Organization Study at Nirani Sugars

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CHAPTER-I
1

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

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

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

5

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

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

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

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

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

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

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

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

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

15

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

17

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sales process of Sugar
Bagging
Godown
Tender
Dealer
D.D
Sales process of Molasses
Molasses
Tender
Distilleries/Dealers
D.D
32

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

49

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

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

FINDINGS
52

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

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

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

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

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

Organization Study at Nirani Sugars

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