Materials management

Prof. Rajwade

Acknowledgme nt
We would like to give our sincere Thanks to Prof.Rajwade for giving us the opportunity to explore a full-fledged corporate company to carry out our analytical study for this project and for his support to study in detail, companies in some of the major industries and thus giving us a better understanding of their functioning. This experience has benefited us greatly; teaching us the methods of studying an organization, analyzing the factors that affect its working, and preparing an analytical report. It has also, thereby, allowed us to foray into the business world, as professional management students.

Through this project we also learnt the importance of time management and teamwork, which are essential in contributing towards the success of an individual in the corporate world. A special thanks to the employees at Sula Vineyards (Nashik).

Index
1.Introduction 2.Welcome to Sula 3.Sula story 4.Preparation of wines 5.Founders 6.Organizational structure 7.Materials management hierarchy 8.Wines 9.Product mix 10. Revenue mix 11. Disposal of wastes 12. Storage 13. Materials handled per day 14. Distributors 15. Competitors 16. Sulas success 17. Conclusion

Why Sula?????
Wine is becoming the preferred alcoholic beverage in an increasing number of countries in the world. Even in Russia , which has traditionally been a nation of vodka drinkers, wine today accounts for 30% of the spending on alcoholic beverages, up from a meagre 3% in 1989. When you're in Europe or in the U.S. and Canada , or in Japan , Hong Kong , Singapore and Australia , you'll be entertained with wine, and you'll be expected to serve the wine when it's your turn to entertain. Wine is becoming the social lubricant of choice around the world. It's important, therefore, for you to understand this beverage, because it isn't that mysterious as it's made out to be. Today, smaller cities are seeing big consumption gains, not just the metros. States like Punjab, which were considered hardcore spirits markets, are seeing wine consumption double. For an Indian wine producer, these are the best of times.

Lastly as locally produced wine becomes better and easily available, it creates pride among locals who then support the wine. This has been the trend all over the world. When Sula was launched, a lot of people scoffed about not being able to stand up to imports. But there were many others who were thrilled to see a good wine being produced in India, and would serve it with pride in their homes.

Introductio n

The past five years have seen a dramatic shift in the drinking habits of affluent urban Indians. More and more sophisticated city-dwellers are giving up their old hard liquor habits and switching to the softer option of wine. In the 90s, wine was still an afterthought at celebrations or evenings out at the club, but with increased availability of good, affordable locally produced wine, drinking patterns are changing fast. This shift is mirrored in Bollywood, where not so long ago a woman who drank on screen was perceived to be a vamp, seductress, or a woman with no principles. Then in Dil Chahta Hai we had Aamir Khan gifting a bottle of wine to Preity Zinta, and that set the trend. Today's heroine enjoys a glass of wine with her man, as Priyanka Chopra does with Abhishek Bachchan in Bluffmaster, with absolutely no aspersions cast on her character by the audience. The same actresses, potent role models for young women, are seen daily on Page 3 holding glasses of wine at fashion shows and gallery openings. Look up the archives from just 10 years ago and we won't see any wine in evidence.

The number of gyms sprouting all over makes it clear that health has become much more important among the affluent and educated. Wine gains from this trend, as it's perceived as a much healthier choice than spirits. The media has extensively covered the health benefits of wine, especially red wine, over the past few years, and this definitely influences people's opinions. Indians have the highest rate of heart disease of any ethnic group, so many doctors are advising their patients to switch to wine. Increased affluence also tips the scales towards wine. Spirits get you high much cheaper and that's a huge factor in a cash-poor society. Until recently college graduates earned Rs 4,000 a month in their first jobs, which really didn't afford them enough spare change to drink relatively expensive wine. Today's graduate might pocket Rs 20,000, which is more than enough to enjoy the finer things in life on a night out. As we Indians travel more and more, we visit societies where wine is the main tipple. This is a huge influence. In the US today more people drink wine than beer, a quantum shift for that country. The UK is headed the same way. Of course, in continental Europe wine has been a way of life forever. As India integrates into the global economy, it becomes more important for

business people to be able to speak a common language with their counterparts abroad, and wine is a global language today. During the last three years the trend has accelerated, with wine consumption in India jumping 25 per cent annually, a rate that shows no signs of slowing down anytime soon. It's instructive to look to China, which has come from nowhere to be one of the world's top 10 wine producers and consumers. The phenomenon is also seen all over Asia, which followed the same trend from spirits to beer to wine. India is now the latest country to embark on that path.

Preparation of wines:

There are eight stages in which a wine is prepared and processed. They are as follows:

Vinification

includes all the successive steps between the arrival of the grape in the chai and the barreling of the wine. These steps are: Reception of the harvest Removal of the stems and crushing of the grapes Alcoholic fermentation Draining Pressing of the must Malolactic fermentation Blending

Running off

consists of separating the wine from what one calls the must. The must consists of the mixture of skins, pulp and pips. The wine is then drained into another vat. The remaining must is then sent to the press.

Blending

is very important to the assemblage of the wine. It consists of seeking out among the different vats of the vintage

those that qualify for making the "grand vin." One must single out the best vats of the Cabernet Franc, Cabernet Sauvignon and Merlots and make sure that the resulting synergy of their blending will develop great harmony as well as complexity in the resulting wine. This step comes after the alcoholic and malolactic fermentation is finished. Numerous trial blendings are necessary in judging the quality of the wine. The tastings progress gradually until finally one decides on the best blend. Little by little the "grand vin" has emerged with: the best equilibrium, the most perfect harmony, and the complexity of aromatic characteristics that are found year after year in the wines of Haut-Brion.

Aging in the barrel has several

objectives: The clarification of the wine The oxidizing of the wine The stabilization of the wine

Topping off
As soon as the fermentation is over and the wine is blended it is transferred into brand new barrels. It stays in barrel for twenty four to thirty months. Haut-Brion has its own cooperage where most of the barrels used are made. The wine charged with carbonic acid after the fermentation degasifies during the first year while the barrel remains open (glass stopper in bung hole on top).

The new wood constantly absorbs the wine so it is necessary to fill up the barrels regularly. This deed takes place every two days at Haut-Brion and is called topping up. Next the barrel is hermetically sealed with the bung placed on the side and topping up is no longer necessary.

Racking

is an operation that is very important regarding the traditional vinification of wine in barrels. There are several objectives of which the principal one is the separation of the limpid wine from the deposit that has gravitated to the bottom of the barrel. This deposit is commonly known as "lees" or dregs.

Another objective is degasification. Decanting the wine from one barrel to another permits the release of CO2 from the wine. Finally,if necessary one can choose to aerate the wine. During this maneuver a small amount of oxygen stays underneath it.

The old way...

The racking is practiced by pouring the wine from an elevated barrel into one below. Only the wine stored in barrels on the bottom row is decanted with the aid of air pressure. This operation takes place every three months during the first year. Afterwards it is done every four months.

Gradually the wine clarifies until it is completely clear at the time of bottling.

Fining

is both the clarification and the reining of the wine. The small particles floating in the wine gravitate slowly to the bottom. Then, as it ages in the barrel, the wine softens. The rather harsh tannins noted after the fermentation tend to lose their greenness and density. Fining both accelerates the precipitation of the particles and eliminates the excesses found at the start, leaving the essential attributes needed to produce a balanced, harmonious, and aromatic wine. Fining entails adding whites of egg to each barrel (between 2 and 8 per barrel according to the wine). These whites have been carefully separated from the yolks and after a slight whisking are incorporated with the wine in the barrel. The wine is then vigorously whisked with a long stalk until there is a perfect blend of the wine with the white of egg. It is the

albumin in the egg white that coagulates on contact with the alcohol in the wine. Three weeks are necessary in order to obtain a perfect clarification of the wine.

Bottling

was at Haut-Brion during the eighteenth century that wine was bottled for the first time in Bordeaux. This was only made possible by the use of a stopper made of cork. Cork permitted the sealing of the bottle, rendering it airtight. This technique it seems came from Portugal.

Preparation and Processing

the wine is a procedure that is affiliated with the bottling and may occur simultaneously or at a later date in the event that there are special conditions.

Welcome to Sula Vineyards!

Since the launch of our first wines in 2000, weve quickly gained the reputation of being India's Finest wines. At Sula, were committed to placing India firmly on the global wine map as we continue to produce wines of outstanding quality and superb value.

(CE

-Rajeev Samant

Sula story:
Situated 180 km northeast of Mumbai, Nashik is Indias largest grape-growing region, but had traditionally never been used to grow wine grapes. Wondering why, an enterprising, Stanford-trained engineer named Rajeev Samant quit his hi-tech Silicon Valley job in 1993 to do some investigating. A little research quickly showed that the Nashik climate was not only perfect for wine grapes, but was also on par with winegrowing regions in Spain, California, and Australia. His determination doubled, Rajeev returned to California in search of a winemaker. In Sonoma County he found Kerry Damskey, an eminent Californian winemaker, who enthusiastically agreed to help start a winery on Rajeevs 30 acre family estate. In 1997, the duo took the revolutionary step of planting French Sauvignon Blanc and Californian Chenin Blanc, varieties that had never before been planted in

India. The first Sula wines, released in 2000, were widely acclaimed as Indias best white wines. Since its inception, Sula has rapidly established itself as Indias leading premium wine brand, helping spark a wine revolution that has seen consumption grow at 25% annually and several new wineries come up in the Nashik area. In November 2002, Wine Spectator the world's No.1 wine magazine did a five-page feature on Sula, a proud first for an Indian winery. A second winery with three times the capacity of the first was completed in late 2004 to keep up with demand, and a third 1-million litre winery is set to be operational in 2006. Sula has expanded from the original 30 acre family estate to having about 400 acres under plantation, both in Nashik as well as in nearby Dindori, the latest up-andcoming wine region. Varietals planted include Cabernet Sauvignon, Shiraz, Zinfandel and Merlot along with the original Chenin Blanc and Sauvignon Blanc. In addition to having a wide national distribution network within India, Sula also exports its wines internationally, as well as importing and

distributing wines producers worldwide.

from

leading

In 2005, Sula proudly launched its first reserve wine, the Dindori Reserve Shiraz, as well as Indias first dessert wine, the Late Harvest Chenin Blanc.

Founders:
Rajeev Samant Damskey Kerry

Partnerships:
The Wine Web New York wine exchange Novum Wines

Organizational structure

President

CEO

Vice president

General Manager Director of wine making Marketing director

Sales administrator
Head of stores Materials handling manager

Materials management hierarchy

Director \ General manager Executives Employees

Wines
Our wines are made from grapes grown at our Nasik and Dindori estates, as well as from those sourced from local farmers operating under the guidance of Sulas team of experts.

Different types of wines are:

Red White Ros Sparkling Dessert

Product mix

DINDORI RESERVE SHIRAZ Medium body, dry wine, Contains 13.5% alcohol Pair with grilled meats and seafood, spicy Mexican dishes, or even pizza Serve cool, 15-18C

SULA RED ZINFANDEL Luscious, jammy red redolent with blackberry aromas and cinnamon and plum flavours. Balanced, spicy, supple, delightful! Pair with pizza and hearty pasta dishes. Serve slightly chilled, 1215C SATORI MERLOT* Soft tannins, a spicy nose and a balanced, rounded mouth feel make for a stunning wine that can be enjoyed perfectly well on its own. Satori is a Zen term meaning sudden enlightenment. Pair with tomato-based pasta dishes and most red meat dishes Serve slightly chilled, 1215C

SULA CABERNET SHIRAZ* smooth, medium-bodied red wine accentuated by ripe cherry and plum fruit, attractive aromas of black pepper. Uncork and allow to breathe before serving. Pair with tandoori dishes and mildly spiced curries Serve slightly chilled, 12-15C

MADERA RED Made from a blend of classic as well as indigenous Indian grape varieties, it is a young,

fruity, easy-drinking wine. Pair with simple, hearty Indian fare Serve slightly chilled, 12-15C

SULA SAUVIGNON BLANC* Herbaceous, crisp, and dry, with hints of green pepper and a touch of spice at the finish, well balanced with good acidity. Pair with spicy food, especially coastal dishes as well as lightly flavoured Asian cuisine Serve chilled, 810C

SULA CHENIN BLANC* Semi-dry, refreshingly light wine bursting with fresh, fruity characters which make for a delightful aperitif.

Pair with food that has a hint of sugar and spice, such as Southeast Asian or Gujarati dishes

Serve well chilled, 68C

MADERA WHITE Made from a blend of classic as well as indigenous Indian grape varieties, Madera White is a young, fruity, easy-drinking

wine. Pair with simple, hearty Indian fare Serve well chilled, 68C

SULA BLUSH ZINFANDEL This popular favourite is fun and fruity, abounding with aromas of honeysuckle and fresh strawberries. A versatile, anytime wine great for picnics, parties, and hot summer days.

MADERA ROS Made from a blend of classic as well as indigenous Indian grape varieties, Madera Ros is a young, fruity, easydrinking wine. The beautiful bottle label is inspired by Warli, a local tribal art form depicting rural life. Pair with simple, hearty Indian fare Serve well chilled, 6-8C

Pair with poultry and spicy dishes Serve chilled, 8-10C

SULA BRUT* This celebratory sparkling wine, made in the true mthode champenoise style, is a creamy, complex nectar that goes down like a dream. Pair with tandoori dishes, biryani, and lighter Asian dishes such as dim sum and steamed seafood; perfect as an aperitif Serve ice cold

Disposal of wastes

The grapes that are used for the preparation of the wines are grown in the vineyards present in Sula itself. The pulp that is left over after crushing the grapes and the preparation of wine is used as an organic fertilizer for the growing of the grapevines. The glass bottles and glass materials that are wasted during the process is sent to the back of the vineyard where it is recycled.

Glass on conveyor to crusher

After crushing

The metal particles and substances that remain back are sold off. They also recycle cardboard boxes (waxfree in India) by shredding them with the pomace of spent grapes to form an odorless, friable substrate for the soil in newly planted vineyard

Storage
Bottled wines are stored in the warehouse present within the vineyards.Wine that leaves a winery in perfectly good condition can be completely ruined by poor storage conditions alone. This not only spoils your wine-drinking experience, but also reflects badly on the wine producers themselves ; even though they probably had nothing to do with it. Sula management is doing their best to educate distributors and stockiest about proper wine storage techniques. Following are some suggestions that the management at Sula give.

Extreme heat, direct sunlight and prolonged air contact are a wine's worst enemies. Store unopened wine in a cool, dry place where exposure to sunlight is kept at a minimum. Lay the bottles horizontally to keep the cork moist, preventing it from drying out and allowing air to seep in and oxidize the wine. Leftover wines should be refrigerated immediately and consumed within a day or two. Minimise air contact by replacing the original cork or, better still, using a Vacuum-type stopper which keeps the wine for upto a week with only slight deterioration. Champagne and sparkling wines should ideally be consumed immediately once opened; however, they can be stored with the help of a specialized champagne stopper which will keep them good for upto a week. Contrary to popular belief, not all wines improve with age - in fact, many of them, especially whites, will actually go "over the hill" if stored too long. Most of our wines are made to be drunk immediately; if you're looking for

Dindori Reserve Shiraz (4-5 years) or our Cabernet Shiraz (2-3 years).

Materials handled per day

Materials are handled according to the schedule fixed by the company. The following are the materials handled each day:

 Varieties of grapes (in all there are 9 different variety of grapes) Harvesting and crushing of the grapes is done from the month of January to the month of March. Once the grapes are crushed, the juice from the grapes is stored and cooled in huge tanks for fermentation. ( having an approximate capacity of 15000 50000 liters). After fermentation the pulp settles down at the bottom of the tank and the pulp is later used as organic fertilizers in the vineries. The remaining upper layer is used as wine.

Bottles are cleaned with soft water and then dried with dry air.

Wines are bottled in either of the two sizes 375 ml ( pint ) 750 ml (regular)

Bottles were earlier corked to give the wine a particular flavor but now they are packed with screw caps. After the bottling process takes place the bottles are labeled and then crated to the store room.

Distributors:
India

International California New York UK Italy France Canada

Mumbai (Retail) Mumbai (Institutions) Rest Of Maharashtra Chennai & Pondicherry Goa Rajasthan &

Uttar Pradesh

Chandigarh Delhi Karnataka (Retail) Karnataka (Institutions) Kolkata Andhra Pradesh Madhya Pradesh

Singapore

Competitors
Sula entered the wine market in the year 2000. It faced competition earlier only by the Indian wine players ;that is Grover and Champagne Indage and now since it is playing internationally faces a lot of competition from the foreign brands too. These wines have plenty of stiff competition in their price point, but their pleasing smoothness and good acidity, as well as the geographical connection, has been carrying weight in the booming expansion of PanAsian restaurants

Sulas success
"We're at the low end of a long, steep curve in winning over the home market," admits Samant cheerfully. Sula employs 3OO people, the largest employer in the village of Nasik. Agriculture in India is still extremely backward, with ox-drawn plows, ancient techniques and phalanxes of cheap labor. Samant is proud to be turning things around economically for his area. "When we first

started," he recalls, "there was only one motorcycle in the village, now several of my employees own them." Sula sold 7O thousand cases last year, 5O in the home market and 2O abroad (mainly US at present). "We started in 1998, and our sales volume has doubled annually ever since." Despite the hefty import tax, 2O% of wines sold in India are imports from France, Italy, South Africa, and Australia. Sula's portfolio for India includes wines in the Dreyfus Ashby Group, such as Taittinger, Ruffino and Hardy's. Samant expects to tackle the British market next year. Far from the days of the British Raj, with its cooked vintage ports and off-year clarets, India today is in the house of the rising sun in the wine world.

Conclusion
They are committed to bringing in a strong basket of imported wines, and they are increasing their portfolio all the time. Their latest imports are Santa Rita from Chile and Trapiche from Argentina, two of the world's best-known brands from these regions. They have also just signed up with Chianti Ruffino, another stellar producer. Their BIO business is growing steadily, and it will form an important part of their overall business. Wine culture is highly catching pace in India. Since India has perfect climatic conditions to prepare and blend wines, India can be a future wine hub of the world. And Sula vineyards is one of the major companies that has taken the initiative to nurture wine culture in India.

Revenue mix
Sula, which recorded revenues of Rs. 20 crore during 2004-05 has just completed construction of its second winery in Nashik and has embarked on building a third winery at an investment of about Rs. 7 crore with a capacity to make eight lakh litres of wine. Once the third winery goes on stream, Sula's capacity will touch 1.8 million litres. The capacity will be further augmented through Sula's agreement with N. D. Wines, the second largest winery in Nashik with a wine acreage of 100 acres.During the current fiscal, Sula is targeting a revenue growth of 35-40 per cent through the sale of one lakh cases (over a million bottles) from 70,000 cases last fiscal.

Thank You