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Published by: singh88dev on Nov 15, 2010
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Business Plan Of Sugar Manufacturing Industry
Submitted toDr. Sitansu Panda Lecturer (HRM) On-19-08-2010

Submitted byAbhay Singh (19001) Devendra singh (19014) Srivatsava (19056)

Discovery of sugarcane Originated in New Guinea and has spread to Southeast Asia and India. Profits made from sugar is large hence it is called as white gold

Sugar Cane supports a variety of uses and products in the energy, industrial, and agricultural sectors, based on different resource streams: sugars, molasses/juice, and crop residues.

In addition to its uses in our everyday consumption.WHAT IS THE PURPOSE OF SUGAR ? We found over 70 types of sugar and endless amounts of uses. the easiest way to identify the sugar content in your food is by looking on the nutrition label on the back of any product . a remedy to cure hiccups. sugar is also recommended for newborns to reduce the pain of medical tests. and a way to keep cut flowers fresh. But sugar is found in almost every product in the supermarket.

COMMON TYPES OF SUGAR Brown Sugar Icing Sugar Granulated Sugar Powdered Sugar .

2005 Uttar Pradesh is the largest producer of sugar .ABOUT INDIAN SUGAR INDUSTRY Sugar industry in India is well developed with consumer based of more than billions of people It is also second largest producer of sugar in the world There are around 45 millions of sugarcane growers in India There are total no of 566 sugar factories in India as on march 31 .

There are 566 sugar mills installed in the country. Almost half of the operational sugar cooperatives are in Maharashtra alone.INDUSTRY STRUCTURE About 50% of the sugar capacity is controlled by Cooperatives & Public sector mills. . of which about 100 (mostly cooperatives) are not in operation.


THE KEY PLAYERS IN SUGAR INDUSTRY Bajaj Hindustan Ltd.(Enterprise value Rs Mn.(Enterprise value Rs Mn. 32. 62.283) .819) Shree Renuka Sugars Ltd.(Enterprise value Rs Mn.136) Balarampur Chinni Mills Ltd. 43.

The key regulatory milestones include de-licensing of the industry in 1998 The removal of control on storage and distribution in 2002.GOVERNMENT POLICIES Sugar has historically been classified as an essential commodity. Since 1993 the regulations have been progressively eased. .

even if it exceeds their requirement. In case of capacity expansions at existing Sugar mills. Sugar mills have to purchase all the Cane sold to them.CONTD« Sugarcane procurement Concept of Command Area which binds Cane farmers and Sugar mills to sell and buy from each. . there is uncertainty regarding allocation of additional Area based on the expanded capacity.

Capacity and Production Sugar producers are not allowed to own cane fields in India. New sugar mills cannot be set up within 15 km of existing units.CONTD«. .

Sugarcane pricing Government of India fixes statutory minimum price (SMP) for sugar cane.CONTD«. The SMP is designed through the consent of commission for agricultural coast and prices(CACP) and respective state government . It is fixed according to clause 3 of the sugar cane order.

. according to this fixed percentage of the total production is to necessarily sold by the sugar mills to the government or its nominees at predetermined price referred to as ´levy sugarµ The balance sugar is known as ´free sale sugarµ can be sold in the open market.CONTD« Sugar price The Government has been following a dual pricing policy for sugar.

sugarcane directorate of U.P. Govt. .LEVY OBLIGATION OVER THE YEARS YEAR 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 LEVY SUGAR: FREE SALE SUGAR RATIO 40:60 40:60 40:60 40:60 30:70 15:85 10:90 10:90 10:90 Source: Government of India Gazette.

license holders can import raw sugar without paying any duty. under the Advanced License Scheme (ALS). subject to the condition that they re-export white sugar within a fixed period. . In periods of sugar shortage.CONTD« Exports & Imports Imports of both raw and white sugar attract a basic duty of 60% and a countervailing duty of Rs. 910 per ton.

74 61.93 3.94 1.57 11.38 5.08 31.99 4.77 0.88 2.03 3.09 2004-05 Estimated 50.77 0.21 0.29 13 9.77 5.85 0.82 3.91 2003-04 46.86 3.32 4.84 9.64 17.58 (Source:Economywatch website) .59 5.99 11.04 11.88 12.37 2.9 8.11 4.98 17.85 1.81 10.Level of sugar production (In Lakh Tons) in Indian States: State Uttar Pradesh Maharashtra Karnataka Tamil Nadu Andhra Pradesh Gujarat Haryana Uttaranchal Punjab Bihar Madhya Pradesh Other 2002-03 58.75 8.32 22.


CONTD« Location ² shahjahanpur (U.P.) .

Steam and Electricity for industry Punch Line.Serving Sweetness promoters. Total Employees 136 .Abhay Singh..sugar By product. Product. Srivatsava Capacity 100 tons of cane per day.CONTD. Devendra Singh.

Create brand image in customers mind by providing sweetness to their heart. Short termProvide best quality sugar to satisfy customers desire and make a good relation between employee and owners.  Long termOur mission is to be the market leader in sugar Industries of India and to become the most preferred brand of sugar and I also want to extent my business outside India and to enter in other businesses like apparel automobile etc.MISSION Mission-To provide best quality sugar to satisfy customers desire.  .

ORGANIZATIONAL STRUCTURE Promoters Chief Manager Finance Manager Operations Manager Marketing Manager 5 Employees Supervisor Supervisor 25 Employees Labours (Skilled .40) Labours (Skilled .10 Unskilled.40) .10 Unskilled.

The office hours are 10:00 am to 6:00 pm. .ORGANIZATIONAL CULTURE Every employee should be concern about their work and responsibility. Every employee should be punctual. Every employee should attend the work at schedule time. Every employee should maintain organization rules and norms.

Review Progress Take Corrective Action Appraise Performance .Develop Action Plan Review Progress` Step 3:.Management Policies: Step 1 :.Set Goals Step 2:.

Sugar Manufacturing Process .




OPTIMAL RESOURCE UTILIZATION .CO-GENERATION A sugar factory is usually very efficient in utilizing all resources optimally. These resources include : Sugarcane Water Steam Power The basic resource of sugarcane can itself be used to co-generate steam and power .

5 tons of press Mud .5 tons of Molasses 33 tons of Bagasse 2.CONTENTS IN SUGARCANE Each 100 tons of sugarcane crushed on an average gives: 10 tons of Sugar 4.

and (ii) passed through a turbo-alternator to generate electric power. etc.CO-GENERATION Bagasse (the dry fibrous residue from sugarcane crushing) is burnt in a boiler to produce High pressure steam. . after which the low pressure steam is used in The sugar manufacturing process. which is (i) used to drive mills.



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