Logistics Approach to Supply Chain Management Presentation

On

SUGAR INDUSTRY

Submitted to: Dr. Tejash Pujara

Submitted by: Jaykishan Joshi (08024)

Flow ……….
• • • • • • • • Introduction Global scenario India Sugar Industry Types of Sugar Production Process Use of I.T. in Sugar Industry Distribution Channel Case Study

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Introduction:
Sugar- The Universal Sweetener is consumed in large quantities around the world Sugar industry constitutes one of the most important agro-based industries in India. The industry started growing in an organized way during the 1930s after introduction of the Sugar Industry Protection Act in 1932 Sugar is produced from Sugarcane and Sugar Beet.
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Sugar: (SCIENTIFICALLY DEFINED)
• Sugar is an informal term for -- Sucrose • In food, sugar almost exclusively refers to sucrose, which primarily comes from sugar cane and sugar beet • Excessive consumption of sucrose has been associated with increased incidences of diabetes, obesity and tooth decay.

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Nutrional Value of Sugar Sugar
Nutritional value per 100 g
ENERGY CARBOHYDRATES SUGARS DIETARY FIBRES FAT PROTEIN WATER

387 kcal 99.98 g 99.91 g 0g 0g 0g 0.03 g 0.019 mg (1%) 1 mg (0%) 0.01 mg (0%) 2 mg (0%)
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VITAMIN B2 CALCIUM IRON POTASSIUM
Source :http://www.wikipedia.com./info%topics%sugar.htm

Global Scenario:
• Sugar is one of the oldest commodities in the world. • Sugar is produced in 115 countries. • Brazil, India, Thailand, Australia and Cuba are largest sugar producing countries in the world. • In the present scenario the world sugar economy is facing a demand supply imbalance.

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Global Production:

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Global Sugar Exporters(2007-08):

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Global Sugar Balance:

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Indian Scenario:
• Land of extremes: 2nd Largest producer Deficit at the moment. Sugar a matter of concern for the Government. • Presently “DUTY FREE” Import of sugar is allowed till December’10 and there is ban on exporting sugar

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Indian Sugar Industry at a glance • Second largest area under cane production • Among the cost effective industries in its field cost • Fourth efficient producer of sugar despite low capacity of its plants as compared to other parts of the world. • Worth about Rs 300 billion annually • Comprises 7.5 percent of India's Rural Population • Farmers cultivating sugarcane 5million (approx.)

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Structure:
• It comprises of Public, Private & Co-Operative Mills • Percentage-Wise break up: PUBLIC 6% PRIVATE 54% CO-OPERATIVES 40%

Season: The cultivation of sugarcane starts from the
month of December to February.

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Sugar Producing States:
• • • • • • • • • Uttar Pradesh Gujarat Punjab Haryana Maharashtra Bihar Karnataka Andhra Pradesh Tamil Nadu
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Major Sugar Players: • • • • • • • • • Bajaj Hindustan Balrampur Chini Triveni Engineering Renuka Sugars Dhampur Sugar Mill Mawana Sugar K K Brila Group Bargarh Co-operative Sugar Mills Peralumbur Mills
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Indians have sweet tooth!
STATES Punjab Haryana Maharashtra Gujarat Kerala Uttar Pradesh Tamil Nadu Karnataka All India Kg/Annum/capita 71.5 68.5 40.9 40.9 41.5 35.2 29.1 23.3 31.5
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Source:“Handling Sugar and Sweeteners Intakes – Indian Experience”, Rekha Sharma R.D Director, Clinical Nutrition and Dietetics

Factors affecting Sugar supply
• Climate • Technical • Sugarcane production • Sugarcane cane utilization for sugar production • Duration of season • Recovery rate • Political factors

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Industry Production Cycle

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Types of sugar:

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Value Flow Chart:

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Use of I.T. in Sugar Mills:
• Name of provider: ASM TECHNOLOGIES LTD. • Industries covered: Manufacturing, Oil & Gas, Telecom, Defence, Retail, Automotive, Healthcare, Transportation & SUGAR. Solutions for sugar industry • Pre configured SAP solution • Web based Cane Mgmt. System • Add on utilities: Smart Card & SMS • ASM Clean Development Mechanism
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Pre configured SAP solution
• ASM with its team of Consultants, Technologists with experience in sugar industry, provides pre-configured Solution suiting the Business Functions and Information needs with Best Practices in Business Processes. • This solution also addresses the monitoring of byproducts such as Molasses, Ethanol, Bagasse

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ASM Cane Management System
• • • • • • • • Plantation Details Fertilizer subsidy details Crop loans Cutting order details Cane Pricing management system Cane weighing and crushing management system Cane calendaring systems Cane accounting system tightly integrated with Cane management system • Chemical laboratory reporting

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Farmers master search details:

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Cane Calendar Sequencing

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MIS Dashboard

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Smart card for farmers:
• • • • Account accessing at Zonal/Plant Office Farmer ID and Photo/Signature ID Account statement Details relating to farmer and his produce

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Benefits to organization

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Distribution Channel:
Farmers or Cooperatives

Sugar Mill Owners
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Sugar Mills

GOVERNMENT (10%)

BULK BUYERS(30%)

INSTITUTIONAL BUYERS(60%)
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GOVERNMENT:
• • • • Centrally purchased Allocation of regional quota Food Corporation of India Fair Price Shops

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Channels

Product Flow

BULK BUYERS

WAREHOUSES GODOWNS

WHOLE SELLERS

RETAILERS

SHOPS

CONSUMERS

HOME

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Institutional Buyers:
• Warehouses

•Consumption centers

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Case Study: The EID Parry Story
• The case explains how the company developed Edge Competency • Indiagriline is an effort to provide an end-to-end solution addressing the needs of the farming community in South India • EID Parry Ltd., launched this project in early 2001 by setting up Internet kiosks in 16 villages around its sugar factory in Nellikuppam, Tamil Nadu • A one stop shop that acted as a storefront for buying farm inputs, a market for selling goods, and an Internet café for communication and information services

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Need for the innovative idea:
• A marginal Indian farmer is faced with several challenges that result in yields and quality being inferior by world standards. • He lacks access to information, accurate weather forecasts, and up-to-date information on commodity market prices. • He lacks access to the market and is thus caught in the vicious cycle of suboptimal use of farm inputs, higher cost of credit, and lower price realizations on his produce, leading to insignificant disposable income for him.

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THANK YOU

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