COMPANY PROFILE

HISTORY OF SUGAR
Sugar the most important Agro based industry of India has its marked place in the
countrys economy. The reforms under the liberalization policies of Government of
India are fast taking place and changing the industrial sense in the country. However it
appears that the winds of liberalization and deregulation which are blowing presently
through other industrial sectors have by passed the sugar industry. Moreover Indian had
spread over mainly in rural areas; as such major share of benefit should flow towards
rural population. Besides, present position of the industry is Shakthis. The policy of
supporting farming economy by only increasing sugarcane prices will ultimately raise
the sugar cost, so emphasis had to be towards cane development both by yield and
quality. So at this juncture it would be appropriate for Government to consider, if not
foil liberalization at least partial by eliminating some of the undesirable constrains
which help the industry in the changing environment when India needs to increase its
foreign earnings in the world market.
INDIAN SUGAR INDUSTRY
India is the largest consumer of sugar in the world and the Indian sugar industry is
the second largest agro-industry located in rural India.
With 453 operating sugar mills in different parts of the country, having a capacity of
3,500 tons per day, the India sugar industry has been a focal point for socio-economic
development in the rural areas. The industry not only generates power for its own
requirement but surplus power for export to the grid based on by product bagasse. It
also produces ethanol, an Eco-friendly and renewable energy for blending with petrol.
The governments de-licensing of the sugar sector in August 1993, removing the
restrictions on expansion of existing capacity as well as on establishment of new units
had contributed much to the industrys growth.
The area under sugar too had increased from 2.67 million hectares in 190-81
producing 154 million tons, to 4.36 million hectares in 2002-03 production 282 million
tons.
However, the last two years saw a decline in area under sugarcane and also quantity
produced due to various reasons leading to a rise in sugar prices.
The Indian sugar industry had always been highly regulated by the way of

requirement of a license for setting up or the expanding of a sugar factory restriction

and control on the sale and dispatches of sugar, Fixation of statutory minimum cane
price payable, fixation of levy sugar price, restriction on import and export, restriction
on stock holdings and so forth. With the government decision to liberalize the economy
since 1991, some of restrictions were removed.
INTERNATIONAL STATUS:
The consumption of sugar in Asian countries is increasing as a direct result of
lower sugar prices and free availability. During the 25- year period from 1970-71 to
1995-96, Asia recorded an impressive increase of 27.7 million tons in sugar
consumption, up from 17.5 to 45.2 million tons.
Exclusive of the Asian region, in the rest of the world, the growth in consumption
had been of the order of merely 17 million tons during 1970-71 to 1995-96, reflecting a
CAGAR of only 1.06 percent or about 30 percent of the consumption growth rate
recorded for Asia. Among the Asian countries, in absolute terms, the increase in
consumption in the above period had been the highest in India at around 10.1 million
tons followed by China at 4,9 million tons, Pakistan at 2.2 million tons and Thailand at
1.2 million tons. The highest per capita annual growth in consumption was recorded in
Thailand and Pakistan at 13 percent each followed by India at 9 percent and China at
5.9 percent.
In the 30-year period from 1971 to 2001, there was a quantum jump in Asian
production by almost 400 percent from 13.5 million tons to 51 million tons, reflecting a
CAGAR of 4.4 percent. In the rest of world, during the same period, a much smaller
increase on only 1.34 percent was registered from 60 million tons to 84 million tons.
GENERAL INTRODUCATION ABOUT SHAKTHI GROUPS
It is one of the fastest growing business groups in South India. Its many
successful member companies play a significant role in the economic and social
development of south India. The group has been growing fast under the vision of its
chairman Dr.N. Mahalingam, also known as Arutchelvar.
The Shakhty group is one of the largest producers of sugar in the country. It has
also diversified interests in industrial Alcohol, Effluent Treatment Plants, Cast Iron
Foundry, Textiles, Transport, Finance, Soya products etc. As a dutiful corporate citizen,
the group has set up many educational and charitable institutions, hospitals and
religious centers.
SHAKTHI GROUP

ABT
Parcel
Service

Shankthi
Finance

4 Units
Tamilnadu

Bhagavatih
Textiles

Sugar
Unit

Sri Chamundeshwari
Sugars Pvt. Ltd
Bharathinagar
Karnataka

Tea
Plantation

Distillery
& Others

2 Units in
Orissa

BACK GROUND AND INCEPTION OF THE COMPANY

SCS Ltd is one of the most leading companies of Shakhty groups, the group owns
25 units, and most of them are agro-based units. Except 3 (distillery and finance
corporation). Shakthi groups main objectives is to earn profit, besides it vigorouslyconcentrates as rural development by improving economic and social standard of the
people in rural area as an education, infrastructure facility, cultural modernizations and
employment. The group is upcoming in Karnataka & Tamilnadu
Sri Chamundeshwari sugars limited are the company under the group Shakthi
sugars limited. The company is a leading, professionally managed, private limited
company engaged in production of white plantation cane sugar.
The company under the leadership of Dr.N. Mahalingam, chairman and founder
established the company in June 1974 at Bharathinagar (K.M.Doddi), Mandya District.
The factory premises have 86.22 acres of land. In the premises there is a sugar unit,
distillery unit, effluent treatment plant, bio-gas plant, sugar gowdon, molasses storage
tanks, management office, accounts office, cane office, cane yard weigh bridge, garden,
SCS sugars school dispensary, guest house and 20 acres of land to undertake research
and development activity.
The company started in 1974 with a crushing capacity of 1250 tons with manpower
of 300 employees. In the year 1980 the cane crushing capacity was changed to 2500
tons per day with manpower of about 450 and again it was increased to 3000 tons per
day in 1989.
In the year 1994 the cane crushing capacity was increased to 4000 tons with
manpower of 700 employees. In the year 2008 the cane crushing capacity was
increased to 6000 tons with manpower of 860 employees.

In 2009-10 the cane

crushing capacity was increased to 4.45 lakh MTS with man power of 1000 employees.
The main raw material for the company is Sugarcane, which is being cultivated by
around 14.000 farmers over 18,000 acres of land around 25 Km radius of the factory
site. The company has engaged around 615 employees to carry out its daily activity.
The latest technological advancement is continuously being installed to modernize
the plant. The company has one of the advanced auto setting, milling tandem for
extraction of juice from sugar cane. The company had imported and successfully
installed hydraulic drives to the mills. It had tremendous impact. The company had also
installed auto controllers at cane carriers, juice sulphiters, continuous pans for grade A

boiling, and planetary gear boxes. It also installed high tech automatic condensing and
cooling systems with resulted 50% power saving.
This is purely a manufacturing company of fine quality of white crystal sugar with
3 grades, S30, M30 & PPm. Every year approximately 8 to 8.5 lakes Tons of cane is
been crushed. Currently, the sugar division has a crushing of 10 lakes tone per annum
Sri Chamundeshwari sugar industry having its registered office at the No.76,
Ulsoor Road, Bangalore-560042. Factory coding No.28101.
NATURE OF BUSINESS CARRIED.
Agriculture Industry:
Sugar industry is mainly depends upon the Agriculture; sugar cane is the main
raw material for the manufacturing of sugar. Therefore, these sugar factory activities
are depended on agriculture. Sometime sugar industry may face the non-availability of
raw material, because of the crops. Low production; failure of monsoon etc., Due to
this reason sugar industry production is vary from year to year.
Seasonal Crop:
Basically sugar industry highly depends on sugar cane. Mandya district is
situated in southern dry zone with moderate temperature and humidity; Rainfall various
from 760 mm to 880 mm, Due to this reason sugar cultivation starts between the
months June to August of every year. Basically sugar cane harvesting starts after 9-10
months. Therefore the cane availability is very high in the month of April and May.

BOARD OF DIRECTORS
SlNo

Name of Directors

Status

Experience

1.

Dr.

Chairman

Industrialist, Engineer

Mahalingam

(Promoter)
2.

Sri.M.Srinivasan (Promoter)

by qualification
Managing Director

B.E M.B.A (U.S.A) Experience in

business over 20 years

3.

Sri.M.Manickam (promoter)

Director

Industrialists, M.Sc. In Maths &

Statistics, M.B.A Experience inbusiness

4.

Sri.

Director

over 20 years of sugar industry.

Industrialists, in Masters degree in

M.

Balasubramaniam

Finance

(Promoter)

&

Experience

Commerce,
of

over

15

5.

Sri K. Prakash

Director

managing various Business

B.A Experience over 13 years

6.

Sri

(Independent)
Director

Advocate in Practice

7.

Advocate)
Sri. V.K. Swaminathan

(Independent)
Director(Independe

(Business)

K.N.V Ramani (Senior

M.B.A
years

in

nt)
8.

Dr. A. Selvakumar

Director(Independe

PhD. (Engineering) Experience of over

nt)

20 years in managing engineering

9.

Sri. Kalyanasundaram

Director(Independe

industries with management vibration

Technologist

10.

Sri.A. Arjunaraj

nt)
Director

Chartered Accountant

(Independent)

ORGANIZATONAL STRUCTURE
CHAIRMAN
EXECUTIVE CHAIRMAN
EXECUTIVE VICE CHAIRMAN
VICE CHAIRMAN
SENIOR GENERAL MANAGER
GENERAL MANAGER
ASSISTANT GENERAL MANAGER
PRODUCTION
DEPARTMENT

FINANCE
DEPARTMENT

MARKETING
DEPARTMENT

HP
DEPARTMEN
T

Manager

Manager
Deputy
Manager

Manager
Deputy
Manager

Manager
Deputy
Manager

Senior
Assistant

Senior
Assistant

Senior
Assistant

Deputy
Manager
Senior
Assistant

Senior
Officer

Senior
Officer

Senior
Officer

Senior
Officer

Assistant
Assistant
Assistant
Officer
Officer
Officer
BRIEF DESCRIPTION PROCESS OF PLANTATION SUGAR

Assistant
Officer

The process of manufacturing white sugar from sugar cane is briefly described as
below.

Cane Feeding:
After weighing, the cane from Lorries and tractors are unloaded into the carries with
the help of mechanical cane unloads and it travels through the cane preparatory devices.
Cane Preparatory Devices:
For maximum extraction of juices and increased handling capacity at the
milling station, the cane is prepared in such a way that the squeezing is made easier
with less power consumption. The cane is passed through the cane preparatory
devices called Kicker, Leveler and Faradizer.
Cane Milling:
A milling tandem consisting of five mills. Each mill has three rollers to extract
the juice and two T.R.P.F rollers to feed the cane. The 1 st mill is driven by D.C. motor
with planetary gearbox. The 3rd and 5th mill are driven latest hydraulic drives and 2nd
and 4th mill are driven by D.C. Motors with conventional system. DC motors of 200
HP for the IST mill independently drive rollers of the T.R.P.F system DC Motors of
150HP drive the rest.
To create a positive head to the T.R.P.F rollers, the Donnelley chutes are provided in all
mills. The bagasse is conveyed through rake type carries from one mill to others.
Steam Generation:
The bagasse from the mills is used in Boilers to generate steam with 21-kg/cm2
pressures and 350C temperature. The factory has three boilers. Out of which 2 Nos are
WIL make having the steam generation capacity of 45 M.T/HR, designed with
FOSTER WHEELER design bridurm, inclined water- cooled gate furnace, air
preheated and hearing surface of 1640 Sq.M. and one no is ISGEC-JOHN THOMSON
make, having the capacity of 20 M.T/HR. the heating surface of the boiler is 10645 Sq.
Ft. the boilers are with auto control system.
Power Generation:
The steam generated is used for driving the steam tubes coupled to alternators.
The electricity generated from our own powerhouse is used for operating the electrical
equipments in the factory. There are three nos. backpressure type steam turbines
coupled to alternators. Out of which 20nos. are having the capacity of 2500K.W
capacity and I no having 2000 K.W capacity.
Juice Clarification
The juice extracted from the mills is weighed and heated up to 70C in the juice
heaters. The heated juice with milk of lime and So2 gas. The phosphate and sulphiters

in the juice react with the Ca0 in lime to from calcium tri phosphate and Calcium
sulphiters respectively. The So2 from the gas react with Ca0 from the lime to from
Calcium sulphiters & Calcium tri phosphate.
The above reaction time of juice in the juice Sulphitation vessel is 6 to 8 minutes. The
lime and Sculpture consumption are 0, 2% and 006% on cane. There are two sulphur
burners to produce So2 gas each having Sulphur burning capacity of 100& 140Kg/Hr.
Evaporator
There are seven vessels in series calle Evaporators to remove water from juice.
The clear juice having 14 to 15 deg. Bricks is taken in to evaporator bodies in series
and is boiled using Exhaust steam in pressure bodies and using vapors in subsequent
bodies that should be under vacuum. About 75% of water is removed and the resultant
liquid is called syrup, which is of about 55-60 deg. Bricks, which is used for further
process.
Crystallizes:
There are 16 Nos. crystallizers each of 55 M.T holding capacity to store and
cool the masscuite for maximum exhaustion of molasses.
Centrifugation:
The associates with sugar crystals and mother liquor are cured in centrifugal
machines to separate the sugar crystals and molasses. The A-Massecuiote is cured using
3 Nos of fully automatic batch machines having 1250 Kg per charge. The B&C
Massecuiote are cured using continuous machines.
Sugar Drying & Grading:
The sugar from the A-Massecuiote is dried in Multi Tray Hoppers of 20 M.T/jr
capacities and sugar is graded and stored in Sugar Bins for bagging.
Sugar Weighment & Storage:
There are 3 Nos. Of auto weighing scale attached to sugar Bins, which are
preset to get 100/50 Kg Net sugar bags are stitched and are conveyed to God own for
stacking.
PRODUCT PROFILE:
The company main product is sugar, it produces Two types of sugars are as follows.
Brown Sugar:
It also called Golden Yellow Sugar White moist granulated sugar blended with
small quantities of pure sugars syrups selected for clout and taste can also be produced
boiling refinery cane syrups until brown crystals from used in backed goods, meat

glazes, and condiments.

Raw sugar:
In the form of dry, brown sugar crystals (the color being due to presence of
impurities) obtained from the evaporation of clarified sugar cane juices imported for
procession into refined sugar.
This product is not sold to consumers because it does not meet Canadian standards for
health and hygiene.

BY PRODUCTS OF SUGAR MANUFACTURE:

a. Bagasse:
Bagasse is the fibrous material from the sugar cane after extraction the juice. Generate
steam and power to meet out requirements of factory independently by making use of
the bagasse.
At present, it able to generate 8 t 10% of surplus bagasse by implementing
steam and power saving devices with the completion of the in-house co-generation
plant project, the surplus bagasse will be used for generating captive power.
b. Molasses:
Molasses is the byproduct separated from C grade sugar during the centrifuging of
sugar crystals. The yield of molasses per ton of cane will be in the range 4 to 4.5%
The entire quantity of molasses produced will be used for captive consumption our
distillery.
C. Press mud:
Press mud, the solid waste form sugar cane, is rich in organic compounds like Nitrogen,
phosphorous and Potassium .Press mud is utilized to produce the bio

manure by

composting with spent wash, a liquid waste from distillery.

c. Distillery:
Press mud, the solid waste form sugar cane, is rich in organic compounds like
Nitrogen, Phosphorous and Potassium. Press mud is utilized to produce the bio manure
by composting with spent wash, a liquid waste from distillery.

VISION, MISSION AND QUALITY POLICY

Vision:
To improve the conditions of the farming community and help overall growth
and socio-economic development of the rural class living in areas surrounding the
factory, thus aiming at upliftment of the society.
We also dedicated to deliver overall value to our customers, deliver value to our
customers, delivering high quality products, exceptional financial performance to our
share holders and complete satisfaction to can-growers, employees and stake holders.
Mission:
Quality & Technology:
To produce high quality products in the most efficient way, by adopting latest
technological developments.
Commitment to Farmers:
To deal with the farmers in a fully open and transparent manner and give
them correct and fair valuation for their raw material & facilitate community
development to the best advantage of the rural people.
Employee centric:
To give ample opportunities to the employees for their career growth and
knowledge acquisition.
Eco-friendly approach:
To operate the plants in an environment friendly manner y meeting the
regulation and requirements and imparting environmental awareness to all the
village people and staff.
Value to Shareholders :
To maximize returns to the shareholders y continuously adding to byproducts and diversification.
Quality policy:
The SCS Ltd assures if its precuts by ensuring strict compliance with the
approval standards and documents systems, use of raw materials and components, as
also proper keep of machinery.

Companys quality policy includes

1.

Selecting the right kind of raw material and accessories.

2.

Adopting stringent quality control at various process of manufacturing

3.

Strict adherence to specification with emphasis on consistent quality in all

areas of operations

4.

Planning Program for acquiring samples in order to endure standard quality.

5.

Product design to fully meet customer requirements including quality, design,

economy etc.
The Quality management system is designed to meet the requirement of the

international standard for each and every order it is been into consideration.
OWNERSHIP PATTERN
The Chamundeshwari Sugar Ltd. is Private Sector Company. The company has
42.9 % of the equity shareholders funds and 52.9% of the capital are held by through
secured loans and remaining 4.2% capital held through unsecured loan.
COMPETITORS INFORMATION
The company has many competitors in different places around the area, and the
main competitors are:
1.

Sri S.C. Mallaiaha Sugar Company Ltd, Koppa.

2.

Mysore Sugar Company Ltd, Mandya

3.

Jagary Manufactures.
The company has many competitors in different places around there area, and

the main competitors are from my sugar Company Ltd. And Sri A C Mallyya Sugar
Company Ltd, There is more competition mainly through supply of Sugar cane
Company set a proper equivalent price to the sugarcane to attract more customers and
make good relation with the customers through cash settlement for Sugarcane
purchases.
The competitors of the company as follows.
1.

The My sugar Company Ltd., Karnataka

2.

The Godavari Sugar Mills Ltd., Karnataka

3.

Davanagere Sugars Company Ltd., Karnataka

4.

Gangavathi Sugar Ltd., Karnataka

5.

Bannari Amman Sugar Ltd., Tamilnadu

6.

Sri Renuka Sugars Ltd., Karnataka

7.

Shamunur Sugars & Ltd., Tamilnadu

8.

Siruguppa Sugars & Chemicals

9.

Athani Farmers Sugars Factory Ltd.,

10.

Jamakhandi Sugars Mills Ltd.,

Basic Details of Sri Chamundeshwari Pvt. Ltd.,

Particulars

Rupees

Turn over for the year 2009-10

11,52,99,558

Total Profit before Tax

16,88,34,191

Reserves and surplus

5,91,31,955

Surplus Carried over to Balance Sheet

17,44,31,513

Review of Operations
Units

Cane

Raw Sugar Sugar

Crushed

Processed

Lakh

MTS

Recovery

Produced

Lakh qtls

Producti
on

MTS

Cogenerati

of on

alcohol

(Power

Lakh

Generated)
Core Units

liters

Bharathi
Nagar
2009-10

4.45

3374

4.17

8.65

93.80

9.22

(2008-

(5.58)

(Nil )

(4.75)

(8.47)

(133.07)

(8.36)

09)
Srinivasp
ura

1.52

Nil

1.42

9.41

-------

----------

2009-10

(4.47)

___

(1.22)

(8.16)

------

---------

(200809)

INFRASTRUCTURE FACILITIES
Production Plant:
The factory is located over a wide spread area of 86.22 acres. This land includes
green belt and other necessary facilities for maintaining clean environment this plant
situated 9 acres in the infrastructure support to the sufficient production and

development of plant.
Canteen:
The infrastructure consists of canteen facility situated beside of production plant.
It provides service to employees 24 hours.
Sports Club:
The infrastructure consists of sports club facility situated near of production
plant. It provides games facility to employees for entertainment. This club consists
of tennis court, badminton court, cricket ground, etc.
Employee Quarters:
The infrastructure consists of quarters facility for employees situated near of
production plant. It provides residential service to employees at low rent with all
facility.
Guest House:
The infrastructure consists of Guest house. It provides service to guests and
visitors with respectively.
School:
The infrastructure consists of school facility for employees children. It provides
good education employees children.
WORK FLOW MODEL
The sugarcane, which is carried by Lorries or other, will be directly fed to the
machine where the initial process stares. At all starting point there are blades, which
cuts sugarcane bunches into individual sugarcane, after this, the next step there is into
very small pieces.
Then it will go to tenders (a series of rollers used for crushing purpose) for
crushing. Then the juice produced will go for further processing and the Bagasse will
be left out there itself. Then the cane juice will be added with
Flocculent (used for mud setting), milk sanitation (used for bacteria killing). Lime
(used to increase pH) and antiscalent (to scale forming substance Ca & Mg during
evaporation).It will be sent to juice boilers, the will be heated up to 7000c and they will
add sulphur (for bleaching of juice)) to this.
Then the sulphured juice will e again heated up to 10000 ca and it will be sent
trough the clarifiers. Here the clear juice will go for further processing and the residual
juice. The clear juice will then be added with antiscalent (to remain the substance Ca&

Mg during evaporation).
And the mixed juice will go thought evaporation. Then the juice will go through
pans and thought Masscuite. For this Masscuite they will and sodium hydrosulphate (to
bleach the masscuite) and it will be separated out the molasses will be send to distillery
and the white sugar will be bagged

WORK FLOW MODEL

Cane from formers
Weighed cane-hauled to crushing year
Cane unloaded on to the carrier
Cane cut into pieces
Crushed in successive mills
Juice treated with lime & Sulphur and heated

Dry chaff fob into boilers fuel

SubSider
Scum
Filter cake used
As manure

clear juice
clear
juice

Evaporates
Concentrated syrup
Sulphured syrup to vacuum pans
Boiler to main site

Centrifugal
Sugar

Molasses

Bagging
Dispatching
Alcohol
Dealers Consumers

Power Alcohol

Portable

FUTURE GROWTH AND PROSPECTS

The management has a future plan for expansion. Due to increase in the supply of
sugar cane it has decided o increases the cane crushing capacity from 4000 to 6000
metric tons per year.
It also projects for co-generating 26 M.W of power per day. The company has been
an eye over future in the coming years. It wants to achieve the followings.
1.

Supply of organic manure to avert the deterioration fertility of land.

2.

Supply of power to farmers for the pump sets and domestic users through grid.

3.

To win over the thought situation management is contemplating to the renewal

the bore well scheme.

Mc KINNEYS 7-S FRAME WORK AT SCS LTD

Its all very well devising a strategy, but you have to be able to implement it if its
to do any good. The seven S frame works first appeared in The art of Japanese
Management by Richard Pascal and Anthony Athos in 1981. They had been looking at
how Japanese industry had been so successful, at around the same time that Tom Peters
and Robert Waterman were exploring what made a company excellent. They seven S
models were born at a meeting of the four authors in 1978. It went on to appear in In
search of Excellence by Peters and was taken up as a basic tool by the global
management consultancy McKinneys 7S model.
Managers said to need to take account of all seven of the factors to be sure of
successful implementation of a strategy large or small. Theyre all
Independent, so if you fail to pay proper attention to one of them, it can bring the others
crashing down around you. Like a lot of these models, theres good dose of common
sense in here, but the 7S frame work is useful way of checking that we have cornered
all the bases.

To better represent the challenges of services marketing McKinney developed a

new frame work for analyzing and improving organizational effectiveness, the 7S
model:
SOFTSs
The 4s across the bottom of the model are less tangible, more cultural in nature, and
were termed Soft Ss by McKinneys
Skills: The capabilities and competencies that exists within the company
Shared values: The values and beliefs of the company. Ultimately they guide
employees towards valued behavior
Staff: the companys people resources and how they are developed, trained and
motivated.
Style: the leadership approach of top management and the companys overall operating
approach.
HARDSs
The 3Ss across the top of the model are describes as HARD Ss
Strategy: the direction and scope of the company over the long term.
Structure: the basic organization of the company, its departments, reporting lines,
areas of experiences and responsibility.
System: formal and informal procedure that govern ever day activity. Covering
everything from management information system, through to the systems at the point of
contact with the customer (retail systems, call center systems, online systems, etc.)

Salary and Wage Determination in Sri Chamundeshwari (p) Ltd.

A know of factors influence and determine the remuneration payable to
employees. They can be classified into

a)

External factors

b)

Internal factors

External Factors:
External factors are consisting of a controlled by the wage board of India. This is
one of the important of India for fixation and revision of wages. Separate wage boards

are set up for separate industries government of India started instituting wage boards in
accordance with the recommendations of the second five year plan, which were
reiterated by the third five year plan wage boards are not governed by any legislation
but are appointed on ad-hoc basis by the government.
Internal Factors:
Among the internal factors which have an impact on pay structure in the
companys capacity to pay job evaluation performance, appraisal and the worker
himself / herself.

Method of Job Classification used in the Organization:

Several employees related factors interact to determine his or her remuneration.
They include performance seniority experience, and potential and even star luck.
Performance : It is always rewarded with pay increase rewarding performance
motivates the employee to do better management prefer performance to affect pay
increases.

Seniority : But unions view seniority as the most objective criterion for pay
increases.

Experience : It makes an employee gain valuable in sigh to and should

therefore be rewarded.
If the wage increases is related to excess profits there is no standard to
determine which profit is normally and which is profit of excess profit can be
determined wages cannot be the first change on profit corporate savings comes out
profits and profits cannot be literal away in the firm of wages.

PAY SCALE DETAILS

Pay scale for Non Officers
Gir

Category

Scale of pay

d
1

Un Skilled

5500-60-6100-65-6750-70-7800

Semi Skilled

5600-65-6250-70-6950-75-8075

Skilled B

5750-75-6500-80-7300-85-8575

Skilled A

5900-80-6700-85-7550-90-8900

Highly Skilled

6000-85-6850-90-7750-95-9175

Clerical IV

5750-75-6500-80-7300-85-8575

7
8

Clerical III
Clerical II

5900-80-6700-85-7550-90-8900
6000-85-6850-90-7750-95-9175

Clerical I

6100-90-7000-95-7950-100-9450

10

Supervisory C

6100-90-7000-95-7950-100-9450

11

Supervisory B

6200-95-7150-100-8150-105-9725

12

Supervisory A

6400-110-7500-125-8750-140-10850

13

Supervisory A Spcl

6600-135-7950-150-9450-165-11925

Pay scale for Officers

Gir

Category

Scale of pay

48
50

Officer I
Officer II & Senior Officer

4750-250-12250
5500-300-13000

52

Assistant Manager

6500-350-15250

54

Deputy Manager

7500-400-17500

56
58

Manager
Senior Manager

8500-450-19750
10000-550-23750

60

Assistant General Manager

11000-650-24000

62

Deputy General Manager

15000-750-30000

Unskilled:

Untrained (attainders) employees will get a minimum basic of Rs.

5500 + 70 as increment for every year.

Semiskilled: Helpers and security will get a basic of Rs. 5600+75 as increment for
every year.

Skilled B: Oiler will get a basic of Rs. 5750 +85 as yearly increment.
Skilled A: Fitter will get a basic of Rs. 5900 + 90 as yearly increment.
Highly Skilled:
yearly increment.

Turner, welder, electrician will get a basic of Rs. 6000+95 as

Clerical 4th: SSLC grade, field staff will get a basic of Rs. 5750 +85 as yearly
increment.
Clerical 3rd: Second division grade

employees will get Rs. 5900 +90 as yearly

increment.
Clerical 2nd: First division clerk will get Rs. 6000+95 as yearly increment
Supervisory C: Supervisors, foremen will get a basic of Rs. 6100+100 as yearly
increment.
Supervisory B:

Supervisory category will get a basic of 6200+105 as yearly

increment.
Supervisory A:

Junior engineers, Assistant supervisor, Account Assistant will get a

basic of Rs. 6400 + 140 as yearly increment.

Supervisory A Special: Department head, Deputy Supervisors will get basic of Rs.
6600 + 165 as yearly increment.
MONTHLY WAGE COMPONENT
1. HRA: It is payable to all workers as will be paid 20% of the basic salary.
2. Educational Allowance: Sri Chamundeshwari Sugars Pvt. Ltd. Is running schools
by name shri Cham Sugar Education Society for providing good
Education to the children of the employee and growers of this area, starting L K G to
10th standard fee will be very normal. (Reimbursement 50% of school fee up to SSLC).
3. Bonus: Bonus payable as yearly once such as Diwali in 2010 15% bonus declared
on salary earned yearly financial year.
4. Conveyance Allowance: Fixed travelling allowance + petrol (15Ltr PM)
250 /-PM for Permanent employees
150/-PM fpr Trainees.
5. Shift Allowance: The workmen who are assigned work in the second and third shift
will be paid shift allowances.

Over time allowance per day given salary will double 1 t0 8 hours.
Night tea facility at free of cost 12 O Clock Pm to 3 Oclock

times tea with biscuits.

WAGE RELATED MATTERS

Am two

Provident Fund: All are having P. F. PF is deducted in 12% of the salary.

Gratuity: It is an appreciated perk given to employee by the employer for the services
rendered by him to the company. All employers are eligible to
Receive the attendance bonus including trainees, subject to the services rendered by
him. Gratuity payable 15 days salary per year minimum five year.
Total Salary = Basic + DA * 15 days salary / 26
Formula = Salary *1/2 Month salary *No of year service completed
Salary for the purpose of gratuity will be basic + DA family planning weight age.

Dearness Allowance: Two types at present

2385.90 paisa (December) wage board scale to the workers.

4220.45 Management grade.

DA Calculated at the rate of 2.5 per point January, April and July and October
this 4 months the point will increase or decrease DA will be changes or variable.
Increment Regulation:

On the completion of every year, the workers will get an

annual progress increment.

Lunch Allowance: Rs. 25 to 50 will be paid every day for officers and managers.
Stitching Charges: A company provides 3 sets of uniform every year and employee
get Rs. 250/- per set for stitching charge.
Risk Allowance: The workmen who are assigned work in the heat conditions will be
paid Rs. 400/- per month.
Family Planning Increment: To promote the family planning a sum of Rs. 100/- as a
intensive or one week special level with wages will be extended to employee , if his
family undergone tubectomy operation . (Onetime benefit)
Death Relief Fund:

It is a voluntary scheme and each member has to contribute as

membership fees towards membership every employee has to contribute Rs. 2 PM.
This fund id utilized for providing immediate financial assistance to the belonging
members of the family. In case of death of the employee Rs. 5000 is payable to his family.
If the employee retires from his service he gets Rs, 500/- at the time of the maturity
period of the fund.

HUMAN RESOURCE DEPARTMENT

Functions of personnel management:
The functions of personnel management broadly divided into two categories
1.

Managerial Functions: It is planning, organizing, directing and controlling.

2.

Operational

Functions:

It

is

procurement,

development,

compensation,

integration, welfare and records, research and audit.

Procurement:
It means providing the required number of suitable persons to fill various positions in
the organization. It involves manpower planning, requirement, selection, placement etc.
Development:
In involves improving the knowledge and skills of personnel for efficient performance
of their jobs. It includes training executive development promotion, appraisal etc.
Welfare
This function is concerned with protecting the physical and mental health of
employees.
Records, Research and Audit:
Personnel record maintained regarding the attendance, seniority, performance, cost etc.
WELFARE ACTIVITIES AND PROGRAMMES IN THE ORGANIZATION.
1. Once in two years. all eligible for employees working in the factory will be provided
-3- pairs of uniform with stitching charges and one pair shoes Once in two years, all
eligible employees working in the factory will be with socks.
2. Employees will be provided with spectacle, nose mask, or device, caps, safety bolts,
hand glows Tc. wherever it requires.
3. Canteen allowance of Rs 200/- per month will be paid to the employees along with
their salary apart from this open rated canteen maintained for the use at employees.
4. As a gesture of good will, an amount of Rs 500/- will be presented as mar riage gift,
If any employee get married while service (one time benefit).
5.

To promote the family planning, a sum of Rs 100/- as incentive or one week special
leave with wages will be extended to the employee. If his family (wife) undergone
tubectomy operation. In case of vasectomy a sum of Rs. 200/- and one week special

leave with wages.

6. Rupees 2,500/- or 50% of the choultry expense (the lower amount) will be
reimbursed to the employees, who perform their children marriage. It is restricted to
two children only. This facility is extended subject to performing of marriage at
Hanumanthnagara or at K.M. Doddi Balaji Samudaya Bhavana only on producing of
necessary proof.
7. Death-cum-Retirement Benefit scheme is also in the factory. Which extends financial
assistance of Rs. 5000/- to the nominee/ legal heir of the employee, in case he dies
during his service period? In this scheme, both management & employees are
contributing every month.
8.

The company is running a school by some Sri Chamsugar education Society to

provide good education for the children of employees and growers of this area. It is
having classes from nursery to 10th Standard, and very nominal fees being collected
from the employees children.

9. 50% of the tuition fees will be reimbursed to the employees children, who are
studying outside Bharathinagar, which is restricted upto 10th STD.
10. Transport facility has been arranged to the employees who are coming from Mandya
& Madder for shifts on nominal charge basis.
11. The company has provided quarters to the employees category wise (total 167
houses), which had been allotted on seniority and essentiality basis. Further, 130
houses have been taken on monthly rental basis which are also allotted to the eligible
employees and daily drinking water is supplying to such houses through bullock
carts on free of cost. Remaining employees are getting HRA 15% on Basic pay.
12. One sports club is maintained in the factory promises, where, indoor games can be
played. This facility is extended to the members (only employees for which, Rs 10/is collecting from the members, every month.
13. Every year, during the closure of the crushing season, -3- days study tour will
arranged for 100 employees on rotation basis. This facility is only for operative &
clerical staff, which is not eligible for us. For this purpose, 3 days special leave with
wages and also pocket money will be given to meet the expenses during the price 01
boor.
14. One packet biscuit (Quality, containing 9 biscuits) is providing to the night shift
employees including casual and contract workers, further, one cup tea without
Cost is also provided to the night shift employees, every day

.
15. Once in two months every employee will gat 3Kgm of under on controlled rate.
16. We are running credit co-operative society where loan will be given to the
employees, who are the numbers of the Society. upto Rs 50,000/- will be provided
as loan to the employees (members) for house contraction, medical treatment,
children education, children marriage etc., on low rate of interest, which will be
recovered on monthly installment basis.
17. Apart from this, Company is also extending financial assistance to the employees
without interest for the genuine purpose like higher education of children, children
marriage, funeral ceremony, medical treatment etc.
18. One day special paid holiday will be declared to the factory employees after the
closure of the crushing season every year.
Rural Development Programs:
The unit is having a program of rural development, which was essential in its
surrounding area, because before commissioning of the factory the entire area was
removed and deprived of basic facilities. About 60% of the land in the surrounding area
was dry and there was no proper irrigation facility.
The factory has under taken many steps for proper utilization of available water
such as:
1. Repairing of existing water tanks.
2. Repairing of minor pick-ups to have storage and reduce water wastage.
3. Supplying water continue sly to the land.
4.
Health Program:
Factory has extended financial help to public health center in Bharathinagar to
provide medical facilities to the public upto 5 lakes. The factory owns well furnished
and equipped clinic in Bharathinagara with 24 hrs service further the unit provides
financial assistance to medical camps organized by various social service organizations
Education Program
The aid unit has realized the importance of education. Therefore to provide good
education to the rural children. The factory has set up 60 schools in the surrounding
village area. It has been done under common good fund scheme. The unit has also setup
Cham Sugar School in the factory premises.

The factory has extended its financial assistance to Bharathinagara Education

institution up to 40 laks. The factory sponsors 10 quintals of rice per month to a blind
school in Ramanagara. It also sponsors price for sports and other activities
Service Program Lighting:
The unit has installed T shaped streetlight on road leading to the factory and also
to the main road. It has donated 25 lakes to build a pillar for a temple.
SWOT Analysis of the company
SWOT is an acronym used to describe the particular Strength, weakness,
opportunities and Threats that are strategic factors for a specific company. SWOT
analysis not only results in the identification of corporations distinctive competencies,
the particular capabilities and resources that a firm possesses and the superior way in
which they are used.
Strengths

It was established by the well equipped and trained man power. Its operation
building is spacious.

Strong network from all aspects-location, Transport & Infrastructure.

Good financial supports whenever needed are provided both state and central
government

Researches & Development: the company is in to up extensive research and

development for further development in the product.

The company has now modern oriented. It is used a modern technology in its
operation like automation mechanization, computerization etc.

Strong marketing base: the company produces will quality products so it is having
a strong marketing base. It can easily sell goods with many struggles.

Power plant construction: the company already asses the future needs and develop
a new power plant it is helpful to run the operations without any stoppage.

Weakness
Absence of motivating incentives.
Lot of training required for all levels of employees.
Advertising and sales promotional is not very effective
Weak in financial strategy as well as financial manager
Political interference.

 Crisis between management and formers for regarding price fixation

Improper planning of investment/further growth
Opportunities
There is a rapid growth in agriculture sector so the company should make use of these
opportunities.
In the global scenario the company can implement new technology for the growth of
the company.
The company has a right to frame its own policies and procedures.
The company can restructure its own organization structure.
Threats
The scarcity of substitute product availability is a bid threat.
The agricultural sector is gambling on monsoon.
Crisis between management and employees.
In the present scenario competitors are more
Diversified resources such as raw materials due to many sub units.
Marketing:
Basically, if product has to move in a market, the manufacturer must use the four
Ps marketing mix, that is product, price, promotion and physical distribution.
1.

Product:

Sri Chamundeshwari sugars Pvt. Ltd produces only sugar in sugar there are various
types like S-30, M-30 & L-30 sugars. Although recently it has started producing and
co- generation of power, they are not of commercial interest
2. Promotion:
It is known fact that the sugar industry does not enjoy any brand loyalty so there is
no need for using promotional activities.
3. Price:
The government accordingly got its monthly release orders specifies the quantity to
e set aside as levy sugar for which the price is determine by the government itself and
this sugar is used for public distribution system for Below poverty line (BPL) families.
For free sugar the company can sell it on the bases of market rate.
5. Place:
Distribution network is the last and final stages in any company. Finished product what
we get is not final, they must be packed, labeled, stored and should be sent to the

market.
As we are aware that sugar is controlled product and the pricing policies are
controlled by government marketing polices are all done under government control.
The job of a sugar, after this government through monthly release orders specifies the
quantity to set aside as levy sugar and free sugar. Levy sugar should be sold at the price
stated by the government and free sugar can be sold at the prevailing market rate.
Whenever any person wants to buy sugar form SCS Pvt Ltd, they usually approach the
agencies operating in the whole India. The agencies turn wore contact the head office
on Bangalore where major decision regarding. Purchase sales, stoking, order
processing, distribution are done.
The channel adopted by the SCS Pvt. Ltd, is
SCS Pvt.Ltd

Agencies/ Dealers

Buyers

Consumers

Some of the agents are:

1. ARC Agencies
2. Channel Brokers
3. Gangadhar Agencies.
4. Habit Latif Agencies
These agents will approach the company on behalf of the buyers and negotiate the
terms and trade.
Some of the reputed buyers are:
1.

Ganesh Trading company

2.

Vanitha Enterprises.

3.

Bharath Trading company

4.

Mahesh Trading company

The buyers as they will not be aware of the firms operations and sugar industries

current trend will contact some of the leading agencies to negotiate the terms of trade.
Although the agencies come in between the buyers and manufacturer they not

make to the goods, their job only is to negotiate the terms, and they do not held
responsible for transporting.