paddy 262550 322556 353999
(60.7) (66.6) (68.1)
Groundnut 9625 9508 8729
(2.1) (2.0) (1.7)
Sugarcane 12408 10415 9181
(2.7) (2.2) (1.8)
Pulses and 160942 141535 147780
others (34.5) (29.2) (28.4)
Total 465495 484014 519689
(100) (100) (100)
Source: Records of Lead Bank Office, Nagapattinam (2015)

xi) Transport and Communication

All the important towns and villages of the District are well linked by
a good network of roads. The District has a minor port at Nagapattinam. A
fairly good communication is effected through post offices, telegraph offices
and telephones.

xii) Crops and Area Cultivated

In Nagapattinam District, paddy is the principal crop grown

throughout the year. The other crops cultivated are sugarcane, groundnut,
pulses and others. Table gives the area under cultivation of different crops
in District. It is seen from the table that paddy occupies more than 60
percent of the total area under cultivation. Groundnut and sugarcane
occupied around 2 percent each of the total cultivation area and pulses and
other crops occupy the rest of the area. The area under paddy cultivation in
the District had gradually increased by 25.3 percent during the three years;
this is because of the three years from climatic condition and water resources
available in the area.

101
Chapter III Profile of the Study Area

It can be seen from table that paddy has been cultivated during all the
three seasons of the year, namely Kuruvai, Samba and Thaladi. Samba is
the peak season during which more than 50 percent of the area is cultivated.

Table No. 3.6

Table showing the Paddy Cultivation Area-Season Wise

Season Area(Ha) % to total

Kuruvai 87,598 24.7
Samba 1,85,836 52.5
Thaladi 86,565 22.8
Total 3,53,999 100.00
Source: A.C.P. of Nagapattinam District (2015)

xiii) Animal Husbandry

Animal Husbandry is an allied activity of agriculture in this Districts

as well but is could not keep pace with the developmental work undertake in
the field of modern agricultural techniques. Therefore, the cultivators still
depend on cattle imported from other neighboring Districts. The livestock
found in this District are genially cattle and buffaloes, sheep, goats, pigs
apart from poultry birds which include fowls and ducks. The District have
several artificial insemination centers, and sub-centers, key village blocks,
veterinary hospitals and dispensaries which render valuable services for the
development of livestock in the District.

3.3 PROFILE OF COCA-COLA COMPANY

Coca cola was founded in the year 1886. In India its head quarters in
Haryana. Coca-Cola Company re-entered India through its wholly owned
subsidiary, Coca-Cola India private limited and re-launched Coca-Cola in
1993 after the opening up of the Indian economy to foreign investments in
1991. In India their CEO was abdul Singh. Since then its operations have
grown rapidly through a model that supports bottling operations, both

102
Chapter III Profile of the Study Area

company owned as well as locally owned and includes over 7,000 Indian
distributors and more than 1.7 million retailers. Today, our brands are the
leading brands in most beverage segments.

Hindustan Coca-Cola beverages private ltd has thirteen authorized

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 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.

The Coca-Cola system in India directly employees over 25,000

people including those on contract as a company, our products, our products
are an integral part of the micro economy particularly in small towns and
villages, contributing to certain of jobs and growth in GDP. Coca-Cola in
India is amongst the largest domestic buyers of certain agricultural products.
As an industry which has strong backward and forward linkages, our
operations catalysis growth in demand for products like glass, plastic,
refrigeration, transportation and industrial and agricultural products. The
Coca-Cola cola company has always placed high value on good citizenship.
fresh the
market; enrich the workplace; protect and preserve the environment; and
strengthen the community.

We have used our distribution network for disaster, our marketing

powers to raise awareness on issues such as PET recycling, and our presence
in communicates to improve access to education and potable water. Their
main competitor is PepsiCo.

103
Chapter III Profile of the Study Area

3.4 INDUSTRY PROFILE

from those experimental beginning there was an evolution until in1781,

wh
were called soft drinks, only to separate them from hard alcoholic drinks.
This drinks do not contains alcohol & broadly specifying this beverages,
includes a variety of regulated carbonated soft drinks, diet & caffeine free
drinks, bottled water juices, juice drinks, sport drinks & even ready to drink
tea/coffee packs. So we can say that soft drinks mean carbonated drinks.
Today, soft drink is more favorite refreshment drink than tea, coffee, juice
etc. It is said that where there is a consumer, there is a producer & this result
into completion. Bigger the player, the harder it plays. In such situation
broad identity is very strong. It takes long time to make broad famous. Coca
Cola has its beginning in 1981 & since then has been one of the three most
dominate players in this soft drink industry.
The History of cabonated soft drinks which is an important beverage
today, can traced back to the mineral water from natural springs. The
bubbles in spring water emanate as a result of carbon dioxide. This
phenomenon was the basis of invention of fizzy soft drinks, like coke.
The first drink [non carbonated] to be ever marketed, probably
appeared in the 17th century [1600-1700 AD], in France. It was basically
water sweetened with honey, with a dash of lime. In India too, a version of
this drink, called Nimbu-Paani, has been in existence for a considerable
length of time.
First man-made carbonated drink [carbonated water] was made by
Priestley in 1767, in his lab. The process of carbonation of water was later
automated for commercial production by Mr. Torbern Bergman, who
invented an apparatus for production of large quantities of carbonated water
using chalk and acid.

104
Chapter III Profile of the Study Area

The first patent in USA for manufacture of imitation mineral water

was issued in 1810 to Simons and Rundell. In 1832, John Mathews invented
an apparatus for the making carbonated water. This apparatus was a great hit
amongst soda fountain owners. Drinking Mineral water [natural or man-
made], was considered to be good for health. Thus, manufacturers started to
flavor the mineral water with herbs and spices. The first flavored carbonated
soft drink is believed to have been made by Doctor Philip Syng Physick, in
1807. Thus, soda fountains became a popular part of culture. The customers
soon wanted to take their "health" drinks home, which was the beginning of
-drink bottling industry grew
from consumer demand.

Carbonated drinks

In the late 18th century, scientists made important progress in

relocating naturally carbonated mineral waters. In 1767, Englishman Joseph
Priestley first discovered a method of infusing water with carbon-dioxide to
make carbonated water when he suspended a bowl of distilled water above a
beer vat at a local brewery in Leeds, England. His invention of carbonated
water (also known as soda water) is the major and defining component of
most soft drinks.

Priestley found that water treated in this manner had a pleasant taste,
and he offered it to friends as a refreshing drink. In 1772, Priestley published
a paper entitled impregnating water with fixed air in which he describes
dripping oil of vitriol (or sulfuric acid as it is now called) onto chalk to
produced carbon dioxide gas, and encouraging the gas to dissolve into an
agitated bowl of water.

sold his apparatus for commercial use in Pharmacies. Swedish chemist

Torbern Bergman invented a generating apparatus that made carbonated

105
Chapter III Profile of the Study Area

imitation mi9ineral water to be produced in large amounts Swedish chemst

jon Jacob Berzelius started to add flavors (spices, juices and wine) to
carbonated water in the late eighteenth century.
Soft drink bottling industry
Over 1500 US patents were filed for a cork or lid for the carbonated
drink bottle tops during the early days of the bottling industry. Carbonated
drink bottles are under great pressure from the gas. Inventors were trying to
find the best way to prevent the carbon dioxide or bubbles from escaping. In

Baltimore Maryland machine shop operator. It was the first very successful
method of keeping the bubbles in the bottle.
Automatic production of glass bottles
In 1899, the first patent was issued for a glass-blowing machine for
the automatic production of glass bottles. Earlier glass bottles had all been
hand-blown. Four years later, the new bottle-blowing machine was in
operation. It was first operated by the inventor, Michael Owens, an
employee of library Glass Company. Within a few years, glass bottle
production increased from 1400 bottles a day to about 58,000 bottles a day.
Soft drink production
Soft drinks are made by mixing dry ingredients and / or fresh
ingredients (for example, lemons, oranges, etc.) with water. Production of
soft drinks can be done at factories or at home.
Soft drinks can be made at home by mixing ether a syrup or dry
ingredients with carbonated water. Carbonated water is made using a soda
siphon or a home carbonation system or by dropping dry ice into water.
Syrups are commercially sold by companies such as soda-club; dry
ingredients are often sold in pouches, in the style of the popular US drink
mix Kool-Aid.

106
Chapter III Profile of the Study Area

Ingredient quality

Of most importance is that the ingredient meets the agreed

specification on all major parameters. This is not only the functional
parameter (in other words, the level of the major constituent), but the level
of impurities, the microbiological status, and physical parameters such as
color, particle size, etc.

Soft drinks industry in India

Soft drinks in India industry profile provide top-line qualitative and

quantitative summary information including: market size. The profile also
contains descriptions of the leading players including key financial metrics
and analysis of competitive pressures within the market. Essential resources
for top-line data and analysis covering the India soft drinks market.

The soft drinks market consists of retail sale of bottled water,

carbonated, concentrates, functional drinks, juices, RTD tea and coffee and
smoothies. However, the total market volume for soft drinks market
excludes the concentrates category. The market is valued according to retail
selling price (RSP) and includes any applicable taxes. Any currency
conversions used in the creation of this report have been calculated using
constant 2012 annual average exchange rates. The Indian soft drinks market
generated total revenues of $3.8 billion in 2012, representing a compound
annual growth rate (CAGR) of 11% for the period spanning 2009-2012.

Producers

North America
The Coca-Cola company
Dr. pepper Snapple group
PepsiCo

107
Chapter III Profile of the Study Area

South America

Ajegroup: (Peruvian origin, operates in 14 countries, now

headquartered in Mexico), p[producers of big cola, cielo (mineral
water), cifrut (fruit juice), free tea, free world night (referred to
locally as free light), kola real, oro, pulp (nectar), sporade (sports
drink) and volt (energy drink).
Ambev: (brazil, operates in 14 countries, owned by Anheuser-
Busch in Bev), the largest bottler of Pepsi cola products outside
the united states, also produces guarana Antarctica, soda
limonada, sukit, H2oh and guara.
Corporation Jose R. Lindley S.A: (Peru), producers of Aquarius
(flavored water), burn (energy drink0, Coca-Cola, crush, Fanta,
Frugos (nectar), Inca kola, kola inglesa, PowerAde (energy drink),
san lis (mineral water) and sprite.
Embotelladora don Jorge S.A.C: (Peru), producers of Agua
Vida (mineral water), click (fruit drink), Isaac kola and Peru cola.
PepsiCo incsucursal Del Peru: (Peru), producers of Pepsi cola,
seven up, triple kola, Concordia, san Carlos (mineral water),
evervess, Gatorade (sports drink) and adrenalin rush (energy
drink).

Europe

Perrier
Jupiler

Africa

Hamoud boualem founded in 1878 in Algiers, exports its products

to Europe and Canada.
Ifri; Another Algerian Company based in bejaia.

108
Chapter III Profile of the Study Area

India

Appy fizz by Parle

Agua blu (natural mineral water by LR beverage Pvt ltd)
Banta (lemon-flavored soft drink)
Bovonto (grape soda produced by kali mark)
Campa cola (popular Indian soda introduced in 1977)
Cloud 9 (energy drink)
Frooti (mango-flavored drink from Parle agro)
Frams (local drink from pune)
Gold spot
Grappo fizz
Ganga (local drink of Haryana)
Guptas (8 flavored soft drinks introduced in 1947)
Juicila (powered soft drink concentrate available in orange, mango,
lemon, cola, masala, jaljira)
Limca (lemon-lime soda)
LMN (lemon drink produced by Parle agro)
Kalimark

1957 the first aluminum cans used

1959 the first diet cola sold
1`962 the pull-ring tab first marketed by the Pittsburgh brewing company
of Pittsburgh, PA. The pull-ring tab was invented by Alcoa.

the nation in March, invented by Ermal Fraze of Kettering, Ohio.

1965 soft drinks in cans dispensed from vending machines.
1965 the resea abler top invented

109
Chapter III Profile of the Study Area

1966 the American bottlers of carbonated beverages renamed the

national soft drink association.
1970 plastic bottles are used for soft drinks.
1973 the PET (polyethylene Terephthalate) bottle created.
1974 the stay on tab invented. Introduced by the falls city brewing
company of Louisville, KY.
1979 Mello yello soft drink is introduced by the coca cola company as
competition against Mountain dew.
1981 the: talking vending machine invented.

Beverage industry
The beverage industry is a shifting landscape as volume leading
categories such as soft drinks continue to lose volume versus prior year
while functioning and health and weakness oriented categories enjoy strong
volume growth. Functional beverages continue to be the hottest segment in
beverage. Market research firm zenith international estimates global per
capita consumption of functional beverages will increases 25% from 2010 to
2013, roughly from 5.5 liters per person to 6.9 liters. Industry giants coca
cola (www.coke.com) and Pepsi (www.pepsico.com) continue to diversify

vitamin water (www.glaceau.com), Fuze (www.drinkfuze.com) and its

recent investment in zico coconut water (www.zico.com).
The beverage industry refers to the industry that produces drinks.
Beverage production can vary greatly depending on which beverage is being

facilities differ in the types of bottling lines they operate and the types of
he
knowledge of is if said beverage is canned or bottled, hot-fill or cold-fill,
and natural or conventional. Innovations in the beverage industry, catalyzed
by requests for non-alcoholic beverages, include beverage plants, beverage
processing, and beverage packing.

110
Chapter III Profile of the Study Area

Beverage production

Beverage production can be a complicated process if you are new to

the industry. Bottling facilities differ in the types of bottling lines they
operate and the types of products they can run: cans vs. bottles, hot-fills vs.
cold-fill, natural vs. conventional etc. it is critical to understand the
requirements of your beverage brand before you begin the production
process. Demand for non-alcoholic beverages has been the catalyst for
innovations in drink production in recent years, including beverage plants,
beverage processing and beverage packing.

No two beverage plants are alike. The beverage process each

beverage production facility specializes in can vary greatly as can the
beverage packing equipment available. There are many types of beverage
processing equipment, some of the capabilities you may need to consider
given the requirements of your brand include:

Cold fill
Hot fill
Carbonation
Aseptic or tetra pack
Tunnel pasteurization.

Other key considerations are the contract manufacturing fees charged

by the beverage production company to run your product and the geographic
location of the facility. If you wish to distribute your brand in the northern
but the only facility that can run your product is located in southern
California, then you need to account for the freight expense for the freight
expense of raw materials as well as finishes product.

Beverage industry in India

The food processing industry in India has a total turnover of around

USD 65 billion which includes value added products of around USD 20.6

111
Chapter III Profile of the Study Area

billion. The beverage industry in India constitutes of around USD 230

million among the USD 65 billion food processing industry. The major
sectors in beverage industry in India are tea and coffee which are not only
sold heavily in the domestic market but are also exported to a range of
leading overseas markets. Half of the tea and coffee products are available in
unpacked or loose form. Among the hot beverages manufactured in India,
tea is the most dominant beverage that is ruling both the domestic and
international market even today.

The taste factor in tea varies according to the taste of individuals in

different countries and the beverage companies in India manufacture the
products in accordance with the taste of the individuals. For example, the
inhabitants in the southern parts of India prefer dust tea whereas the
inhabitants in the western part of India prefer loose tea. The southern India
also prefers coffee a lot. The production capacity of the total packaged
coffee market is 19,600 tones which is approximately a USD 87 million
market. The soft drink market such as carbonated beverages and juices
constitutes around USD 1 billion producing 284 million crates per year. In
the peak season, the consumption capacity reaches 25 million creates per
month and during off season the same goes down to 15 million crates in a
month. Pepsi and coca cola are the two leading brands in the Indian market.
The mineral water market in India is a USD 50 million industry and
produces 65 million crates. Around 4.9 million crates are usually consumed
each month but it rises to 5.2 million crates in the peak season.

3.5 PRODUCT PROFILE

Coca Cola

It was launched in the year 1886. It is the flagship brand of the largest
manufacturer, marketer and distributor of nonalcoholic beverages in the
world.

112
Chapter III Profile of the Study Area

Variety

Cans: 330ml

RGB: 200ml, 300ml

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml.

Fountain glass: various sizes.

Diet coke

Diet coke contains plenty of taste but no calories. Diet coke is also
known as coke light in some countries. It was launched in 1982 in America
has become the third largest soft drink.

Variety

PET: 600ml

Can: 300ml, 330ml.

Thumps up
Originally introduced in 1977. Thumps up were acquired by the coca
cola company in 1993.

Variety

Cans: 300ml, 330ml.

RGB: 200ml, 300ml, 330ml.

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml.

Sprite

Since its inception is 1999, sprite has not only established itself as a
- ith an authentic,
edgy, irrelevant, urban and straight forward, but has also achieved status of

fastest growing soft drink in India and has become the second largest soft
drink in 2009, aiming for the No.1 spot.

113
Chapter III Profile of the Study Area

Variety

Cans: 300ml, 330ml.

RGB: 200ml, 300ml, 330ml.

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml.

Fountain glass: various sizes.

Fanta

Fanta entered the Indian market in the year 1993. Perceived as a fun
youth brand. Fanta stands for its vibrant color, tempting taste and tingling
bibbles.

Variety

Cans: 300ml, 330ml

RGB: 200ml, 300ml, 330ml.

PET: 500ml, 600ml, 1250ml, 1500ml, 2000ml, 2250ml.

Fountain glass: various sizes.

Limca
It was launched in 1971; Limca has remained unchallenged as the
No.1 sparkling drink in the cloudy lemon segment. The success formula is
the sharp fizz and lemon bite combined with the single minded proposition

Variety

Cans: 300ml, 330ml.

RGB: 200ml, 300ml, 330ml.

PET: 500ml, 600ml, 1250ml, 2000ml, 2250ml.

Fountain glass: various sizes.

114
Chapter III Profile of the Study Area

Maaza
It was introduced in the year 1970. University loved for its taste,

choice. In India introduced in 1976.

Variety
RGB: 200ml, 250ml
PET: 600ml, 1.2lt
Pocket pack: 200ml.
Minute maid pulpy orange
The history of the minute maid brand goes as far back as 1945 when
the Florida food corporation developed orange juice powder. They branded
it minute maid, a name connoting the convenience and the ease of
preparation (in a minute) launched in 2009.
Variety
PET: 400ml, 1 lt, 1.25lt.
Minute maid nimbus fresh
It was launched first in south of India in January 2010. Minute maid
nimbus fresh started refreshing the whole India by April 2010.
Variety
PET: 400ml
RGB: 200ml
Tetra pack: 200ML
Burn

Successful world over sold in over 80 countries across the world. Launched
in north Europe in the year 2000 and it has expanded to over 80 countries
over a short 10 year period.

115
Chapter III Profile of the Study Area

Variety

Can: 300ml

Kinley water

Kinley water comes with the assurance of safety from the coca cola
company. That is why we introduced kinley with reverse osmosis along with
the latest technology to ensure purity of our product. Because we believe
that right too pure, safe drinking water is fundamental.

Variety
PET: 500ml, 1000ml, 2lt, 20lt, 25lt.

Kinley soda

Launched in 2002 kinley soda today no: 1 national soda brand.

Variety

PET: 500ml.

Schweppes

Schweppes was launched in India in 1999 after the international

takeover of the brand from Cadbury Schweppes.

Variety
Bitter lemon: glass bottle 250ml

Tonic water: glass bottle 250ml

Ginger ale: glass bottle 250ml

Sod water: glass bottle 250ml

Georgia gold

Introduced in 2004, Georgia gold range of tea and coffee beverages is

the perfect solution for your office and restaurant needs.

116
Chapter III Profile of the Study Area

Variety

Hot beverages: coffee, tea, hot chocolate available in 90-150ml

Cold beverages: lemon iced tea, peach iced tea, and cold coffee
available in 200-400ml.

Bottlers

In general, the Coca-Cola company (TCCC) and/or subsidiaries only

produces for produce syrup concentrate which is then sold to various bottlers
throughout the world who hold a Coca-Cola franchise. Coca-Cola bottlers,
who hold territorially exclusive contracts with the company, produce
finished product in cans and bottles from the concentrate in combination
with filtered water and sweetness.The bottlers then sell, distribute and
merchandise the resulting Coca-Cola product to retail stores, vending
machines, restaurants and food service distributors.

One notable exception to this general relationship between TCCC and

bottlers in fountain syrups in the United States, where TCCC bypasses
bottlers and is responsible for the manufacture and sale of fountain syrups
directly to authorized fountain wholesalers and some fountain retailers.

In 2005, the Coca-Cola Company had equity positions in 51

unconsolidated bottling canning and distribution operations which produced
approximately 58% of volume. Significant investees include: 36% of Coca-
Cola enterprises which produces (by population) for 78% of USA, 98% of
Canada and 100% of great Britain (but not northern Ireland), continental
France and the Netherlands, Luxembourg, Belgium and Monaco.

Logo design

The famous Coca-

keeper, frank mason Robinson, in 1885. It was Robinson who came up with
the name, and he also choose

117
Chapter III Profile of the Study Area

face used, known as Spenserian script, was developed in the mid-19th

century and was the dominant form of formal hand writing in the United
States during that period.

Robinson also played a significant role in early Coca-Cola

sway thousands of free drink coupons and plastering the city of Atlanta with
publicity banners and street car signs.

3.6 A THEORITICAL FRAME WORK

-alcoholic,
carbonated, sweetened and flavored beverages. They are all
artificially sweetened. The soft drink industry has been under gone many
changes with changing consumer needs, wants and also changing
government policies. This formed the basis for different innovations in
packaging such as bottles, cans, tetra packs, pet bottles etc. in a variety of
flavors. On a hot summer day, soft drinks became a welcome factor for its
refreshing taste and as one start gulping it, it gives some sort of satisfaction,
which cannot be defined in words but can only be felt. With the changing
trends and disappearing social and cultural differences among the countries
worldwide soft drink culture has grown enormously and in almost all the
countries soft drinks are consumed despite the varying factors like age,
income, and climate, Etc. Thishas led to the enormous increase in the soft
drink market.

3.7 BACK GROUND AND SEGMENTATION OF SOFT DRINK

INDUSTRY
Non alcoholic soft drink beverage market can be divided into fruit dri
nks and soft drinks. Soft drinks can be further divided into carbonated
and non-carbonated drinks. Colas, lemon and oranges are carbonated drinks
while mango drinks come under non carbonated category. The soft drinks

118
Chapter III Profile of the Study Area

market till early 1990s was in hands of domestic players like campa, thumps
up, Limca etc but with the opening up of economy and coming of
MNC players Pepsi and Coke the market has come totally under
their control. Worldwide, Coke is the leader in carbonated drinks market. In
India it is Pepsi which scores over Coke is the leader in carbonated drinks
market. In India it is Pepsi which scores over Coke but this difference is fast
decreasing. Pepsi entered Indian market in 1991 coke re-entered (After they
were thrown out in 1977, by then central government) in 1993. In this
chapter various accepts of study are going to be discussed. To which area of
management that study belongs to and various concepts that are related the
area of study.

The present outcomes under marketing and deals in the specific with
the distribution network and its management. PEPSI COLA was in India
from 1956-61 and left the country, as its products were not acceptable by the
Indian customers. But recently in 1990 it re-entered the Indian market,
where by PEPSI FOODS LIMITED was entered into a joint venture with
PEPSI INTER NATIONAL, TATA and VOLTAS. PEPSI Bottlers and
producers of soft drinks buy concentrate and sell at fixed priceand add a
margin rationally for its products. Indian with a population of more than 1.1
billion is potentially one of the largest consumer markets in the world after
china. The consumer market is popularly known as the FMCG market or the
fast moving consumer goods market. Soft drinks come under this
category. Soft drink is basically purchased in Indian basically for
two reasons namely to quench thirst and for refreshment. The Indian
economy currently is passing through a ullish phase with increasing per
capita income.

Subsequently the lifestyle of the Indian consumer is also changing

with increased spending on entertainment, refreshment etc. that is why soft
drink companies are looking forward to India with great enthusiasm in the

119
Chapter III Profile of the Study Area

future to increase their revenue. The soft drink industry in India dates back
to the 1940s when Parle introduced the first branded soft drink called gold
spot. Cola giant coca-cola was the first foreign soft drink company to setup
its shop in India in 1965. Coca-cola made a very good beginning and
dominated the market right from the word go. It faced no competition at that
time. The marketing people did not even need to publicize coca-cola. This
extraordinary success of coca-cola can be attributed to the following factors.
Absence of contemporary competitive brand.
The giant image of coca-cola in the western countries preceded their
entry into the Indian market, Indians at that time were very fond of
foreign goods. Parle Exports Pvt. Ltd., later introduced a lemon flavored
soft drink called Limca in1970. Before this they had introduced a cola
flavored drink called pepping which they had to withdrew in the face of
stiff competition from coca-cola.
But the overtly conservative Indian government of that time with special
interest in safe guarding the interest of the Indian companies started
insisting that coca-cola should agree on the following points in order to
continue in India. Coca-Cola decided to wind up its operations in1977
rather than bowing to the Indian government. The main demands of the
Indian government were. Dilution of equity, as the government felt that
lots of foreign currency was being wasted.
Manufacturing of the secret concentrate in India. Disclosure of the
chemical composition of the concentrate. The exit of coca-cola left a
large vacuum in the soft drink market. But this also accelerated the
growth of several Indian soft drinks. Many new soft drinks like footie,
jump-in etc were launched in the form of tetra pack.
However the bottling plants and the distribution networks of these
companies were not up to the mark and left much to be desired. It took
these companies almost one year to come up with new flavors like
Campa Cola, Rush etc. to survive in the industry.

120
Chapter III Profile of the Study Area

However Parle, the pioneer in the soft drinks market blazed its way to
national prominence with their product Thumps Up bearing the slogan.
Happy This particular slogan
helped to win over the loyalists of coca-cola who were in a state of cola
shock or cola depression. Soon the soft drink industry started registering
phenomenal growth rates and all parley products namely Gold Spot, Limca
and Thumps Up became the brand leaders in their own segments. In spite of
this the soft drink market had a huge untapped potential.

In 1990 coming of the multinational brand Pepsi and immediately

started giving stiff competition to Parley and Coke. The company of Pepsi
was founded in 1890 at North Carolina in USA. Its CEO is Roger Enrico.
PepsiCo India Holdings Pvt. Ltd. In head quartered in gurgaon and its CEO
is Ms. Indra Nyui. In India it has 34 bottling plants of which 8 are company
owned bottling outlets (COBO) and 26 are franchise owned bottling outlet
(FOBO). SMV Beverages is a franchise owned bottling outlet. Coca-Cola
re-entered the Indian market in 1993 in collaborations with Parley India
Ltd.,

3.8 CONCLUSION
Company felt the need to understand consumers buying pattern such
as: occasions, quantity, place of purchase and their perception related to
orsement. The project was aimed at
providing insights on all of these related to Coca-Cola soft drink brands.

121