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Organization Study at Nirani Sugars


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The sugar industry occupies a major portion in the (organization) industries of India. The sugar industries have rank second next to cotton and textile industries. The sugar industry started since 1830. China is the first producer of sugar in the world. It provides highest direct employment opportunities.

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Organization Study at Nirani Sugars

  2. 2. UPLOADED FOR WWW.PROJECTSKART.COM INTRODUCTION TO INDIAN SUGAR INDUSTRY The sugar industry occupies a major portion in the (organization) industries of India. The sugar industries have rank second next to cotton and textile industries. The sugar industry started since 1830. China is the first producer of sugar in the world. It provides highest direct employment opportunities. Today India has become largest sugar producer in the world. India produces 190-200 lakh metric tone of sugar per year. The sugarcane is being grown in many states of India like Maharashtra (First place), Uttar Pradesh, Gujarat, Karnataka. In Karnataka the sugar cane is mostly grown around Bagalkot, Bijapur, Belgaum, Mandya districts and coastal areas. The Sugar cane can be grown in all types of soil but higher yield can be obtained in black fertile soil. Total India’s Consumption 190-200 Lakh metric tones per year. Per capita consumption of sugar by Indian population 15% per year. Problems of sugar industry 1. Scarcity of Sugar cane or Excess of Sugar cane. 2. Government policies. 3. Raise in cost of production. 4. Decrease in sugar rate in international market. 5. Lower rate of bi products. 2 UPLOADED FOR WWW.PROJECTSKART.COM
  3. 3. UPLOADED FOR WWW.PROJECTSKART.COM For understanding financial ratios in business which shows the strength or weakness of the company. The following points to be noted. 1) Margin of safety. 2) Profitability. 3) Liquidity. 4) Debit service capacity. 5) Asset Management 6) Earnings in Market Value India Overtakes Brazil in Sugar Production 2007 will mark a major change in the sugar market as Brazil, the traditional powerhouse in the arena, surrenders its crown over to the new leader, India. India is predicted to cultivate 33 million tones by the end of this year, nearly 20% of the entire world’s production. Brazil’s dominance in the sugar market dates back a few decades, when Brazil overtook the title from Cuba. The tropical climate and good soil in the region gave the tiny Caribbean island a strong advantage over its competitors. Over the past two decades, however, the communist regime has destroyed the country’s sugar industry and today Cuba is a skeleton of its former self in terms of sugar production. 70% of Brazilian sugar is produced in the state of Sao Paolo, the lowest cost producer in the world as of 2005, at about 10 cents/lb. The strong Brazilian 3 UPLOADED FOR WWW.PROJECTSKART.COM
  4. 4. UPLOADED FOR WWW.PROJECTSKART.COM Real has changed the dynamics of the industry, though, as the currency strength has caused export prices to rise about 30%, placing it on a more equal footing with other competitors such as Thailand and India, which can produce a pound of sugar for around 18 cents. Brazil is also the world’s largest consumer of sugar, with per capita consumption around 55 kg/year, just beating out Mexico and far out passing the United States at 29 kg/year. Much of this disparity is due to the ethanol industry, which in Brazil is far more advanced than any place else on the planet. The majority of cars sold in Brazil today can be run off pure sugar ethanol as the refueling infrastructure is already in place. The percentage of sugar in the ethanol is also around 50%, and increases as crude oil becomes more expensive. India, which has less farmland than Brazil, also has poorer soil, poorer climate, and poorer infrastructure. It does, however, have one significant advantage on Brazil, a cheaper labor force, especially in the agriculture labor. This has allowed the country to compete in a very difficult industry. Also, the de-regulation of the Indian business structure that has allowed the flourishing of technology companies is now expanding to the agriculture arena as well. India has been increasing its sugar production at a rate far faster than any other country in the world for several years. Total sugar production has nearly doubled in the past 3-4 years, moving the country from a distant 3rd, to become the new king of the sugar industry. 4 UPLOADED FOR WWW.PROJECTSKART.COM
  6. 6. UPLOADED FOR WWW.PROJECTSKART.COM HISTORY OF NIRANI SUGARS LTD. M/s. Nirani Sugars Limited (NSL), a company incorporated on the 6th Dec, 1995 under the Companies Act, 1956 has applied for Term Loan of Rs. 15.90 crores to Sugar Development Fund(SDF) for meeting part of the capital cost of its project envisaging modernization & up-gradation of existing sugar factory with an installed capacity of 1250 TCD to 3750 TCD with substantial investment at Kulali cross Mudhol Tq. Dist: Bagalkot, Karnataka State, NSL has included in the scope of the project, the co-generation of surplus power also at a total project cost of about Rs. 97.00 crores. (Sugar unit Rs. 53.00 crores and cogeneration unit Rs. 44.00 crores). Total Cost of the Project, for the Sugar plant expansion Rs. 5300 Lakhs,(Rs. 42.00 Crores for sugar and 11.00 crores loading from co-generation plant cost) consisting of an Equity Contribution of Rs. 5.30 Crores Promoters, Rs. 15.90 crores equity from Sugar development fund of Govt. of India & the balance of Rs. 31.80 crores funded through Term Loans from the Financial Institutions/Banks. 6 UPLOADED FOR WWW.PROJECTSKART.COM
  7. 7. UPLOADED FOR WWW.PROJECTSKART.COM The funding for the cogeneration plant costing Rs. 4400.00 Lakhs is envisaged by obtaining Rs. 3080 Lakhs from IREDA, Rs 440.00 Lakhs from promoter’s contribution and Rs. 880 Lakhs from sugar development fund. M/s. Nirani Sugars Limited (NSL) is a company registered under the Indian Companies Act, 1956, initially as Private Limited Company, vide registration certificate number 08/19340 of 1995 dated 06.12.1995 by the registrar of companies in Karnataka, Bangalore, Subsequently, the company has been converted into Public Limited Company vide Certificate of Incorporation dated 15.02.2002 by ROC, Karnataka, Bangalore. The unit was originally established in the year 1997-98 as a modern Khandasari Sugar unit with a crushing capacity of 500 tonnes of cane per day and later converted into white crystal sugar unit. This is one amongst the earliest Khandasari unit in the country, which started with a new technology like: (a) High pressure boiler (32.0 ATA) (b) Multiple effect pressure evaporator system with falling –film evaporator and also with captive power generation. Subsequently making use of the Government of India’s liberalized policy, vide Govt. of India notification DCS/S/14/DTD 02-06-1998, which permitted Khandasari sugar units to use vacuum system, they modernized the 7 UPLOADED FOR WWW.PROJECTSKART.COM
  8. 8. UPLOADED FOR WWW.PROJECTSKART.COM unit quickly by adding vacuum pans and vacuum evaporators. The capacity of the plant was increased in stages to its present capacity of 1250 TCD during 2005-06. The plant runs fairly efficiently and is self sufficient in fuel and power. It has recorded an average sugar recovery of over 11 percent during 1999-2000 crushing season. M/s. Nirani Sugar Litd. Now proposes to expand the sugar factory from the present capacity of 1250 TCD to 3750 TCD by adding a new plant of 2500 TCD, retaining the existing plant also. Also 16 MW Cogen Power Plant is part of the expansion. The project appraisal was done by Mitcon Consultancy Services Limted, Pune. BACKGROUND OF PROMOTERS The key promoter of the company also Chairman of the company, Mr. Murugesh R. Nirani is Member of the Legislative Assembly (MLA), Government of Karnataka. PROMOTERS: M/s. Nirani Sugars Limited promoted by the following Directors: 1. Mr. Murugesh R. Nirani, B.E., D.B.M (MLA & Minister of large scale Industry) 2. Mr. Hanumanth Rudrappa Nirani, M.Com L.L.B 3. Mrs. Kamala Murugesh Nirani, B.A. 1. Mr. Murugesh R. Nirani, aged about 40 years is the Chief promoter and the Chairman & managing Director of the company, is a Technical Graduate and is the sitting Legislator (MLA) representing Bilagi 8 UPLOADED FOR WWW.PROJECTSKART.COM
  9. 9. UPLOADED FOR WWW.PROJECTSKART.COM constituency in Assembly of Karnataka, He hails from an agricultural family from Bilagi Taluk of Bagalkot District. He started his carrier as an industrialist by settling up a modern Khandasari sugar plant at Mudhol. Mr. M.R. Nirani has also co-promoted a 2500 TCD sugar plant at Badagandi village in Bilagi taluk viz. Bilagi Sugars Limited in which he holds the position of Managing Director. This unit has just successfully completed trial runs and started commercial operations (during January 2006). Mrs. M.R. Nirani has also been recognized and awarded Bharat Udyog Ratna award from govt. of India. He has the credit of taken over a sick mini cement plant of 100 TPD capacity at Mudhol and successfully put into commercial operation with an increased capacity of 200TPD within a short span of time. His social services contributed in setting up residential schools, D.Ed. college at Mudhol. 2. Mr. Hanumanth R. Nirani, aged about 40 years is a post –graduate in commerce and also a leading advocate in Bilati Tq. He is the brother of Mr. Murugesh R. Nirani and is also actively involved in the day-to-day operations of the sugar plant. 3. Mrs. Kamala Murugesh Nirani aged about 32 years is another director on the Board of the company and is the wife of Mr. Murugesh R. Nirani, who associates Mr. Murugesh R. Nirani and Mr. Hanumanth R. Nirani in company matters. 9 UPLOADED FOR WWW.PROJECTSKART.COM
  10. 10. UPLOADED FOR WWW.PROJECTSKART.COM As could be observed the company is a family concern and the overall management of the Company rests with Chairman Shri. Murugesh R. Nirani who is assisted by the other Board of Directors. Factory Premises: 10 UPLOADED FOR WWW.PROJECTSKART.COM
  11. 11. UPLOADED FOR WWW.PROJECTSKART.COM Factors Behind Establishment 1. Abundant available of resources like raw material(sugarcane), labours (skilled & semi skilled), transportation facilities, banking facilities, 2. Fertile land with having irrigation facilities. (GLBC, Krishna River, Ghataprabha river) 3. No strong competitors. 4. Govt. Support. Objectives of Nirani Sugars Ltd.: 1. Maximum, effective and efficient utilization of available resources. 2. To manufacture good quality sugar and bi-products. 3. Welfare of agriculturists 4. To provide comparative market rate to the farmers. 5. Proper co-ordination and co-operation among its members. 6. To maintain proper means of transportation to the farmers during season. 7. Provide modern technics and methods and of cultivation and to supply seeds, fertilizers to the farmers. 8. To undertake such other activities as are incidential and conductive to the development of society. 11 UPLOADED FOR WWW.PROJECTSKART.COM
  12. 12. UPLOADED FOR WWW.PROJECTSKART.COM Company profile Name of the company : NIRANI SUGARS LIMITED. MUDHOL Address : NIRANI SUGARS LIMITED. KULALI ROAD, MUDHOL - 587313 DIST: BAGALKOT Regd. Office : # 2053, High Point- II 45 Palace Road, Bangalore – 560 001 Branch Office : Bijapur Status of Company : Sole trading concern. Constitution of the firm : Registered under companies act 1956 Financial Institutions : K.S.I.D.C K.S.F.C Bankers of the Company : I.C.I.C.I Bank Jamakhandi S.B.I Mudhol Br. Indian Bank Lokapur. Grameen bank Mudhol. Products : Sugar (L30, M30, S30) Molasses, Press Mud, Bagasse. Electricity. 12 UPLOADED FOR WWW.PROJECTSKART.COM
  13. 13. UPLOADED FOR WWW.PROJECTSKART.COM Board of Management 1. Sri. Murugesh R. Nirani - Chairman&Managing Director 2. Sri. Sangamesh R. Nirani - Executive Director. 3. Sri. Hanamanth R. Nirani - Director. 4. Smt. Kamala M. Nirani - Director. 5. Sri. S.V. Kariyannavara - Chief Executive officer. 6. Sri. S.C. Itnal - General Manager (Plant) 7. Sri. B.S. Kandekar - General Manager (Cane) 8. Sri. Suresh. Dhabade - Deputy G.M ( Plant) 9. Sri. M.S. Heggalagi - Manager (Public relations) 10.Sri. M.M . Hiremath - General Manager(Accounts) 13 UPLOADED FOR WWW.PROJECTSKART.COM
  14. 14. UPLOADED FOR WWW.PROJECTSKART.COM Future plans of Nirani Sugars Ltd. 1. 6250 TCD Sugar Industry Vijayanagar Mudhol. 2. 40 MW electricity unit. Vijayanagar Mudhol. 3. 60,000 Kilo litre distillery unit Vijayanagar Mudhol. 4. 60,000 Kilo litre Ethenol unit Vijayanagar Mudhol. 5. 10,000 tones Bio fertilizer unit Vijayanagar Mudhol. 6. Agricultural research and development centre Vijayanagar Mudhol. 7. Vijaya Co-operative Credit society. Vijayanagar Mudhol. 8. Nirani Educational institutes Mudhol & Bilagi 14 UPLOADED FOR WWW.PROJECTSKART.COM
  16. 16. UPLOADED FOR WWW.PROJECTSKART.COM C & MD Board of Directors CEO Administration A/Cs Dept. Production Dept. Civil Division. Cane Personal Dept. C. A. D Dept. C. A. D Development General A/C Cane A/C Engineering Production Warehouse Share section Computer Sales Purchase Store Time section section section section section 16 UPLOADED FOR WWW.PROJECTSKART.COM
  18. 18. UPLOADED FOR WWW.PROJECTSKART.COM DEPARTMENTS OF ORGANIZATION  Mechanical Department  Chemical Department  Human resource Department  Time Office Department  Watch and Ward Department  Gen. A/C Department  Cane A/C Department  Store Department 18 UPLOADED FOR WWW.PROJECTSKART.COM
  19. 19. UPLOADED FOR WWW.PROJECTSKART.COM MECHANICAL DEPARTMENT Meaning It is a season in which the maintenance of machineries, repairs and over all operation are rendered by the workers. It is to manufacture sugar by using machines. Structure: Work Manager Chief Engineer Asst. Engineer Asst. Engineer Asst. Engineer (According to Shift) Asst. Engine er Trainee. e Trainee. Engineer Trainee. Engineer Fitters Fitters Fitters Mechanics Mechanics Mechanics Work shop attender Work shop attender Work shop attender Turbine attender Turbine attender Turbine attender Shifts : 6 a.m – 2 p.m 2 p.m – 10 p.m 10 p.m – 6 a.m 19 UPLOADED FOR WWW.PROJECTSKART.COM
  20. 20. UPLOADED FOR WWW.PROJECTSKART.COM Functions  Extraction of juice from sugarcane by milling.  Classification of juice.  Concentration of juice by evaporation to syrup.  Crystallization of sucrose by vacuum pan boiling.  Centrifugal separation of sugar and molasses from the massecuite.  Drying and cooling of sugar.  Sugar grading and packing. 20 UPLOADED FOR WWW.PROJECTSKART.COM
  21. 21. UPLOADED FOR WWW.PROJECTSKART.COM CHEMICAL SECTION Meaning It means to take chemical tests before producing sugar and manufacturing of sugar from sugar cane. Structure Chemical Department (According to Shift) Lab Chemist Lab Incharge Manufacturing Manufacturing Manufacturing Chemist Chemist Chemist Functions : 1. To produce sugar according to Indian Sugar Standard 2. To check the quality of the sugar cane bought 3. To conduct laboratory tests and to add ingredients like lime, sulphur, phsprric acid to the cane juice. 4. To produce bi-products like Bagase, filter coke, molasses, rectified spirit, and electricity. 5. To separate the sugar verities. Verities of Sugar : L30- Large M30 – Medium 21 UPLOADED FOR WWW.PROJECTSKART.COM
  22. 22. UPLOADED FOR WWW.PROJECTSKART.COM S30 – Small Responsibilities : The responsibility of this department is to test the product of the sugarcane and quality of sugar. Chemicals used: 1. Sulphor 2. Lime 3. H2O2 (Hydrogen peroxide) 4. Orthophosporic acid 5. Alcohol. 6. Turckey red oil. Cleaning Chemicals : 1. Caustic soda. 2. Washing soda. 3. Common salt. 22 UPLOADED FOR WWW.PROJECTSKART.COM
  23. 23. UPLOADED FOR WWW.PROJECTSKART.COM HUMAN RESOURCE DEPARTMENT This department is concerned with recruitment selection and placement. ¨ Development and training to the workers. ¨ Development evaluation of the workers. ¨ Wage and salary administration. In Nirani SugarsLtd. The personnel manager takes all the above responsibilities and undertakes the activities concerned with him. Suitable candidates are selected to a particular job according to their qualification and experience. There is no necessary to give training to the workers on separate machine other than actual production process. Hence training is given on the job only. Manager and Supervisor are continuously inspecting every worker to access their performances and there is better scope for hard workers. 23 UPLOADED FOR WWW.PROJECTSKART.COM
  24. 24. UPLOADED FOR WWW.PROJECTSKART.COM LIST OF EMPLOYESS Statement of number of employees. Sl No Designation Total 1 Executive Director 1 2 Finance Director 1 3 General Manager 1 4 General Manager Cane 1 5 General Manager Project 1 6 General Manager Production 2 7 Chief Accountant 1 8 General Accountant 2 9 Petty cashier 1 10 Excise Accountant 1 11 CDO G.M Cane 1 12 Accountant cane 4 13 Cahier 1 14 Instrumental Engineer 1 15 Chief Engineer 1 16 Assistant Engineer 3 17 Deputy Engineer 1 18 Chief Chemist 1 19 Lab incharge 1 20 Shift chemist 3 24 UPLOADED FOR WWW.PROJECTSKART.COM
  25. 25. UPLOADED FOR WWW.PROJECTSKART.COM Sl No Designation Shift Total 21 Security Guards 6x3 18 22 Token 1x3 3 23 Recovery 1x3 3 24 Crane office 2x3 6 25 Table operator 1x3 3 26 WBO 1x3 3 27 Mill oil man 1x3 3 28 Mill helper 5x3 15 29 Boiler 11x3 33 30 BTD 1x3 3 31 Welder 1x3 3 32 Electrical 5x3 15 33 Fitter 12x3 36 34 Turbine operator 1x3 3 35 Turbine oil man 1x3 3 36 Juice 7x3 21 37 Pan 8x3 24 38 C/F 9x3 27 39 Godown 1x3 3 40 Lab helper 1x3 3 41 Store 1x3 3 42 Lab chemist 1x3 3 25 UPLOADED FOR WWW.PROJECTSKART.COM
  26. 26. UPLOADED FOR WWW.PROJECTSKART.COM TIME OFFICE Meaning It means which arrange the working time of the workers in shift manner. Maintain it accurately. Structure Time officer Time keeper Functions : 1. To maintain all employees attendance 2. To maintain leaves of all employees. 3. Maintaining the over time registers. 4. To maintain office duty register. 5. To take labour welfare activities. 6. To control holidays according to group wise. 7. Assigning and maintaining total strength of all section of the factory every month. 8. To act according to the instruction provided by the administrative section. 9. Computation of wages and salary bill and the same is send it general account section. 26 UPLOADED FOR WWW.PROJECTSKART.COM
  27. 27. UPLOADED FOR WWW.PROJECTSKART.COM Procedure of the time office of the factory. The factory worker is divided in to three shifts as follows 1st Shift 6 a.m – 2 p.m 2nd Shift 2 p.m – 10 p.m 3rd Shift 10 p.m – 6 a.m General office Time Lunch 08.30 a.m to 5.30 p.m Leaves 1.00 p.m to 2.00 p.m. Monthly 4 leaves Weekly 1 leave. Holidays All Govt. Holidays. Responsibility : The responsibility of this section is to set the time of labours through which the work of factory moves smoothly. 27 UPLOADED FOR WWW.PROJECTSKART.COM
  28. 28. UPLOADED FOR WWW.PROJECTSKART.COM WATCH AND WARD SECTION Meaning It means to safe guard men, material, information and to avoid damages to the company. Structure Security Organization Security Officer Table Work Or Security Guard Supervisor Security Guards Table Work Or Security Guard Supervisor Security Guards Functions 1. The function of gate security is to take signature and purpose of the entering person in the movement register. 2. If the person is appointed as security guard then he must have individual maintains, capacity, mutual understanding, behavior, minimum qualification. 3. Training is given to the all appointed persons. 4. Security is given to whole factory. 5. To take case about thefts. 6. To keep eye on the persons going in and out of the factory. 7. To lock after that any items of factory must not taken outside. 28 UPLOADED FOR WWW.PROJECTSKART.COM
  29. 29. UPLOADED FOR WWW.PROJECTSKART.COM Book Maintainans 1. Momentary register i.e, incoming and outgoing visitors. 2. Key register 3. Repairs of materials incoming and outgoing register. 4. Employee incoming and outgoing register. Responsibility The responsibility is to provide strict security for the factory areas so that no one can take materials of the factory and to protect the factory. 29 UPLOADED FOR WWW.PROJECTSKART.COM
  30. 30. UPLOADED FOR WWW.PROJECTSKART.COM SALES DEPARTMENT Meaning It is the department which handles sales process of the company. Structure : Sales officer Central Excise officer Salesman Salesman Godown Keeper Godown Keeper Loading supervisor Loading supervisor Sugar House Clerks Sugar loading labours Sugar House Clerks Sugar loading labours 30 UPLOADED FOR WWW.PROJECTSKART.COM
  31. 31. UPLOADED FOR WWW.PROJECTSKART.COM CENTRAL EXCISE ACT SEC 173 G RULE 53 Maintaining the documents under Central Excise Act. 1) Production report for sugar & molasses 2) R.G 1 – Daily production & clearance Register. 3) R.G 7 – Daily stock account of HDP Bags. 4) D3 – Rejected materials stock maintenance. 5) ER File – Monthly central excise return file. 6) Centra VAT – Capital goods, Input, Service Tax. 7) PLA – Personal ledger account. 8) BED – Basic Excise duty. 9) AED – Additional Excise duty. 10) SC – Sugar cess. Reporting to the Govt. Authority about production of Sugar & Molasses 1) Reporting to Director of Sugar New Delhi. 2) Reporting to commission of cane development officer Bangalore. 3) Monthly report about molasses. Central Excise Tax For per bag total Rs. 87.55 71 Rs – Central Government 14 Rs. – State Governement 1.55 Rs. – Education cess 1 Rs. – Higher Education cess 31 UPLOADED FOR WWW.PROJECTSKART.COM
  32. 32. UPLOADED FOR WWW.PROJECTSKART.COM Sales process of Sugar Bagging Godown Tender Dealer D.D Sales process of Molasses Molasses Tender Distilleries/Dealers D.D 32 UPLOADED FOR WWW.PROJECTSKART.COM
  33. 33. UPLOADED FOR WWW.PROJECTSKART.COM PRODUCTION INFORMATION  The main product is sugar. Types of Sugar 1. L.30 – Large 2. M.30 – Medium 3. S. 30 – Small  Bi- Products 1. Pressmud 2. Molasses 3. Electricity 33 UPLOADED FOR WWW.PROJECTSKART.COM
  34. 34. UPLOADED FOR WWW.PROJECTSKART.COM FINANCE DEPARTMENT GENERAL ACCOUNT SECTION Account department is very important which connect transaction relating inflow and outflow of funds inside and outside the factory by maintaining the books of records in the organization. Structure of Account Section Commercial General Manager Manager Administrative Sales A/c ManagerManager Manager Chief Accountant Chief A/c A/c Clerk Computer A/c Accountant Cane Accountant Commercial Accountant Cane Purchase Sales A/c Purchase A/c Clerk Sales A/c Godown Godown Fertilizer Keeper Clerk Seeds Diesels 34 UPLOADED FOR WWW.PROJECTSKART.COM
  35. 35. UPLOADED FOR WWW.PROJECTSKART.COM Functions: ¨ Recording of all daily transaction. ¨ Data collection about the cane supply by Weight Bridge. ¨ Deciding the annual profit and loss account balance sheet cost sheet. ¨ It maintains cash book and ledgers etc. ¨ Preparing annual reports. ¨ Preparing profit and loss account and Balance Sheet. CURRENT ASSEST 1. BANK BALANCE 2. CASH BALANCE 3. DUTIES AND TAXES 4. SUNDRY DEBTORS CURRENT LIABILITIES 1. CREDITORS 2. PARTY PAYMENTS 3. SUGAR CANE PAYMENTS 4. PROVISIONS DEPRICIATION 1. MACHINERY - 20% 2. FURNITURE & FIXED ASSETS – 10% 3. VEHICLES – 15% CHARTERED ACCOUNTANT OF NIRANI SUGARS LTD. 1. SHIVANAGI AND COMPANY BELGAUM. 35 UPLOADED FOR WWW.PROJECTSKART.COM
  36. 36. UPLOADED FOR WWW.PROJECTSKART.COM PROFIT & LOSS ACCOUN AS ON 31ST MARCH 2007 PARTICULARS ANNEXURE 31-3-2007 31-3-2006 I. INCOME Sales -- 175241529.75 23361256.59 Cost of materials Consumed 6 130058837.87 2441734.95 45182691.90 25802991.54 II.INOME REVENUE Other Income 7 30467563.80 89960.36 75650255.70 25892951.90 III.EXPENDITURE Manufacturing 8 11961674.00 3944693.80 Sales & Administrative -- 4140989.82 376397.93 Interest & finance Expenditure 9 15773412.44 10769355.00 Depreciation 5 7002283.36 5833544.67 38878359.62 24311531.40 IV.PROFIT/LOSS BEFORE TAX 36771896.08 1581420.50 V.PROVIION FOR TAX 0.00 0.00 VI.PROFIT AVAILABLE FOR APPROPRIATION 36771896.08 1581420.50 VII. APPROPRIATION (Tr to P&L A/c) 36771896.08 1581420.50 1581420.50 36771896.08 36 UPLOADED FOR WWW.PROJECTSKART.COM
  37. 37. UPLOADED FOR WWW.PROJECTSKART.COM CANE DEVELOPMENT DEPARTMENT Structure General Manager cane Deputy Manager cane suppliers Deputy Manager cane suppliers Cane Manager Development Total procurement area is divided into 9 circles Cane officer Cane supplier Cane development Officer Circle Clerk Field Assistant 37 UPLOADED FOR WWW.PROJECTSKART.COM
  38. 38. UPLOADED FOR WWW.PROJECTSKART.COM STORE SECTION It means storing of the equipment required to the factory for the smooth flow of process. Structure Purchase officer Store officer Store Accountant Store Keeper Asst Store Keeper Store clerk 38 UPLOADED FOR WWW.PROJECTSKART.COM
  39. 39. UPLOADED FOR WWW.PROJECTSKART.COM Manufacturing Process Meaning Manufacturing process means conversion of raw material or semi finished goods into finished product which is usable at source. For the manufacture of sugar from sugarcane there are five different stages and they are as follows. 1. Crushing of sugarcane. 2. Juice clarification. 3. Cryistallization. 4. Curing. 5. Grading and bagging. The work centers in the sugar manufacturing are : 1. Mill section 2. Boiler section. 3. Evaporator section. 4. Clarification section. 5. Pan section. 6. Centrifugal section. 7. Power house section. 39 UPLOADED FOR WWW.PROJECTSKART.COM
  40. 40. UPLOADED FOR WWW.PROJECTSKART.COM CRUSHING OF SUGARCANE After harvesting, the sugarcane is bought to the factory in bouldles. There sugarcane is weighed in weigh bridge & then is cut into pieces in the leveler, further fine fibres are obtained from these pieces by passing them in the fabrizer. The preparatory index is 75% to 80% after this milling is carried on by passing the prepared fibre cane through the sets of mills, i.e,. the prepared fibre cane is carried out through cane elevator & fed ito the 1st mill, same is continued to the second mill. They can extract the primary juice once again, same is taken in the process ill. Weighed water is also added in the crushing for better extraction of juice. After crushing, the bagasse is sent to the boiler as fuel & juice set for processing weighment. JUICE CLARIFICATION The weighed juice is heated in juice heaters at 700 C. To this raw juice lime and sulphur is added simultaneously. It is heated at 900 -980 C & thus heated sulphited juice taken to clarifier tank. The mud contained in juice settles & clear juice is decanted out from the clarifier and sent for evaporation. The juice thus evaporated gets concentrated to form thick syrup. The syrup thus obtained is again taken for sulphitation for bleaching to a pH of 5.0-5.2. 40 UPLOADED FOR WWW.PROJECTSKART.COM
  41. 41. UPLOADED FOR WWW.PROJECTSKART.COM CRYSTALLATION The syrup of 5.0-5.2 pH is taken to pan floor for boiling where the syrup attains super saturation stage. In such a condition sugar crystals are formed & it is hardened to form a mass called massecuit. The massecuit is dropped in crystallizer & colled to complete the process of crystallization. CURING In centrifugal the massecuit is cured i.e. sugar crystals is separated from mother liquor in high speed centrifugal machine. Now the sugar falls on the hopper. On the hopper by using hot air blower the sugar is dried. The molasses is collected in separate tank & used for further boiling to recover more sugar. GRADING The dried sugar after passing through elevator goes to the grade for gradation. The sugar falls into the bins with this fall sugar is packed in bags. The graded sugar is bagged, weighed for 100 Kg & they are stitched, numbered and stocked in the sugar godown in different lots as per grade and colour. 41 UPLOADED FOR WWW.PROJECTSKART.COM
  42. 42. UPLOADED FOR WWW.PROJECTSKART.COM In the manufacturing process the sugar industry is divided into four parts. 1. Milling section 2. Boiler section 3. Boiling house. 4. Drying and packing house. ¨ Milling section Here the juice is extracted from the sugarcane. ¨ Boiler section Here the bagasse is handled. It will produce steam generation. This steam is used for production of electricity. ¨ Boiler house Here there are different sections. 1. Clarification 2. Evaporation. 3. Pan boiling 4. Separation of sugar and molasses 42 UPLOADED FOR WWW.PROJECTSKART.COM
  43. 43. UPLOADED FOR WWW.PROJECTSKART.COM Structure BOILER UNIT Boiler Attender Water man Fire man Helpers SUB SECTION Mechanical Head Mill section (Extraction of juices) Boiler Clarification (Juice) Boiling House (Pan Centrifugals) 43 UPLOADED FOR WWW.PROJECTSKART.COM
  44. 44. UPLOADED FOR WWW.PROJECTSKART.COM Parameter of boiler water pH - 9.5 to 100 TDS - Below 2000 ppm Total Hardness - Nil p-alkalinity - 10% TDS (Below 150 ppm) m- alkalinity - 90% TDS OH-caustic alkalinity - 150 ppm (more than 60 ppm) PO4 - 15 ppm to 30 ppm SO3 - 50 ppm to 30 ppm SiO2 - Below 10 ppm 44 UPLOADED FOR WWW.PROJECTSKART.COM
  45. 45. UPLOADED FOR WWW.PROJECTSKART.COM Role of chemical department in manufacturing process Meaning It means to take chemical tests before producing sugar and manufacturing of sugar from sugar cane. Functions : 1. To produce sugar according to Indian Sugar Standard 2. To check the quality of the sugar cane bought 3. To conduct laboratory tests and to add ingredients like lime, sulphur, phsprric acid to the cane juice. 4. To produce bi-products like Bagase, filter coke, molasses, rectified spirit, and electricity. 5. To separate the sugar verities. Verities of Sugar : L30- Large M30 – Medium S30 – Small Chemicals used in manufacturing process 1. Lime 2. Sulphur 3. Orthophosphoric acid 4. Hydrogen peroxide 5. Hydrochloric acid 6. Alcohol 7. Mill sanitation 8. Trucky red oil 45 UPLOADED FOR WWW.PROJECTSKART.COM
  46. 46. UPLOADED FOR WWW.PROJECTSKART.COM Cleaning chemicals 1. Caustic 2. Washing soda 3. Common salt 4. Rodine INSTRUMENTS USED IN CHEMICAL DEPARTMENT 1. Muffed furnace 2. Digital weighing scale. 3. Ropi pol 4. Polarimeter 5. Oven 6. Bagasse Digester 7. Incubator 8. Photo spectrometer 9. Sucroscan 10.pH meter 11.pH- potential hydrometer. 46 UPLOADED FOR WWW.PROJECTSKART.COM
  47. 47. UPLOADED FOR WWW.PROJECTSKART.COM Role of store department in manufacturing process. Meaning : It means storing of the equipment required by the factory for the smooth flow of manufacturing process. Functions : 1. Different categories for storing of materials. 2. They receive the materials according to the transport. 3. Storing of materials is made according to codification. 4. Early materials are first cleared and then new materials are used. 5. To prepare bin card by recording name of the article unit code number, Location. 6. Every store material is classified according to Alphabets i.e. A-Z. 47 UPLOADED FOR WWW.PROJECTSKART.COM
  48. 48. UPLOADED FOR WWW.PROJECTSKART.COM ROLE OF CANE DEVELOPMENT DEPARTMENT It acts as foundation to the manufacturing process. Functions : 1) Registers of plantation date of sugarcane & varieties. 2) Division of sugarcane : i) Short duration vaiety-COC 671, COC 94012 (Maturity period 12 months) ii) Mid late varieties – COC 86032, COC 8011, COC 8014, COC 92061 (Maturity period is more than 13 months) iii) Late vairieties – COC740, COC 62175 (High variety sugar cane maturity period is more than 14 months) 3) Undertaking plantation programmes. 4) Planning for plantation. 5) Educating the agriculturists. 6) Pre-planning for raw materials. 7) Conducting interfeast training programs. 8) Providing advance payments to labours. 48 UPLOADED FOR WWW.PROJECTSKART.COM
  50. 50. UPLOADED FOR WWW.PROJECTSKART.COM SWOT ANALYSIS : STRENGTHS ¨ The Promoter are young political background and have vast industrial experience in the field of Sugar and are having good relationship with the local farmers. This may help them in sugarcane procurement. ¨ No difficulty is envisaged in availability of raw material i.e. sugar cane, as the project is coming up in the area of sugar cane growing belt with a good irrigation facilities and good recovery. ¨ The area will not suffer draught as the Lift irrigation system of Almatti Dam as already implemented hence the Sugar recovery in the area is good. ¨ The co-generation of power of 16 MW will improve the profitability of the company. ¨ The by-product viz. molasses will bring additional revenue as it will be sold to distillery units as raw material. WEAKNESSES ¨ Co-Gen plant being capital intensive, economics of operations suffer in case of shortened season. ¨ Government policy of full decontrol of sugar during 2003-04. ¨ Sugar imports will have bearing on the profit margins of the company. ¨ Any disturbance in the co-gen plant would interrupt sugar manufacturing operations totally. The cost of such interruptions can be extremely high on account of production loss, machine failure, spillage of juice, sugar and quality degradation. ¨ The promoters are having political background and changing loyalties by the local farmers may affect them in sugarcane procurement. 50 UPLOADED FOR WWW.PROJECTSKART.COM
  51. 51. UPLOADED FOR WWW.PROJECTSKART.COM OPPORTUNITIES ¨ Setting up of further down stream projects like manufacture of ethanol or a distillery for manufacture of liquor. THREATS ¨ Raw material, cane, being a agricultural product its availability and prices are dependent upon vagaries of monsoon. ¨ Tough competition from other sugar factories. ¨ Failure to adopt modern technology. Unable to satisfy the needs of workers, which might make them to leave the organization. 51 UPLOADED FOR WWW.PROJECTSKART.COM
  53. 53. UPLOADED FOR WWW.PROJECTSKART.COM The project was carried with the respect to the environmental forces that influenced to the firms business activities. In liberalization, Privatization, and Globalization (L.P.G) era almost small scale industries are moving towards sick units and some close down in India. Village industries have lack of good research and development support, that’s why they could not able to under take the environmental analysis. Because of various reasons. Nirani Sugars Ltd. Mudhol is having a good and efficient department, which is well maintained. I have thoroughly studied all the department during my study period while studying about the department I have found some necessary findings, which are not concentrated by the management. The findings of the study are : 1. The plant is located in a economic friendly environment. The firm is profit motive organization. 2. Some departments are not computerized. But administrative section is computerized. 3. The factory maintains its day-to-day transaction in the books of records are kept manually. 4. Communication made through telephone and Internet 5. The factories machineries are old. 6. Production section is not clear. 53 UPLOADED FOR WWW.PROJECTSKART.COM
  54. 54. UPLOADED FOR WWW.PROJECTSKART.COM SUGGESTIONS: 1. Maintenance of Documents : The factory should maintain the records and documents of departments. The factory should keep all records at the time supervision. 2. Means of communication : Means of communication should be made through telephone, Internet, websites and also fax. Good means of combination system like transport facility should be made easy to deliver the goods in time. 3. Computerization: Now a day’s computerization has become a crucial aspect of every organization. All departments of the organization should be computerized to keep day-to-day transaction and records, which are necessary for the factory to run a business successfully. 4. Application of techniques : The factory must go for interpretation by applying the modern techniques. 54 UPLOADED FOR WWW.PROJECTSKART.COM
  55. 55. UPLOADED FOR WWW.PROJECTSKART.COM Important suggestion for the welfare of Agriculturists 1) Divide areas to avoid unhealthy competition. 2) Decrease transportation cost. 3) Undertake research and development activities to provide best quality of sugarcane seeds & fertilizers to the agriculturists. 4) Undertake three-tier nursery programs. i) 1st nursery program ii) 2nd nursery program iii) Plantation program 5) Educate the agriculturists about the deceases to the sugarcane. 55 UPLOADED FOR WWW.PROJECTSKART.COM
  56. 56. UPLOADED FOR WWW.PROJECTSKART.COM CONCLUSION A careful study of NIRANI SUGARS LTD. it is one of the leading sugar industry in North Karnataka, which produces sugar and by products and supplies all over Karnataka and other states. All the departments play a vital role in every organization. A function of all the departments provides materials to the factory without wheels of machines cannot move. The overall study that emerges in this firm has been maintained well and efficient department in the management. It’s all sections are working efficiently. The production capacity of sugar has been improved. The overall performance of all the departments is well systematic. In the course of study. I have not only acquired theoretical knowledge and also practical knowledge in the factory. I conclude that all the department functions should have modern techniques towards other departments. Lastly I am thankful to our co-ordinator Dr. N.G. Chichadi and Nirani Sugars Ltd. Mudhol for providing me to undertake in-plant training. 56 UPLOADED FOR WWW.PROJECTSKART.COM
  57. 57. UPLOADED FOR WWW.PROJECTSKART.COM INDEX Chapter I – Introduction 1. Introduction to Indian sugar industry 2. History of Nirani Sugar Limited 3. Factors behind Establishment 4. Objectives of Nirani Sugars Ltd 5. Company profile 6. Board of management 7. Future Plans of Nirani Sugars Ltd. 8. Organization chart Chapter II – Departmental study 1. Mechanical Department 2. Chemical Department 3. H.R 4. Time office 5. Watch and ward Department 6. Sales Department 7. Production Information 8. Finance Department 9. Store Department Chapter III – Project study 1. Methodology 2. Manufacturing Department 3. Boiler Section 4. Role of Chemical department in manufacturing process. 5. Role of store department in manufacturing process. 6. Role of Cane Development Department Chapter IV :- 1. Findings 2. Suggestions 3. Swot Analysis 4. Conclusion 5. Annexure 57 UPLOADED FOR WWW.PROJECTSKART.COM