Usw Project

An Internship report on
“THE UGAR SUGAR WORKS LTD”
Submitted By
GULAMNABI MAKANDAR
(3VY21BA036)
Submitted To
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfilment of the requirements of the award of the degree of
MASTER OF BUSINESS ADMISTRATION
UNDER THE GUIDANCE OF
Dr. Shailaja Kheni

Asst. Professor
Department of Studies Business Administration
Centre for PG Studies

KALABURAGI-585105
DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION
CENTRE FOR PG STUDIESVISVESVARAYA TECHNOLOGICAL UNIVERSITY
KALABURAGI 585-105
2022-2023
Visvesvaraya Technological University
(State University of Government of Karnataka Established as per the VTU Act,
1994)
“Jnana Sangama” Belagavi-590018, Karnataka, India
Dr. Shailaja Kheni Department of Management Studies

Programme Coordinator VTU’s CPGS, Kusnoor Road, Kalaburagi - 585105
CERTIFICATE
This is to certify that Mr. GULAMNABI MAKANDAR bearing USN 3VY21BA036, is a bonafide student
of Master of Business Administration course of the Institute Visvesvaraya Technology University, Centre for
PG studies, Kalaburagi affiliated to Visvesvaraya Technological University, Belgaum. Project report on
"THE UGAR SUGAR WORKS LTD" is prepared by Him under the guidance of Prof Dr. Shailaja Kheni,
in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration of
Visvesvaraya Technological University, Belagavi Karnataka.
Signature of Signature of
Internal Guide Programme Coordinator
DECLARATION
I hereby declare that this Organization Study conducted at “THE UGAR SUGAR WORKS LTD” is a
record of independent work carried out by me under the guidance of Prof Shailaja Kheni
I also declare that this Organization study is towards the partial fulfillment of the University regulation for the
award of degree of Masters of Business Administration by Visvesvaraya Technological University,
Belagavi.
I have undergone an organization study for a period of four weeks. I further declare that this Organization
study is based on the original study undertaken by me and not being submitted for the award of any degree
from any other university/institution.
Sl No. Reg No. Name of The Student Signature with Date

1. 3VY21BA036 GULAMNABI MAKANDAR
THE UGAR SUGAR WORKS LTD
DISCLAIMER
The enclosed document is the outcome of a student academic assignment, and does not
represent the opinions/views of the University or the institution or the department or any
other individuals referenced or acknowledged within the document. The data and
information studied and presented in this report have been accessed in good faith for
secondary sources/web sources/public domain, including the Organization’s website,
solely and exclusively for academic purposes, without any consent/permission, expresses
or implied, from the Organization concerned. The author makes no representation of any
kind regarding the accuracy, adequacy, validity, reliability, availability or completeness of
any data/information herein contained
PLACE: Kalaburagi Signature of the Student

DATE: USN: 3VY21BA036
Department of Management Studies VTU CPGS, Kalaburagi

ACKNOWLEDGEMENT
The satisfaction that accompanies the successful culmination of any task would be
incomplete without maintaining those who made it possible because success is the epitome
of hard work, determination, consultation and dedication. This list of thanks is heartfelt and
only begins to acknowledge those people to whom, one way or the other this owes its
existence.
We would like to thank our Regional Director Dr. Basavaraj Gadgay and Program
Coordinator Dr. Shailaja Kheni and all teaching and non-teaching staff members and well-
wishers whose ideas, critical insights and suggestions have been valuable in the preparation
of the internship project report. We express my sincere and heartfelt thanks to our internal
Coordinator Dr Shailaja Kheni Assistant Professor, Department of Management studies, PG
Centre, Kalaburagi for those valuable time, guidance and encouragement throughout the
process of study.
Last but not least, we would like to extend my whole hearted thanks to our parents, friends
and well-wishers for their support and encouragement in the completion of this report.
PLACE: GULAMNABI MAKANDAR

DATE: (3VY21BA036)

TABLE OF CONTENT
SLNO INDEX PAGE NO
INTRODUCTION ABOUT THE ORGANIZATION AND

CHAPTER 01
INDUSTRY
CHAPTER 02 ORGANIZATION PROFILE
2.1 BACKGROUND OF THE COMPANY

2.2 NATURE OF BUSINESS
2.3 VISION, MISSION, QUALITY POLICY
2.4 WORKFLOW MODUEL
2.5 PRODUCTS PROFILE.
2.6 OWNERSHIP PATTERN FUTURE GROWTH AND
PROSPECTS
2.7 ACHIVEMENT/AWARD
CHAPTER 03 MCKINSEY’7’S FRAME WORK

3.1- PORTERS FIVE FORCE MODEL
CHAPTER 04 SWOT ANALYSIS
CHAPTER 05 ANALYSIS FINANCIAL STATEMENT
CHAPTER 06 LEARNING EXPERIENCE

6.1 BIBLIOGRAPHY
6.2 ANNEXURE

EXECUTIVE SUMMARY:
A detailed research study was undergone at Ugar sugar Work's ltd. At a part of the academic programme
for a period of one months. Ugar Sugar Work's ltd. is a single member private limited company. A detailed
study was undertaken to understand the Wages and Salary Administration of employees and facilities given
by the Company.
The First chapter deals with the Introduction about the industry and company. The second chapter deals with
Conceptual background & Literature review. Chapter three covers the mckinsey’7’s frame work porters five
force model. Chapter four covers the analysis & Interpretation of the data collected. Chapter five cover the
Analysis of Financial Statements Profit and Loss Accounts. Learning experience & my report and
bibliography are included in chapter six.
From this study we can say that workers are well trained and there is a well co-ordination between the
management and the employees. The over-all performance of the factory is good and turnover is good. I like
to conclude by saying that employees were very much satisfied with organization.

CHAPTER 01
INTRODUCTION
The Indian sugar industry is a key driver of rural development, supporting India’s eccentric growth. The
industry is inherently inclusive supporting over 50 million farmers and their families, along with workers
and entrepreneurs of almost 500 mills, apart from a host of wholesalers and distributors spread across the
country.
The industry is at a cross roads today, where it can leverage opportunities created by global shifts in sugar
trade as well as the emergence of sugarcane as a source of renewable energy, through ethanol and
cogeneration. While some of these opportunities have been well researched in the past, there was a need to
assess the potential for India and to develop a comprehensive and actionable roadmap that could enable the
Indian industry to take its rightful place as a food and energy producer for one of the world's leading

economies. India is second largest producer of sugarcane next to Brazil. As per last year data, about 4
million hectares of land is under sugarcane with an average yield of 70 tons per hectare.
India is largest producer of sugar including traditional sugar sweetener, Khand sari and Gur equivalent to 26
million tons raw value followed by Brazil in the second place at 18.5 million tonnes. Even in respect of
white crystal sugar, India has ranked No position 7 out of last 10-year Traditional Khand sari and Gur are
consumed mostly by the rural population in the early 1930's nearly 2/3 of sugarcane production was utilized
for production of alternate sweetener, Gur & Khand sari. With better standard of living and high income, the
sweetener demand has shifted to white sugar. About 1/3 of sugarcane production is utilized by the Gur &
Khand sari sectors. Being in the small-scale sector, these two sectors are completely free from controls and
taxes, which are applicable to the sugar sector Profile of the sugar industry.
OBJECTIVES OF THE ORGANISATION:
 Producing effective best quality sugar for satisfying both domestic and internal norms.
 Maximization of power generation through non-conventional energy source for self-
consumption and to supply to rural power supply through grid.
 Producing quality spirit suitable for industrial and portable alcohol.
 Bringing in overall productivity and efficiency throughout the organization especially for
value addition of its by products in sugar effluent and waste
 Modernization through training and re -training of the employee for improving operational
performance.

SCOPE OF STUDY:
 The Scope of the study cover with extent of help to check all the activities of salary
administration against the company polices.
 An attempt was made to know the pleasure of employees regarding their wages and salary
administration.
 Hence this study specially is focused on wages and salary administration which is a key
factor for employee job satisfaction.
 The study covers employee opinion about leave facilities and working atmosphere in the
work place.
 The study also covers employee opinion about bonus travel allowances and dearness
allowances and wages and salary administration.

CHAPTER 2
ORGANIZATION PROFILE
INTRODUCTION TO SUGAR INDUSTRY
The Indian sugar industry is a key driver of rural development, supporting India's economic growth. The
industry is inherently inclusive supporting over 50 million farmers and their families, along with workers
and entrepreneurs of almost 500 mills, apart from a host of wholesalers and distributors spread across the
country.
The industry is at a cross roads today, where it can leverage opportunities created by global shifts in sugar
trade as well as the emergence of sugarcane as a source of renewable energy, through ethanol and
cogeneration. While some of these opportunities have been well researched in the past, there was a need to

assess the potential for India and to develop a comprehensive and actionable roadmap that could enable the
Indian industry to take its rightful place as a food and energy producer for one of the world's leading
economies.
India is second largest producer of sugarcane next to Brazil. As per last year data, about 4 million hectares of
land is under sugarcane with an average yield of 70 tons per hectare. India is largest producer of sugar
including traditional sugar sweetener, Khand sari and Gur equivalent to 26 million tons raw value followed
by Brazil in the second place at 18.5 million tones. Even in respect of white crystal sugar, India has ranked
No position 7 out of last 10 years.
Traditional Khand sari and Gur are consumed mostly by the rural population in the early 1930's nearly 2/3rd
of sugarcane production was utilized for production of alternate sweetener, Gur & Khand sari. With better
standard of living and high income, the sweetener demand has shifted to white sugar. About 1/3fd of
sugarcane production is utilized by the Gur & Khand sari sectors. Being in the small-scale sector, these two
sectors are completely free from controls and taxes, which are applicable to the sugar sector.
PROFILE OF THE SUGAR INDUSTRY:
The advent of modern sugar industry began in 1930 with grant of tariff protection to the Indian sugar
industry. The number of sugar mills increased from 30 in the year 1930-31 to 135 in the year 1935 and the
production during the same period increased from 1.20 lakh tones to 9.34 lakh tones under dynamic
leadership of the private sector. The era of planning for industrial development began in 1950-51 and
government laid down targets of sugar production and consumption licensed and installed capacity,

sugarcane production during each of the five-year plan periods. The targets and achievements various plan
periods are given bellow.
COMPANY PROFILE:
About sixty years ago ugar khurd was a small hamlet in the east while princely state of Sangli
It was however blessed with two great advantages; On its south flowed the perennial river Krishna and, on
the north, was situated the railway station of ugar khurd on the meter gauge line between Miraj and
Bangalore, now changed to broad gauge.
Conditions were ideal for somebody to harness the two advantages and exploit the fertility of the loamy soil.
An abortive attempt was made in late thirties to start a sugar industry.
After that, the then ruler of sangle invited the late Dr.S.R. Shirgaokar - who had previous experience of
setting up a sugar factory at kolhapur, to embark on the unexplored venture which he did with great dexterity
and the slumbering village of ugar khurd was transformed into a humming industrial township in a few
years. Today, Ugar is equivalent to a mini city with a decent sized population and having agriculture
concentrated employment surrounding the sugar manufacturing focused township.
Dr. S. R. shirgaokar deputed his competent nephew. Shri. V.S.S shirgaokar to purchase a sugar plant form
Mohali sugar Factory in Sitapur District in Bihar and install it at ugar khurd. The ugar sugar works hence
found a very competent navigator in one of its visionaries- late. Shri v.s. shirgaokar. The 500 TCD

plant was purchased, installed and the first crushing season was started on the 21st of April, 1942.After a
successful inningsm, the late V.S. Shirgaokar then passed on the reins of the group to his younger brother-
Shri Surech shirgaokar, popularly known as kaka'. He took the organization further ahead and it was under
his able leadership that the crushing capacity of the company underwent further expansion (10,000 TCD).
Presently, the crushing of the organization is 18,000 TCD. (Ugar, unit-jewargi & Bagalkot).
Babu Sooner than later, the company diversified its activities and started its own distillery in the year 1962-
63 and then added the section in the year 1967-68. The company is producing high quality premium brands
like old castle whisky. Gokak Falls Whisky, US Rum, Doctors Brandy, Gagarin vodka and the company's
brands are well accepted by the market.
The company has setup a new distillery plant for producing 45,000 litres rectified spirit including 10,000
liters ENA per day during the year 1994-95 and this plat is running very successfully thereafter. This is in
addition to the existing 30,000 litres per day old distillery plant.
Thereafter, the company further diversified and set up a first-in-its- king-in India Co-Generation power plant
of 44 mw. This was based on the principle of bagasse based renewable sources of energy used as fuel. Out of
which 28 MW are being exported to the grid and the rest of the 16 MW used for captive consumption.

HISTORY OF THE SUGAR COMPANY:
Late Shri. V.S. Shirgaokar
Ex-Chairman Emeritus, Chairman of

Managing Director of director of the
Sugar work ltd
And visionary of our group.
Late Shri Suresh (Babu Kaka)
Ex-Chairman and Managing director the
Ugar Sugar work ltd and visionary of our group.

Late. Shri. V. S. shirgaokar was the founder of the UGAR SUGAR LTD. 1-le was born on 15th April 1907
and passed away on 22nd Jan. 1996. The company is located at Ugar-Khrud. Sum Edward. Gibson, the great
historian has said, the wind and waves are always on the side of the ablest navigator. THE UGAR SUGAR
WORK LTD Had found its ablest navigator in its founder Late. Shri. V. S. Shirgaokar.
The 500 TCD plant was purchased, installed and the first crushing season was on 21st April 1942. The mill
crossed million tons of cane make and million quintals of plantation and white sugar productions seven
times till 1998-1999.
The sugar industry is concerned with the preparation of sugar from sugar beet. The tropical countries
produce sugar from sugar cane, while temperate produce sugar from sugar beer.
About sixty years ago Ugar Khurd was a small hamlet in the erstwhile princely in the erstwhile princely
state of Sangli. It was however blessed with two great advantages: -On its south flowed the perennial
river Krishna and on the north was situated the railway station of Ugar Kurd on the meter gauge line
between Miraj and Bangalore, now changed to board gauge. Conditions were ideal for same body to
harness the two advantages and exploit the fertility of the loamy soil. An abortive attempt was made in late
thirties to start a sugar industry.
Dr. S. V. Shirgaokar deputed his component nephew Shirgaokar to purchase a sugar a sugar plat from
MOHALI sugar factory in SITAPUR dist. in Bihar and install it at Ugar Kurd. The Ugar sugar in work
hence fond a very component navigator in one of its visionaries – late Shri. V. S. Shirgaokar the 500TCD
plant was purchased. Installed and the first crushing season was started on the 21st April a successful
training, late V. S. Shirgaokar then passed on the group to his younger brother. Shir. Suresh Shirgaokar,

popularly known as BABU Kaka took the organization further ahead and it was under his able leadership
(10,000TCD). Presently the crushing capacity of organization is 18,000. (UGAR SUGAR UNIT-
JEVRAGI).

GROWTH OF SUGAR INDUSTRY
On 1st July 1990, the government of India issued new guidelines for licensing new sugar factories and
for the expansion of the existing sugar factories.
Under this guideline the licensing policy has been made very liberal so as to boost the production of
sugar.
India is the original home of sugarcane and has a flourishing sugar industry in the ancient time. But the
modern sugar manufacturing industries were established in Bihar. But the real development of the
industry took place only after 1932 when protection was given to this industry against foreign
competition within a short period of 2 to 3 years. The number of sugar mills increased from 32 in 1931-
32 to137 in 1935-36 and the production also increased during the same period.
The small size new units licensed by the government were supported with a scheme of announced on
25th November 1975 known as Sam path
committee incentive. It provides percentage of free sale quota to both new sugar factories and expansion
in existing units. This is to a mushrooming growth of relatively small sized sugar units in the country.
Under the policy of licensing, government initially permitted small sized new units of 1250 TCD
capacity only and later on increased the minimum economic size of plant to 2500 TCD similarly the
capacity expansion initially allowed up to 3500 TCD only were subsequently raised to ITCD and finally
those expansion limits were withdrawn in 1990. As a result, the industry has grown horizontally with an
all India per unit average capacity of 500 TCD. As against this, these has been consolidation and move
towards larger per unit capacity all over the world, be evident from the following table.

INDIAN MARKET SHARE

CHAPTER 2
ORGANIZATION PROFILE
On the way the village malli-nagarhalli, is situated and beside of the village Ugar Sugars factory is
situated. The factory is situated on the irrigation land which is sufficiently plain (leveled) and to a good
height of that area, in fact there was really need of sugar factory as there was not a sugar factory in
existence at that time in this area. UGAR SUGAR WORKS LIMITED, was registered during the year
1939 and its production started in the year 1942. The unit of UGAR SUGAR WORKS LTD (malli-
nagarhalli unit) was established in the year 2004.
Estimate cost of project was Rs 135 crores and this is situated in 160 acres land and it's crushing
capacity was 2500 TCD. It is 45km away from jewargi taluk.
Jewargi is center place for transportation because SH 19 passes here and it also connect various Districts
and Talukas.
When the sugar factory was installed in malli-nagarhalli, initially the typical climate of the region, the
hard-working characters of the local people, the availability of natural resources in the nearby areas etc,
were abundant. The necessary raw materials in the sugar was available within a period of one generation
only The establishment of the factory has changed the socio-economic face of the Jewargi taluk, Dist.-
Gulbarga, Karnataka state. Besides the development of substantial industrial and commercial
infrastructure, the district benefits include employment generation and noticeable rise in people's
income level and their standard of living Side by side there has also been a considerable growth of
social assets like educational healthcare facilities.

PROFILE OF THE BUSINESS UNIT

COMPETITORS INFORMATION
COMPETITOR'S INFORMATION:
Ugar sugar is facing a huge competition from companies like:
SR NO NAME OF THE INDUSTRY PLACE
01 Renuka sugar Industry Afzalpur
02 Jamkhandi sugar sindagi

vijaypur
(kanni) indi
03 Kpr sugar industry vijaypur
04 Core green industry yadgiri
05 Dyanyogi sugar industry Bevanoor

(India)
06 Manali sugar Sindagi

ORGANIZATIONAL STRUCTURE:
Organization structure is a basic framework within which the decision-making behavior of an executive
takes place. It is an established pattern of relationship among the components of the organization.
UGAR SUGAR WORKS LTD is headed by chairman & Managing Director. And can advisor will take
place. This crew guides the General Manager. Who is assisted by and the departmental managers and
heads.

2.1 BACKGROUND OF STUDY:

When we gauge at past, then literature suggest that every industry in India has benefitted from
liberalization but the growth rate, capacity utilization and export competitiveness of Indian sugar
industry is continuously declining in post liberalization period. It is pertinent to mention that
India is the second
largest sugar producer in the world and Indian sugar industry is the second largest agro-industry
established in the rural India.
The Indian Sugar Industry accounts for around 1% of GDP of the country. Moreover, it has a
turnover of Rs.700 billion per annum and it contributes almost Rs. 22.5 billion to the central & state
exchequer as taxes and excise duty every year. Meanwhile, Sugar is said to be among the most traded
commodities with exports accounting for over one quarter of global production. Regardless of most
traded commodity sugar is also one of the most controlled commodities in almost every nation and
accordingly in Indian context, sugar Industry is one of the most controlled food processing industries
in the country with strict laws imposed on export, stocking and prices paid to sugarcane farmers etc.
It posits the notion that even sugarcane and finished product in the form of sugar, bagasse and ethanol
are confronted to stringent government regulation and interventions and financial performance of sugar
companies are forced to distress.
The reason behind this notion is that financially viable companies operating in a country directly makes
competitive to a country but competitiveness of Indian sugar mills are decelerating in last decade in the
form of declining exports as compared to their major counterparts Brazil, Australia and Russia. A
huge gap between Indian and Brazilian sugar industry had been generated due to the effect that Indian

sugar mills are fully dependent on sugarcane farmers for raw material supply but in Brazil every
operating sugar mills have their own farms and industry is highly deregulated.
2.2 NATURE OF BUSINESS

The main businesses of the parent company manufacturing products are,
 Sugar.
 Power.
 Indian maid foreign liquor.
 Industrial and potable Alcohol.
 Ethanol.
2.3 VISION AND MISSION
VISION:
We are dedicated to delivery overall value to our customer by delivering high quality product
experienced financial performance to our shareholders and complete satisfaction to cane grower’s
employees and stock holders.
MISSION:
Ugar sugar works will serve hard to return its place as one India’s premiere sugar companies through
sustained research development and expansion of core compliance at global efficiencies of cost quality
and standard of customer servicing and diversification to liquor, co-generation to achieve
competitiveness.

2.4 WORK FLOW DIAGRAM
GOALS OF THE ORGANISATION
 Expiations of a industry to wards optimal utilization of available sources.
 Achieving target production of 30000mt cane crushing per day
 Quality product to satisfy the domestic international market
Business Philosophy
The company has always given importance to the quality since its inception and its defines quality as”
consumer satisfaction “. The many has dedicated its own policy which says, ‘’ The company dedicated
to the concept of customer satisfaction by producing products of specific quality through appropriate

process control at optimum cost time delivery M.D. of the company has expressed his view business
philosophy as “I always recognized that the object to business not only to make in honorable way but
also to help the society.
2.5 PRODUCT PROFILE:
The Ugar Sugar Works Ltd. Is the manufacture of the “White Cystal Sugar “Along with sugar some
other products are manufactured in Ugar Sugar Works Ltd. Are.
 Power
 Other by products
SUGAR:
THE UGAR SUGAR WORKS LIMITED is the largest 'single location' manufacturer of sugar in
southern India with a licensed capacity of 12000 TDC. Ugar Sugar manufactures more than 15 million
bags of sugar annually. The aim product of sugar manufacturing process is “While Crystal Sugar” This
White crystal sugar is manufactured in the following grade.

SUGAR CRUSHING DETAILS:
Sr. no Particular 2017-2018 2018-2019 2019-2020 2020-2021
1 Cane crushed (MT) 2.35 1.42 3.45 3.32
Sugar produced
2 2.33 1.26 3.47 3.47
(Lakh Qtl)
3 Recovery 9.90 8.91 10.01 10.45
CANE / R&D DEPARTMENT:

The Ugar sugar work ltd has a separate research and development department recognize by the Ministry
of science and technology, New Delhi in 1978.
The emphasis of agricultural Rand D is understandably on sugarcane. The main objective of the
Research and Development wing is to make a continues effort to identify more dual-purpose sugarcane
varieties with high yielding potential and reasonable high fiber content.COM-22019 are getting good
acceptance by the cultivator’s Co-generation plant.
Ugar R and D department won the prestigious S.V. Parthasarathy award eight times in nine years since
its inception in 1985 for very effective R and D work in the agriculture of sugar cane. Recently it was
also awarded by SISSTA, Chennai on 13th Aug, 2005.

POWER GENERATION:
The Ugar Sugar Woks Limited has been successfully operating its 15 MW Biogases based Cogeneration
Power Plant-the single largest power plant of its type in the country for several years. Additionally, as
part of our expansion plans, we are setting up two more Greenfield power plants of 15 MW each. Ugar
Consultancy Ltd. (UCL). The subsidiary of The Ugar Sugar Works Ltd. is offering full time consultancy
services in the area of Cogeneration Power Projects.

BY-PRODUCTS
BAGASSE:
Bagasse is a residual material left the extraction of juice from sugar cane. In Ugar Sugar, it is capital
used as a fuel by which the industry is self-sufficient for its fuel requirement. The excess is saved to the
tune of 5% of weight of the cane crushed the saved bagasse can be selectively used as fuel in the lean
period / off-season or sold to the interested parties.
FILTER CAKE:
Filter cake commonly known as press mud is the suspended impurities separated during the process of
cane juice clarification by the sulphitation process. The material is used as manure and the factory
manages to sell the filter cake to the cane grower at concessional rates and achieve recycling of the
matter back to fields.

FINAL MOLASSES:
It is a highly viscous left-over material containing sugar/reducing sugar and organic/inorganic
impurities. It is a raw material for distilleries of our organization.
BRANDS
We are manufacturing the following IML Brands:
 U.S. Whisky.
 Old Castle Premium Whisky.
 U.S. Whisky.

 U.S. Brandy.
 U.S. Gin.
 Ugar XXX Rum.
 Gokak Falls Whisky.
 Milan Whisky.
 Hawk Gin.
 Gagarin Vodka.

2.6 OWNERSHIP PATTERN
BOARD OF DIRECTORDS
NAME DESIGNATION
Shri. R. V. Shirgaokar Chairman Emeritus
Sl. No Name Designation
01 Mr. P.V. Shirgaokar Chairman
02 Mr. Shishir S. Shirgaokar Non-executive director
03 Mr. Balasubramanian (I.A.S) Retired Independent director
04 Dr. M.R. Desai Independent director
05 Mr. M. R. Joshi Independent director
06 Mr. D.B. Shah Independent director
07 Mr. Rakesh. Kapoor Independent director
08 Mr. Deepak Ghashis Independent director
09 Mr. Hari Y. Athawalw Independent director
10 Mr. Sachine R. Sohna S. Shirgaokar Non-executive director
11 Mrs. Shilpa Kumar Non-executive director
12 Mr. Sohna S. Shirgaokar Non-executive director
13 Mr. Niraj S. Shirgaokar Managing director

14 Mr. Chandan S. Shirgaokar Managing director
2.7 AWARDS OF UGAR SUGAR WORKS:
Mr. S. V. PARTHASARATHY’S Award for outstanding performance in sugar industry for the season
1984-1985.
National safety award 1984 for largest accident-free period.
2.8 FUTURE GROWTH AND PROSPECTS:

India continues to be the most attractive destination for Sugar Production. Ugar Sugar Works ltd always
set benchmarks, cross limits, achives the objectives and celebrate the success.
 To be a No 1 Sugar firm in India

 Expand the Business in semi-urban and rural areas to extend the wings of customer care desk.

 Focus on new market in future which can segment the sugar business to brings out high
profitability to the company.
 Under human resource, cane development center will be implement the training activities and
upgrade man power skill.
CHAPTER 03
MCKINSEY 7’S FRAME WORK
INTRODUCTION
The 7s model is better known as Mckinsey 7s this because the person who developed this model tom
peters and Robert waterman, have been consultants at Mckinsey. They published their 7s model in their
article structure is not organization 1980 and their books the art of Japanese management 1981 and in
search of excellence 1982.

The model starts on the premise that organization is not a structure but consist of seven elements
namely.
1.STRUCTURE
2.SYSTEM
3.STRATEGY
4.SKILLS
5.STYLE
6.STAFF
7.SHARED VALUE
These seven elements are distinguished as so-called hard s and soft s the hard elements are feasible and
easy to identify. They can be found in strategy statements corporate plan organization charts and
documentation.
The four soft S however are hardly feasible they are difficult to describe since capabilities value and
elements of corporate culture are continuously development and changing, they are highly determined
by the people at work in the organization. Therefore, it is much more difficult to plan or to influence the
characteristics of soft elements the information flows from the top level of management to lower levels.

STRUCTURE
TOP LEVEL MANAGEMENT
It contains of chairman, executive chairman, vice president, and general. Those are responsible to take
major execution regarding the company.
MIDDLE LEVEL MANAGEMENT
It contains of departments head, which are responsible to take the decisions regarding the particular
department with the help of top-level management.
LOWER-LEVEL MANAGEMENT
Its containts of supervisions department assistants’ operators and helpers. These are the responsible to
operate machine’s and for the preparatory work of each department.
STRATEGY
In which business aims to improve its position relation to its competiton is embodies in its strategy or
war of doing something in organization. In NSL introduce new technologies and products strategies
importance in time with national objectives to improve quality reliability of products there by attaining
the international standards.
SYSTEM
Systems are referring to how the production system distribution, information system and security system
is maintained in its company. A production system, distribution system, security system information
system.

PRODUCTION SYSTEM
The process of production consists of inputs as sugarcane and output as sugar. First the cane will be
crushed in five mills. Juice will be transferred to boiling stations. In the boiling station, for the purpose
of purification Sulphur and lime powder will be added in proper proportion.
DISTRIBUTION SYSTEM
The distribution system of thru sugar produced is in the following way
 Direct sale are made within the state and outside the state
 Indirect sales are made outside the country and the depot sales are also made
the produces are also sold directly to consumers or sold to the wholesalers.
SECURITY SYSTEM
The NSL has strict security system. in the maintenance of accounts after the records have closed the
records are kept in the room is opened only with permission of higher authority. if the visitors went to
intern, they to take prior permission with authority and after entering they are not supposed to go any
department other them the department from whom they took permission.
SKILLS
Skills here refers to how the training will be given to employees the training will be given in 2months
they are.
ON THE JOB

This is one of the oldest methods under this method the individual place is one the regular job and
taught the skill necessary to perform that job on the job training has the advantage of giving the first-
hand knowledge and experience under the actual working conditions. This is given to employees.
OFF THE JOB
In this methods trainee is separated from the job situations and his attention is focused upon learning the
material related to his future job performance. There an opportunity for the trainees.
STAFF
Total workers; 1200 there are 4types of workers viz.
 Permanent – 73
 Seasonal – 93
 Daily workers – 120
 Contracts – 349
SHARED VALUES
Shared values are referring to company policies. In Gokal sugar company limited the following policies
are maintained
 Safety policy
 Quality policy
 Environment policy
 T.P.M policy
STYLE
The style which is portrayed to outside world is derived from the style and behavior exhibits inside
organization.
The internal style of the organization effects new staff feels thinks and does their jobs therefore an
organization is reflection of its structure.
3.1 PORTERS FIVE FORCE MODEL:
INTRODUCTION
First published in 1979 how competitive forces shape strategy by micheal E porter Revolutioized the
field of strategy. Popularly known as ‘porter’s five force.
Not only influenced a generation of academic research but also provided a map to rigorously analyze the
competitive forces.

Porter five force model is heavily borrowed from the traditional field of micro economics. the five force
that determine the industry structure of organization in case name case study are.
 Threat of substitute product and services
If the threat of substitute is high the sugar industry has either continuously invest into
R &D or it risks losing out to disruptors in the industry.
 Threat of new entrants
If there is strong threat of new entrant then current players will be willing to earn less profits to
reduce the threats.
 Bargaining power of buyers
If the buyers have strong bargaining power, then they usually tend to drive price down thus
limiting the potential of the sugar industry to earn sustainable profits.
 Rivalry among the existing players
if the competition is intense then it becomes difficult for existing players such as sugar
industry to earn sustainable profits.
 Bargaining power of suppliers
If the suppliers have strong bargaining power, then they will extract higher price from the
sugar industry.

CHAPTER 04
SWOT ANALYSIS:
SWOT Analysis of the company
1.STRENGTH
2.WEAKNESS
3.OPPORTUNITIES
4.THREATS
1.STRENGTH
 It is located in the place where good infrastructure is available.
 The company's concentration towards the quality of the product.
 The technological standard of the company.
 Modern equipments.
 High production efficiency.
 Good sources of raw material.
 Power generation.
 Large supply of fertilizers and good quality seeds.
2.WEAKNESS
 The company needs improvements and should concentrate on timely customer
 service.
 Delay in payments.
 Labor turnover.
 The promotion procedure in the organization is too rigid.
 No specific dept. such as HRD.

 Large number of sugar factories within 25-30 kilometers.
 No scheme offers are given.
3.OPPORTUNITIES
 Expansion of projects like paper unit, ethanol production, bio-fertilizers, and power
generation.
 All these above projects will give the company maximum profits.
 If proper training is given to sugar cane growers, it can get regular and sufficient raw
materials.
 If computers are provided efficiency of the workers will be increased.
 If the department is computerized the cost of the production can be reduced.
 If they setup their own distillery unit they can get more profit. For this they have asked
help from the government.
 As sufficient power is not supplied by the KPTCL, there is an opportunity for the
company to produce electricity (power) by its wastages.
 wastages after the production process of cane sugar can be used for making fly wood.
4.THREATS
 Stiff competition by brands like BSSK, NSSK and other brands.
 Government intervention.

 Lack of participation of sugar cane growers for the training of the improved method
of cultivation, supply seeds, implements etc.to promote agricultural education among
them.
 Cost of production is higher compared to other factories because it is applying old
techniques for manufacturing.
 Non-co-operation from the government in setting up of distillery unit.
CHAPTER 05
FINANCIAL STATEMENT
st
Standalone Statement of Profit and Loss Account for the year ending 31 March 2021
(Amount in Rs. Lakhs)
For the year
ended 31
March 2020
Particulars Ref. to Amount Amount

Notes
Continuing Operations
20 1,11,796.48 1,01,101.18
I) Revenue from Operations
II) Other Income 21 585.20 280.57
III) Total Income (I+II) 1,12,381.68 1,01,381.75
IV) E x p e n s e s
(a) Cost of materials consumed 22A 77,572.53 57,243.99
(b) Other Manufacturing Expenses 22B 2,219.92 2,389.03
(c) Purchases of Stock-in-Trade 23 3,930.52 3,521.15
(d) Changes in inventories of finished
goods, 24 (4,320.56) 7,110.32
Stock-in-Trade and work-in-progress
(e) Employee benefits expenses 25 6,948.12 6,997.69
(f) Finance costs 26 4,261.31 4,313.22

(g) Excise Duty on Goods Sold 16,245.12 14,062.76
(h) Depreciation and amortization 27 1,241.77 1,374.05
expense
(i) Other expenses 28 2,422.87 2,979.04
Total expenses (IV) 1,10,521.60 99,991.25
V Profit/(loss) before exceptional items

and tax from continuing operations 1,390.50
1,860.08
VI Exceptional Items
Profit/(loss) before tax from continuing operations 1,860.08 1,390.50
Tax expense:
(1) Current tax 16A 309.18 -
(2) Deferred tax 16A (154.35) 13.85
(3) Short/(Excess) Provision for earlier years - -
Profit/(Loss) for the period 1,705.25 1,376.65

Other Comprehensive Income
A. Other Comprehensive Income not to be

reclassified to profit or loss in subsequent - -
periods
(i) Items that will not be reclassified to 21.82 197.21

profit or loss
(ii) Income tax relating to items that will not be 16A 7.63 68.91
reclassified to profit or loss
Net Other Comprehensive Income not to be 14.19 128.30

reclassified to profit or loss in subsequent
periods
Other Comprehensive Income (net of tax) 14.19 128.30
Total Comprehensive Income for the year (net of 1,691.06 1,248.36

tax)
Earnings per share (Nominal Value per share Rs.

1)
Basic computed on the basis of profit 1.52 1.52
Diluted computed on the basis of profit 1.52 1.52

st
Standalone Balance Sheet as at 31 March, 2021
ASSETS Ref. to As At As At
Non-current Assets Notes 31 March 31 March
Tangible Assets 2021 2020
Property, plant and equipment

1A 12.662.95 13,556.43
Capital work in progress 1A 259.61

84.54
Investment property 1B 7.56 8.04
Intangible Assets 5.27

Other Intangible assets 2 2.80
Financial assets
Non - Current Investments 3A 420.53 418.35
Non - Current Loans & Advances 4A 3.50 3.50
Other Non - Current Financial Assets 5A 64.66 63.97
Other non-current assets 6 381.02 362.08
Current Assets Inventories 7 63,511.28 58,776.68

Financial Assets
Trade receivables 8 4,927.65 1,153.54
Cash and cash 9A 536.02 990.60
equivalents
Bank balances other than above 9B 128.69 141.57
Other current financial assets 5B 6.01 6.83
Current Tax Assets (net) 10 100.85 459.17

Other current assets 11 6,195.61 6,956.55
Total 89,208.74 82,987.12

EQUITY AND LIABILITIES
Equity
12 1,125.00 1,125.00
Equity Share Capital
13
Other Equity
Share Premium 13A 1,575.00 1,575.00
Retained Earnings 13A 2,969.40 1,376.65

Other Reserves 13A 2,267.58 2,267.58
Other Comprehensive Income 13B 3.20 17.39
Non-current Liabilities
Non-current Financial
Liabilities
Long Term Borrowings 14A 7,038.43 4,848.25

Long Term Provisions 15A 371.76 360.05
Deferred tax liabilities (Net) 16B 913.22 1,075.20
Current Liabilities
Financial Liabilities
Borrowings 14B 43,937.90 36,619.77
Trade payables 17A
Total outstanding dues of micro enterprises
and small enterprises 19.66 17.28
Total outstanding dues other than micro
enterprises and small enterprises 11,517.06 17,101.24
Other payables 17B
Total outstanding dues of micro enterprises
and small enterprises
Total outstanding dues other than micro
enterprises and small enterprises 209.97 178.89
Other financial liabilities 18 10,837.95 10,854.38
Provisions 15B 1,459.31 1,464.65
Other current liabilities 19 4,963.30 4,105.79
Total 89,208.74 82,987.12

CHAPTER 06
LEARNING EXPERIENCE
My overall experience in the company was very pleasant. And support got from the management and
staff was appreciable. The atmosphere and working condition were encouraging in the company.
In the organization, training has created a sense of practical exposure and enlighten in my mind as
what actually an organization is and how theoretical concepts are practiced in Ugar Sugar Works Ltd.
BIBLIOGRAPHY
 Human Resources Management
Subbarao
 Marketing Management
Phillip Kotler
 Company Annual Report
WEBSITES:
www.ugarsugar.com
www.google.com
www.googleimages.com
VISVESVARAYA TECHNOLOGICAL UNIVERSITY KALBURGI

WEEKLY PROGRESS REPORT

ANNEXURE-I
STUDENT NAME Gulamnabi Makandar
USN 3VY21BA036
TITLE OF STUDY An organization study report on UGAR
SUGAR WORKS LIMITED
ORGANIZATION UGAR SUGAR WORKS LIMITED
DURATION First week

(Week Start and End Date) (15/10/2022 – 22/10/2022)
CHAPTERS COVERED Chapter 1 and Chapter 2
(During the Week)
DESCRIPTION OF THE ACTIVITIES Chapter-1
PERFORMED Introduction
Chapter-2
Organization profile
i. Back ground
ii. Nature of business
iii. Vision mission, quality policy
iv. Workflow model
iv. Product/service profile
vi. Achievements/awards
vii. Future growth and prospects
DATE: Signature of student
"Reviewed"

Signature of internal guide with date.

ANNEXURE -II

USN 3VY21BA036

SUGAR WORKS LIMITED
DURATION Second week

(Week Start and End Date) (23/10/2022 –30 /10/2022)
CHAPTERS COVERED Chapter 3

(During the Week)
PERFORMED 1.McKenny‟s 7S framework
2.Porter’s Five Forces Model
 Threats of New Entrants
 Powers of Buyers
 Powers of Suppliers
 Threats of Substitute
 Competitive Rivalry
"Reviewed"
Signature of internal guide with date


ANNEXURE-III
USN 3VY21BA036

SUGAR WORKS LIMITED
DURATION Third week

(Week Start and End Date) (31/10/2022 –07 /11/2022)
CHAPTERS COVERED Chapter 4
(During the Week)
PERFORMED SWOT Analysis
 Strengths
 Weakness
 Opportunities
 Threats
"Reviewed"
Signature of internal guide with date

ANNEXURE-IV
USN 3VY21BA036

SUGAR WORKS LIMITED
DURATION Fourth week

(Week Start and End Date) (8/11/2022 – 15 /11/2022)
CHAPTERS COVERED Chapter 5 and chapter 6
(During the Week)
PERFORMED  Analysis of Financial Statements
Chapter-6
 Learning Experience
 Bibliography
 Annexure

"Reviewed"
"Reviewed"

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An Internship report on

“THE UGAR SUGAR WORKS LTD”

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfilment of the requirements of the award of the degree of

MASTER OF BUSINESS ADMISTRATION

UNDER THE GUIDANCE OF

Dr. Shailaja Kheni

Centre for PG Studies

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION

CENTRE FOR PG STUDIESVISVESVARAYA TECHNOLOGICAL UNIVERSITY

Dr. Shailaja Kheni Department of Management Studies

PG studies, Kalaburagi affiliated to Visvesvaraya Technological University, Belgaum. Project report on

Visvesvaraya Technological University, Belagavi Karnataka.

Sl No. Reg No. Name of The Student Signature with Date

PLACE: Kalaburagi Signature of the Student

Department of Management Studies VTU CPGS, Kalaburagi

PLACE: GULAMNABI MAKANDAR

Department of Management Studies VTU CPGS, Kalaburagi

SLNO INDEX PAGE NO

INTRODUCTION ABOUT THE ORGANIZATION AND

CHAPTER 02 ORGANIZATION PROFILE

2.1 BACKGROUND OF THE COMPANY

CHAPTER 03 MCKINSEY’7’S FRAME WORK

CHAPTER 04 SWOT ANALYSIS

CHAPTER 05 ANALYSIS FINANCIAL STATEMENT

CHAPTER 06 LEARNING EXPERIENCE

Department of Management Studies VTU CPGS, Kalaburagi

Department of Management Studies VTU CPGS, Kalaburagi

Department of Management Studies VTU CPGS, Kalaburagi

OBJECTIVES OF THE ORGANISATION:

 Maximization of power generation through non-conventional energy source for self-

consumption and to supply to rural power supply through grid.

 Producing quality spirit suitable for industrial and portable alcohol.

value addition of its by products in sugar effluent and waste

Department of Management Studies VTU CPGS, Kalaburagi

administration against the company polices.

factor for employee job satisfaction.

allowances and wages and salary administration.

Department of Management Studies VTU CPGS, Kalaburagi

INTRODUCTION TO SUGAR INDUSTRY

Department of Management Studies VTU CPGS, Kalaburagi

No position 7 out of last 10 years.

PROFILE OF THE SUGAR INDUSTRY:

Department of Management Studies VTU CPGS, Kalaburagi

periods are given bellow.

Bangalore, now changed to broad gauge.

An abortive attempt was made in late thirties to start a sugar industry.

concentrated employment surrounding the sugar manufacturing focused township.

Department of Management Studies VTU CPGS, Kalaburagi

brands are well accepted by the market.

Department of Management Studies VTU CPGS, Kalaburagi

HISTORY OF THE SUGAR COMPANY:

Late Shri. V.S. Shirgaokar

Ex-Chairman Emeritus, Chairman of

And visionary of our group.

Late Shri Suresh (Babu Kaka)

Ex-Chairman and Managing director the

Ugar Sugar work ltd and visionary of our group.

Department of Management Studies VTU CPGS, Kalaburagi

times till 1998-1999.

thirties to start a sugar industry.

Department of Management Studies VTU CPGS, Kalaburagi

Department of Management Studies VTU CPGS, Kalaburagi