Phone: +92 (48) 6642411 – 12

Fax: +92 (48) 6642784

E-mail: sugarmill@noonsugar.net

Website: www.noonsugar.net

   
PROJECT REPORT 
 
 
   
 
NOON BUSINESS SCHOOL 
UNIVERSITY OF SARGODHA 
 
  

“Preface”
 
 

“IN THE NAME OF ALLAH THE MOST BENEFINCIENT AND MERCIFUL”

 Table of Contents

Executive summary 5
INTODUCTION: 6
HISTORY: 9
NOON SUGAR MILLS LTD: 9
MISSION STATEMENT 10
Objectives of company: 10
Group profile: 11
MAIN PRODUCTS: 11
Organizational Structure: 12
Departmental Structure: 13
 ACKNOWLEDGMENT

First of all I am thankful to Almighty Allah. The only creator of universe who enabled us to complete
this report, in spite of various difficulties. All respects to the Holy Prophet (S.A.W.W) who enable us
to recognize our greater and whose spiritual teaching guides us in every matter of the life. ​We are
greatly thankful to advisor “Madam Sadia Shuakat” who kindly provided us an opportunity to check
our abilities in a good organization like Noon Sugar Mills Ltd.

We are extremely thanks for supporting person Mr. Raheel Asghar and other involved personalities.
Without the cooperation of these persons we could not complete this task with intension.
 Executive summary

Sugar​ ​is​ ​most​ ​important​ ​industry​ ​of​ ​Pakistan.​ ​It​ ​is​ ​the​ ​oldest​ ​industry​ ​in​ ​Sub​ ​Continent. 
Origin​ ​of​ ​its​ ​cultivation​ ​is​ ​from​ ​India.​ ​At​ ​present,​ ​there​ ​are​ 8
​ 9​ ​mills​ ​operating in Pakistan.
At the time of partition there were few mills working in Pakistan. Sugar industry is contributing in
GDP and Export Foreign Exchange. The report is on Noon Sugar Mills Bhalwal which is a highly
reputed organization in sugar industry. Noon Sugar is one of the pioneers of the sugar industry in
Pakistan. Noon Group owned well known organizations of Pakistan for example Noon Pakistan
(Main product of Noon Pakistan is NURPUR Milk), Pioneer Cement. Noon sugar mill was established
in 1964. Company is ISO certified and producing sugar and other products. Its equity is nine
hundred ninety two million rupees and is registered in Pakistan stock exchange. Main product of
company is white refined sugar which is being exported to other countries and also locally sold.
There are 425 permanent employees of NSM. There are different types of employees which are
hired at need basis. These are temporary and seasonal employees. The objective of our study is to
identify the strategic human resource management. Noon sugar mill adopt centralized structure.
They give more importance to his employees and continuously work on employee training and
development. Mill provides different type of facilities to his employees for the purpose of retention.
At the end we conclude that noon sugar mill HR activities shows that their organization move from
personal management.
OBJECTIVE OF THE STUDY

Human resource is a very important resource for an organization, without human resource an
organization did not run or survive in the market. This human resource is used in an organization in
a very efficient way. The main objective of our study is to find that the human resource strategy of
an organization is match or not with the organizational business strategy and are they move from
traditional human resource management to modern human resource management.

INTODUCTION:
An Introduction to Pakistan’s Sugar Industry

Pakistan is the 6th largest producer of Sugarcane in the world with an area under
cultivation in excess of 1 mn hectares. Sugarcane yield in Pakistan has consistently been lower than
the world average of 70 th and currently stands at around 62 th. Sugarcane is the primary raw
material for the production of sugar. Since independence, the area under cultivation has increased
more rapidly than any other major crop. It is one of the major crops in Pakistan cultivated over an
area of around one million hectares.

Pakistan is the 9th largest sugar producer in the world. Majority of the sugar in Pakistan is
produced through sugarcane and only a small percentage i.e. less than 1% is produced through
beetroot. Sugar beet industry in Pakistan is very small and present only in KPK. In tandem with
rising cultivation area of sugarcane, sugar production has also surpassed record levels in recent
years. In FY17, Pakistan achieved the highest ever sugar production of 7 Mn tons which is almost
double of what we produced 2009-2010. This trajectory has however marginally declined in FY18
as total sugar production was only around 6.5 Million tons. There are 89 sugar mills operating in
the country with majority i.e. 50%+ situated in Punjab and around 26 of these are listed (actively)
on the Pakistan Stock Exchange. In terms of consumption, Pakistan is the 8th largest consumer with
per capita consumption of around 25.7kg which is highest in the region. Annual local demand
stands between 5-6 Million tons. Barring initial two years in the last decade, Pakistan has been self-
sufficient in sugar as domestic production is exceeding domestic consumption.
Industry Scenario

Sugar industry is mostly located in the rural areas of Punjab and Sindh. A small percentage of
total production is produced in the NWFP. Previously, Punjab was partly dependent on
supply of sugar from Sindh, but lately the establishment of some large scale units in Punjab
has made the Province self-sufficient in the commodity.

Sugar production is seasonal activity. The mills, at an average operate for 150 days, and supplies
are made throughout the year. As the industry now has large daily crushing capacity there
are efforts to even further reduce.

HISTORY:

NOON SUGAR MILLS LTD:

The Company was incorporated in 1964 as a public company listed on all the Stock
Exchanges of Pakistan for setting up of a plant for manufacture of white sugar, in the province of
Punjab. The plant went into production in 1996 with a daily crushing capacity of 1,500 MT of sugar
cane, which has since been raised to 4,000 MT per day in 2002. Further extension to 9,000 TCD is
underway which has become operative in 2006-2007 crushing season, Al-Hamdulillah.

An Alcohol Distillery of French origin was added during 1986 with a production capacity of
50,000 liters/day in 2002. Another facility with an option to provide either 30,000 LPD Industrial of
fuel Grade Ethanol was added in 2002. A new Fuel Ethanol plant of 100,000 LPD, based on
Molecular Sieve technology has been added in 2005.

The Distillery is ISO 9001 certified since 1998. This upgraded to ISO-9001-2000.

An Effluent Treatment Plant employing the Canadian technology of ABV Bio-Gas ​reactors has
been installed since 1997, to use its bio-degradable waste water as a renewable source of energy to
replace 70% of fuel oil / natural gas, for generation of process steam. This has also enabled the
Company to fulfill its obligation towards reducing the environmental pollution.
Capital Structure:

The present equity of the Company is Rs.992 Million, with total investment of around Rs.1877
Million. The Market Capitalization is over Rs.455 Million, and sales revenue amounts to over Rs.1.0
Billion, including exports of Rs.213 Million. The average number of employees is 691.

The Company has a gratifying record of 40% average annual Dividend out to the share holders
in the last 10 years.

Vision

Our vision is to transform Noon Sugar Mills into a modern and dynamic organization so that all our
constituents feel proud to be associated with. By subscribing to best ethical business practices, NSML
endeavors to focus towards the well being of its stakeholders, the most important of which are its,
workforce and the agricultural community of the area.

MISSION STATEMENT

“Noon Sugar Mills Limited is committed to continue its sustained effort towards
optimizing its resources though updated technology, staff motivation and good corporate
governance so as to Insha Allah maintain its tradition of high yield and handsome returns to its
shareholders on their investment in the Company.”
 Goal

The goal of Noon Sugar Mills is to achieve and maintain Key Leadership Position in Competitive Sugar
Industry of Pakistan and the region

Objectives​ o
​ f​ ​company:

1. Total quality focus to meet customer’s requirements.

2. The highest standard of business ethics.
3. To care on the business ethics.
4. To carry on the business at best possible level.

Human Resource Strategy:

Noon Sugar Mills Ltd, considers its employees as the most valuable asset of the organization, therefore it
focuses on creating a work environment that’s emphasis on Efficient Productivity and Key Employees
Retention & Development.
As our staff comes from diverse social & economical backgrounds they have different individual goals &
ambitions. To attract and retain best human capital we have adapted the following Hr Policies;
Competitive salaries
Enviable benefits packages
Merit based recruitment & selection
Promotion opportunities
Continuous staff training and development
Transparent and regular communications
Focus on employee wellbeing
Investment in corporate social responsibility
 Employee autonomy
Open-door policy

Group profile:
Noon Group​ employs about 2000 personnel and its offices are located at the following locations in
Pakistan.
Boards of Directors:
Mr. K. Iqbal Talib
Lt Col Abdul Khaliq Khan (Retd)
Malik Adnan Hayat Noon
Mr. Salman Hayat Noon
Muhammad Sohail Khokhar
Muhammad Tariq Mir
Syed Ali Raza

Offices Adresses:
1) 6th Floor, EFU House, Gulberg Road, Lahore.
2) 7th Floor, Lakson Square, Karachi
3) 1st Floor, Alfalah Building, Shahrah-e-Quaid-e-Azam, Lahore
4) 92-B, C-2, Gulberg III, Lahore

Manufacturing unit are located at Bhalwal, District Sargodha and Chenki, District Khushab.
The Group is managed by Noon family duly assisted by qualified and experienced technical and
business professionals as working Directors and Senior Executives.

MAIN PRODUCTS:
Sugar industry is an Agro-based industry, which provides employment to landless rural population
and has a great Impact on the economy of Pakistan. The main product of the company is White
Refined Sugar. The four byproducts of a sugar industry is;

1. Ethyl Alcohol
2. Bagasses
3. Molasses
4. PRESS MUD
WHITE REFINED SUGAR:

Major business of the company is to produce

white refined cane sugar of intermission
standard and from the erased cane and three
different components are achieved that are
fibber, Pith and Moisture. Main distributors of
sugar are Tauqir Traders Rawalpindi, Aamir
Traders Mirpur, and Azad Kashmir. Madina
Traders Sargodha and Haji Manzoor & Co
Khushab.

Ethyl Alcohol
Industrial Grade (Hydrous)

MOLASSES:

This is a by-product and is sold to Molasses Molasses may be used for the production of
contractors. Shah Taj Sugar Mills is the main power alcohol acid portable spirits.
contractor of molasses of Noon Sugar Mills.
BAGGASSES:

This is also a by-product of the company.

Baggasses is used as source of energy fuel for
sugar industry for juice heating, and also used
for making medium density fiber board
(MDFB). Bagasses are sold to the Bagasses
contractors.
PRESS MUD:

Mud is also the by-product of the company. It

is sold to the Mud Contractors. This is used in
making chocolates and other products. Mud is
also used as fertilizer for farmers & cane
growers.

Organizational Structure:
Employment Types at Noon Sugar Mills Ltd.
Noon Sugar Mills Ltd. offers three types of employment;

▪ Permanent Employment
▪ Contractual Employment
▪ Temporary Employment
▪ Internships

Regular (Full Time) Permanent

Employment

Those employees who are hired to work as regular full time employees (permanent employees) and they
are eligible for the complete salary and benefit package offered by Noon Sugar Mills Ltd. A job
description is required before hiring procedure is followed. These employees are hired for jobs of
permanent / continuing nature of work where they are required to complete a probation period of 3
months which shall not be extended more than 6 months by assigning proper written reasons of extension
in probation. After completion of probation these employees are referred to as permanent confirmed
employees​.
Contract Employment

An employee hired for a specific and limited period. Contract employee means an employee who has
been engaged for work on a short term contract. A job description is required before hiring procedure is
followed. Contract staff is usually hired usually for a transitory period of nine (9) months and in no case
exceeding eleven (11) months. For such employees, all terms and conditions of employment will be
conveyed in their employment contracts. All terms and conditions of contract will be written in contract
letter, which will govern both employee and employer. In Contractual Employment there will be no
employee benefits except Employee Old Age Benefit if he or she is less than 60 year in age. Contractual
Employee will get Total Monthly Package and benefits as per mutual agreement at the time of signing
contract.
 Temporary Employment (Daily Wagers)

There are two types of temporary employment at NSML.

An employee who has been engaged for standard temporary time period to work which is of an essentially
temporary nature likely to be finished within a period not exceeding nine months. Temporary staff is
usually hired for a transitory period of less than nine (9) months and in no case exceeding eleven (11)
months.
An employee who has been engaged in short term temporary time period to work which is of an
essentially temporary nature likely to be finished continuously within a period not exceeding one week
are comes under Daily wages employment.
A job description is required before hiring procedure is followed. For such employees, all terms and
conditions of employment will be conveyed in their employment contracts. All terms and conditions of
contract will be written in contract letter, which will govern both employee and employer. In temporary
Employment there will be no employee benefits.

Paid/ Unpaid Internship Program

NSML offers internships to students ranging in duration from six to eight weeks which could be
extendable on case to case basis. Students will get a hands-on experience of what it is like to work in one
of the leading sugar companies as a part of NSML summer internship program. Intern will get the per
month stipend as per term and condition of Internship letter. An intern is a learner who may be paid a
fixed stipend/allowance only during the period of his/her training/internship.
Sugar Mill Process:
INTERVIEW QUESTIONS AND ANSWERS:

What is the strategy making process used in this organization and what kind of
factors/ things you consider at the time of strategy making? (Internal External)

Ans: Strategy making process of Noon sugar mill is that only upper level management
involve in this process like as board of directors. They meet as and when
considered necessary and deiced issue raised before then in the meeting.
Being a public limited company which is accountable to its shareholders and other
agencies therefore they give a very important consideration to all stakeholders
at the time of strategy making.

● What do you feel about the human resource and what kind of importance you
give to human resource?

Ans: I feel that human resource is also important for an organization, without human
resources machines are not run and organization did not complete his work.
Noon sugar mill considers its employees as the most valuable asset of the
organization.

● What is the role of human resource in your organization or business strategy?

Ans: Human resource is the most important part of our organization .Noon sugar mill
is always a production based organization. They are used for operating the all
activities .This requires viewing people as human assets, not cost to the
organization.

● What types of facilities are provided by organization to employee on the

workplace?

Ans: We provide different types of facilities to his employees on the workplace

.Organization provide a comfortable and clean environment to his employees.
During the work provide short breaks and provide health and safety facilities.
 ● What do you think that human resource is a cost or investment? Why? Explain
it?
Ans: ofcours yes, human resource is investement.Because he play a very important
role in the organization .Technical skills are required for organization and
organization want to retain these employees.
Human resources are the principles assets of every organization but without
investment in developing the capacity to acquire skills build knowledge and
innovate.

● How many times you or your organization feels that HR strategy influence or
affect your business strategy? What are these situations?

Ans: sorry I did not share this type of information but it is true that human recourse
affect the business strategy.
It means that when human resource is not satisfied with company policies then call
the strike and did not work. Due to strike the organization did not achive his
goals and targets. Thus business strategy affect by these types of situations or
events.

● What is your view point about environmental changes and how they affect your
business and HR strategy?

Ans: yes, sometime business and human resource strategy is affected by

environment.
Farmer are the main suppliers of raw materials (sugarcane), due to natural disaster,
cultivation and output of sugarcane will reduce .And Noon sugar mill did not
fulfill his raw material demand then they did not achieve his goals.

● What is your organizational structure? Why you choose or select this

structure? (Centralized/ decentralized)

Ans: Noon sugar mill adopt the centralized structure for operating the activities. In
which key decisions are make on the upper level management.
Noon sugar mill make a different department like as Human resource department,
finance department technical department.

● Do you think that managing diversity is not a strategic human resource issue in
developing countries?
Ans: I think that managing diversity is not a big issue in developing countries. As our
staff comes from diverse social and economical backgrounds. They have
different goals and ambitions we provide equal facilities to all employees.

● Sir which methods you are using for the development of your employees and
what is the strategy to retain them?

Ans: Conduct annual basis seminars for employee’s motivation and development. Our
management members are attends workshops in abroad for training.

● Which selection criteria you have developed or introduced for the employees
recruitment and selection?
​ R
​ ecruitment age for Junior/entry level vacancies should preferably be above 18 and under
25 years of age. However based on higher academic qualification certain relaxation can be
given.

Selection criteria will be as per Job Descriptions and other job skills and competencies related
information provided in Person​ Profiles, if available.

Q: Sir how you effectively address your new HR policies to employees?

We address his new HR policies to employees through notice board, through
supervisor and inform through union president.
 ● Sir how did you motivate your employees and what is the strategy to retain
them?
Ans : We provide different type of facilities to his employees for motivation and
retention.
Accommodation
Health facilities
Reward (Bonuses)
Fair price shop
Children Education
Different types of allowances

● What kind of management level who involved making strategy for organization
or from which department you choose the strategy maker for HR and business
of your organization?

Ans: Noon sugar mill adopt the centralize structure.​ ​In which all key decisions are
made by board of directors. All the strategies are made by board of directors,
CEO and management.
 ● Does your organization allow employee involvement in decision making?

Ans: Our organization allows employee involvement in decision making to certain

level yes, but it’s depend on the type of decisions, necessary and decide issues
are discuss in the meetings.

● What is your organization’s policy on providing seminars, workshops and

training so employees can keep up their skills or acquire new ones?

Ans: We provide house training to our employees of Noon sugar mill. Conduct annual
basis seminars for employee’s motivation and development. Our management
members are attends workshops in abroad for training.

● Describe a difficult experience you had with an employer/ manager/ coworker

and how you handled It.?

Ans: sorry I will not share experience to related employer, manager, and coworker
are do not provide handling procedure of employees. Used the different rules
and regulation to manage the human recourse of noon sugar mill.

● What trends will shape human Resource departments over the next five years?
Ans:
Noon sugar mill are provide the different facilities of employees to retained or
maintain them .The employees are involved into the different segment of the
noon sugar mill. To achieve a large goals of the noon mill adopted the different
strategies and set the different programs.
Performance management system
 ● How often do you evaluate employee performance? Annually quarterly or
semiannually?

Ans: We evaluate employee performance through “ Performance Management

System” and performance evaluation time is different for old and new
employees.

New employee performance is evaluated after 3 month.

Old employee’s performance is evaluated after 6 month.

● How do you create a strategic fit among your business strategies and HR
practices?

Ans: Noon sugar mill create a strategic fit among his business strategy and HR
practices through a balance score card system and strategic planning and
management system.

● Q.21 Do you follow the best practice approach to manage your human
resource?
Ans: yes we use the best practice approach for the development of employees
and for higher productivity and performance.

● Q. 22. What are the key HR practices you give your maximum attention and
emphasis? Why?

​Ans:
Management mostly focused on competitive salary, promotion and
working experience of employees.

Personal Management HRM

Difference between Personnel Management and HRM

PERSONNEL MANAGEMENT HRM

It is a traditional approach It is a modern approach
Focus on Personal administration Focus on acquisition development
Assume that people are input and give not more Consider most important valuable resource
importance

Function undertake for employee satisfaction Function undertake for goal achievement

Job design done on the basis of division of labor Job design done on the base of group work teams

In which less training and development In which more emphasis on training and development

Decision are made by top management All management involve in decision making

Focus on increase production and employee satisfaction Focus on effectiveness culture productivity and
employee participation
Concerned with personal manager In which concerned with all type of manager

It is routine function It is a strategic function

Noon sugar mill functions:

Organization shares his vision and mission with staff.

Power and management:

Noon sugar mill power distribution is centralized where top management has full authority in decision making but
sometime important issues of employees are discuss in meeting. Some power decision are transfer to Head of
department because they focus on quality of product.

Development and Training:

Now a day’s noon sugar mill considered that development and training is necessary for organization because they
operate updated machinery.

Pay Policy and Job design:

Noon sugar mill also adopt encouragement policy. They provide different type of incentives and facilities for the
purpose of motivation. Because now Noon sugar mill consider about his employees that these are most valuable
asset of the organization.`
Salary structure:
Overall salary segregation for permanent and contractual employees shall consist of the following
elements.

A. Permanent Employees:

The monthly gross salary may consist of the basic salary; conveyance allowance, house rent allowance
(45% of basic Salary), Utility Allowance (10% of Basic salary) and/ or any other benefits whichever is
applicable according to the grades.

The company follows a policy that incorporates basic provision of labor law, the breakup of which is as
follows:

Basic Salary (Gross Salary – Conveyance Allowance)/1.55

Housing Allowance 45% of Basic Salary
Utilities Allowance 10% of Basic Salary

B. Contract / Temporary Employees:

The total compensation of the persons engaged on contract shall consist of technical/ professional
assistance fee (basic salary), Conveyance Allowance, house rent allowance (45% of basic Salary), Utility
Allowance (10% of Basic salary) on monthly basis.

C. Daily Wages Employees:

The total compensation of the persons appointed as daily wagers (on site) shall consist on minimum wage
per day multiply by no. of days he/she worked in a month. The payment will be issue on monthly basis in
form of cash.

Recruitment and Selection:

Noon sugar mill adopt very scientific and systematic way for recruitment and selection. They hire employees on
merit base.

Contract of employment:
Noon sugar mill change his policy in the regard of contract employment policy but now they show flexibility in the
employment agreement and there is depend on the employee skills and job condition.
Noon sugar mill want to maintain his leadership position in the market. It
means that they adopt the Focus business strategy.

For focus strategy they require to maintain or retain his employees.

They hired skilled persons.

Conclusion:

After the interview we analyze the data and find a result that noon sugar mill
change his HR strategy, it means that’s they move from Traditional HRM to
Modern HRM and noon sugar mill business strategy and HR strategy are
matched with each other it means that they follow the strategic human
resource management.