Working Capital Management of Pepsi Co.

WORKING CAPITAL MANAGEMENT

PROJECT REPORT

Submitted in partial fulfilment of the requirement for the award of

Two year full time, Masters in Business Administration.

By

Sudhir Kumar

DEPARTMENT OF MANAGEMENT

LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA

(2008-2010)

Acknowledgement

Whatever we do and whatever we achieve during the course of our limited life is just not done only by our own efforts, but by efforts contributed by other people associated with us indirectly or directly. I thank all those people who contributed to this from the very beginning till its successful end.

I sincerely thank Mr. Ashutosh Aggarwal (Account Executive, PepsiCo, Phillaur), person of amiable personality, for assigning such a challenging project work which has enriched my work experience and getting me acclimatized in a fit and final working ambience in the premises of PEPSICO.

I acknowledge my gratitude to Ms. Harjeet Kaur (Lovely Professional University), for her extended guidance, encouragement, support and reviews without whom this project would not have been a success.

Last but not the least I would like to extend my thanks to all the employees at PEPSICO (Aradhna Drinks & Beverages Pvt. Ltd) and my friends for their cooperation, valuable information and feedback during my project.

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 5-6

2. LITERATURE REVIEW 7-12

3. ABOUT THE COMPANY 13-29

a. Company profile 14

b. Mission & Vision 18

c. Company Leadership 19

d. Company Brands 20

e. Milestones 24

f. Company Profile in India 26

4. WORKING CAPITAL MANAGEMENT 30-37

a. Introduction 31

b. Working Capital Analysis 33

c. Nature & importance of working capital 33

d. The importance of Good Working Capital 34

e. Working Capital Cycle 36

5. ANALYSIS OF WORKING CAPITAL MANAGE 38-43

6. MENT

a. Schedule of changes In working Capital Management 38

b. Percentage change in working capital 40

c. Assessment of working Capital Management 42

7. OBJECTIVE OF THE STUDY 44

8. RESEACH METHODOLOGY 45-46

9. ANALYSIS OF THE STUDY 47-65

a. Analysis of various components 48-56

b. Inventory 48

c. Sundry Debtors 50

d. Cash & Bank Balance 52

e. Current Liability 54

f. Provision Analysis 56

10. WORKING CAPITAL RATIO 57-65

a. Receivable Ratio 58

b. Payable Ratio 59

c. Inventory Ratio 61

d. Current Ratio 62

e. Quick Ratio 64

f. Working capital Ratio 64

11. PROFIT & LOSS ACCOUNT 66

12. INCOME STATEMENT ANALYSIS 67

13. MAJOR FINDINGS 69

14. CONCLUSION 70

15. RECOMMENDATION 73