Professional Documents
Culture Documents
Presented By:
Session: Spring2017-2021
Registration No 2017-GCUF-71859
MILL)
Year of foundation September 07, 1953
Fax 0606-411284
Website http://thalindustries.com/
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INTERNSHIP REPORT COMPLETION CERTIFICATE
Session: 2017-2021
Registration No 2017-GCUF-71859
Signature:
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DEDICATION
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ACKNOWLEDGEMENT
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TABLE OF CONTENT
No. No.
1.Introduction
1.1 Sugar Production 1
1.2 Power Generation and Export 1
1.3 Research and Development 1
1.4 Biological Pest Control Lab 2
1.5 History 2-4
2. Organization Structure
2.1 Corporate Vision and Mission 5
2.2 Objective 5
2.3 Structure 6
3. Company Formation
3.1 Board of Directors 7
3.2 BANKERS 8
4. Products and Services
4.1 Products and Services Layyah Sugar Mill 9-10
5.Practical Work
5.1 Sugar manufacturing operations 11
5.2 Cane handling 11
5.3 Milling 11
5.4 Clarification/evaporation 12
5.5 The pan stage 12
5.6 The fugal stage 13
5.7 Final sugar Finally 13
5.8 Energy supply systems 13
5.9 Associated operations 13-14
6. SWOT ANALYSIS
6.1 Internal Factors 15
6.2 External Factors 15
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7. Financial Record
7.1 Profit and Loss Statement 16-17
7.2 Balance Sheet 18-19
7.3 Ratio Analysis 20
7.1 Liquidity Ratio 20
7.2 Activity Ratio 21
7.3 Profitability Ratio 22-23
8.Conclusion 24
9. Recommendations for Improvements 25
10. References 26
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Chapter No. 1
Introduction
Sugar Production
Our crushing units at both plants are based upon the most modern technologies. It is equipped with automated milling
tandems and the globally recognized Mill Max technology (cane crushing technology), which is built on an innovative
French design.
The juice purification and clarification at both the plants is done bearing international procedures. As a
policy, it is ensured that all the chemicals conform to halal as well as international standards to cater to all
our client’s needs.
Thal Industries has also installed Refine Centrifugal machines and a Jenkin dryer which is used specifically
for the drying of fine grade sugar. Our sugar packaging enables to ensure smooth and consistent filling,
stitching and conveying of the packed sugar in the sugar warehouses.
Environmental protection, energy efficiency and power export are the most emphasized factors for
Thal Industries. We have the capability to produce electricity at cheaper prices than the energy based on
furnace oil.
Currently, Thal Industries is exporting surplus power and has recently commissioned for 22MW power
production project.
Agricultural R&D is an integral part of our policy which not only entails identification and multiplication of
new crop verities but is also used for exploring new avenues such as high efficiency irrigation systems,
organic fertilizer, testing of new herbicides and pesticides and adoption of agriculture implements to
improve farm productivity. We are also exploring the use of filter cake as alternative source of providing
essential nutrients and organic matter for general improvement in soil fertility.
A farm facility is being utilized for the introduction of upcoming and promising sugarcane varieties. Such
varieties are usually brought from the Sugarcane Research Institute and tested for their adoptability in the
agro climatic conditions of the area. After confirmation of their yield, sugar recovery potential and
resistance against pests and diseases. these varieties are multiplied for the provision of seed to sugarcane
growing farmers, thus continuing the process of replacing the old varieties with newer and better varieties.
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Biological Pest Control Lab
We have a state of the art well equipped biological control laboratory at Layyah Sugar Mills. The prime
objective is to raise beneficial insects, multiply the population and introduce them in the sugar cane fields in
order to control the activity of the harmful insects such as the different kind of borers, sugarcane white fly
and Pyrilla, without the use of chemical insecticides.
For this purpose beneficial insects such as Trichogramma Chilonis and Chrysoperla Carnea are being raised
on a massive scale to be released in the field for the control of harmful insects. This facility, in addition to
supplying useful insects to the neighboring mills, is also providing Sitotroga (host eggs) for the
establishment of new bio labs.
History
• 1953
The company was incorporated on September 07, 1953 under the companies Act 1913 (Now
Companies Act 2017) as a Public Limited company.
1980
Crushing capacity was enhanced from 1200 TCD to 2000 TCD. The manufacturing process was also
changed to Defecation Remelt Phosphatation (D.R.P.) which is still used today.
1991
1998
2001
Drastic measures were taken to revolutionize the mill: a new milling plant, turbines, a new mill
house, power house and a boiler were installed in the mill. The crushing capacity was also increased
to 3500 TCD.
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2003
The mills went through two phases of expansion: the crushing capacity was increased to 4000 TCD in
the first phase and increased to 6700 TCD in the second phase.
2006
We introduced condensing system and started exporting surplus electricity. Sugar production was also
raised to international standards.
2008
2011
Mill Max technology was introduced in our mills, along with core-sampler and cane-core
laboratories.
2012
Crushing capacity of both mills combined was increased from 15,300 to 17,800 TCD.
2014
Crushing capacity for Safina Sugar mills was increased to 7500 TCD while crushing capacity for
Layyah Sugar mills was increased to 12000 TCD.
The Thal Industries Corporation Limited (TICL) has entered into seventh decade from the time of its
incorporation. It produces several grades of quality sugar and involved in the co-generation to export
surplus electricity to the national grid. The Company has two sugar manufacturing units, Unit-1:
Layyah Sugar Mills, Layyah with a crushing capacity of 13,000 TCD and Unit-2: Safina Sugar Mills,
Lalian, Chiniot with a crushing capacity of 8,000 TCD.
Advanced sugar technologies at both the plants have enabled the Thal Industries to produce high
quality sugar to cater needs of the multinational clients. Thal Industries is equipped with milling
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tandems that are automated from cane feeding to packaging through PAN, Mill Houses etc. Innovative
French design research "Millmax" has enhanced the cane crushing capabilities. International standards
and procedures are kept in view for juice purification and clarification at plants of TICL. Selection of
best food grade quality process chemicals to the Halal standards shows our special care attention in
the manufacturing processes. The state of the art sugar packing enables to ensure smooth and
consistent filling, stitching and conveying of the packed sugar in the sugar warehouses.
Procurement of the cane has some prerequisites at mills site relating to its quality and variety. A
modern technology "Core Sampler", integrated with a modern cane testing lab has been installed that
helps testing each cane vehicle before reaching at cane carrier.
At Layyah, the company has recently commissioned a new high pressure boiler with a capacity of
135 Tons/Hour. This will enable to produce additional 22MW electricity. TICL believes in
minimizing efficiency losses by installing efficient equipment therefore the company in future will
continue to invest in the technologies related to energy conservation and efficiency maximization.
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Chapter No.2
Vision
Keep up with technological advancements in our biological control laboratory and extend the
Inculcate efficient, ethical and time tested business practices in our management.
2.3 Objective
We at The Thal Industries Corporation Limited, recognize the need of working at the highest standards to
attain greater levels of performance. We endeavor to meet the expectations of all our stakeholders. We
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conduct the business of the company with integrity and believe in quality. We produce and supply goods and
information with great care and competence to ensure that customers and creditors receive service that they
deserve. We respect that confidentiality of the information acquired during the course of our dealings with
the interested parties and refrain from acting in any manner which discredit the company.
Company Hierarchy:
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Chapter No.3
Company Formation
Board of Directors
CHAIRPERSON
CHIEF EXECUTIVE
MANAGING DIRECTOR
Mrs. Qaiser Shamim Khan
DIRECTORS
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Wahid Khan (Chairman/Member) REMUNERATION
LEGAL ADVISOR
BANKERS
Albaraka Bank Pakistan Limited
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Chapter No.4
White refined sugar is also known as commercial sugar has an ICUMSA below 100 and is supplied to both
national and international markets.
Product Details
White refined fine grain sugar is one of our main products and is used both for industrial local consumption
in national and international markets.
Product Details
ICUMSA : Below 60
Granulation : Fine
Color : Sparking White
Packing : 50KG Standards Poly Propylene Bag
Molasses
Molasses is a by-product of the refining of sugarcane into sugar. Molasses produced by TICL is mainly
supplied to distilleries and international buyers.
Product Details
BRIX: 90 Degrees
Purity : 48%
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Bio Fertilizer
Product Details
Press mud, also known as press cake, is the residual output after the filtration of the juice. For every 100
tons of sugarcane crushed about 3 tons of press mud cake is left behind as by-product. Press mud contains
sizable quantity of micronutrients and macronutrients besides 20-25% of organic carbon. It prevents soil
erosion, crusting and cracking, adjusts soil pH, improves drainage and promotes normal bacterial and
microbial growth in the soil. It is used as both soil re-clamant as well as soil conditioner. Press mud is used
as manure by SUGARCANE farmers. The company promote farmers to use bio-fertilizers as an alternate to
chemical fertilizers to retain fertility of the soil.
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Chapter No.5
Practical Work
A sugar mill is a large factory used to produce raw sugar and other products from sugar cane. Mills are made
up of a range of industrial plant such as boilers, storage and processing vessels, crushing and hammer mills
and a large range of maintenance equipment. Mills operate in two distinct modes, crushing and non-
crushing, both of which introduce a range of specific and general hazards to persons conducting a business
or undertaking (PCBU), workers and others. In essence, a sugar mill can be broken into the following
processes (see Figure 2 for a diagram that shows the sugar milling process).
Cane handling
Cane handling describes the methods used to move cane billets into the milling section of the process.
Billets are transported and stored using items such as: • cane railway bins • road transport systems (such as
multi-lifts and semi-trailers) • in field transporters. The cane billets are then transferred into the milling
system by: • trans-loaders (such as from road to rail) • tipplers (tipping cane bins into carriers) • direct tip
into the carrier (by infield transporters and road transport). Rail transfer methods use large hydraulic systems
to push or pull rakes of bins into the tippler which tips them onto a ‘carrier’ (a moving floor conveyor). Most
mills have storage yards for excess bins. Tipplers are a rotary device which hold the rail bin in place and
turn it 180 degrees to empty its contents into the main conveyor (carrier).
Milling
The milling process involves the initial breakdown of cane into its primary fibers by a large hammer mill
(shredder). Shredders consist of a number of large hammers (usually around 12 kilograms in weight)
attached to a rotor by swing rods which are then driven at around 1200 revolutions per minute (rpm) by
mechanical means (either by steam turbine or electric motor). The billets are shredded by smashing them
between the hammers and the grid bar (a hard set of plates on one side of the shredder) breaking them into
individual strands of fiber. This fiber is then processed through a series of crushing mills to extract juice.
Mill rollers exert huge forces on the shredded cane which is fed through them via a vertical chute. The
pressure between the rollers is large enough to break down the cell structure of the fibers so that the sucrose
can be extracted within the juice. Juice contains a large amount of water which is removed or reduced in
subsequent processes. The remaining fiber is then burned in a boiler to produce steam which drives most
mill processes in a typical factory. Extraction of as much of the sucrose as possible is a key element in
milling. Mills use a number of methods to aid sugar extraction which include the application of hot water
(around 95 degrees Celsius) to the fiber within the mill set, a series of crushing mill sets (the milling train)
and reapplication of mixed juice and water (maceration) throughout the milling process.
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Clarification/evaporation
• heating
Heating is completed using shell and tube heaters that are normally either cylindrical units with multiple
passes for juice in tubes surrounded by steam (allowing thermal transfer between the two products) or multi-
path plate and frame commercial units that are smaller than conventional heaters and are constructed from
pressed SS sheets separated by gasket material. Lime and flocculant are usually added to the juice as a
slurry. A subsider then removes heavy contaminants from the juice. Subsiding, the process of allowing
heavy materials to sink or fall to the bottom, usually removes the majority of dirt and the chemical mud
formed from the reaction between the phosphate in the juice and the added lime from juice. The mud is then
spread across a moving filter (a rotary drum filter) and ‘washed’ to leech out any remaining sucrose before
removal from the factory. Mill mud is a nutrient rich product which is normally returned to the field. The
effet stage consists of a number of evaporators (large kettles) in series that boil the juice to reduce the water
content. Effets are constructed in a particular pattern using multiple effet evaporation. Vapour produced
from each vessel is used to boil the juice in the subsequent vessel at a lower pressure making maximum use
of the energy initially put into the first vessel as low pressure steam. The latter effects in the set are operated
at a vacuum in order to reduce the boiling point. The final product from the effect stage is usually known as
‘liquor’ or ‘syrup’ and is a dark gold colored liquid. Dependent on juice properties heating surfaces within
the effects and contact heaters are prone to contaminant build up (scale) which reduces heating efficiencies
and after a period needs to be removed. Most factories use a chemical process to remove scale build up,
normally by boiling caustic soda in the vessels or other chemical means such as sulphamic acid or rarely
EDTA. On some occasions manual cleaning is required and is completed by blasting with high pressure
water or mechanical brushing.
The pan stage
The pan stage is a similar process to the effects in that a pan boils off additional water. The main function of
the pan stage is to produce sugar crystal from the liquor. In order to increase the speed of this process the
pan stage operates in a manner which utilizes ‘seed crystal’ and a combination of products with varying
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levels of sugar content to produce a range of crystal sizes and hence qualities. The pan stage has many
storage tanks such as receivers (tanks which receive product from the pans), crystallisers (a series of tanks
and stirrers which cool the product from the pan stage resulting in additional crystal growth before fugaling)
and large transfer pipes and valves.
The fugal stage
A fugal is a large electric centrifuge which spins up to 1200 revolutions per minute (rpm) dependent on its
function and stage of operation (while filling batch fugals only turn at around 50 rpm). There are two types
of centrifuge in use within sugar mills, high grade centrifuges (usually batch, but sometimes continuous) and
low grade centrifuges which are continuous. Continuous fugals maintain a constant flow of product through
them while batch fugals fill, operate and then discharge the final product. The fugal stage removes the
remaining liquid product which surrounds the crystal, washes the crystal and delivers it into the final sugar
system through a series of conveyors and a drier. The material removed during the centrifuge process is
known as molasses and has a range of uses including sale as stock feed, fermentation for distillery
production and as a component of cattle licks.
Final sugar Finally
The sugar crystal is dried and moved to large storage bins awaiting transport to sugar terminals or other
areas (such as refineries). Driers are large cylinders which are fluted and rotate to pass the crystal through at
an even rate whilst dry air is applied via ducted fans or large air conditioners. Moisture levels and sucrose
purity are important measures for sugar quality. Storage bins hold large amounts of raw sugar and the
conveyor system supplying them can be directed into different bins dependent on the product type. Low
moisture levels in final sugar product and atmospheric conditions can create a risk of sugar dust explosion.
Sugar dust explosions are rare; however, they have caused significant damage and loss of life in sugar mills
overseas.
Energy supply systems
Mills are usually powered by steam and subsidised by electrical devices, however in recent years a number
of factories are moving to predominantly electric powered equipment. A standard sugar mill will still
include equipment such as suspension or multiple fuel boilers, steam turbines, electrical generators and all of
the associated distribution equipment for electric and steam power. A range of equipment is associated with
steam and electric energy including transformers, high and low voltage distribution systems, protection
devices such as circuit breakers, steam relief valves, expansion joints and water traps. Mills also have
extensive air distribution systems supplying general and instrument air.
Associated operations
A range of facilities associated with sugar production are located on site including:
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• laboratory and associated processes
• packaging lines
• engineering workshops covering areas such as rolling stock repair, general engineering and fabrication,
and electrical
• administration areas
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Chapter No.6
ANALYSIS SWOT
ANALYSIS
Internal Factors
Strengths:
• Provides direct employment including ancillary activities thousands workers.
• Sugarcane farming is more profitable than any other cash crop in Pakistan.
• This sector have been the focal point of socioeconomic development of the rural Pakistan.
Weakness:
• Most of the Co-operative sugar industries in Pakistan find difficult to pay for the sugar cane supplied by
the farmers.
• Most of the sugar factories are more than 40 years old and still using the old technology low
installed production capacity leads to the decrease in production and losses.
• Lack of professionalism.
External Factors
Opportunities
• High value of by-products for downstream industries.
• Huge potential to increase the productivity of cane and sugar recovery rate.
• Technology up gradation, new advanced technology available for the byproduct utilization.
Threats
• Quality of soil deteriorates due to overuse of fertilizer and pesticides to increase sugarcane yield.
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Chapter No.7
Financial Analysis
Operating Expenses
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(414,630,901) (486,447,594) (756,639,064)
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Malik Ameer Cotton
Factory Balance Sheet
As on 31-12-2018
Current Liabilities
Current Assets
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Ratio Analysis
Liquidity Ratio
Liquidity ratio measures the ability of the unit to meet its short term obligation.
Interpretation:
Current ratio is relationship between Current Assets and Current Liabilities. It is used to
make analysis for a short-term financial position. High Current ratio is favorable. Ratio of 2018 is higher
than 2019,2020.
Interpretation:
As the table details manifesting yearly ratios of 2018, 2019 and 2020 which are 0.48, 0.45
and 0.56 respectively but complementary value is 1 to run the company. Consequently, company’s progress
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is not admirable yet.
Activity Ratio
Interpretation:
The inventory turnover ratios exhibiting lower values likes 2018 and 2019 having same
results 4.67 which are not commendable but the results achieved in 2020 predicting a strive for excellence
and resulted in 8.18 which is too better than 5 the recommended value
day
Ratio 2.81 2.53 6.90
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Profitability Ratio
Gross profit margin ratio indicate how much profit company makes
after paying off its cost of goods sold
Gross Profit Ratio = Gross Profit/ Net Sales x 100
The recommended value of Gross profit margin ratio is 5. Here the ratio of 2017 is
12.35 which are better for company to run. And the ratio of 2018 is 2.61 which are not better for company.
And the ratio of 2019 is 12.10 which are better for company.
Interpretation:
The performance in net profit ratio is declining as in beginning 2018 it was notable about 4.74 but in
aftermath years it’s adverse.
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iii. Return on Assets
The return on assets shows the percentage of how profitable a company’s assets are in generated revenue.
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CONCLUSION
Layyah sugar Mills Ltd is a well-known organization of Layyah. For some years it is
not performing well. In the earlier days of its downfall, the reason for its loss was
mismanagement. Later on, its management was made better and then, economic
instability and inflation again brought the profit of company to negative. The company
is still suffering the severe conditions of loss. In a nutshell, these are the reason of
Layyah sugar Mills crisis; The Managerial level employees are mostly given the task
that they have independently but on ground they have to work in their teams. So lack
of practices towards team work causes the failure. At time in
mill the new employees are not given the proper training. Sugar Mills
mostly employees are bore of their jobs and they feel that they have
been become frustrated by doing the same old tasks again and again.
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RECOMMENDATIONS:
Layyah sugar Mills Ltd needs these activities to act upon for improving its performance.
For assuring safety and security of workers, there should be a separate department.
There should be a training program after three months or six months to provide the employees required skills
and to remove the gap from their performance. To make employees punctual, there should be a card system.
There should be family quarters for all married workers. Work should be divided in team and reward should
be on eam based rather than on individual basis.
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References:
http://thalindustries.com/wp-content/uploads/2018/07/Thal-Y-2017.pdf
http://thalindustries.com/wp-content/uploads/2019/01/Thal-Y-2018.pdf
http://thalindustries.com/wp-content/uploads/2020/01/Thal-Annual-Report-2019.pdf
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