Internship report bawany sugar mills ltd


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Internship report bawany sugar mills ltd

  1. 1. P a g e | 29Allah- Beginning with the name of –The Most Gracious, the Most Merciful
  2. 2. P a g e | 29 CERTIFICATE This is to certify that Mr. Zubair Ahmed S/o Abdul Khalique Memon, student of MBA (Final), has done the internship work on Bawany Sugar Mills (Pvt) Ltd. Talhar Under my supervision and guidance which is a partial fulfillment of master’s degree program. The task Carried out by Zubair Ahmed is original and has been found satisfactory and compliant with requirement and standards. Khalid Hussain Abbasi Muhammad Hayat Keerio Research Guide PrincipalUniversity of Sindh Laar Campus @ Badin University of Sindh Laar Campus @ Badin
  3. 3. P a g e | 29 DEDICATED TO: My parents whose encouragement, guidance and presence areassets of my lifeMy teachers who illumined the dark corners of my mind and heart.And I want to say Thanks to all of them.
  4. 4. P a g e | 29 Acknowledgement First of all, I want to express all and thanks to ALMIGHTY ALLAH whose blessings areabove each and every thing which make me able to present my tiny effort. acknowledging with sincere gratitude for the valuable guidance I have received from SirKhalid Hussain Abbasi. They have been a constant source of enthusiastic encouragement throughoutthe internship program. Due to their guidance I have become able to complete internship as well asthis report. Their advice, criticism and remarks were of the most value to me. I am very thankful to all my Superiors i.e. My Teachers, Specially Sir. Khalid HussainAbbasi. I completed this report under his supervision. I am also grateful to all employees of the Mill who guided me during the course ofinternship. The behavior of all the department supervisors was very good. Specially, bundle of thanks to the management of Bawany Sugar Mills Ltd who acceptedmy request to do internship in the Mill.
  5. 5. P a g e | 29 CONTENTSr.# Description Page No. Executive Summary Chapter 1 Brief History of Sugar Sugar Manufacturing Process Manufacturing of Sugar in Pakistan Sugar Mills in Pakistan Research Methodology Limitations Chapter 2 Omni Group of Companies Introduction Objective Business Profile Business Activities Vision Mission Business Activities Chapter 3 Bawany Sugar Mills Ltd Brief History Business Profile Products Organizational Structure Chapter 4 Departments of mill Administration Department
  6. 6. P a g e | 29o Operationso Civil Sectiono Estate Sectiono Security Section Chemical Departmento Equipment Handlingo Process Houseo Bagging Houseo Functioning Mechanical Departmento Operationso Mill Houseo Boiler houseo Process Houseo Workshopo Electrical Work Cane Departmento Operating Areao Factors Affecting Cane Procuremento Locationo Tuff Competitiono Middle Mano Artificial Shortageo Shortage of Water Finance and Accounts Departmento Activitieso Cane Sectiono Store Sectiono Finance Sectiono Accountso Saleso Budgetingo Cost Calculationo Cost Center
  7. 7. P a g e | 29o Raw Materialo Conversion Costo Operating Expenseso Finance Expenseso Selling Expenses Production of By Products Audit Chapter 5 Store Facilities Sugar Storage Tools and instrumental store Chapter 7 Financial Statement Financial Position Share holding Dividend Income Statement for June 2012 Balance Sheet for June 2009 Income Statement for June 2009 Cash flow Statement for June 2009 Chapter 6 Industry Review SWOT Analysiso Strengtho Weaknesseso Opportunitieso Threats
  8. 8. P a g e | 29 Chapter 8 ConclusionRecommendationBibliography
  9. 9. P a g e | 29
  10. 10. P a g e | 29 Executive Summary: Bawany Sugar Mills Ltd is one of the pioneers of the sugar industry in Sindh. Infect, it is thesecond oldest sugar industry of Sindh. It is a part of Omni Group of Industries. Omni Group ofCompanies purchased this Mill in November of 2010. Main product of company is white refined sugar which is being imported to other countriesand also locally sold. The capacity of Bawany Sugar Mills is 6000 Tons crushing of cane per day. The organization believes in strict adherence to commitment, discipline and fair businessprinciples. The operational activities of the mill revolve on its department i.e. Cane Deptt.,Mechanical Deptt., Finance Deptt., Administration and Chemical Deptt., There are different types of employees which are hired at need basis. Some employees arepermanent who work for whole year and some are temporary (seasonal) and Permanent employees.Bawany Sugar employs poor people who have no land or employment facilities. Bawany Sugar isgiving different incentives or benefits to employees to improve the production. The management is quite successful in providing a congenital and co operative atmosphereto its employees. The organization provides all the basic facilities to the employees.
  11. 11. P a g e | 29
  12. 12. P a g e | 29 CHAPTER 1: INTRODUCTION1) Brief History of Sugar: The word sugar originates from the Sanskrit word Sharkara which means sugar. It may also be traced through different languages, as Schaker in Persian, Sukkar in Arabic, Sincer in Assyrian, Zucchero in Italian, Sucre in French, Zucher in German, Saccharum in Latin and Ozucarin in Spanish. But its origin is traced from Sharkara. Sugar is one of the essential commodities of life and plays important role in the dietary of human beings. Sugar is a major form of carbohydrates and is found probably in all green plants. It occurs in significant amounts in most fruits and vegetables. There are three main simple sugars Sucrose, Fructose and Glucose. Sucrose is in fact a combination of fructose and glucose and the body quickly breaks down into these separate substances.2) Sugar Manufacturing Process: The sugar can be produced by many of the sources like Sugarcane, Sugar Beet, Maple, Palm, Coconut and Apple, but these sources are costly and their production is in negligible quantities except sugarcane and sugar beet. The main crop which is being used for production of Sugar all over the world is Sugarcane. In a nut shell, the process for sugarcane refining is carried out in following steps: • Pressing of sugarcane to extract the juice. • Boiling the juice until it begins to thicken and sugar begins to crystallize. • Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar. • Refining the raw sugar by washing and filtering to remove remaining non-sugar ingredients and color. • Crystallizing, drying and packaging the refined sugar3) Manufacturing of Sugar in Pakistan: In Pakistan, the sugar industry possesses the organized and unorganized players. The unorganized players mainly produce Molasses and Sugar, the less refined forms of sugar and the
  13. 13. P a g e | 29 organized players are Sugar Mills owners. In the world, the Brazil is a country that is largest producer of sugarcane as well as Refined Sugar.4) Sugar Mills In Pakistan Pakistan Sugar Mills Association (PSMA) has listed the names of sugar mills of Pakistan province-vise. There are 87 names of Sugar Mills listed on their website among which 45 are located in Punjab, 33 in Sindh and 9 in KPK.
  14. 14. P a g e | 29CHAPTER 2: OMNI GROUP OF INDUSTRIES1) Introduction: Omni group is a large privately owned company based in Pakistan. It owns several factories such as rice, sugar, distilleries, polythene bags, and are also involved in media and aviation. It has emerged as one of the fastest growing industrial groups in the country. Bawany Sugar Mills limited is one of its Business units.2) Objective of Omni Group: The objective of Omni Group of Companies is to expend industrial activities to provide job opportunities and economic growth in the country.3) Vision: ―To be one of the leading business houses employing best business practices‖4) Mission: ―Undertake safe and profitable commercial activities in a manner that portrays Omni Group Of Companies images as a respected market leader‖5) Business Profile: Industry Focus Grain, Sugar & Sweeteners Business Type Manufacturer Products/Services Rice, sugar Markets Africa No. of Employees Above 1000 People Annual Sales Range(USD) US$5 Million - US$10 Million Legal Representative CEO (Recent CEO is Mr. Anwer Majeed)
  15. 15. P a g e | 29 Company Address 2nd Floor Hockey Stadium Road, Karachi, Sindh, Pakistan Postal Code 75350 Telephone Number +92 -21 -352208456) Business Activities: Apart from many other business units, the main business units in sugar production of Omni Group of Companies are: Khoski Sugar Mills Bawany Sugar Mills Ansari Sugar Mills Naudero Sugar Mills New Dadu Sugar Mills Tando Allah Yar Sugar Mills Chambar sugar Mills
  16. 16. P a g e | 29CHAPTER 3: BAWANY SUGAR MILLS LIMITED1) Brief History: Bawany Sugar mills Limited was established by Bawany Group of Industries Pakistan. It was installed in 1964/65. This is the second oldest Sugar mill of Province located at Talhar City District Badin, Sindh. It is the first sugar industry established in Badin. Mr. Mohammad Amin Bawany, Owner and Chief Executive of Bawany Group led this Mill to be established. Later on, this mill was purchased by Deewan Group of Industries. From 2004 to 2010, this Mill remained under the supervision of Deewan Muhammad Yousuf Farooqui, CEO of Deewan Group. Then it was owned in November 2010 by Omni Group. The Machinery of this Mill Was Imported from BMA and Bakau Wolf and Germany and (Heavy tax machinery) HMC Taxila. The present capacity of cane crushing is 6000 tons per 24 hours. Besides, Bawany Sugar Mills provides agricultural loans to the growers of sugar cane through Sindh bank.2) VISION: To be the leading company in sugar industry and make more customers.3) MISSION: To deliver the quality sugar in our country in the most cost effective way.4) Business Profile: Crushing Capacity 6000 TCD Employees 582 Mill Area 155 acres Location Tando Bago Road Talhar City Head of Dept General Manager Head Office 2nd Floor Hockey Stadium Road, Karachi, Sindh, Pakistan
  17. 17. P a g e | 295) Products: Bawany Sugar Mills Ltd produces refined sugar and molasses. They sell sugar first and molasses after the end of sugar manufacturing season The mill produces three types of sugar one is high quality sugar which is exported. Second is middle quality sugar which is sold nationwide where as third normal or low quality sugar which is sold locally.6) Facilities: The mill provides these facilities to its employees: A residential colony. Mosque School Provision of Electricity & Sui Gas in Mills colony. Hospital. Moreover, medical allowances, travel allowances and bonus are also given them.
  18. 18. P a g e | 297) Organizational Structure: CEO Board of Director General Manager Admin Dept Fin Dept Cane Dept Mechanical Dept Chemical Dept (AGM) (AGM) (AGM) (AGM) (AGM)
  19. 19. P a g e | 29CHAPTER 4: DEPARTMENTS OF MILL There are several departments in every Company including Information Technology, Human Resource, Accounting and Finance, Electrical, Mechanical, Chemical, Audit Production and Quality Control. But Bawany Sugar Mills Ltd has Main four departments which perform all the functions of mentioned departments. Each department is headed by Assistant General Managers. These AGMs work under General Manager of company. Muhammad Ramzan Arain is present GM of Bawany Sugar Mills Ltd. Administration Department Finance Department Cane Department Mechanical Department Chemical Department1) Administration Department: Admin department is main department which is handling all the matters of company. It is responsible for rules and regulations, security attendance of employees and other facilities to workers. This department also encircles quality control, production, security and I.T departments. Operation: The department further divided into these sections as under: Civil Section Estate Section Security section  Civil Section: Bawany Sugar Mill has a number of buildings in the shape of factory building, offices, workers family colony, workers hostels, officers’ colony, Mosque, school, fair price shop etc. For proper maintenance and upkeep of these buildings a civil section having experienced workforce also exist at Bawany Sugar Mill.  Estate Section:
  20. 20. P a g e | 29 Estate section includes sweepers, gardeners and other workforce for upkeep and cleanlinessof the area.  Security Section: For protection of the mill the colony and officers, there is one security section. Securityinspector is the head of the section.
  21. 21. P a g e | 292) Chemical Department: Chemical department is responsible for processing of sugar cane juice to manufacture white refined sugar. The department has to maintain a quality standard. Quality of sugarcane, sugar is being tested here. Different labs are working under this department. Equipment Handling: Chemical department handles the equipment in process house and Bagging house manufacture sugar.  Process house: Process house is the section where the juice is processed to produce sugar.  Bagging house: Bagging house section is responsible to pack the sugar in bags of desired quantity. This section contains the following equipment: Wet sugar elevator Sugar dryer Sugar dust catcher Sugar bin Auto net weigher Bag sewing machine Functioning: Sugar is made in the field by nature and extracted in sugar factories. Main function of chemical department is to extract maximum quality of good quality sugar of sugar cane. This is called sugar recovery and indicated in percentage. Sugar recovery depends upon two factories: a. Sugar contents available in the sugarcane, which is generally termed as POL percentage. b. Efficient processing of juice to control losses during the process. The losses incurred during process are of following four types. Bagasse Pol, Mud losses, losses in final Molasses, Other losses.
  22. 22. P a g e | 293) Mechanical Department: Mechanical Department has Mechanical workshop that provides all the equipments for smooth running of mill during season. In case of failure of machine or any part this department is responsible for the repair. Operations: The operation activities of Mechanical department can be divided into: Mill House Boiler House Process House Workshop  Mill House: These activities are performed in mill house: Cane carrier Cane cutters mill rollers Hydraulic head Steam turbines reduction gears Intermediate carriers Juice pumps Crush hoppers Raw juice receiver tank bag gasses elevator  Boiler House: Juice scale Centrifugal pump Juice heaters Carbonation tanks filter press lime kiln Sulphitation Evaporating stations Crystallizes Bagging house  Process House:
  23. 23. P a g e | 29 Process house is the section where the juice is processed to produce sugar. All the boiling ofjuice is done with the heat produced by the steam which is generated at boiler house by MechanicalDepartment.  Workshop The work shop consists of following section Machine shop Carpeting shop Welding shop smithy shop Molding shop Transport shop Electrical Work: Electrical department is also merged in Mechanical Department. It is responsible forelectricity. In this age of modernization, every machine is being operated with computers andwithout electricity no machine can run. Electricity problems in mill area are fixed by thisdepartment. The mill has its personal power house for producing electricity. During the crushing season,mill needs a lot of power for running its machines. The Govt could not fulfill their powerrequirements so they produce their own electricity. During off season, mill uses the electricitysupplied by HESCO.
  24. 24. P a g e | 294) Cane Department: Cane is the most important department of mill. Sugar mill is totally dependent upon this department. Function of this department is to conduct surveys and held meetings with cane growers for purchase of sugarcane. Only the effective working of the department can ensure full capacity operation of the mill throughout the crushing season and thus reduce the fixed costs. After survey grower are issued a pass book. By pass book they can carry their sugarcane to mill cane yard. In cane yard weightment, indent and a receipt are given to grower. This receipt is used for payment. After this, cane accountant makes arrangements for payments through bank. For this purpose bank have been deposited a lump sum amount. Operating Area: The area, in which cane department operates for the purpose of cane procurement, is divided into 8 broad areas called circles. Each circle is then divided into smaller areas called sectors. 1. Talhar 2. Dando 3. Rajokhanani 4. Karyo Ganwher 5. Peru Lashari 6. Haji Sawan 7. Mataaro 8. Gularchi Factors affecting Cane procurement:  Location: Bawany Sugar Mill is not located in good area. Sugar cane of surrounding is also taken by Pangrio, Khoski, Mirza, Army and Ansari Sugar Mills.  Tuff Competition: Competition between surrounding mills for more and more cane procurement result into substantial increase in the cane procurement cost.  Middleman: Purchasing of standing crop by middleman before season plays another important role to make the cane procurement difficult for the sugar mills. Although cane procurement by the middleman is prohibited under Act 1950.  Artificial Shortage:
  25. 25. P a g e | 29 Artificial shortage of sugar cane is often created by the growers to fetch better price.  Shortage of Water: Shortage of water, particularly, in lower Sindh is affecting the interest of growers in sowingsugar cane.
  26. 26. P a g e | 295) Finance Department: Finance department is the most important department of company. It is responsible for sale, sale tax, payments, receipts, provident fund, salaries and store sections. It keeps and provides sufficient funds at the time of production. My internship also related to finance and admin department and information about that is written in detail in report. At last of repot problems of sugar industry has been discussed and few recommendations are suggested to management of Bawany Sugar Mills. Activities: The activities of Finance and accounting department are divided into several sections: Cane Account Section: It supervises and checks the cane price bills, sugar bills. Recovery bills of seeds and fertilizers loan from the cane grower and make arrangements for funds to the concern banks for payment. Store Account Section: The purpose of store accounts section is to maintain the record of stores and spares purchased. Detailed functioning of the section is as under:  Purchase of stores: Stores spares are purchased after approval of GM/R.D/C.O.O. On receipt of store spares in main stores, receiving report is prepared. Finance Section: The finance section of this department prepares the monthly and annual budget and financial statement bills. The cheques are also prepared in this section. Moreover the following books of account are maintained in this section. Main Cash Book Vouchers / Cheques General Register Record of Sugar and Molasses Bank reconciliations Monthly, Quarterly, and Annual financial statements. Accounts: The Mill has several bank accounts among different banks.
  27. 27. P a g e | 29 Their detail is as follow: 1 Account in HBL Talhar Branch. 1 Account in Sindh Bank Talhar Branch. 1 Account in MCB Badin Branch. 1 Account in National Bank Badin Branch. 1 Account in National Bank Talhar Branch. Mill’s main account is at MCB Badin. Sales: Sugar and Molasses are sold by Head Office. Delivery orders are issued to Parties as perterm of sale. Sale is booked on the basis of delivery of goods. Budgeting: For the preparation of budget, estimates and requirement from all the departments areobtained. It is prepared in the month of August before the start of new financial year. Theseestimates, after summarizing in accounts department, are discussed with the COO for finalizing.After finalizing at the project level it is taken to Head Office for presentation and final approval byBoard of Directors. Cost Calculation: During the crushing season the production activity is monitored closely by working out costof production and contribution margin etc on daily basis. Cost Centers: Following is the description of cost centers and allocation of cost for the purpose of cost ofproduction on daily basis:  Raw Material. Sugarcane is the only raw material used in sugar production. Cost of raw material per unit ofproduction depends upon the price of sugar cane and the sucrose recovery of the day.  Conversion cost: Conversion cost includes direct labor and factory overheads including chemicals, oil andlubricants, power and fuel, packing material, repair & Maintenance of plant and depreciation of plantetc.  Operating Expenses:
  28. 28. P a g e | 29 Operating expenses includes admin expenses, depreciation, pay and allowances of admin and Accounts department and storage charges.  Financial Expenses: Financial expenses comprises the markup to be given on working capital taken from HO or any amount borrowed from financial institutions for running day to day affairs.  Selling Expenses: Sales tax is the only selling expenses. Per ton cost is charged to production of the day as per rates of taxes levied by Govt.6) Production of By Products: The mill produces molasses from the used material i.e. used crushed sugar cane. It stores this molasses in steel tanks. There are 4 steel tanks for its storage.7) Audit: There is another department i.e. Audit which audits the financial data of company provided by finance dept. the Auditor is directly concerned with GM of Mill.
  29. 29. P a g e | 29CHAPTER 5: STORE FACILITIES As sugar is produced for three to four months of crushing season and its sale is spread over aperiod of twelve months. This situation wants the availability of a reasonable storage capacity.Therefore Bawany Sugar Mills (Pvt).Ltd. has four sugar go downs having total capacity of 8, 00,000bags 50 Kg each. Go down wise storage capacity is as under: Go downs Capacity in Tons Capacity in Bags (50 Kg) 1. 10,000 2, 00,000 2. 10,000 2, 00,000 3. 10,000 2, 00,000 4. 10,000 2, 00,000 Total 40,000 8, 00,000 Tools and Instrumental Store: There is another store in the mill which is used for keeping tool and instruments. This storeis controlled by mechanical department. These tools and instruments are used for repairingemergency faults of machinery.
  30. 30. P a g e | 29CHAPTER 6: FINANCIAL STATEMENT Bawany Sugar Mills Ltd’s financial position is not well. The firm is continuously facingloss. The reasons of loss are: Lesser production of sugar Low production of sugar cane Low rates of sugar announced by government Increased expenses due to inflation It is noticed that flood disasters have affected Badin district a lot. About 70% of crop wasdestroyed in flood. Moreover, the flood water remained in lands for more than 6 months. So, landdid not grow quality crop this year. For three to four years, rates of sugar are decreased below 50 rupees and the rate of sugarcane is about 140 rupees. The Bawany Sugar Mill purchases sugar cane at higher rate and sells sugarat lower rate. This price of sugar is not reaching the cost of sugar and the company faces loss. Financial Position The Company is suffering losses of over Rs. 1,110.41 Million and is not in a position to earnprofit in its business operations to meet its obligations. As per annual, audited financial statementsfor the year ended on Sep 30, 2011. The accumulated losses of Rs, 1,110.41 Millions as against paidup capital of Rs.87, 245,910 i.e. the shareholders equity has fully eroded and has become negativeby Rs. (1,020.66) Million. Share Holding The sponsors hold about 69.35% shares of the company the General public holds about30.35% of total paid up of the capital of the company. Dividend Due to accumulated losses and deteriorate financial position, the company is not in a.position in any dividend to its shares holders now or in near future.
  31. 31. P a g e | 29BAWANY SUGAR MILL’S INCOME STATEMENT FOR NINE MONTHS PERIODENDED JUNE 2012 Nine-months Period Ended Quarter Ended 30 June 30 June 30 June 30 June 2012 2011 2012 2011 (Rupees) (Rupees) Sales -Net 828,165,562 949,178,259 335,242,043 283,120,429 Cost of Sales (883,361,465) (823,270,214) (308,833,731) (200,587,023) ———– ———– ———– ———– Cross (55,195,603) 125,908,045 26,408,312 82,533,406 (loss)/Profit Operating Expenses Distribution 1,532,592 3,949,231 1,224,815 343,846 cost Administrative 49,301,081 19,921,894 15,280,302 10,297,145 expenses 50,833,673 23,871,125 16,505,617 10,640,991 Operating (106,029,275) 102,036,920 9,902,695 71,892,415 (loss)/Profit Other operating 1,399,336 9,558,371 108,334 100,682 income (104,629,939) 111,595,291 10,011,029 71,993,097 Finance cost (198,183,054) (130,424,992) (104,995,343) (65,202,885) Other charges (1,026,290) - (155,650) - (Loss)/Profit (303,839,284) (18,829,701) (95,139,964) 6,290,212 before taxation Provision for - (9,491,783) (3,872,420) (2,831,204) taxation- Current (Loss)/ profit (303,839,284) (28,321,484) (99,012,385) 3,959,007 after taxation (Loss)/Earning (34.83) (3.25) (11.25) 0.45 per share
  32. 32. P a g e | 29
  36. 36. P a g e | 29CHAPTER 7: INDUSTRY REVIEW As compared to last year, sugar price has increased by government up to 25%. Crop of sugarcane was in bulk quantity in Pakistan last year. But here in Badin, heavy rains and flood destroyedmost of the crops. This destruction cause a huge loss in production of sugar in Badin District andsugar mills of Badin faced this loss as a result. Sugar, in Pakistan, was produced in excess quantity. So, the rates of sugar remained verylow. The government announced sugar cane rate 154 per 40kg which is quite high as compared tosugar rate. Due to lower sugar rate and higher cane rates, mills cannot achieve their cost ofproduction. Sugar industry is demanding government to export the excessive production, in the waysomehow industry can stand on. SWOT Analysis: Strength:  Cane crushing capacity: Bawany Sugar Mills has higher capacity of sugar cane crushing per day. It is 6000 TCDwhich is highest among the mills of district.  Good quality sugar: The Bawany sugar mill is providing very good quality of sugar, which is used by a largenumber of people all over the country.  Good plant location: The plant of Bawany sugar mill is located near the growing area. It does not have to bearany extra transportation charges.  Good relationships : It has developed very good relationships with the growers of the area. The growersconsidered the Bawany sugar mill as their home mill. Sincerity of the growers with the mill is duethe better policies of the management. This producer-grower relationship is considered as strength ofthe mill. Weaknesses:
  37. 37. P a g e | 29  Un hygienic atmosphere : The unhygienic atmosphere badly affects the workers.  Laboratory This is totally modernized era where every task is performed with latest methods andtechniques. The mill has modern laboratory but there is unavailability of the modern instruments in thelaboratory.  Canteen Is Not Sufficient There is only one canteen present in the mill which is not sufficient at all, Moreover, no airconditioner and TV. Facilities are available in the canteen and it has no modern system.  Scarce Liability Of Cane The scarce liability of cane is one of the main problems of the mill due to this problem theproject is running on loss.  Training: No proper training system is available for the employee of the mill.  Poor Communication The communication is very poor. In other words the communication process is not goodwhich is affecting the smooth running of the project. Opportunities:  Good location The Bawany sugar mill has great opportunities to grow because its location is quite goodand the nearby area is suitable for sugar cane production.  No direct competitor inside the city The Bawany sugar mill does not have any competitor inside the city, so it can manipulate itsstrategies without any big hurdle.
  38. 38. P a g e | 29  Great investment The financial position of the Bawany sugar mill is excellent and it is attracting the investorsto invest more and more money. More investing obviously means more opportunities to grow.  Good reputation The solvency position of the mill owners is also very good. The good reputation of theowners will also help the company to grow. Threats:  Competitors The major threat of Bawany sugar mill is its competitors. The Army sugar mill and thePangrio sugar mill are very tuff competitors of Bawany sugar mill. They are providing directcompetition by attracting the growers through there attracting policies.
  39. 39. P a g e | 29CHAPTER 8: CONCLUSION Bawany Sugar Mills Ltd is a well known organization of Sindh. For some years it is notperforming well. In the earlier days of its downfall, the reason for its loss was mismanagement. Lateron, Its management was made better and then, economic instability and inflation again brought theprofit of company to negative. The company is still suffering the severe conditions of loss. The business activities of Bawany Sugar Mills are under sound and trustworthy systems. Itsoperational performance compared to its neighbor’s mills has always been excellent. It acts as thesole source of healthy and positive competition within the sugar industry of the region the ultimatebenefit of which goes to sugarcane growers. In a nutshell, these are the reasons of Bawany Sugar Mill’s crisis: The Mill has faced political instability, energy crisis and economic recessions. The Managerial level employees are mostly given the task that they have to do 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.
  40. 40. P a g e | 29RECOMMENDATIONS: Bawany 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 month to provide the employees required skill 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. All the employees especially those associated with production should be encouraged, and should be involved in decision making and empowered to make innovative decisions. In this way employees can add to the organization, a lot. E.g. a new cost effective production technique can result in comparatively huge profits. Work should be divided in team and reward should be on team based rather than on individual basis. The shortage of water and fertilizers is remaining constant and government is not taking any satisfactory action to reduce the shortage. Due to this shortage, sugar cane crop is decreasing.
  41. 41. P a g e | with employees