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CHAPTER-I

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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

Scarcity of Sugar cane or Excess of Sugar cane.

Government policies.

Raise in cost of production.

Decrease in sugar rate in international market.

Lower rate of bi products.

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For understanding financial ratios in business which shows the strength or weakness of the company. The following points to be noted.

Margin of safety.

Profitability.

Liquidity.

Debit service capacity.

Asset Management

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

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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.

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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.

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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:

High pressure boiler (32.0 ATA)

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

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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:

Mr. Murugesh R. Nirani, B.E., D.B.M (MLA & Minister of large scale Industry)
Mr. Hanumanth Rudrappa Nirani, M.Com L.L.B

Mrs. Kamala Murugesh Nirani, B.A.

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

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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.

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.

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.

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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:

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Factors Behind Establishment

Abundant available of resources like raw material(sugarcane), labours (skilled & semi skilled), transportation facilities, banking facilities,
Fertile land with having irrigation facilities. (GLBC, Krishna River, Ghataprabha river)
No strong competitors.

Govt. Support.

Objectives of Nirani Sugars Ltd.:

Maximum, effective and efficient utilization of available resources.

To manufacture good quality sugar and bi-products.

Welfare of agriculturists

To provide comparative market rate to the farmers.

Proper co-ordination and co-operation among its members.

To maintain proper means of transportation to the farmers during season.
Provide modern technics and methods and of cultivation and to supply seeds, fertilizers to the farmers.
To undertake such other activities as are incidential and conductive to the development of society.

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	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.

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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)

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Future plans of Nirani Sugars Ltd.

6250 TCD Sugar Industry Vijayanagar Mudhol.

40 MW electricity unit. Vijayanagar Mudhol.

60,000 Kilo litre distillery unit Vijayanagar Mudhol.

60,000 Kilo litre Ethenol unit Vijayanagar Mudhol.

10,000 tones Bio fertilizer unit Vijayanagar Mudhol.

Agricultural research and development centre Vijayanagar Mudhol.

Vijaya Co-operative Credit society. Vijayanagar Mudhol.

Nirani Educational institutes Mudhol & Bilagi

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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

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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

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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

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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.

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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 :

To produce sugar according to Indian Sugar Standard

To check the quality of the sugar cane bought

To conduct laboratory tests and to add ingredients like lime, sulphur, phsprric acid to the cane juice.
To produce bi-products like Bagase, filter coke, molasses, rectified spirit, and electricity.
To separate the sugar verities. Verities of Sugar : L30- Large

M30 – Medium

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S30 – Small

Responsibilities :

The responsibility of this department is to test the product of the sugarcane and quality of sugar.

Chemicals used:

Sulphor

Lime

H2O2 (Hydrogen peroxide)

Orthophosporic acid

Alcohol.

Turckey red oil.

Cleaning Chemicals :

Caustic soda.

Washing soda.

Common salt.

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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.

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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

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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

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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 :

To maintain all employees attendance

To maintain leaves of all employees.

Maintaining the over time registers.

To maintain office duty register.

To take labour welfare activities.

To control holidays according to group wise.

Assigning and maintaining total strength of all section of the factory every month.
To act according to the instruction provided by the administrative section.
Computation of wages and salary bill and the same is send it general account section.

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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.

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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

Security Guard

Supervisor

Security Guards

Table Work

Security Guard

Supervisor

Security Guards

Functions

The function of gate security is to take signature and purpose of the entering person in the movement register.
If the person is appointed as security guard then he must have individual maintains, capacity, mutual understanding, behavior, minimum qualification.

Training is given to the all appointed persons.

Security is given to whole factory.

To take case about thefts.

To keep eye on the persons going in and out of the factory.

To lock after that any items of factory must not taken outside.

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Book Maintainans

Momentary register i.e, incoming and outgoing visitors.

Key register

Repairs of materials incoming and outgoing register.

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.

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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

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CENTRAL EXCISE ACT SEC 173 G RULE 53

Maintaining the documents under Central Excise Act.

Production report for sugar & molasses

R.G 1 – Daily production & clearance Register.

R.G 7 – Daily stock account of HDP Bags.

D3 – Rejected materials stock maintenance.

ER File – Monthly central excise return file.

Centra VAT – Capital goods, Input, Service Tax.

PLA – Personal ledger account.

BED – Basic Excise duty.

AED – Additional Excise duty.

SC – Sugar cess.

Reporting to the Govt. Authority about production of Sugar & Molasses

Reporting to Director of Sugar New Delhi.

Reporting to commission of cane development officer Bangalore.

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

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Sales process of Sugar

Bagging

Godown

Tender

Dealer

D.D

Sales process of Molasses

Molasses

Tender

Distilleries/Dealers

D.D

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PRODUCTION INFORMATION

The main product is sugar. Types of Sugar

L.30 – Large

M.30 – Medium

S. 30 – Small

Bi- Products

Pressmud

Molasses

Electricity

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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
Administrative		A/c Manager			Sales
Manager		A/c Manager			Manager
Manager					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

Fertilizer

Keeper

Clerk

Seeds

Diesels

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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

BANK BALANCE

CASH BALANCE

DUTIES AND TAXES

SUNDRY DEBTORS

CURRENT LIABILITIES

CREDITORS

PARTY PAYMENTS

SUGAR CANE PAYMENTS

PROVISIONS

DEPRICIATION

MACHINERY - 20%

FURNITURE & FIXED ASSETS – 10%

VEHICLES – 15%

CHARTERED ACCOUNTANT OF NIRANI SUGARS LTD.

1. SHIVANAGI AND COMPANY BELGAUM.

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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
	1581420.50

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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

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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

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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.

Crushing of sugarcane.

Juice clarification.

Cryistallization.

Curing.

Grading and bagging.

The work centers in the sugar manufacturing are :

Mill section

Boiler section.

Evaporator section.

Clarification section.

Pan section.

Centrifugal section.

Power house section.

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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.

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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.

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In the manufacturing process the sugar industry is divided into four parts.

Milling section

Boiler section

Boiling house.

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.

Clarification

Evaporation.

Pan boiling

Separation of sugar and molasses

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Structure

BOILER UNIT

Boiler Attender

Water man

Fire man

Helpers

SUB SECTION

Mechanical Head

Mill section	(Extraction of juices)
Mill section

Boiler

Clarification (Juice)

Boiling House	(Pan Centrifugals)
Boiling House

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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

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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 :

To produce sugar according to Indian Sugar Standard

To check the quality of the sugar cane bought

To conduct laboratory tests and to add ingredients like lime, sulphur, phsprric acid to the cane juice.
To produce bi-products like Bagase, filter coke, molasses, rectified spirit, and electricity.
To separate the sugar verities. Verities of Sugar : L30- Large M30 – Medium

S30 – Small

Chemicals used in manufacturing process

Lime

Sulphur

Orthophosphoric acid

Hydrogen peroxide

Hydrochloric acid

Alcohol

Mill sanitation

Trucky red oil

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Cleaning chemicals

Caustic

Washing soda

Common salt

Rodine

INSTRUMENTS USED IN CHEMICAL DEPARTMENT

Muffed furnace

Digital weighing scale.

Ropi pol

Polarimeter

Oven

Bagasse Digester

Incubator

Photo spectrometer

Sucroscan

10.pH meter

pH- potential hydrometer.

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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 :

Different categories for storing of materials.

They receive the materials according to the transport.

Storing of materials is made according to codification.

Early materials are first cleared and then new materials are used.

To prepare bin card by recording name of the article unit code number, Location.
Every store material is classified according to Alphabets i.e. A-Z.

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ROLE OF CANE DEVELOPMENT DEPARTMENT

It acts as foundation to the manufacturing process.

Functions :

Registers of plantation date of sugarcane & varieties.

Division of sugarcane :

Short duration vaiety-COC 671, COC 94012 (Maturity period 12 months)
Mid late varieties – COC 86032, COC 8011, COC 8014, COC 92061 (Maturity period is more than 13 months)
Late vairieties – COC740, COC 62175 (High variety sugar cane maturity period is more than 14 months)

Undertaking plantation programmes.

Planning for plantation.

Educating the agriculturists.

Pre-planning for raw materials.

Conducting interfeast training programs.

Providing advance payments to labours.

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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.

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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.

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FINDINGS

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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 :

The plant is located in a economic friendly environment. The firm is profit motive organization.
Some departments are not computerized. But administrative section is computerized.
The factory maintains its day-to-day transaction in the books of records are kept manually.
Communication made through telephone and Internet

The factories machineries are old.

Production section is not clear.

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SUGGESTIONS:

Maintenance of Documents :

The factory should maintain the records and documents of departments. The factory should keep all records at the time supervision.

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.

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Important suggestion for the welfare of Agriculturists

Divide areas to avoid unhealthy competition.

Decrease transportation cost.

Undertake research and development activities to provide best quality of sugarcane seeds & fertilizers to the agriculturists.
Undertake three-tier nursery programs.

1st nursery program

2nd nursery program

Plantation program

Educate the agriculturists about the deceases to the sugarcane.

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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.

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INDEX

Chapter I – Introduction

Introduction to Indian sugar industry
History of Nirani Sugar Limited

Factors behind Establishment
Objectives of Nirani Sugars Ltd

Company profile
Board of management

Future Plans of Nirani Sugars Ltd.
Organization chart

Chapter II – Departmental study

Mechanical Department

Chemical Department
H.R

Time office
Watch and ward Department

Sales Department
Production Information

Finance Department
Store Department

Chapter III – Project study

Methodology
Manufacturing Department

Boiler Section
Role of Chemical department in manufacturing process.

Role of store department in manufacturing process.
Role of Cane Development Department

Chapter IV :-

Findings
Suggestions
Swot Analysis
Conclusion
Annexure

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