Um a Shankar

ACHARYA’S BANGALORE B- SCHOOL

#3, Lingadheeranahalli, of Magadi Road, Bangalore- 560091.

A

PROJECT REPORT

ON

THE NANDI SAHAKARI SAKKARE KARKHANE NIYAMIT,

KRISHNA NAGR

BY

UMASHANKAR N. SHIRAGUR

REG. NO.,: 10YUCMA109

UNDER THE GUIDENCE

OF

EXTERNAL GUIDE INTERNAL GUIDE

MR. KORTI Prof., SUHAS SHETIYA

THE NANDI SAHAKARI SAKKARE KARKHANE NIYAMIT, KRISHNANAGAR

CERTIFICATE

This is to certify that Mr. UMASHANKAR N.SHIRAGUR studying

3rd Semester MBA in Acharya’s Bangalore B-School has successfully

undergone internship project at THE NANDI SAHAKRI SAKKRE

KARKHANE NIYAMIT, KRISHNA NAGAR has prepared a report

entitled “An organizational Study of “THE NANDI SAHAKARI

SAKKRE KARKHANE NIYAMIT, KRISHNA NAGAR” under

the guidance of Prof., Suhas Shetiya, Faculty Member, ABBS as a

partial fulfillment of the requirements of Bangalore University of the

award of master Degree in Business Administration for the academic

year 2011-2012.

Signature of the director Signature of the guide

Date:

Place: Bangalore

ACHARYA’S BANGLORE B- SCHOOL


DECLARATION

I Mr. UMASHANKAR N. SHIRAGRUR student of Acharya’s Bangalore

B-School (ABBS), Bangalore declares that this project report entitled “THE

NANDI SAHAKARI SAKKARE KARKHANE NIYAMIT,

KRISHNANAGAR”, at galagali village of Bijapur district has been done during

the period July 15 – Aug 15, under the guidance of internal guide Mr. SUHAS

SHETIYA and external guide Mr. KORTI.

This study has exclusively carried out for the purpose of meeting the partial

fulfillment for the award of MBA degree from BANGLORE UNIVERSITY. I also

declare that, this project is done by my own efforts and has not been submitted to

any other university.

Date

Place UMASHANKAR N. SHIRAGUR

ACKNOWLEDGMENT



I would like to thank to Shri. Shashikant B. Patil, director of THE NANDI SAHAKARI

SAKKARE KARKHANE NIYAMIT, KRISHNANAGR, for providing me an opportunity to do

in - plant training.

I would also like to express my heartful thanks to Mr. Korti office superintendent and to

Mr. L.A.Patil for their valuable and inspiring guidance throughout my training period and for

helping me to complete this project successfully.

I would also like to express my heartful thanks to other staff members of THE NANDI

SAHAKARI SAKKARE KARKHANE NIYAMAT, KRISHNA NAGAR, for their co-operation

and friendly treatment, and for the guidance for preparing this project.

I would thank Prof. SUHAS SETHIYA faculty of ABBS, Bangalore, for his valuable and

beneficial guidance.

I would also like to give my special thanks to the person who has helped me directly or indirectly

to complete this project.

Yours faithfully

UMASHANKAR N. SHIRAGUR

CONTENTS

1 INTRODUCTION



1.1 OBJECTIVE OF THE STUDY

1.2 ABOUT THE REPORT

1.3 EXECUTIVE SUMMERY

2 PROMOTER’S APPRAISAL

3 TECHNICAL ASPECTS OF THE PROJECT

3.1 Priority sector of the Project

3.2 Location of the Project

3.3 Layout of project

3.4 Management and Administration

3.5 Raw material Availabilities

3.6 Utilities and allied services

3.7 Man power

3.8 Technical knowhow and inspection

4 TECHNICAL APPRAISAL OF INTEGRATED SUGAR AND

CO – GENERATION PROJECT

4.1 Sugar power project

4.2 Co –gen power project

5 DEPARTMENTAL STUDY

5.1 Organization study

5.3 Purchase department

5.4 Sales department

5.5 Time department

5.6 Computer department

5.7 Store department

5.8 Security department

6 ACCOUNTS DEPARTMENT

7 PRODUCTION DEPARTMENT

7.1 Engineering section

7.2 Manufacturing section

8 CIVIL DEPARTMENT

9 FINANCIAL REPORT STUDY

10 CONCLUSIONS AND RECOMMENDATIONS



1. INTRODUCTION

Sugarcane is an important commercial crop of the world and is cultivated in about

seventy five countries, the leading countries being India, Brazil, Cuba, Mexico and Thailand.

The sugar industry plays an important role in the agricultural economy of India. Today

sugarcane cultivation and sugar industry stands as supporting pillars of Indian economy. Besides,



the sugar industry also supports the alcohol and paper industries with its by products and the

cattle feed is assuming importance for the development of animal husbandry in India. India is the

largest consumer and second largest producer of sugar in the world after Brazil. Sugar industry is

the second largest agro based industry in India after cotton textile industry. Geographically,

Karnataka is well suited for growing sugarcane. In India, Karnataka stands third, followed by

Uttar Pradesh and Maharashtra in production of sugarcane occupying an area of 2, 43,341Hr.,

with a total sugarcane production of 1, 60, 15,440 tonnes in 2003-2004.

In India, about 35 million farmers are engaged in sugarcane cultivation on 4.09 million of

land. Though, sugarcane occupies only about 2 per cent of the total cultivated area, it contributes

to 7 per cent of the total value of agricultural output. The sugar industry is the largest among the

processing industries in the country next only to textile. At present, the total numbers of sugar

units in India are 465. In Karnataka, sugarcane is mainly concentrated in the districts namely;

Belgaum, Bagalkot, Bijapur, Mandya, Shimoga, Mysore, Chitradurga and Gulbarga.

In the state, Bijapur district ranks 5th in area occupying 8,068Hr and 7th in production

with a production of 5, 05, 864 tonnes in 2003-2004.

There are 35 sugar factories operating in Karnataka with 25 in North Karnataka and 10 in

South Karnataka. The quantity of cane crushed as on 31-03-2005 is 88, 89,000 MT and quantity

of sugar produced is 9, 29,000 MT. The sugarcane requirement by factories under full potential

of crushing is around 3,500 tonnes per day. However, the rate of supply of sugarcane is low

compared to the demand. The average yield of the state is 78 tonnes per acre. To reduce the gap

between the requirement and supply of sugarcane. There is need to increase the productivity of

sugarcane. There may be different factors like technical, social, financial etc. for low

productivity. It becomes imperative to analyze various factors. There is a common observation

that most of the technologies evolved remains at the research station and are not uniformly

adopted by the farmers. There is no exception with sugarcane.

On the basis of extensive research on sugarcane over past couple of decades, sugarcane

technologies are now available which can boost sugarcane production. Although, enough viable

and adoptive technologies have been developed, many of these have not reached to growers. This

may be one of the reasons for poor average sugarcane yield and sugar recovery as compared to

both potentiality of sugarcane yield and recovery, sugarcane and sugar out put can be increased if

the growers adopt the recommended package relating to sugarcane production technology.



1.1OBJECTIVES OF THE STUDY:

To asses raw materials availability with reference to existing and proposed

irrigation sources.

To understand the technical appraisal of integrated sugar and co-generation

of project.

To study the different departments in the organization and understand the

functioning of each.

Significance of the study

The findings of this investigation/research would help the sugar factories to re-design the

Human Resource Development activities for effective transfer of technologies in

sugarcane crop on the production, productivity and bringing improvement in socio-

economic status of sugarcane growers. It would also help in identifying practices to be

stressed for high yield in the sugarcane production. The results will help the policy

makers, administrators and planners to redesign the Human Resource Development

activities for sugar industry. Further, it will throw light on expectations of growers in

HRD activities.

Limitations of the study

1. The investigation has the limitation of time and resources, usually faced by the student

investigator. However, considerable care and thought was exercised in making the study as

objective and systematic as possible.

2. In spite of best efforts made in the investigation, the correctness of response might leave

margin of error to creep in.



3. It may however, be recognized that the findings of the study should not be generalized

beyond the limits of the taluk where the study was conducted. In other words adequate care

must be taken to apply the findings of the study to other.

1.2 ABOUT THE REPORT

Name and address : The Nandi Sahakari Sakkare karkhane Niyamat,

krishnanagar

LOCATION : Krishna nagar Hosur p.o. via Galagali, Taluka & District.

BIJAPUR karnataka state



Registered office : Krishna nagar Hosur p.o. via Galagali, Taluka & District.

BIJAPUR Karnataka State

Registration no.. : DSK/REG6/82-83 Dt:5-5-82

Sales tax no.. : 29060043338 w.e.f., dtd. 1-4-2003

Constitution and type : public

Products : sugar, bagas

Crushing capacity : 5000TCD

Co – genpower : 18.2Mgwt



1.3 EXECUTIVE SUMMARY

Sugarcane is an important commercial crop of the world and is cultivated in about

seventy five countries, the leading countries being India, Brazil, Cuba, Mexico and Thailand.

The sugar industry plays an important role in the agricultural economy of India. Today sugarcane

cultivation and sugar industry stands as supporting pillars of Indian economy. Besides, the sugar

industry also supports the alcohol and paper industries with its by products and the cattle feed is

assuming importance for the development of animal husbandry in India. India is the largest

consumer and second largest producer of sugar in the world after Brazil. Sugar industry is the



second largest agro based industry in India after cotton textile industry. Geographically,

Karnataka is well suited for growing sugarcane. In India, Karnataka stands third, followed by

Uttar Pradesh and Maharashtra in production of sugarcane occupying an area of 2,43,341 ha with

a total sugarcane production of 1,60,15,440 tonnes in2003-2004.

In India, about 35 million farmers are engaged in sugarcane cultivation on 4.09

million of land. Though, sugarcane occupies only about 2 per cent of the total cultivated area, it

contributes to 7 per cent of the total value of agricultural output. The sugar industry is the largest

among the processing industries in the country next only to textile. At present, the total numbers

of sugar units in India are 465. In Karnataka, sugarcane is mainly concentrated in the districts

namely; Belgaum, Bagalkot, Bijapur, Mandya, Shimoga, Mysore, Chitradurga and Gulbarga. In

the state, Bijapur district ranks 5th in area occupying 8,068 ha and 7th in production with a

production of 5,05,864 tonnes in 2003-2004.

There are 35 sugar factories operating in Karnataka with 25 in North Karnataka and 10 in

South Karnataka. The quantity of cane crushed as on 31-03-2005 is 88, 89, 000 MT and

quantity of sugar produced is 9, 29,000 MT.

The sugarcane requirement by factories under full potential of crushing is around 3,500

tonnes per day. However, the rate of supply of sugarcane is low compared to the demand. The

average yield of the state is 78 tonnes per acre. To reduce the gap between the requirement and

supply of sugarcane. There is need to increase the productivity of sugarcane. There may be

different factors like technical, social, financial etc. for low productivity. It becomes imperative

to analyze various factors.

There is a common observation that most of the technologies evolved remains at the

research station and are not uniformly adopted by the farmers. There is no exception with

sugarcane. On the basis of extensive research on sugarcane over past couple of decades,

sugarcane technologies are now available which can boost sugarcane production. Although,

enough viable and adoptive technologies have been developed, many of these have not reached

to growers. This may be one of the reasons for poor average sugarcane yield and sugar recovery

as compared to both potentiality of sugarcane yield and recovery, sugarcane and sugar output can

be increased if the growers adopt the recommended package relating to sugarcane production

technology.



PROMOTER STATEMENT:

Factory now running in its 18 cane crushing process, and it has started on 02-11-2009 and

it has crushed the cane of 7, 30,153MTS, it produced 8, 17,700qtl and made the recovery

of 11.20% during the month ended 01-05-10.

Factory continued with providing good value to the formers, so that it is helping in the

development of formers economy.

Current year factory is giving Rs.1449.10/Mts. But the factory has purchased at the rate

of Rs.2000, during the year2009-10.

THIS IS THE FIRST FACTORY WHICH GOT BOTH THE I.S.O.

CERTIFICATES. i.e., ISO - 9001 AND ISO - 14001. In the year 20/05/2006.



Factory is decided to install an ETHNOL UNIT. After considering the income which they

are getting from co-generation. So they decided that they keep on giving the good value

to the formers. To provide better value the factory decided to install an ethanol unit.

At present in the factory 629 man power is working (incl. permanent/seasonal) and

68were of on the basis of daily wages. The employees were paying the salary according

to the reference of sugar association.

For the economic well fare of factory employees it has established the

EMPOLYEES CO-OPERATIVE SOCIETY, and they established one retail shop.

In the district of BIJAPUR & BAGALKOT they have started the school for the formers

and for the children of employees of the factory. The School has been started by the name of

NANDI TRUST, in the year 2004-05.

EDUCATION: Shri. Venkteshwar Society has donated 18.05Acrs of land for the

construction of “Nandi International residential School. M/S.ASHRAY ENGINEERS

&DEVELOPERS” has taken the tender for Rs.3, 40, 03,699. And Plumbing tender at

Rs.21, 00,000. And electrical tender given to Shri. Mallikarjun Electricals Dharwad

for the Rs.38, 45,000. So, for the construction of School it is costing around

Rs.3, 99, 48,699. In which they construct 35 rooms School.

Sugar is distributed on discounted rate for the share holders of the factory. During the

year 2009-10, the factory has distributed 11,359,50qtl of sugar to its 12138 share

holders at the discounted rate of 1600/qtl.

For the economic development of factory’s members and the formers who are the part

of factory, they have started a co-operative society called “Nandi Sahakari Sakkare

Karkhane Kabbu Belegar Sadasyar Pattin Sahakari Sangh Niyamit, Krishnanagar.

From the 1130 members it has collected the total share capital of Rs.27.60lakh.(2000

per member).

In the year 2009-10 the total intake of sugarcane is 7, 30, 153Mts and from which it

has crushed the same. In 2010-11 they are planning to crush the cane of 10 lakh MTs.

In the same year 2009-10 it has distributed better quality of cane seeds to 10,380Acrs,

i.e. of 28769.429Mts.

The factory decided to increase its crushing capacity from 3500t.c.d to 5000t.c.d for

that it is taking the permission from National Co-operative Development Commission

(NCDC) and it got the term loan of Rs.930 lakh.



ETHICAL POLICY OF FACTORY

Providing the better value for the cane which is provided to the factory, that is

they are providing reasonable price, and the payment will be done on time.

Reducing the non-productive expenditures of the factory, and reducing the

taking rent of ware house.

Providing the good quality of sugar to its customers.

Following the government order, by distributing the sugar in stipulated time,

and in that levy sugar will be selling on the rate applied by the government.

Providing training to its members to give the knowledge about changing

trends in sugar market, and making them more concentrated towards their job.

Protecting the surrounding environment of factory, and less usage of the

water. For this social and environmental responsibility this factory has

obtained the ISO 14001 certificate.

To increase the productivity of all the departments of the factory, and to

reduce the manufacturing expenditure.

Payment of all taxes. And duties on time to the government.

For the welfare of employees conducting the development programs.

For the development of man power the factory is providing well work station,

education, healthy environment to protect the interest of its man power.

Factory is providing quality of seeds, fertilizers, to the formers to cultivate

better crop.

CURRENT YEAR PLAN OF THE FACTORY

SL.NO DISCRIPTION 2009-10 2010-11

1 Cane crushing 7,30,153 10,00,000

2 Sugar recovery 11.20 11.50

3 Capacity utilization 81.18% 100%

4 Other 2.21 2.00

5 84% I.U 75% I.U

6 Packing materials “A” twill gunny bag “A” twill gunny bag

from A factories.

7 Audit classification “A” class “A” class

8 computerization All departments were Tally training to



computerized auditing



LIST OF BOARD OF DIRECTORS

SL.NO NAME STATUS

1 Shri. Shashikant B. Patil CHAIRMAN

2 Shri. Krishnappa R. Biradar VICE CHAIRMAN

3 Shri. Ramesh P. Jakaraddi DIRECTOR

4 Dr. Mallappa R. Desai DIRECTOR

5 Shri. Kumar C. Desai DIRECTOR

6 Shri. Chandappa B. koraddi DIRECTOR



7 Shri. Basangowda D. Patil DIRECTOR

8 Shri. Subhash D. Sahukar (Tungal) DIRECTOR

9 Shri. Sharachandra T. patil DIRECTOR

10 Shri. Subhash H. Bidari DIRECTOR

11 Shri. Doddappa S. Desai DIRECTOR

12 Shri. Gowdappagowda K. Patil DIRECTOR

13 Shri. Ramchandra P. Kodabagi DIRECTOR

14 Shri. Anand G. Mangalwede DIRECTOR

15 Shri. Shivanand S. Patil DIRECTOR

16 Shri.H.M. Veerbhadraswami MD

17 Shri. Hanumant B. Konnur DIRECTOR

18 Smt. Geetabai T. hagedal DIRECTOR

19 Shri. Balappa M. Devanal DIRECTOR

20 Shri. Mallappa M. Shamboji DIRECTOR

21 Shri. Pandappa B. Dodamani DIRECTOR



PRIORITY SECTOR OF THE PROJECT:

It will assist the development of galgali and surrounding areas.

It will assist the former to dispose off their sugarcane in a profitable manner.

It will create additional capacity in a sugar industry and will increase production of

essential commodity, viz sugar.

It will help in creating direct employment in galagali of Bijapur district, which is

considering as backward area.

It will contribute to the development of agriculture, rural area and infrastructure facilities.

It can help in earning foreign exchange out of export.



The by- product molasses can be used to manufacture alcohol, but here they sell it out to

formers, as they use as fertilizer.

It is based on indigenous technology and it will help the in generating power through

biogases based co- generation, which is renewable, and less polluting.

It will reduce the demand and supply gap of KPTCL and help to improve the equality of

electricity.

LOCATION TO THE NANDI SAHAKARI SAKKARE KARKHANE

NIYAMIT, BIJAPUR.

The particulars of the locations of the NSSKNK are as follows:

REGISTERED OFFICE : The Nandi Sahakari Sakkare Karkhane Niyamit,

Krishnanagar

Tq: Bijapur

Dist: Bijapur



Karnataka state

FACTORY SITE : The Nandi Sahakari Sakkare Karkhane Niyamit, krishnanagar

Tq: Bijapur

Dist: Bijapur

Karnataka state

NSSKNK start its plant at Galagali, Tq: Bijapur, Dist: Bijapur. The co-promoters

considering economic distance, availability of labor and availability of infrastructure facilities

have selected the site.

MANAGEMENT AND ADMINISTRATION


TOP LEVEL MANAGEMENT

CONSIST of chairman and managing director, Director and Promoter

MIDDLE LEVEL MANAGEMENT

CONSIST of Department General Manager and all Department head.


RAW MATERIAL AVAILABILITIES

The command area of this factory will be in Bijapur and Bagalkot district, which will b

allotted by the commissioner for cane development and director of sugar Karnataka government

at the time of single window agency clearance, schedule shortly.

The entire operation is within a radius of 50kms from the site of the factory. Around 70%

of sugarcane area is within 25kms from the factory site.

The average rainfall in the area of factory for last 10 years is 515mm. the rainy season

ranges between June to December.

NANDI SUGAR’S enjoys good climate condition with the average temperature range

between 40c, in the month of May and in the December from last 10 years.

The soil in the area of operation shallow to deep back cotton soil and well drained. The

pH value ranges from 8% to 8.3%, which is suitable for sugarcane cultivation.


LOWRE LEVEL MANAGEMENT

CONSIST OF Accountant, cashier, elect. Eng.., shift eng.., civil eng..,w/s in charge, security, worker etc...


EXISTING RAW MATERIALS (Sugar cane)

The Sugar cane produced in the area of operation of NANDI SUGARS is deposed off in

the following manner:

In the year 2009-10 in the factory operation area over 26020acrs of cane has been grown,

that has yield 6, 71, 080MTs of cane. And from outside the operation area it has taken

59,072MTs. Therefore in the current year the total intake of the factory is 7, 30,153MTs.

SEED DISTRIBUTION:

In the year2009-10 factory has distributed over 28769.429MTs of seeds to 10,380acrs of

land. Apart from this it has opened cane development department. It is run with the help of V.S.I

Poona, and from Dharwd agriculture university it has took 14 new variety of cane.

With the help of these two it has conducted the following experiments:

Providing good variety of cane to the factory.

Developing good variety of cane by Tissue culture.

Along with this factory is providing few more facilities so that to get better result. In the year

2009-10 the following variety of cane has been grown, and that has given better result. They are:


VARIETY SEED

DISTRIBUTION(MTs)

CO-86032 84.140

CO-91010 84.700

CO-99006 8.760

CO-94012 24.280

CO92020 4.100

CO671 22.400

TOTAL 228.380


MAN POWER

As per the staffing pattern planned by NANDI SUGARS man power requirement for integrated

sugar and co-gen plant is 689, as NANDI SUGARS is in traditional cane growing area and

surrounded by sugar mills, in meeting man power requirement of skilled, semi-skilled, and

unskilled worker and other

Officials.

For operation of grid connected co-gen project, NANDI SUGARS has to employ skilled

worker or supervisors and well experienced engineers having sufficient exposure of operation of

power project. 401 persons were working as permanent in the factory and remaining 221 persons

were as only seasonal and as daily wages 67.

The shift details of the NANDI SUGARS are as follows:

In the season there were 3 shifts.

1st shift 4am to 12pm



2nd shift 12pm to 8pm

3rd shift 8pm to 4am.

General shift 8.30am to 5.30pm (1hr lunch break)

Administration timing 10am to 5.30pm

Attendance system is fully computerized, that is done through the thumb impression

system. In this general shift workers has to punch 4 times and shift base workers has to punch 2

times.

SUMMARY OF WORKERS

SL.

NO

Department Permanent Seasonal Daily wages Total

1 Engineering 142 42 11 195

2 Manufacturing 14 92 27 133

3 CDO 80 33 6 119

4 Administration 57 7 5 69

5 CIVIL 7 5 6 18

6 Time office 6 2 - 8

7 Vehicle 11 18 - 29

8 Store 15 4 3 21

9 COSEN 69 18 9 96

10 TOTAL 401 221 67 689



TECHNICAL KNOW HOW AND INSPIRATION

Factory has purchased CHAPED CANE FOR INDIAN CONDITION 4 FOOT

MECHANICAL CANE HARVESTER MACHINE which has 4000 syringes. This machine

purchased from NEW HOLAND COMPANY. Factory purchased 30 machines which are costing

around 72.85lakhs. This machine is used for cutting 4feet height cane.

The factory appointed MS. INDIAN SHUKRO Tech... For increasing the daily crushing

capacity from 5000tcd to 6000tcd. And to reduce the steam usage in the Boiler, at present the

factory using the steam 38% that has reduce up to 34%.

Factory has decided to increase the cane yard space to another 2.30acres. The present space is

not sufficient for the purpose of the cane yard as the factory decided to increase its crushing

capacity.

At present the factory is getting technical assistance from national co-operative sugars

association new Delhi and Karnataka state co – operative sugar factory association ltd.,.



DEPARTMENTAL

STUDY



ADMINISTRATION DEPARTMENT

Administration department is one of the very important departments in the organization.

This department handles and maintains all the documents that are important for the organization.

The working hours of this department 10.30 am to 5.30pm. All types labor related and industry

problems like non- co-operation, absenteeism, etc.,

Administration department consist of the following sections, which works independently,

PURCHASE DEPARTMENT

MANUFACTURING DEPARTMENT

SALES DEPARTMENT

TIME DEPARTMENT

COMPUTER DEPARTMENT

STORE DEPAQRTMENT

SECURITY DEPARTMENT



1. PURCHASE DEPARTMENT

Purchase section is one of the important sections of the administration department, and is

responsible to purchase all materials on behalf of the factory.

Factory is now providing the good value for the cane provided by the formers, which is

helpful in the development of the economic condition of the village. Current year the price for

1MT is 1449-10Rs.

Following are the figures shows that purchase sections cost for cane purchasing.

Factory’s

overall

function

depends

upon the

purchase

department,

which helps

to get the


Cane purchase tax 4,53,51,659

Value added tax 2,11,785

Central custom duty 7,93,33,128

Karnataka entry tax 7,55,832

TOTAL 12,56,52,404


quality of cane from the harvesting area. The following are the functions which the purchasing

department performs. They are as follows

FUNCTIONS:

Receiving and sending materials requisition letter from different departments.

This includes all the necessary description regarding the materials to be purchased.

Receiving quotation from the seller to whom enquiry letter were sent.

Preparing Co- operative statement on the basis of the prices quoted by different seller

presenting the same in the meeting of purchasing committee.

Purchasing the materials according to the resolution passed in the meeting of purchasing

committee.



2. SALES DEPARTMENT

The duty of the sales department is to look after the sale transaction of sugar, Bagas,

molasses materials. The factory has to sell the sugar according to the notification of the central

government. The central government is giving permission for a particular quantity for sale of

sugar. The company has already taking permission for selling the molasses, but presently it has

no permission for selling the sugar.

Process of sugar sale goes like, sale manager give tender for the sale at sugar then

he receive quotation from various interest buyers. The sugar is sold to the person who

quotes the highest rates. The rates fixed considering the rate of the other sugar producing

factory in the area, if the rate is not satisfaction, the tender rate is cancelled.

FUNCTIONS:

Arranging the tender for selling the sugar.

Collecting the money from the buyers of molasses and bagas through cheques and

draft.

Making the tax payment to the central government and state government.

Taking care of all sales transaction of the factory.



SUGAR SALE DISCRIPTION (in mts)

SL.

NO

DISCRIPTION 2005-06 2006-07 2007-08 2008-09 2009-10

1> SUGAR

PRODUCTION

A>

Initial cost( per

quintal)

252104 299499 549390 421588 391395

B>

Production 517475 682542 920498 647447 714161

C>

Total 769579 982041 1469888 1069035 1105556

2 Sales 470080 432651 1048300 677640 594536

3 Total expenditure 299499 549390 421588 391395 511020

4 Income from sales 7599.10 6617.33 11341.94 10073.98 14789.72

5 Per quintal sale

rate

1616.56 1529.49 1087.14 1486.63 2487.61



3. COMPUTER DEPARTMENT

Computer department is a part of administration department. Since manual working is

costly, tedious and time consuming, the factory has computerized some of the department. So

the function of the computer section is to look after computer and maintaining records in

computers. Two people are two people working in this section.

Following are the department which had been computerized

SALES ACCOUNT SECTION

PURCHASE DEPARTMENT

CANE ACCOUNT DEPARTMENT

SALES DEPARTMENT

STORE DEPARTMENT

TIME OFFICE

WEIGH BRIDGE DEPARTMENT


2005-06 2006-07 2007-08 2008-09 2009-100

200000

400000

600000

800000

1000000

1200000

sales

sales


STORE DEPARTMENT

Keeping the stock of all types of materials, which are purchased for smooth running of

factory, is the main function of the section.21 person are working in this section according to sift

wise under. This shift changes every 8 hours.

In your factory you are having 7 ware houses. They are having the different capacity. They are of

1LAKH qtl 4

75000qtl 3

TOTAL 7

As the factory increasing its crushing capacity, factory decided to build another ware house of

capacity 2 lakh quintal,, which is costing around Rs.182.50lakh. for the loan it has sent the letter

for approval to the NCDC and they have sanctioned the loan amount of Rs136.87lakh.

FUNCTIONS;

Receiving requirements from department

Preparing purchase indent at which details regarding the previous part from which

materials, where purchased, price, etc., are return.

Sending the purchase indent to purchase department.



Receiving the purchase material and sending approval memos to the concerned

departments. Asking them to check and certify the materials purchased as to quality,

quantity, etc.,

Recording the details about materials purchased in the concerned accounts

Sending bills for payments to the accounts section

4. TIME DEPARTMENT

This is another section under the administration department, this section works for 24

hours in a day i.e., which is divided into three shifts and each shift is of 8 hours. In this

department everything is related to the worker, the department in which he works his attendance

in that department, and his salary etc.

FUNCTIONS

Maintaining the attendance of the employee takes place. According to this salary of

employee to be decided.

It also does the maintenance of the Attendance register, salary register, absent register,

leaves register, Employee record life.

This department is also responsible for the dress, neatness and time of coming and

outgoing of the employees.



5. ACCOUNTS DEPARTMENT

This department maintains all the record of transactions and makes the entries according.

This section is only meant to deal with monitory transactions and to maintain the profit &loss

account, Balance sheet and such other Books. In the department other two sections comes which

are as follows


ACCOUNT DEPARTMENT

GENERAL ACCOUNT SECTION

CANE ACCOUNT SECTION


GENERAL ACCOUNT SECTION:

In this section it maintains other than transaction related to cane. The transaction includes

payment of sell tax, income and all such type of things.

Different types of register, which are maintained in this section, are as follows

ADVANCE REGISTER

BANK REGISTER

A CONTRACTOR REGISTER

A DEPOSITOR REGISTOR

EXPENCE REGISTOR

FIXED ASSETS REGISTOR

STORE SUPPLIER

CANE ACCOUNT SECTION

Cane account section maintains the record of purchasing the cane according to the period.

FUNCTIONS:

Making all the payments of all the types, on the behalf of the factory.

Supply pay bills

Reducing amount from salary of employees for gratuity, provident fund, Tax deducted at

source etc., which are payable to government.

Making payment to the government, the above amount.

Maintaining record related to deduction like gratuity, PF, etc.



Maintaining all other accounts this does not come under the preview of cane account

section.

6. PRODUCTION DEPARTMENT

Under this department there are two more sub departments they are engineering

department and manufacturing department.

ENGINEERING DEPARTMENT:

In this department all the works which are related to the engineering will take place. The

work of unloading of cane, kicking and cracking, pressing and Boiling of water etc,.

WEIGH BRIDGE SECTION:

In this section weight of the vehicle is weighted. The cane is weighted so that to make a

summary of available stock of sugar cane. The cane is weighted under electromechanical system.

There are different capacity of weights are available as they carry from different sources, i.e., by

trucks, tractors, and by carts. The trucks are keeping the capacity 10 – 15tonnes and tractors 8-

10tonnes and carts were of 5tonnes.

The capacity of weighbridge limited to 40 tonnes only it has got there types plant

formants for different vehicles.

For Block carts 10mts in length

For tractors 14mts length

For trucks 12mts length



MILLING SECTION

It’s the next of weigh Bridge; the steps under this section are as follows,

Unloading of sugar cane by cranes

Sugarcane is then fed in feeder table.

From feeder table the sugarcane is passed to freezer.

From freezer the cane is sent for crushing and from there it is sent to pressing.

After pressing the cane comer to main bagas carrier.

BOILER SECTION

Boilers are one of the main apparatus in this production of sugar. It is used to generate the

steam in the process goes like; the water is filled in the tube under the boiler and heated with

the help of wood and bagas. The factory does not depend on the KPTCL for the supply of

electricity. They generate their own power through this boiler.

At present the factory thinking of to implement the coal-handling system by which they

can generate electricity in the month of April and may when the supply of electricity is less.

BAGAS

It is one of the basic raw materials used in boiler for generating power. After the pressing

process of sugarcane, juice and bagas are separated. The juice goes to boiler house and bagas

goes outside the production unit through bagas chain. Depending upon the requirement the

bagas is taken from that remaining is left outside preparation of bagas bundles.

WORKSHOP:



It is another section in engineering section. The main function of the workshop is

to repair the machinery and taken care of them. This department maintains the stock of spare

parts such as nuts and bolts etc,

For machinery, machine in workshop are leth machine, drilling machines, shaping

machine, cutting machine.

7. MANUFACTURING DEPARTMENT

This is the department under the production department, as the name suggests that

here the manufacturing of sugar takes place. As in engineering section here also the

following are the sub- departments listed below:

MILLING HOUSE:

Milling section is also one of the sub-sections in engineering section. The various

equipments and machines used in the sub-section and their functions are.....

CRANES:

Crane is equipment, which is used to lift or unload some heavy materials from the

vehicles. In the factory the crane is used the sugarcane from the sugarcane carrying vehicle.

So the main function of the crane is to unload the sugarcane from the vehicle and putting the

sugarcane into the feeder table.

FEEDER TABLE:

Feeder table is equipment, which gets the sugarcane from the crane and feeds it into

carrier chain. In this way the feeder table works between crane and carrier chain. This is

helpful for uniform feeding of cane into the cane carrier.

CRUSHING MACHINE

This is the main machine which crushes the sugar cane to it through the carrier chain.

Crushing the cane is the main function of this machine. After crushing the sugarcane it sends

to the pressing machine through carrier chain.

The following are comparative of cane crushed during the five working years. (in MTS)



SL.

NO

DISCRIPTION 2005-06 2006-07 2007-08 2008-09 2009-10

1 Starting date 24-10-05 27-10-06 12-11-07 23-10-08 02-11-09

2 Ending date 07-05-06 13-07-07 09-06-08 03-03-09 01-05-10

3 Working days 196 260 211 132 180

4 Total cane crushed 532120 776352 687973 401959 730153

5 Sugar production 609330 880670 846383 428281 817700

6 Avg. sugar recovery 11.47 11.35 12.28 10.64 11.20

PRESSING MACHINE

Pressing machine is a machine, which is used to press the crushed sugarcane. The main

function of this machine is pressing the crushed sugarcane and separating the juice and

bagas. Then the juice will go to manufacturing unit and the bagas will get to boiler section

for further process.



8. CIVIL DEPARTMENT:

FUNCTIONS:

1. Maintenance of all civil works, building, equipment foundations. Etc.,

2. Maintenance of the housing colony and guest house the repair of the quarters

provided to the employees and workers.

3. White washing and painting works in the factory building areas and

residential areas.

4. Construction of new roads and repair of old roads.

5. Construction of new quarters.

6. Repair and maintenance of water supply to factory and residential ares.



PROCESS OF SUGAR MANUFACTURING

Sugarcane is a perennial herb belonging to the grass family. Native to tropical and

subtropical regions of the world, this tropical grass is 10-24-feet tall. Bears long, pointed leaves,

and has several stalks. The segmented stalks have a bud at each joint and as the plant matures,

small flowers appear.

Sugarcane cuttings are planted in fields by workers or mechanical planters. In order for

the cane to grow, the seeds must be planted in well-drained soil. Typical cane soil is made of a

mixture of silt, sand, clay particles and organic matter. Canes are spaced at least 4-feet apart and

lined in rows and covered with soil. Fertilizers are applied from the time of planting up until the

beginning of the ripening period. Cane fields are also routinely weeded to provide for optimum

growth of the cane. Depending on the region where the crop is planted, cane seasons last from 8-

22 months.

Manufacturing section is the production department. The production of pure sugar is

carried on this section. It consist of various sub-section like juice weighing, receiver, sulphiter,

clarifier, vacuum filter, evaporator etc.,



The process of sugar manufacturing consists of following steps:

35c


BAGAS SE 1st by product feed for boilers as a fuel where steam is generated.

CANE WEIGHT

CANE UNLOADING

CANE PREPARATION

MILLING

JUICE

CANE YARD


Heated to 35c – 70c

Milk of lime and so2

70c – 105c


Filter cake

2nd by product. Used as

JUICE PRE - HEATING

SULPHITATION

SECONDARY HEATING

CLEARIFICATION

EVAPERATION

SYRUP

SYRUP SULPHITATION

OLIVER FILTER


1. CANE YARD:


PAN BOILING

CRYSTALLIZER

CENTRIFUGALS

SUGAR


In this section the sugar cane is made stock is maintained. It is done so that in case of

shortfall of cane for the next shift, so that process has to be continued. It is maintained at

the level that minimum6-8hrs production process will be continued.

2. CANE WEIGHT:

In this section sugar cane is weighted. The cane is weighted so that to make a summary of

available stock of sugarcane. The cane is weighted under electromechanical system. There

are different capacity of weights are available as they carry from different sources.

3. CANE UNLOADING :

After the weighing, cane is unloaded from sources from where they bought. The cane is

then feed into feeder so that it will make avail for the next procedure.

4. CANE PREPARATION:

In this step the cane is cut into small pieces so that it will be easy to extract juice from the

cane. It is important step that it will help to smooth flow of next step.

5. MILLING:

It’s the next of weigh Bridge; the steps under this section are as follows,

Unloading of sugar cane by cranes

Sugarcane is then fed in feeder table.

From feeder table the sugarcane is passed to freezer.

From freezer the cane is sent for crushing and from there it is sent to pressing.

After pressing the cane comer to main bagas carrier.

6. JUICE:



Stalks are thoroughly washed and cut when reaching the sugar mill. After the cleaning

process, a machine led by a series of rotating knives, shreds the cane into pieces. This is known

as "grinding." During grinding, hot water is sprayed on to the sugarcane to dissolve any

remaining hard sugar. The smaller pieces of cane are then spread out on a conveyer belt.

The shredded pieces of sugarcane travel on the conveyer belt through a series of heavy-

duty rollers, which extract juice from the pulp. The pulp that remains or "bagasse" is dried and

used as fuel. The raw juice moves on through the mill to be clarified.

7. SULPHITATION:

a. Passing through receiver mixed juice passed to juice sulphiter. Here SO2 gas and

LIME (milk of lime) are added and heated up to105c mixing ration.

b. Then the mixed juice will call sulphiter juice, the sulphiter juice received from the

mill will be colored turbid fluid rendered forth by entangled air. The color varies

from the light gray to green depending upon the non-sugar constituents is

generally derived from the matter in the cane stack. The coloring matter is derived

from soil and exteriors matter received with the sugarcane.

7. CLERIFIER:



Clarifier is also known as Dorr. In this step sulpharate juice is heated up to 105c, after

heating the clear juice is separated from muddy juice. It will go to vacuum filter and the

clear juice will goes to evaporation.

Carbon dioxide and the milk of a lime are added to the liquid sugar mixture and it is

heated to the boiling point, as the process of clarifying begins.

As the carbon dioxide travels through the liquid it forms calcium carbonate, which

attracts non-sugar debris (fats, gums, and wax) from the juice, and pulls them away from

the sugar juice. The juice is then pushed through a series of filters to remove any

remaining impurities.

Along with clear juice we get Oliver filter, from which we get filter cake, which is

considered as 2nd by product and used as fertilizer.

8. EVAPORATION :

There are totally four evaporator are used in processing. In this step the juice is heated at

different temperature in different evaporator for becoming the syrup. Different

temperature is as given below....

EVAP 1 110C

EVAP 2 105C

EVAP 3 85C

EVAP 4 80C

The clear juice which results from the clarifying process is put under a vacuum, where the juice

boils at a low temperature and begins to evaporate. It is heated until it forms into thick brown

syrup.

The syrup which we get that will then put to sulphiter. This is known as Juice Sulphiter. Passing

through receiver mixed juice, passed to juice sulphiter. Here SO2 Gas and Lime are added and

heated up to the 130c temperature. Mixing of SO2 Gas and LIME is properly

6.3 – 7.0 = Ph sulphiter



10.0 – 11.0 = Ph of Lime

Then the mixed juice will call sulphiter juice received from the mill will be colored turbid

fluid, rendered forth by entangled air. The color varies from the light gray to dark green

depending upon the non-sugar constituents is generally derived from the matter in the cane stack.

The coloring matter is derived from soil and exteriors matter received with the sugar cane.

9. SULPHITER

In this step the syrup is added to SO2 Gas for the purpose of avoiding hardness state.

10. SUPPLY TANK

The syrup is transferred to different supply tank. There are totally 10 supply tanks.

SYRUP TANK 3 NO’S

MELT TANK 2 NO’S

C-LIGHT (CL) TANK 1 NO’S

B-HEAVY (BH) TANK 1 NO’S

A-HEAVY (AH) TANK 1 NO’S

A-LIGHT (AL) TANK 1NO’S

11.PAN BOILING:

The object of pan boiling is to obtain maximum amount of sugar from syrup through

crystallization under vacuum pans.

Just like an other heat exchange PAN will have a separate jacket for steam heating

vapor space for circulation of molasses or syrup being concentrated and adequate space

allowance for generated vapor and splashing at sugar or juice particulars. PAN capacity is

different mass cuties.

12.CRYSTALLIZER :



By evaporating what little water is left in the sugar syrup, crystallization takes place. Inside a

sterilized vacuum pan, pulverized sugar is fed into the pan as the liquid evaporates, causing the

formation of crystals.

The remaining mixture is a thick mass of large crystals, which is sent to a centrifuge to spin and

dry the crystals. The dried product is raw sugar, still inedible.

There are totally ten crystallizer are used for the process of sugar. The main purpose of using

crystallizer is to store the heat sugar and cool the temperature of heated sugar. Two crystallizer

are used for staring the molasses, two crystallizer for storing melted sugar, and two crystallizer

for storing heated and remaining four for storage purpose.

13.CENTRIFUGAL MACHINE

This is the step where the sugar cane is converting into sugar. Here actual sugar is comes out.

There are three center fuse machine are used for the process of becoming sugar. But only A –

CENTRIFUGAL MACHINE is used for producing sugar. The remaining will for reprocessing.

Then the final sugar is made available , which is ready for market. This is ready to use

sugar. The sugar is then weighted around 100kgs. In bags. Which is then stored in go dawn so

that will send to market where that will be needed. The sugar which comes out that is classified

in A, B, C category. A category sugar is small in size compare to B and C category sugar. C

category sugar is much bigger than the A category sugar. Which we can sese in ration shops.

PROCESS OF CO- GENERATION POWER PRODUCTION

BOILER:



Boiler is one of the main apparatus in the production of sugar and to run the industry. It is used

to generate stream. The process of Boiler is the heavy glass tubes where filled by the water and

they are situated in boiler and heated with the help of wood and Bagas comes from milling. And

the Boiler is heated with maximum of 485 with the pressure of 45kg/cms. Then automatically the

steam is generated. The generated steam is passed though turbine.

TURBINE:

The generated steam is directly comes to turbine. Turbine has five routers. At the force of steam

passes the router will have automatically rotated at the speed of 8325RPM. And the routers will

rotate phinvin; at the stage of phinvin rotating automatically the gear wheel is rotating.

ALTERNATOR:

The main function of alternator is to generate electrical power. The gear wheel is connected to

alternator. The gear wheel is rotates the alternator at the speed of 1500RMP. Here the steam is

generated as electrical power. Through alternator the factory is produces 15MV. But the factory

is thinking that to increase upto 28MV.

AVR control panel:

The main function of AVR Control panel is to store the generated electric power. And then

passes to distribution panel.

DISTRIBUTION PANEL:

The main function of Distribution panel is to distribute electric power to action center.

The electricity which is generated by this factory is supplied to K.P.T.C.L at the rate of

Rs.2.97/unit. But at present it is costly to generate electricity and the price at which K.P.T.C.L is

giving not sufficient, for that factory is deciding to sell it electricity to the private companies like

TATA, Power, Reliance Power, etc., in open excess, from which it will get Rs.4 to Rs.5/per unit.

Now the factory is using the Bagas to generate electricity in the co-generation. But this

Bagas is available at the time of production season. But in the month of March, April and May

the electricity supply is less, so the factory is thinking to use the Bagas with the mixture of Coal,



by which they can save more Bagas which can be use in off season. For this they are using coal

handling system which will help them to reach their goal.

In your factory yard there is daily availability of sugarcane is about 2500Mts to 5000Mts, so that

they have decided in their general annual meeting that they increase their crushing capacity.

Apart from that they are expanding teir electricity generation capacity from 15MV to 28MV.

From the crushing capacity of 5000TCD to they are increasing to 7500-1000TCD, during the next

financial year.



SWOT

ANALYSIS

STRENGTH:

High availability of cane within the command of area and willingness of cane growers to

supply cane to the mill.

Sound financial background of sugar mill,

All around support for sugar co-generation from central government or KPTCL which

include capital subsidy of KREDL



One of the integrated sugar co-gen projects in Karnataka will help to reduce the national

problem of power shortage.

WEAKNESS:

Unable to use sufficient raw materials available in the area

Contact between the top level management and low level management is poor

OPPORTUNITY:

Using any other agro waste fuel (sugar cane trash) to reduce seasonally or off seasonally

bagas requirement.

Possibility of wheeling or banking arrangement with KPTCL grid

Expand sugar capacity and co – gen; diversify into alcohol distillery and down steam

chemical unit.

THREATS:

Fluctuation in cane and bagas availability

Non – availability of low rate financial assistance.

RECOMMENDATIONS:

To visit Nandi Sugars i have some recommendations

SUGGESTION BOX:

I found there is no suggestion box in the organization. Use the suggestion

box to know drawbacks of the department.



HUMAN RESOURCE DEPARTMENT:

To start the HR Department for knowing the problems of workers and

employees. This will help to improve willingness and working capacity of

worker as well as employees.

Use high technology to improve production

CONCLUSION:

The Nandi Sahakari Sakkare karkhane Niyamit Krishnanagar is one of the

leading sugar manufacturers in Bijapur District. It is observed that the company is

performing well. The management if the company will attain the inventory in a

well manner. Since it is earning well and it has expanded its sales area overall

performance of concern is countable.



BIBLIOGRAPHY

MARKETING MANAGEMENT- Phillip kotler

ORGANIZATION STUDY – Subba Rao

PRODUCTION AND OPERATION MANAGEMENT- Ashwathappa

MANNUAL OF NANDI SUGAR’S.


BALANCE SHEET AS ON 31-03-2009SL.NO

LIABILITIES AMOUNT AMOUNT SL,NO

ASSETS AMOUNT AMOUNT

1 Authorised Share Capital 25,00,00,000.00

1 CASH IN HAND AND IN BANK 6,73,78,749.81

Paid up Share Capital 14,62,17,000.00

1> Cash in Hand 26,933.00

1.> A class Share of Rs.2000 each 6,08,64,000.00 2> Bank C/A 6,73,51,816.00

2.>B class Share of Rs.2000 each 11,16,000.00 3> Collection of Cheque Hundee 0

3.>C class Share of Rs.2000 each 8,28,75,000.00 2 INVESTMENTS 1,79,37,110.25

4.>D class Share of Rs.2000 each 13,62,000.00 1. DEPOSITS

2 RESESRVE AND SURPLUS 73,94,17,127.47

a> Government Department 38,46,391.00

1. Statutary reserve fund 8,18,50,551.26 b> Suppliers fund 17,70,943.00

2. Non-statutory Reserve fund 2. Society Shares

a. Depreciation fund58,52,35,632.21 a> B.D.C.C bank Belgaum 10,05,100.00

b. Sinking fund 87,80,310.00 b> B.D.C.C Bank Bijapur 53,93,000.00

c. Education Fund 7,89,415.00 c> B.D.C.C Bank Bagalkot 42,50,100

d. Price fluctuation reserve 3,68,20,481.00 d> karnataka sahakari sakkare karkhanegal mahamandal banglore 1,00,000.00

3. Cane Develpoment fund 40,00,000.00 e> karnataka Rajya Sahakari Apex Bank Banglore 10,000

4. Labor welfare fund 1,35,50,374.00 f> Rashtriya Chitra Mattu kalatmaka Sahakari Samsthe Delhi 11,576.25

5. Donation and Road Development fund 8,22,650.00 g> Ipko Company shares 10,00,000.00

6. members pension 6,87,959.00 h> Ipko Company Shares 5,25,000.00

7.Nandi Educational Society Building fund 68,79,755.00 i> karnataka Rajya Sahakari insurance society 25,000.00



BALANCE SHEET AS ON 31-03-2009 SL.NO LIABILITIES AMOUNT SL.NO ASSETS AMOUNT

3REDEEMABLE LOAN &ADVANCES 3 LOANS AND ADVANCES 65,32,974.30

A) WORKING CAPITAL LOAN 43,74,50,036.00 4 FIXED ASSETS 444,19,28,865.92

B) SECURITY TERM LOAN 28,63,46,176.00 5 OTHER ASSETS 3,86,20,553.74

C) DEPOSITS 20,10,18,307.11 6DEVELOPMENT AND RENEVAL 67,25,28,252.32

4 CURRENT LIABILITIES 23,26,40,284.49

5 OTHER LIABILITIES 1,23,39,879.65

6 GROSS PROFIT 3,58,37,694.23

NET PROFIT209,12,66,504.95 209,12,66,504.95


ORGANIZATION CHART


BOARD OF DIRECTORS

CHAIRMAN AND MANAGING DIRECTOR

GENERAL MANAGER

Ch.a/c officer Cane devp officer Sr.Engineer Ch. chemist Office supdt Purchse in charge Store keeper

General A/C sec Cane A/C

Sr. A/Ct Asst, cane A/C

accountant cashier

Asst.C.D.O

Cane supply officer

Elect, eng Shift eng Civil eng w/s eng Instument eng

Go dawn keeper Sr, mfg. chemist Lab incharge chemist

Time keeper security transportation

Um a Shankar

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