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CHAPTER-1

INTRODUCTION

INDIAN SUGAR INDUSTRY 1.1) INTRODUCTION:
Sugar originated from the Arabic word "sharkara" and is derived from the sanskrit world "sharkara". Sugar is an important part of the daily diet and forming a class of edible substances which includes sucrose, lactose, and fructose. It provides the human body with requisite carbohydrates and is basically extracted from sugar cane and sugar beet. Found in fruits, honey, sorghum, sugar maple and in several other sources, it is the main ingredient of candy which is loved by children the world over. Yet, it has been blamed for causing tooth decay and excess consumption of sugar has been associated with a host of ailments like diabetes, obesity, weight gain, depression, joint pain, fatigue and insulin resistance and even cancer. Sugar is present in various forms in fruits, honey, maple syrup and other natural sources. It is extracted by an intricate process, whereby the pulp is extracted first and then, the remaining is used for producing the sugar. Sugar has wide variety of uses and is used for baking, sweets, alcoholic beverages, and even in the soap we use. Further, it is also used as a food preservative and in confectionery items.
1.2)

History:

Sugar is said to have originated in India. During the Gupta dynasty in India, the extraction of sugar was clearly known to the Indians. Experts identify the Pacific region and certain parts of India like the North East as real locations where the sugar cultivation was practised. This was taken to the western hemisphere by the Arab traders who borrowed the techniques from India and subsequently, set up mills to commercially produce this highly useful agricultural product. The production of sugar spread to countries like Spain and the Portuguese took it to South America. During the eighteenth century, sugar production became increasingly mechanized and sugar market went through a phase of great boom. New technology was developed as sugar became a very popular item and specialized procedures were developed for the large scale processing of sugar. At first, the sugar was used mainly for tea and then, went into the making of confectionery and chocolates. The Dutch took sugar to the Carribean Islands and today, this area is the largest source of sugar in the world. With the introduction of sugar plantations in the Carribean islands on a large scale, the price of sugar fell

corn sugar. The sugarcane plant is very thick with long grasses. sugar is produced from plants like sugarcane and sugar beet. all classes of people took to sugar and it has become a part of their routine. These are available in crystalline and loaf forms. etc. maple. White sugar is available in granulated form. Raw sugar is not so popular in South America. The stalks of the sugarcane is the exact location. it. Granulated sugar includes coarse grained sugars such as sanding sugars. It undergoes the process of phosphation and is more devoid of impurities.4) Types of sugar 1)Raw sugars Raw sugars consist of varying shades of yellow to brown sugars and is processed by boiling till it solidifies. from where the sweet sap is extracted. muscovada and turbinado. A perennial crop. 2)Blanco direct Blanco direct is a white sugar used much more in India and Asia and is less purer than the white sugar.substantially and in Britain. it was relegated to the upper echelons of society. then.3) Sources of Sugar Generally. From sugar beet juice. where the moulds are then allowed to dry up and the resulting product is called jaggery or gur. sugar is produced from sweet sorghum. popular in the West. White refined sugar. 1. Sugar beet has the highest sugar content from among the beetroot family and this variety is specifically cultivated for high quality sugar production. Raw sugars include demerera. honey. is processed by dissolving the raw sugar and purifying it with phosphoric acid or by filtration strategies. the raw beet sugars are extracted and are then used to fabricate white sugar. Of a 180 countries of the world. In addition. it is grown in the various tropical and subtropical areas. became a common commodity and became sufficiently cheaper. Earlier. 1. caster sugar and superfine powdered sugar and they are divided on the basis of fineness of . around a 100 of them make sugar from the sugar beet and cane. Mill white sugar is produced by exposing the sugar to sulfur dioxide but it retains the coloured impurities. Maximum consumption of sugar has been recorded from Belgium and the least consumption is from Ethopia with an amount of three kilos per year.

grains and vegetables. 1. which is 8. they tend to harden and proper handling of this. World export availability for season 2009-10 is expected to be 51. Shipping the raw sugar to a refinery where it is washed and filtered to remove remaining non-sugar ingredients and color.446 mln tones. The world consumption of sugar is forecasted to grow by 1.grades. Natural sugars are found in their natural form and covers the most unrefined sugars and includes the fruits. Colour and taste becomes stronger with increasing molasses content .73% to 167. Spinning the crystals in a centrifuge to remove the syrup.817 million tonnes.903 million tonnes in the previous season. There will be fall in global sugar production. A significant production shortfall in India and China. Crystallizing. World production is expected to increase by 4. as against 50. producing raw sugar. On being exposed to air. as well as a .404 million tonnes lower than world consumption.6) World Sugar Scenario: After two consecutive seasons of surplus between world sugar production and consumption. World Sugar economy is now facing a significant supplydemand imbalance. Boiling the juice until it begins to thicken and sugar begins to crystallize.964 million tonnes. World export availability is expected to rise due to projected growth in output in exporting countries. The World Health Organization has approved the natural sugars as carbohydrates for unrestricted consumption purposes. 3)Brown sugars Brown sugars are formed when sugars form fine crystals with high molasses content or from coating white refined sugar with a cane molasses syrup. drying and packaging the refined sugar. 1. the process of refining is carried out in following steps • • • • • Pressing of sugarcane to extract the juice.5) Manufacturing Process: For sugarcane.

1.8) India’s Production: The Country’s sugar output touched a three year low. Sugar production in 2008-09 season is set to fall by 44% from the previous season. However. The sugar industry is cyclical in nature. In sugar season 2008-09. weekly reporting mechanism to monitor sugar dispatches and sale. One major reason for this is the shrinkage in the sugarcane growing area in last couple of years due to delay in cane payment and confusion over the price. It is dependent upon monsoons for both its production and price realisation.9) Government Policies: Rising prices of sugar has caused concern to the Government and it has intervened substantially to control the prices of the sugar. Starting from cane price to the price of sugar. Drop in cane output may lead to increase in cost of production for sugar companies and hit their profit margins in 2009. Indian sugar industry is controlled by the Government. 1.7) Indian Sugar Economy The sugar industry is the largest agro-based industry and India is the Second largest producer of sugar in the world next only to Brazil. Such a shortfall in sugar production has posed a serious threat to inventory on hand.further contraction of production in the EU. production has declined to 147. The Statutory minimum Price (SMP) of sugarcane is fixed by the Central Government to support the cane farmers. 2009. Sugar industry in India is headed for a rough patch during the current sugar year ending September 30. Haryana and Uttarakhand are free to fix their own price known as State Advisory Price (SAP). 1.P. 2007-08. everything is under the hands of the Government.28 lac tonnes in the year. on the other hand are the four major supply features of Sugar season 20082009.. on the other hand and a continuing expansion of sugar output in Brazil. India plays a crucial role in the world's sugar output. which is usually higher than SMP. because it is one of the essential commodities. states like U. less area of ratoon in this season and poor monsoon in some parts of the country.50 lacs tones compared to production of 263. liberalized raw sugar import under Advance Authorization Scheme [with change in export obligation norm from ‘grain-to-grain’ to ‘tonne-to tonne’ basis] and finally the facility to import raw sugar without export obligation as well as import of white sugar upto 10 lakh tonnes by . The Government brought in measures such as weekly quota for free sale.

both at zero% customs duty.Government agencies. The Centre is also planning to bring back Gur under the Sugarcane (control) order. 1996 to ensure adequate cane supplies to sugar mills. Sugar Pro ducing States in India .

CHRCHAPTER-2 COMPANY PROFILE .

5% per acre and yield of sugar was 7. Sugar factories in Maharashtra were being victimized through state policies Private farms were being nationalized and the co-operative movement quickened the pace of ultimate closure of these farms. This was unfortunate because the yields from these belts of sugarcane were among the best in the world. the factory waste namely molasses is used for organo Chemicals industrial alcohol/rectified spirit is manufacture with the sugar waste.KRISHNA NAGAR 2. 2. The Nandi SSK was among the few to introduce modernity to this industry. .1) PROFILE OF THE COMPANY The Nandi SSK. it began operations by setting up one sugar factory. Situated in state of Karnataka. was a pioneer in the exporting of power to other industry.THE NANDI SAHAKARI SAKKARE KARKHANE NIYAMIN. The Nandi SSK is also looking towards venturing into plant a new plant for production. it combines for technology and the latest Mechanization and compliments High quality sugar.2) History: The Nandi SSK entered the sugar industry in the early nineties. recovery of sugar was 11. Based in the Indian State of Karnataka. Alongside. Realizing that it could no longer work towards its full potential.36 tons per acre. The Nandi SSK was opened at Krishna Nagar. of which used a scientific method of cultivation. Bijapur in Karnataka State. Despite increasing emphasis on traditional cultivation methods. The yield of cane was 64 ton per acre.

Biradar Vice President. . Shri R. We believe that we have a responsibility and obligation to return to society what we earn from it. THE NANDI SSK has a vision to adopt the most modern technologies and equipments to improve the production of the company and to create more no of employment. Nandi SSK. Growth will also come from value added diversification derived from the group’s strengths in products and process. THE NANDI SSK always has and will continue to use renewable resources in its products. THE NANDI SSK has an vision to help farmers present in the surrounding area and help them in improving their yield totally they want to see rural development 2. 2.3) COMPANY VISION AND MISSION : THE NANDI SSK will continue to expand its operations by expanding production into new markets and applications.4) BOARD OF DIRECTORS The Board of Directors includes Shri Shashikantgauda B Patil. The quality of the products and services delivered by THE NANDI SSK will always strive to exceed customer expectations.Today advanced technology and a high level of Mechanization has made The Nandi SSK one of India’s largest sugar producers. We believe that this is an important need for sustainable development. The Nandi SSK company has one of the highest average recovery rates in industry. President of Nandi SSK. THE NANDI SSK has been and always is aware of its social commitment to the community that it serves.

5) ACHIEVEMENTS AND AWARDS: 1. director. director Shri Chandappa Karaddi. TECHNICAL EFFICIENCY AWARD AT DELHI(1998-99) 5. Shri Kempanna Biradar. director Shri Malappa Desai. director Shri Kumar Desai.2010) 2.etc. BY SOUTH INDIA BIOTECH BELGAUM 4.2009. 2010-11) 3.Shri H M Veerbhadraswamy who is the Director of The Nandi SSK. 2. NEW DELHI 6. GOT PRIZE FROM KCF MANGALORE FOR RECORD SALES OF MAGALA FERTILIZERS IN APRIL 2000MARCH 2002 . SUGAR FACTORIES LTD. BEST TECHNICAL EFFICIENCY AWARD (1999. Shri Ramesh Jakaraddi. PREMIUM DEALEAR OF THE YEAR (2009-10. SECOND PRIZE AT NATIONAL FEDERATION OF COOP. Asst Director Nandi SSK.

5) ORGANIZATION CHART: .2.

Quality is what we think.7) COMPANY QUALITY POLICY : • • • • • We are committed to produce and supply products to meet our costumers needs.6) BANKERS AND INSTITUTIONS: Bank of India Industrial Development Bank of India State Bank of India HUDCO 2. We are conscious of our responsibility towards safety. We shall continually strive to improve the effectiveness of our quality management system. Health and Environment. and Believe. . We shall train and motivate our employees for continual improvement.2.

CHRCHAPTER-3 DEPARTMENTAL STUDY .

3. 8. 6. Security section.1) FUNCTIONAL DEPARTMENTS 1 2 3 4 5 6 Administration Department Purchase Department Cane Development Department Production Department Finance Department Sales and Distribution Department Administration Department Administration department is the main department in the organization. Share section. Time office section. 7. They are total number of 56 employees working in this department. Purchase section. 5. Telephone operating section. Sales Section. 2. Computer section. . 4. Stores section. 3. Is divided into 6 sections and they are as below : 1.

he has to transfer to such a person who is the member of the factory. For the identification of its members. Govt share A class D class B Class E class C Class The person who wants to become a member has to follow the procedure / rules. If the boards of directors approve the application in body meeting. After the approval he has to pay the amount equivalent to face value of the share. There is no transferability of share. Society share 4. If at all he wants to transfer his shares. Grower shares 2. 2) PURCHASE SECTION : Purchase officer Clerks . He has to fulfill appropriate application given by the share section authority. In this factory the share are class 1. Non Grower Shares 3. the factory issues share certificate and identity cards to such share holders. If he transfer to another person it is not valid and such shares get cancelled. Out of Area Share 5.1) SHARE SECTION: The Share section is one of the important sections because more than half of the total authorized capital is collected from shareholders. then only he is treated as shareholder of the factory.

Steps involved in purchasing the materials: A.Attenders FUNCTIONS OF PURCHASE DEPARTMENT: receiving purchasing requisition  determining the volume of materials to be ordered  placing orders  inviting tenders and quotations from different suppliers  Checking and passing bills for payment. B. Sending purchase order : . The manager chooses the power vendor. D. F. Raising requisition : It is the first step and necessity for particular can be used only by the user of the material. Scrutinizing requisition : The manager scrutinizes the demand of materials. Through there quotations a right vendor is chosen. Vendor selection : After scrutinizing. E. The BOD does selection of vendors. Receiving Quotation : The purchase manager receives the quotations from vendors to whom the enquiries are sent. Enquiry : After selecting a proper vendor enquiry is sent to the vendor. C. if a material is necessary then tender advertisement is given or if they have permanent vendors.  Receiving and inspecting materials. He examines whether the item mentioned in the requisition note is necessary or not.

After getting the approval materials are placed to the respective to the racks they issue the materials by adapting FIFO method. Then they mention the present stock of item in the purchase indents. . In this way purchase of material takes place. 3) STORES SECTION Stores keeper Clerks Tool room Clerk Diesel room Clerk Attainders Tool room attainders Clerks Daily wage labors PROCEDURE OF WORKING AT PRESENT: Attainders Handling of materials: First. after verifying the stores.Lastly the purchase order is placed to the selected venders. After receiving the materials from suppliers they seek the quality approval of the same materials. they receive the stores purchase indents from concerned section heads for requisition to purchase item needed for the crushing or off season work. Then only they forward the purchase indents.

There are 5 employees working in this department. Functions: 1. They keep bin cards for each different items receipt from the suppliers with details. TOOL ROOM: Tool room is personnel issue the materials to the workers on temporary loan and retainable basis entering in the register. Purchase order. Approval memo book. STORES ACCOUNT: After receiving the materials from suppliers quantity will be verified. 4) TIME OFFICE : Time keeper Clerks Time office is one of the important sections of administration department. Bin card files. Stores purchase indent etc. 4. List of the registers: 1. Showing the absent report to the HOD’s . 5. Transport register. 2. 3.They issue the materials to the workers of the factory on loan and retainable basis on daily loan or personal loan. The details of the materials will be entered in to transport registered and approved memo will be sent to the concerned departments for getting quality approval.

This factory is producing three types . Earn leaves : If employee attends 30 days in a month then he is eligible for 3 days Earn leave Shift working : In a shift of 8 hours the factory is providing 4 types of shifts. Types of Leaves: 1. Casual leaves : Casual leave provided to employees 12 days per year 3. molasses. It arranges the duty to the workers. It maintains salary register book. maintains working bell 5.2. Sick leaves : Sick leave provided to employees 15 days per year 2. To receive the attendance cards from the workers 3. bagasses and power. To put attendance of the workers in the master role 4. Shift I II III General Shift 5) Time 4 am to 12 pm 12 pm to 8 pm 8 pm to 4 am 8-30 am to 5-30 pm SALES SECTION: Sales officer Godown clerk Consultant Clarks In this section sales of the following products produced takes place are sugar.

Accordingly. 2. Hear company will invite tenders from different buyers at a 10 days notice.of sugars they are M-30. This section will take care of all the sales transactions. Levy sale: It is also done within the state of Karnataka and being sold to the government of Karnataka on levy bases. these bulk purchases then sell the purchased sugar to retailers. The sale of sugar is done according to the notification by the central government and has such factories follows certain government rules in sales of sugar. 3. S1-30 and S2-30 grades. Tenders are called periodically. Karnataka state federation of co-operative sugar factories limited will give figures of bags to sell within a month. If the rate is not satisfactory the tender will be cancelled. The government then distributes outlets at predetermined. And also it producing by products like molasses. And power is exported to KPTCL. 6) COMPUTER SECTION: . press mud. PROCEDURE FOR SALE: The organization undertakes selling activities in three methods. According to the rules and regulation of the contract it will be done. These are used by factory it self only like molasses and press mud are used in distillery / Ethanol production and bagasses is used in production of power. reasonable price. 1. Free sale: Free sale is done within the country. In free sale sugar is being done to bulk purchases on the bases of tenders. bagasses. The sugar is sold to that buyer who quotes or bids highest price. Export: Sugar is sold outside the country on the contract bases.

This section is to maintain all types of records that are very important for the organization and the following departments are computerized in the factory. a) Weigh bridge department b) Cane accounts department c) Time office department d) Laboratory department e) Stores department f) Sales department g) Purchase department h) General accounts department i) Sales accounts section 7) SECURITY SECTION: Security officer Assistant security officer Security guard The security section is operating under the administrative department. . There are total 42 guards working in this section. It is also working in three shifts as mentioned under time office section. Hear in this department the employees are recruited on the yearly contract basis. 2 Availability of quarters. FACILITY TO WORKERS:1 Availability of rest house with TV facility. 3 Providing 2 wheelers for employees who are visiting the field to supervise and check the availability cane.The total number of employees working in this department is 9.

1. 1. Receipts include sales process of sugar. 5 Weekly one holiday of any in a week FINANCE DEPARTMENT: Accounts of finance department are the main and the hart of every department of the company or industry. etc. GENERAL ACCOUNTS SECTION: In general accounts section book keeping is followed. share amount. Cane account section In the above chart 50% of the labors are working in the general account section and 50% are in the cane accounts section. Some other types of registers are maintained by this section are: a. the accounts section maintains all the transactions related to the factory dealings. Advance register b. purchase accounts. maintaining audit and audit rectification is done. annual account and monthly account are prepared and maintained. etc are maintained and this department prepares P&L account. etc. Balance sheet. The sale accounts. Contractors register c. Expense register Functions . Hear in this factory. Payments include salary. molasses. Bank register f.4 Executive levels are provided with 4 wheelers. General account section 2. Contra register d. Fixed assets register e. etc. tax. General account transactions like receipts and payments registers are maintained. In RSSK is divided finance department or accounts department in two sections.

2. While giving cane bill. 4) Ratio analysis. 3) It executes financial activities in factory. In addition. 5) Report to the management. 6) Conduction of meetings. 2) It prepares profit & loss a/c & balance sheet. The registers maintained in this section are: a) Self harvesting payment register b) Harvesting bills c) Cultivator payment register CANE DEVELOPMENT DEPARTMENT Cane Manager Office manager Cane Cane Procurement Manager Cane Dev Manager Cane Officers Cane Officers . fertilizers and transportation facilities and also harvesting of the cane that all the expenses are given by the factory. The section will provide cane bill once in a month desired by the higher authority. will take care of all cane suppliers accounts and department manager separates accounts for cane suppliers.1) Its main function’s to finalize each & every record of the factory. department will debut all the expenses and advances which is given to the cane suppliers in terms of seeds. CANE ACCOUNTS SECTION: This section maintains the cane accounts and cane bills. This section purchases the cane on daily basis and prepares accounts of forthrightly basis.

unloading and loading charges • Main objectives are to receiving exactly 2500 TCD • To undertake seeds development program Varieties of Sugar cane: 1. CO86032 4. fertilizers. COC671 2. CO8021 5. CO94012 {Early Maturity} {Middle Maturity} {Early Maturity} {Early Maturity} {Early Maturity} PRODUCTION DEPARTMENT STRUCTURE Laboratory In charge Deputy Chief Chemist Laboratory Chemist Manufacturing Chemist . CO8011 3.Field Assistants Field Assistants Objectives of the CDD: • To get best quality of cane at a right time • To improve the variety of the cane • To provide all facilities like seeds.

The main function of the production department is Functions: To maintain close and co-ordinates relationship with all others.Laboratory Boys Staff and Workers The production department is center of the center organization.  To flow up the daily production schedule of as per plan.  To produce the future needs of the company and to promote the organization.  To upgrade the technical efficiency of the production. .

CHRCHAPTER-4 SWOT ANALYSIS .

who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. Weaknesses.SWOT ANALYSIS: SWOT analysis is a strategic planning method used to evaluate the Strengths. Opportunities. wheat. pulses and oil seeds   The ignorance in the residual sugar market  Some of the government policy that adhere the growth of the sugar industry .7% cultivable land is used for the cane production The sugar industry also includes alcohol and gur which is mainly for the domestic industry WEAKNESS  Production to decline by 20-25% The greater diversion of cane to unorganized sector  Shift of the farmer from cane to paddy. and Threats involved in a project or in a business venture. The technique is credited to Albert Humphrey. STRENGTHS  Global prices to move up –an incremental positive  The demand is everlasting  Environmental conditions suitable for the growth of sugar cane   About 2. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective.

THREATS  Less rainfall in the highest sugarcane cultivating regions cultivation  Due to water shortage the shift of the farmers to multiple crops  Due to government policies the selling of sugarcane by the farmers to private sectors  Sugar production being more volatile than cane production  Due to rise in domestic consumption the export is likely to fall . lower cyclicality driving shift towards integration The increase in demand year after year The shift of Brazil from white sugar to production of ethanol. Shortage in sugar cane supply  Obsolete technology OPPRTUNITIES     Prices to rise by 25% in coming years Higher margins .