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An organization is an on going process of defining and grouping the activities of the
enterprise. It also establishes the authority relationship among them. The process concept
stresses dynamic nature of an organization and it permits an organization to be
considered as an open adaptive system.

An organization is a group of people who are working together towards a common


objective or goal. In this sense, it is a group of people bound together in a formal
relationship to accomplish certain common objectives.

According to the Peter F Drucker, Organization is not an end in itself, but a means to the
end of business performance and business results. Organization structure is an
indispensable means and the wrong structure will seriously in pair business performance
and may even destroy it. Organizational structure must be designed so as to make
possible to attain objectives of the business

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1. To know the objectives of the organization.


2. To study the functions of the organization.
3. To study the profile of the company.
4. To know the functional work of the each department in the factory.
5. To know the facilities provided to the workers in a factory.
6. To study the production and sales of last past five years.










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India has been known as the original home of sugarcane and sugar. Indians knew the art of
making sugar since the fourth century. However the advent of modern sugar industry in
India dates back to mid 1930's when a few vacuum pan units were established in the sub-
tropical belts of Uttar Pradesh and Bihar.Until the mid 50s, the sugar industry was almost
wholly confined to the states of Uttar Pradesh and Bihar. After late fifties or early sixties
the industry dispersed into Southern India, Western India and other parts of Northern India.

India is the largest consumer and second largest producer of sugar in the world. The
sufficient and well distributed monsoon rains, rapid population growth and substantial
increases in sugar production capacity have combined to make India the largest consumer
and second largest producer of sugar in the world.

The Indian sugar industry has not only achieved the singular distinction of being one of the
largest producer of white plantation crystal sugar in the world but has also turned out to be
a massive enterprise of gigantic dimensions. With over 450 sugar factories located
throughout the country, the sugar industry is amongst the largest agro processing
industries, with an annual turnover of Rs150bn. It plays a major role in rural development
and its importance for India stretches far beyond the role of a sweetener supplier.

The sugar factories located in various parts of the country work as nuclei for development
of rural areas by mobilizing rural resources and generating employment, transport and
communication facilities.

Over 45mn farmers, their dependants and a large mass of agricultural labor are involved in
sugarcane cultivation, harvesting and ancillary activities constituting 7.5% of the rural
population. The sugar industry employs over 0.5mn skilled and unskilled workmen, mostly
from the rural areas.

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International trade is of strategic importance to India as it can help maintain stability in the
domestic market, despite the cyclicality in production. If there is a sugar surplus either due
to excess production or due to greater economic attractiveness of cane for ethanol and
cogen in the future, exports could be used if the surplus cannot be managed in the domestic
market. Acceptability as a credible exporter will provide the Indian sector an alternate set
of markets for diverting surplus production. Similarly, in case of deficits, raw sugar
imports could help bridge the supply gap.

Globally, in most of the key geographies like Brazil and Thailand, regulations have a
significant influence on the sugar sector. Perishable nature of cane, small farm
landholdings and the need to influence domestic prices; all have been the drivers for
regulations. In India, too, sugar is highly regulated. Since 1993, the regulatory environment
has considerably eased, but sugar still continues to be an essential commodity under the
Essential Commodity Act. There are regulations across the entire value chain land
demarcation, sugarcane price, sugarcane procurement, sugar production and sale of sugar
by mills in domestic and international markets. However, fundamental changes in the
consumer profile and the demonstrated ability of the sector to continuously ensure
availability of sugar for domestic consumption has diluted the need for sugar to be
considered as an essential commodity. According to a recently conducted nationwide
survey, nearly 75 percent of the total non-levy sugar is consumed by industrial, small
business and high income household segments. Further, even for a low income household.
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In an era where there is a need for inclusive growth, the sugar industry is amongst the few
industries that have successfully contributed to the rural economy. It has done so by
commercially utilizing the rural resources to meet the large domesticdemand for sugar and
by generating surplus energy to meet the increasing energy needs of India. In addition to
this, the industry has become the mainstay of the alcohol industry. The sector supports
over 50 million farmers and their families.The sector also has a significant standing in the

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global sugar space. The IndianDomestic sugar market is one of the largest markets in the
world, in volume terms. India is also the second largest sugar producing geography. India
remains a key growth driver for world sugar, growing above the Asian and world
consumption growth average.







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FROM 2003-04 TO 2008-2009

Area under sugarcane (Million Sugarcane Production


Year
hectares) (MMT)

2003-
3.7 241.1
04

2004-
4.2 299.2
05

2005-
4.4 298.4
06

2006-
4.3 281.6
07

2007-
3.9 221.2
08

2008-
3.7 201.9
09

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Indian sugar industry can be broadly classified in to two sub sectors, the organized sector
i.e. sugar factories and the unorganized sector i.e. manufacturers of traditional sweeteners
like Gur and khandsari. The latter is considered to be a rural industry and enjoys much
greater freedom than sugar mills.

The production of traditional sweeteners Gur and khandsari is quite substantial. Though
the trends indicate a progressive shift from traditional sweeteners to white sugar over the
years, they still account for about 37% of total sweetener consumption in India.

Since the sugar industry in the country uses only sugarcane as an in input, sugar
companies have been established in large cane growing states like Uttar Pradesh,
Maharashtra, Tamil Nadu, Karnataka, Punjab and Gujarat. Uttar Pradesh leads the tally
by contributing 24% of the country¶s total sugar production and Maharashtra stands next
with 20% contribution.

The farmers co-operatives own and operate the largest chunk of the industry's total
capacity. They are concentrated primarily in Maharashtra and eastern Uttar Pradesh. The
largest numbers of sugar companies in the private sector are located in southern India, in
the states of Tamil Nadu, Andhra Pradesh and Karnataka.

Out of 453 sugar mills in the country, 252 are in the co-operative sector, 134 are in the
private sector and 67 are in the public sector. Besides 136 units in the private sector are in
various stages of implementation. A Few such units are under implementation in the co-
operative sector as well.

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Sugar is a controlled commodity in India. It is covered under the purview of the Essential
Commodities Act, 1955. The government controls sugar capacity additions through
industrial licensing, determines the price of the major input which sugarcane, decides the
quantity that can be sold in the open market, fixes the prices of the levy quota sugar, etc.

Government control over all aspects of the production and sale of sugar extends to the
level of wholesalers in the distribution chain. All sugar wholesalers need to obtain a
license issued by the government before they can begin to operate. Also they should
confirm to government notifications for the amount of inventories they can maintain.

The government policies for the sugar industry are broadly classified in the following
section for the better understanding.

  !? Till recently sugar is used to be amongst the 9 industries under
licensing provision. The major criterion for issuing new licenses were as follows

1.? New sugar factories should have minimum economic capacity of 2500 TCD with
no maximum limit on capacity. However in industrially backward areas, co-
operative & public sector new units are allowed with an initial capacity of 1750
TCD subject to the condition that the units would expand their capacities to 2500
TCD within a period of 5 years of going into production.
2.? New sugar factories are permitted subject to the minimum distance of 15
kilometers between the proposed new sugar factory and an existing / already
licensed sugar factory.
3.? Other things being equal, preference in licensing is given to proposals from the
co-operative sector, public sector, private sector, etc. in that order.
4.? The past policies have helped in planned development of sugar industry taking
into account economic size and availability of sugarcane and simultaneously
avoiding unhealthy competition. The mushrooming growth of co-operatives,
whose performance is worsening of late, is also an offshoot of these policies.

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5.? Further, a large number of parties have obtained licenses during 1990s but are not
implementing them due to several reasons, leading to a blocking of the entry of
other interested parties. To tackle this problem, the government has reduced
validity of Letter of Intent (LoI) from three years to one year.
6.? The sugar industry is relicensed since August 1998 and any interested
party/person is allowed to set up a sugar mill in the country provided they satisfy
few conditions. The new sugar factory is at a minimum distance of 15 kilometers
from an existing already licensed sugar factory.
7.? No incentive will be provided and new units have to adhere to levy quota
regulation from first year of operations.

" #$%"%

Government of India regulates & controls the rates of sugarcane supplied to the mills by
farmers. The Statutory Minimum Price (SMP) announced by GOI year on year is used as
a benchmark by the state governments to fix their State Advised Price (SAP). The SAP
could be a recovery linked average or just a flat rate. The above said pricing procedure
has been adopted so as to protect the farmers & ensure them a good price for cane. Also it
reduces the impact of cane prices on the cost structure of different mills depending on
their location.


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Government enforces a dual pricing policy for the sugar industry. Presently 10%
of the production is sold at a fixed price to the government which is used for PDS and
other market operations.

The new & expanded sugar plants are exempted from the levy quota for a period of five
to eight years which makes the new sugar units more profitable. But mills under levy are
free to sell the remaining 90 % of sugar (as 10% is supplied to government) in the open
market at the market determined price.

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The government controls supply of sugar in the open market through monthly sugar
release notifications based on market conditions and thus influencing the open market
prices to a great extent. Though, the incentive scheme has achieved the objective of
attracting more players, due to better margin than existing players, the returns for older
units reduces substantially due to low increase in levy prices for controlling fiscal
deficits. However new units face the problem of procuring sugarcane from the farmers
and sometimes end up paying a premium to SAP.

Import Export Policy: Sugar exports were governed by the Sugar Export Promotion Act,
1958, which stipulates that the Government can use 20 per cent of the country¶s total
production for sale abroad. Till a very recent past imports and exports were routed
through Indian Sugar and General Industry Export Import Corporation Limited
(ISGIEC), a consortium of apex organizations of private and co-operative sugar mills and
government agencies. The imports and exports are mainly resorted to when there is
mismatch in domestic sugar production. The government decimalized exports in 1997
allowing private parties to export sugar. The government has also put sugar imports on
Open General License (OGL) allowing private parties to import sugar. The imported
sugar has been subjected to a customs duty of 20% from January 1999, so as to provide a
level playing field to the domestic industry, which supplies sugar at levy prices to GOI,
for PDS supply.

Excise and taxes : Some of the state governments impose purchase cess on the sugarcane
purchases made by the sugar mills, which varies from state to state. The states of Assam,
Nagaland, Rajasthan, Orissa, West Bengal & Goa which produce small quantities of
cane, however, do not levy cess on the sugarcane purchases.

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 "'"() " *!+

Michael Porter provided with a framework that explains how an industry gets influenced
by the five forces. The strategic business manager seeking to develop an edge over rival
firms can use this model to better understand the industry context in which the firm
operates.

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%"% ," # $!"
The price of raw-materials (sugarcane) is fixed by the Government. The suppliers are
farmers and the total of suppliers is very high. So, there is no such bargaining power of
suppliers in sugar industry.
%"% ," #$' -"
The bargaining power of customers determines how much customers can impose
pressure on margins and volumes. But in sugar industry the price of sugar is fixed by the
Government. So, there is no bargaining power of customers in sugar industry. 
."%' # ,'"%'
The competition in an industry will not be so higher, as sugar is essential commodity; but
the Government is encouraging & taking more interest in developing & increasing the
number of sugar company. So it is easier for other companies to enter this industry. In
such a situation, new entrants could change major determinants of the market
environment (e.g. market shares, prices, customer loyalty) at any time. There is always a
latent pressure for reaction and adjustment for existing players in this industry. The threat
of new entries will depend on the extent to which there are barriers to entry.
These are typically
? Economies of scale (minimum size requirements for profitable operations),
? High initial investments and fixed costs,
? Scarcity of important resources, e.g. qualified expert staff
? Access to raw materials is controlled by existing players,
? Distribution channels are controlled by existing players,
? Existing players have close customer relations, e.g. from long-term service
contracts,
? Legislation and government action- the sugar industry is totally controlled by
strict regulation of government.




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."%' # $/''$'
A threat from substitutes exists if there are alternative products with lower prices of better
performance parameters for the same purpose. They could potentially attract a significant
proportion of market volume and hence reduce the potential sales volume for existing
players. This category also relates to complementary products. Similarly to the threat of
new entrants, the treat of substitutes is determined by factors like
? Current trends- this is most important because the sugar industry do not have any
trend for consumption of sugar.
? The substitutes products like gur & khandasri which are substitutes of sugar.
But there is no such impact of substitutes which create a threat to sugar
industry.

 -''))%!"0/',1'!%0"
This force describes the intensity of competition between existing players (companies) in
an industry... Competition between existing players is likely to be high when
? There are many players of about the same size- the sugar industry have many
players almost many are of same size, so there exist the competition between the
existing players.
? There is not much differentiation between players and their commodities, but
there is much price competition- the commodity sugar is similar but the quality of
are different so the prices followed according to the size & quality ex: large size,
medium size or small size.
There is no much competition between competitors as sugar is controlled commodity &
the prices, the quantity of sugar supplied to market is fixed by the Government.





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 %%!0+
It is very important that an organization considers its environment before beginning the
marketing process. In fact, environmental analysis should be continuous and feed all
aspects of planning. The organization¶s marketing environment is made up of:

1.? The internal environment e.g. staff (or internal customers), office technology,
wages and finance, etc.

2.? The micro environment e.g. our external customers, agents and distributors,
suppliers, our competitors, etc.

3.? The macro environment e.g. Political forces, Economic Forces, Socio-cultural
Forces, and Technological Forces. These are known as PEST Factors
.
The political environment of sugar industry is not stable it keeps on changing as per the
government change because of the production capacity and the price fluctuations as per
the government changing pattern. The government polices affects the industry because
the policy is framed by government gives the guide line to the operation of the industry.
The government has restricted the open sale of sugar. The sale must be packed so that
there will be less amount of wastage.

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Political Economic

 

Social Technological

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 !'%!
%!0+
2? "$!%' +
The price and supply of sugar to free market is fixed by the Government. Even
the price of sugarcane is fixed by the Government. So, there is more influence of
political environment in sugar industry.

v? %1%' +


The taxation policy of the government changes with time & this change effects
the industry to a larger extent. Any increase in the tax policy will decrease the
profit margins of the industry & vice-versa. And sugar industry is enjoying the
taxation policy as there are more tax exemption & reduction in sugar industry.

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ã? %!%' +
The government has taken several initiatives in the welfare of the workers. The
government has came with the acts of Minimum Wages Act, which regulates a
company to pay a certain fixed amount of wages to their workers. The
government also has introduced the Work Limit for the manufacturing companies.

(? %*%' "0-! 0/#'+


The government has made it mandatory for the companies to provide their
employees with certain benefits like Insurance, provident fund, allowances, etc. if
any company who doesn¶t follow it will be legally charged.

V? c*$'"%!%#'0"$!%' +


It has been made mandatory for the industry to provide their employees with the
training to handle the equipments & must also provide some safety accessories
like eye gears, helmet, shoes, etc. to ensure the safety of the employees & workers
and if the sugar company has COGEN plant then the company has more safety
policy which has to be followed.

? )" -'%!%#'0%'+


The viscose industry is viewed as the one of the polluting company. The
government has taken several measures to prevent the industry from polluting the
environment. Any industry not following the rules of this policy will be closed
down by government.

:? 1 "'3c- "' !0+


The government has made it very easy to export the sugar to the other countries.
There excise duty is less & infact Government is promoting the industries to
export more sugar.

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  -
%!0+
2? 0 #  -+
The performance of an industry depends upon the market & economy in which it
performs. As sugar is a essential commodity which we use in our daily life.
v? c#"%'"$'$"4$%!'0+
The infrastructure of the country affects the performance of the industry. As India
is lacking in infrastructure the industry is facing the problems like transportation,
warehousing, etc

ã? 5!!!)! #, "5# "+


We find labor force abundant in India but the majority of the labors are not
skilled, their efficiency level is poor & must be trained especially for this type of
manufacturing activity.

(? %/ " '+


The human resource is abundant in India & it is also cheap. This is one of the
factors which control the cost of the industry. But today we find that as the
country is developing this resource is also being expensive.

V?   -" ,'."%'+


The current growth of the country is 9% which is very encouraging for the
development of these industries.

?






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%!
%!0+
2? - "%.+
The demographics factor like Age, Gender, Occupation, Income level, etc does not
play an important role in the demand of the product by the customers.

v? !%'"$'$"+
 Sugar is essential commodity and it is used by all class of people and the
people who are Below Poverty Line( BPL) are also consuming this commodity
through Public Distribution System (PDS).

. ! %!
%!0+
2? ''. ! %!*)! -'+
This industry was facing the problem of the pollution but thanks to the technology
to introduce machines (EFFLUENT TREATMENT PLANT) & ( WATER
TREATMENT PLAN) which control the emissions of toxics, recycle the
effluents & water, etc.

v? . ! 0(-%' " *$' ##"+


The technology has enhanced the productivity of this sector & has reduced cost.
As a result we can find the Tones per Day capacity has increased drastically.

ã? c-%'  ''"$'$"+


The development in technology has reduced the cost & also encouraged the
companies to produce more.

 !$ +In order to sustain in the market & to capture more market share the
company performing in the sugar industry must keep track of these factors or it would
become difficult to sustain in the market.

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?
?
?
?

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   +
Davangere sugar company was started in 1970¶s. The company is situated in kukkuwada
near Davangere. Firstly the nature of the company was public limited, then in 1996 the
company became private limited company i.e. the administration and management of the
company came under ³shamanur group of industries´. Now the company is totally
privatized and named as ³Davanger sugar company private limited´.

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The proposal to set up a Sugar Factory at Kukkuwada took a concrete shape with the
development of vast irrigation facilities created by network of canals of Bhadra Dam in
the Taluk of Davangere, Channagiri, Honnali and Harihar and nearly 1,20,000 hectares
of the land brought under irrigation in 1970-80 within radius of 100 Km from the present
location of davangere sugar company private limited6at Kukkuwada village.

To exploit this vast irrigation potential, a Sugar Factory with a crushing capacity
of 1250 TCD was established by the name davanger sugar company limited, as a Joint
Sector Government Company in the year 1970 at the initiative of the local Farmers,
Leaders of the above Talukas with the active financial participation and guidance of
Karnataka Agro Industries Corporation and KSIIDC, who substantially contributed to the
Equity Funds of the company. The other financial institutions like IDBI, IFCI and ICICI
also participated in the Equity of the company to some extent.
?
?
?

?
?



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The chairman of the company is Mr. S.Shivashankarappa.is the chairman of all
shamanur group of industries. He is also the present MLA of Davangere city. He is also
the chairman of Bapuji group of Institutes, including Bapuji Dental college under its wing
& it is the third largest college in Asia.


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1)? Managing Director: Mr.S.S.GANESH.
2)? Promoter Director: Mr.S.S.MALLIKARJUN.
3)? Independent Director: Mr.S.S.JAYANNA.
4)? Independent Director: Mr.K.V.SOMASHEKAR.
5)? Nominee Director: Mr.K.P.SURENDRANATH.

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a)? " - '"+ Mr.S.SHIVASHANKARAPPA,
Mr.S.S GANESH AND
Mr.S.S.MALLIKARJUN are the core
Promoters of DSCL.
b)? c'"' #" - '"+ Shamanur group of industries have varied
Interests in the field of sugar & cogeneration,
Distillery, Banking, Rice Mills,Wholesale
Trading and also in Education Institutions
( including Medical, Engineering, MBA,
Nursing, Phamacy and also Primary and
Secondary Education.)

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c)? 7c + The Shamanur group is headed by
Mr. Shamanur.Shivashankarappa who has
experience over 45years in the field of industry,
Trading &Education & Mr.S.Shivashankarappa is also
the MLA of Davangere.

  +

The company has 85 employees who are working under different
department who are skilled and has got special training under their respective department.
The company after privatization is automatized and it is a capital intensive where as
before privatization it was labor intensive. All the employees are educated according to
their respective fields as these employees have to supervise and work with machine.

The company also has unskilled labor that is daily wage paid workers. These
kinds of workers are not permanent, they are called as seasonal workers and the strength
is 110.

The company also has permanent workers who are known as helpers in the
company. The strength of permanent labor is 217. These type of permanent labor are
semi-skilled and are also called as HELPERS, they are divided in different departments
of the organization according their skill of work and experience.







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c
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CHAIRMAN

VICE
PRESIDENT

MANAGING
DIRECTOR

PRODUCTION
& FINANCE SALES H.R.DEPT CANE
MAINTENANCE DEPT DEPT DEVELOPMENT
DEPT DEPT


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The structure & design of DSCL is functional that is it is a functional
organizational structure. The company has subdivided into functional units such as,
engineering, production & maintenance department, finance department, sales
department, human resource department & cane development department. It is a
traditional kind of organizational design followed by DSCL.



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It is proud on the part of the company that about 20000 acres of land has been
brought under sugarcane cultivation for the ensuring season 2007-08. The company could
able to achieve this on account of co-operation of the farmers. The management has a
vision to bring at least 25,000 acres of land under sugarcane cultivation for the season in
the next coming years. This is with a view to crush at least 8.00,000 tones of sugarcane to
achieve the prosperity of the company


 
c 
The plant is located at KUKKUWADA village which is 18 Kilometers far away from
Davangere City.



The factory is located over a widespread area of 151 acres. The acreage includes green
belt and other necessary facilities for maintaining clean environment.


c




The factory is located in area surrounded by sugarcane growing belt. About 60,000 acres
of land is covered under the command area. It is situated at distance of about 15 Kms
away from NH4 and about 18 Kms away from railway goods shed. The sugarcane
growing areas are located within the radius of 25 Kms from the factory.


c 
+
The sugar generation plant is fully automatized . The total process that is from sugarcane
crushing to packaging is done through machinery, but supervision is needed and frequent
operating of machinery is required.

The company has licensed cane capacity of 5500 TCD, but the company has a plant of
capacity of 3500TCD.

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2  
c 
The company started Power Generation Plant from 24th march, 2004. The power
generation plant capacity is 24.45 Mega Watt per day. The present capacity of utilization
is 95% of total capacity. The power to be generated from the plant is fed to the 64 Kva
sud-station set up by KPTCL, at a distance of 200 yards from the cogen plant in
Kukkuwada village.

c c  


1)? The plant is regarded as one of the best plant in India.

2)? The British Broad Casting Corporation ( BBC) has prepared a documentary on
COGEN power plant and telecasted worldwide.

3)? The plant is one of the power efficient plants, first of its kind in Karnataka.

4)? The internal consumption of power is also minimum due to latest technology
adopted in sugar manufacturing during the season.

5)? The power export ti KPTCL is to the extent of about Rs. 4.80 Crs per month during
off season and about Rs.3.00 Crs per month during the season.

6)? The power plant is managed by the team of professionals in the field.

7) The Ministry of Non-Conventional Energy (MNES) has sanctioned subsidy


of Rs. 4.00 Crs, which is awarded for the prompt repayment of interest and the principal
amount in time. On account of this interest subsidy the rate of interest charges has been
reduced from 11.25% to 9.25% p.a.

8) The power plant use baggasse as fuel during the season and Non-coking Coal as
fuel during off season to generate power.

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9)? The power plant is also fully automaticed control system. The working plant is
supervised through controlling panel. If any technical default is found, the
immediately action is taken and correction is made.

v

 
+
The WTP was also started when power generation plant was started, as water is very
much important during the process of power generation. The WTP acts like a heart of
power generation plant & also sugar plant also need cooling water & steam produced by
WTP.
ã 
 
+
The ETP was also started when power generation plant was established. ETP is a process
of treating solid & gaseous wastages before liberating to environment. The wastages like-
fly ashes, ashes, nitrogen, carbon monoxide & sulphur dioxide. In short Effluent
Treatment plan is a device used to control gas pollution.

    
c +
a)? SALE OF SUGAR.

b)? SUPPLY OF POWER TO KPTCL.

c)? SALE OF MOLASSES.


  c 
c
c +
The company has five departments as follows;
1)? Sugar Production & Maintenance Department ( including COGEN & Water
Treatment Plant).
2)? Finance Department.
3)? Human Resources Department- Personnel Department.
4)? Cane Development Department.
5)? Sales Marketing Department.

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c %*
c 
c

 +


   
The company¶s main production is sugar. As DSCL is surrounded with sugarcane
growing belt, the sugar plant was started in 1970¶s, but after the induction and interest
taken by shamanur group of industries in to the new management in 1996, the company is
making steady progress with all new plans & strategies. The crushing capacity has
increased in stages as follows:

1st stage from 1250 TCD to 1500 TCD at a cost of Rs. 110.00 lakhs
2nd stage from 1500 TCD to 2200 TCD at a cost of Rs. 1900.00 lakhs
3rd stage from 2200 TCD to 2500 TCD at a cost of Rs. 2500.00 lakhs
4th stage from 2500 TCD to 3500 TCD at a cost of Rs. 3500.00 lakhs
Now the company is planning to go for 5500 TCD production capacity plant. 
The company has adopted both production & maintenance in one department. As the
process of manufacturing is automatized and there is frequent need of technician and
engineering background employees in the process of production to supervise, control
and maintenance of the plant. And even the manufacturing of sugar is of seasonal basis
that is the manufacturing of sugar is processed 8-9 months in a year. As it depends upon
the production & supply of sugarcane. The remaining 3-4months the plant goes under
maintenance process.

     
There are total three size of sugar as follows,
a)? Large size
b)? Medium size
c)? Small size.
The company is producing two types of sugar that is medium (M30) and
small size (S30) and their ratio for production depends on the market demand. And
also cost of producing large size sugar is comparatively high than medium and small
size.

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+
Recovery of sugar from sugarcane means the amount of sugar we get from crushing
& processing from a particular amount of sugarcane.The recovery of sugar from
sugarcane is 9-10% which is comparatively less from other parts of India where
sugarcane is produced. For example the recovery of sugar from sugarcane near Belgaum
is 13-14%.

Then to the company is making good profit as the cost of production is controlled by
frequent supervising, testing quality of sugar, juice analysis in laboratories by the
chemists to get the finest quality of sugar, best utilization of by products, as the baggasse
is used for further generation of power and the company itself is producing sulphur
dioxide as it is one of the ingredients in preparation of sugar, but the sulphur is
purchased.
?
  c 
 
As the sugar plant is automotized, there is more need of technical &
engineering background employees who are well educated and can handle machines
systematically. The company also has employed technically skilled & engineering
background employees who are mainly employed to supervise the process, workers,
helpers.

c 
 
The sugar production plant has one head for production department i.e; production
general manager,39 supervisors and other 76 included with trainees, workers & helpers.
The total number of people employed in production department are 116.






27
c 
 +

GENERAL
MANAGER

D.G.M. CHIEF CHEMIST ELECTRICAL INSTUMENTATION


MECHANICAL ENGINEER MANAGER

CHIEF SHIFT CHEMIST SUPERVISOR TECHNICIAN


ENGINEER

DEPUTY CHIEF LAB CHEMIST ELECTRICIAN HELPER


ENGINEER

OPERATOR HELPER
SENIOR
ENGINEER
HELPER
ASST.SHIFT
ENGINEER

FOREMAN

OPERATOR

HELPER

28


 

c  
+
2? 
 
 +This is the first stage in the process where sugarcane
is lifted through crane lifters.
v? 
  c +Here the sugarcane is chopped, leveled &
fiberized. 
3.? cc  
c+ Here the carrier takes the chopped, leveled &
fiberized baggasse to Donnely Chute.
4.? c +There are totally 4 mills in the plant. Each mills works frequently one
after another. In first mill pure juice is extracted from the baggasse and then the
pure juice is pumped into pure juice tank. And baggasse is carried to 2nd mills
with mixture of water & juice came from the 2nd mill.

29
In the 2nd mill again juice is extracted from the baggasse and pumped to another
juice tank. Then again baggasse is mixed with hot water and carried to 3rd mill.

In the 3rd mill there is a process called water imbition where again juice is
extracted from the baggasse and the baggasse is send to 4th mill. Here also water is
mixed with baggasse.
Then finally in 4th mill again juice is extracted and baggasse is carried to
cogeneration plant through baggasse evilator.After getting four different type of
juice, these juices are mixed in one tank and boiling process starts from here.

cc 6
c &

c  
+
a)? In first stage the juice is heated in vapour line juice heater at 60c , then send to
raw juice heater.
b)? Then from raw juice heater it is send to clarifier where juice is cleaned and
purified and all impurities are thrown out. And the purified juice is pumped to
clear juice heater where again juice is heated.( There are 6 RJH & 2 clarifiers)
c)? Then from clear juice heater the juice is pumped to semi kistner body where juice
is again heated up to 102c, then pumped in to sulphitation tank
d)? In sulphitation tank, sulphur dioxide is added and then pumped to evapouraters.
( 2 sulphitation tank & 8 evapouraters). But only 4 evapouraters are used and
other 4 are alternatives.
e)? Then from evapouraters the juice is send to syrup sulphitor where again juice is
mixed with sulphur dioxide, then send to vaccum pan.
f)? In vaccum pan process again the syrup is boiled and crystal form starts from this
process. There are 7 vacuums pumps with capacity of 60 tones. Then it is send to
crystalizers.
g)? In crystalizers, the syrup gets crystallized and there are 14 crystalizers, then it is
send to centrefugal machines, where improvement of quality & color is assured.
There are 3 stages in improvement, then it is send to batch type centrefugal.
( There are 13 centrifugal machines & 14 crystallizers)

30
h)? In batch type centrefugal machines, there will be separation of molasses, then
steam wash and lastly water wash, then send to hoppers.
i)? In hoppers the sugar is separated according to the quality & grade of sugar, then
sugar is send to sugar bins.( As the company is producing two types of sugar that
is medium & small size, it is separated and stored in two sugar bins).
j)? Lastly sugar is packed in 50 Kgs and 100Kgs of bags and send to Godown
through a conveyer. (All this process of packaging and storage of manufactured
product is done through machines, which gives clear picture that the company is
capital intensive & frequently working on reducing cost of production.)


?
?
?
?
?
?
?
?










31

c 
V 
 

SL.NO YEAR SUGARCANE RECOVERY SUGAR


CRUSHSED(M PRODUCED(qtls)
T)
1 2004 to 2005 545912 10.22% 561635
2 2005 to 2006 344865 8.73% 300923
3 2006 to 2007 157056 8.64% 135730
4 2007 to 2008 300537 9.14% 276624
5 2008 to 2009 529156 9.01% 486208

NOTE: The crushing season for the year 2008-09 was very significant as in this
crushing season the company had highest quantity of sugarcane crushed and this is a
record quantity in the past history of the company.
This made company to plan for increasing capacity of plant from 3500TCD to
5500TCD. The Managing Director & Board of Directors started working on the plan &
the company has set up a target of crushing 7, 00,000 Metric Tones sugarcane in 2009.


 
c c 
Sugarcane availability depends on:

?
"%$*"$%"%$!')%' +

The area under cultivation of sugarcane in the proximity of the mill determines the
amount of sugarcane that can be made available. Crop switching from sugarcane to
other crops effectively lowers the area under cultivation of sugarcane.

32
? !-%'%*""%' #%!'+

 Sugarcane is a tropical crop which requires adequate water and sunshine.
In addition, monsoons can affect the crop yield and quality of the crop. The state of
UP is supplied water from the Ganga, which along with its tributaries and associated
canal system accounts for 34% of the total river water available in the country
(Source: Ministry of Water). This available perennial water reduces the state's
reliance on seasonal monsoons.

? " *%%*'+

 Crop diseases affect both the quantity and quality of sugarcane. Harvests
have been impacted severely by insects and pests (Eg. Wholly Aphid). Several sugar
factories are currently investing in research and development in the field of
Entomology to control such pest outbreaks.

? $%"%0!*+

This is the total sugarcane output per hectare of land. It depends upon
several factors like climate, soil, variety of sugarcane, and development measures
undertaken by sugarcane farmers, agencies, co-operatives, government, and sugar
manufacturers. Agricultural engineering and extension services, usually undertaken
by individual sugar mills, have played an important role in increasing sugarcane
yields

? )"  #$%"%'  '."" *$'+

The sugarcane producers may not supply the sugarcane to a sugar manufacturer
and divert the production to other products like gur, and khandsari which are forms of
crude sugar.

33
  3  
c 

"%".0  !%'+


GENERAL
MANAGER
(COGEN)

CHIEF CHIEF CHIEF CHEMIST INSTUMENTATION


ENGINEER ELECTRICAL MANAGER

SENIOR SENIOR JUNIOR ENGINEER


ENGINEER ENGINEER CHEMIST

SHIFT SHIFT ENGINEER OPERATOR TECHNICIAN


ENGINEER

JUNIOR HELPER HELPER


JUNIOR ENGINEER
ENGINEER

OPERATOR ELECTRICIAN

HELPER HELPER

?

34


   +The name of power generation plant is
COGEN. COGEN was established or commissioned on 24th march 2004. Till then there
was only sugar plant in DSCL. As there was no power generation plant till march 2004
the byproduct of sugar that is baggasse was send to one of the sister concern of DSCL
named SHAMANUR SUGAR MILLS were the company had power generation plant,
but the profit was enjoyed by the SHAMANUR SUGAR MILLS, so DSCL came up with
power generation plant in march 2004.
The cost of power generation plant is Rs.80 crores. The power generation
capacity of plant is 24.45 Megawatt.

  
c  c 

Since co-generation can meet both power and heat needs, it has advantages in the form of
significant cost savings for the plant and reduction in emissions of pollutants. Major
benefits of co-generation can be listed as below:

1) Provides economic competitive advantages through a maximized return


on investment by utilizing the same fuel to provide heat and electricity;

2) Environment friendly because of reduced air emissions of Green House Gases,


sulfur dioxide, nitrogen oxides, and particulate matters;

3) A reliable source of power and process steam or heat;

4) Onsite electricity generation can reduce transmission and distribution

35
c 6  c  & 7   



SL.NO SEASONAL TOTAL CONSUMED EXPORT TO


BASIS PRODUCTION BY THE KPTCL
COMPANY
1 DURING 16.5 Megawatt 4.5 Megawatt 12 Megawatt
SUGARCANE (16500 units) (4500 units) (12000 units)
CRUSHING
OPERATION
2 DURING NON- 24.45 Megawatt 1.6 Megawatt 22.85
CRUSHING OF (24450 units) (1600 units) Megawatt
SUGARCANE (22850 units)

  
c+

During the year the company has exported 150802280 units of power to the
KPTCL compared to the previous year¶s export of 138855000 units and imported 98200
units of power from KPTCL against import of 168000 units during the previous year. The
COGEN unit has worked for 350 days during the year.


  c   +
The COGEN power generation plant has one head that is general manager of COGEN, 23
supervisors, 30 plant operators, 10 electrical helpers & 9 other helpers.

Here in COGEN plant all helpers, plant operators are skilled and are educated in their
respective field. There are no unskilled workers in COGEN plant.

?
?

36
c c   
+
The power generation process has 3 shift a day, each shift is of 8 hours
which means the power generation process is for 24 hours. The timings of the shift as
follows:
1st shift starts from 6.00am to 2.00pm
2nd shift starts from 2.00pm to 10.00pm
3rd shift starts from 10.00pm t0 6.00am.


?


c  c   
+
COGEN uses both Bagasse & Non-coking Coal as fuel for power generation.
During sugarcane crushing season COGEN uses Baggasse as fuel in power generation
plant for generation of power ( that is 8-9 months in a year). In remaining months
COGEN uses Non-Coking Coal as a fuel in non crushing season.
Sometimes COGEN uses both Baggasse & Non-Coking Coal as a fuel for power
generation.


c +
As COGEN is planning to supply the power to TATA Company Limited

 

c
 +
The company purchases Non-Coking Coal from mangalore & Baggasse is taken from
sugar plant. There is an baggasse evilator which carries baggasse from sugar plant to
COGEN plant. The Non-Coking Coal is purchased from Mangalore.






37
  
c  +
a) 
c

  +
It is the first step in power generation, were Baggasse or Coal or both is carried
to CHAMBERS and stocked, then it is dumped to BABCOCK & WILCOX BOILER ( It
is manufactured by THERMAX co) through spreaders.
b) 
8&c7c+
In this boiler, the coal or baggasse or both are boiled and steam is given, then it
is send to TURBINE.

c +
In TURBINE, the steam is absorbed and power is generated ( electrical energy
is generated)

d)  +


After generation of power the power is supplied to KPTCL which is situated
200yards far from the plant.














38
  
c  


BAGASSE OR
COAL (RAW
MATERIAL)

BIOLER
THERMAX

STEAM IS
PRODUCED

STEAM IS TO
TURBINE

ELECTRICAL
ENEGY IS
GENERATED









39


 


c c +
WATER TREATMENT PLANT was established on 24th march 2004. WTP plays
a vital role, as Steam & cooling water is produced through WTP. COGEN & SUGAR
plant is fully depending on steam & cooling water which is generated through WTP.
WTP acts as a cooling & steaming agent for both the plant.
WTP is situated next to COGEN plant.



c +
The capacity of WTP is 1500metercube. The average raw water required per day
for the process- 1200metercube.

  c 
+
The WTP process coverts raw water into two types as follows:
a)? De-mineral water
b)? Soft water

9c +

TYPES OF WATER REQUIRED PER DAY REQUIREMENT IN


METERCUBES
DE-MINERAL WATER 200
SOFT WATER 800
OTHER USES & WASTAGES 200
TOTAL REQUIREMENT 1200
NOTE: So the total requirement of water is 1200metercubes of raw water per day for
process, and the water is pumped from near by lake. There are 3 lakes within the radius
of 5Kms. 

40
?3c 

+
Raw water is converted into De-mineral water. De-mineral water is
converted into steam which is used for further process in SUGAR plant & COGEN plant.


+
Soft water is used for cooling purpose. There are total 4 cooling fans situated
in the plant for cooling of soft water. Soft water is used in cooling of machineries while
in process.

41


  

RAW WATER
STORAGE TANK

AERATOR

CLARIFIER

DE-MINERAL SOFT WATER


WATER

MULTIGRADE
MULTIGRADE FILTER
FILTER

ACF-ACTIVATED ACF- ACTIVATED


CARBON FILTER CARBON FILTER

SAC- STRONG
ACID FILTER SOFT WATER PLANT

DE-GASSER SOFT WATER


STORAGE

WBA- WEAK BASE


ANION

SBA- STRONG
BASE ANION

MB-MIXED BED DE-MINERAL


WATER STORAGE

42

8c 
 

c c +

DSCL has marketing cum sales department. Sugar is controlled commodity & the price
of the sugar & quantity of sugar that should be released in market is fixed by the
government. So, there is much influence of government on sugar pricing & releasing.
In DSCL there are seven employees working in marketing department.


8c 
 +

CHIEF SALES
OFFICER

CASHIER

GODOWN
MANAGER

GODOWN
 KEEPER


 ASSISTANTS









43
  
c+

Every sugar industry has a dual policy, that is Free & Levy.
%? "-%"5'+
Free market means the company can sell sugar directly to the market, but
the quantity of sugar that should be sold is fixed by the government. The government
will fix the quantity of sugar that should be sold on monthly basis.
b)? Levy:
The government will fix the ratio of levy which means in total production
some percentage of sugar should be supplied to PDS( Public Distribution System) and
the percentage is fixed by the government.

a)? The current ratio is 90:10, which means 90% of sugar can be sold in sugar market
& 10% should be sold to government.
b)? The current market price of sugar in international market is 229Dollars per metric
ton that is 900 per quintal.
c)? The current market price of sugar in domestic market is Rs. 1180 per quintal.
As the international price is not favorable the company is selling its
commodity in Indian market.


8   
c +
DSCL has 900 dealers across the country. The company has a market share
of 0.37%. There are mainly 6states where DSCL is concentrating they are:
a)? KARNATAKA d) WEST BENGAL
b)? TAMIL NADU e) BIHAR
c)? ANDRA PRADESH f) KERALA

?
?
?
?

44

  
 

c c +
The Human Resources Department is performing a vital role in the organization. Human
Resources Management is concerned with people dimensions in management. As every
organization is made up of people, acquiring their services, developing their skills,
motivating them to higher levels of performance and ensuring their commitment to the
organization.
HRM is the qualitative improvement of human beings who are considered the most
valuable assets of an organization. In DSCL also Human Resources are given more
importance, cared & always motivated towards organization goal.

 c  +


The process followed in DSCL as follows:
%?
4$'  #$-% $"+
In DSCL acquisition process is concerned with securing & employing people who are
required by the organization, according to the hierarchy level in the organization
keeping in mind organizational objectives.
/? )! -' #$-% $"+
In DSCL development process is concerned with improving the skills of employees,
molding their behavior according to organization needs & changing their skills,
knowledge, aptitude,& values.All this process is done to improve the quality of
service which he renders for the organization & these qualities of employees are
improved to achieve organization goal.

c) ')%'  #$-% $"+


As DSCL is situated in rural areas where the motivational expenses( expenses made on
employees to motivate them) are low compare to urban areas.

45
For example: if you increase salary or if you give a gift/ incentive of Rs.250 to 500 the
employee gets motivated. In case of workers if you give a incentive of Rs. 150 to 250
then he will be motivated.
In DSCL most of the employees are self motivated are they are working in the
organization from past 15 to 25 years. Nearly 85% of employees in DSCL are working
from past 15 years.

*%'% # $-%  $"+ The maintenance function is concerned
with providing those working conditions that employees believe are necessary in order to
maintain their commitment to the organization. The HR dept is also continuously
working to improve the working conditions of the employees.

For example: As the working conditions were not good in Administration and
Management block of the organization & the employees were disturbed with the working
conditions. So, they requested to HR dept to improve the working conditions of the
office. All this happened 2 years back & this problem was solved by the HR dept within a
span of 6months. That is, A new building was build were Administration & Management
block was shifted. Now the employees are happy and HR dept Head said that after this
action the efficiency of employees is increased by 20%.

8 c  +
The sugar plant works on seasonal basis, so HR Dept has two different policies &
procedures to acquire, develop, motivate & maintain Human Resources of the
organization.
There is a committee named TRIPRIATE COMMITTEE, which makes policies &
procedures for the welfare of employees in whole Sugar Industry.





46
cc
c+
TRIPRIATE COMMITTEE is a body which functioned for the welfare of employees and
it is regulated by the:
a)? Government-( Sugar Ministry, Labor Ministry, labor commissioner, joint labor
commissioner etc)
b)? Members of Co-operative Sugar factory and Government Sugar Factory ( Few
selected members)
c)? Karnataka State Sugar Federation-(President, General Secretary, Treasurer, etc).
The above committee is functioned for the welfare of employees in sugar
industry. It solves problems between workers & management in the organization.
The functions as follows;
a)? The committee fixes the salaries of workers, employees and others who rendered
service for the organization.
b)? The committee conducts employee welfare & safety programs.
c)? Over all the committee look after the employees in sugar industry.
  
+
DSCL has conducted many programs for the welfare of employees. The
different allowances paid by the company to the employees according to employees act
as follows;
? " )*'#$*+The company pays 12% on Basic+DA as provident fund.

? "%'$'0+The company pays 15days salary (per year) for permanent employees
and 7days salary for seasonal employees.

? c -! 0  ' 5* $*+The present rate of EDLI is
Rs.67000. EDLI means if any employee expired during the course of
employment, then Rs. 67000 is paid to his dependents.


47
)?  "5-  -%'  %0-'+The company pays compensation, if
any employee met with an accident while working and the payment is done
according to the act.


)? *%!
!! ,%+ The company pays Rs 250 per month for all the
employees as Medical Allowances.

)? "%)!
!! ,%+The company pays traveling allowances according to
the distance traveled by the employees.0.1 to 4.9 kilometers Rs. 175 per month, 5
to 9.9 kilometers Rs. 225 per month,10 to 14.5 kilometers Rs. 275 per month,15
and above Rs. 325 per month, The company also has transportation facility for
employees.

)? # "-+ The company also provides uniforms for the employees. The
company provides 3 pairs of uniform for 2years to permanent employees & 2
pairs of uniform for seasonal employees. The company also pays stitching
allowances and washing allowances. The stitching allowances are Rs.87.5 per pair
and washing allowance Rs. 25 per month.

)? .' .#'


!! ,%+ The company pays Night Shift Allowances to the
employees.(Rs. 5 per night).

1? %' %!'0+ The company has clean & hygiene canteen facility. The
company charges Rs.0.60 for tea, Rs.1.20 for Tiffin & Rs.3.50 for full meals.





48
%#'0"%" "%--+
The company has conducted many safety training programme in both sugar plant &
cogen plant. In cogen plant the safety training programme is conducted once in two
months.

The company has done many others programmes for the welfare of employees and there
are many other allowances made by the company for the welfare of employees.


cc+
As every organization has Time Office, even DSCL has Time Office were attendance
register of the employees is maintained.

cc +
The company has three shifts & there are different workers in different shift. Each shift is
of 8hours.
In time office has installed Electronic Punching Machine where each employee has given
a punching card & when an employee enters into the organization goes through this
process and the data is saved.










49
c

 
c c 

The Financial Department is plays an important role as every thing that company does is
revealed in this matter in the sense of financial statement and reports of the company.
And this is the department which constitute towards the shareholder and the investors of
the company so to maintain this department prior concentration must be there and this
must be prepared only by the accountants who have the knowledge or by company
secretary or by charted accountant appointed by the company which must be reviewed by
the company auditor. This report shows the performance of the company and by keeping
this department accurate and transparent they can attract more investors or can get
competitive advantage

A business concern means a concern, which undertakes trading, or manufacturing


activities of goods/services. The basic criteria for starting a business unit are to make
profit from that. There are so many trading activities in a financial year. There for the
company has to make the records of all these activities. So these arises the used for
book-keeping.

Now a days every business have to keep books of accounts. It is the requirements of the
law. Generally the companies are required to maintain mainly two types of accounts.

1.? Trading and P&L Account.


2.? Balance sheet and even cash flow statement.
The same process is followed in DSCL as mentioned above.






50
c
c
 
  %%'ã2:ãv::;
c& 
  
 c ã2ãv::;
c 
 




   ã2:ãv::; ã2:ãv::<
1.SUGAR  
DOMESTIC SALES 50,12,99,875.64 72,58,62,806.20
EXPORTS 3,36,76,500.00 6,89,86,550.00
2. POWER 97,30,54,075.40 42,07,02,226.40
3. MOLASSES SALES 5,29,91,091.00 1,27,39,836.00
4 OTHER INCOME 2.01 2,97,82,377.12 63,86,448.95

  26V;6:<6:ã6;2;2 26vã6(6::6;::VV
7 c   

 c+ 
CANE PURCHASED  60,83,23,383.00 58,17,00,763.00
CANE PURCHASE TAX  2,47,90,563.00 57,40,710.00
CANE PROCUREMENT 2.02 4,83,78,326.08 1,73,62,738.31
& DEV EXP
MANUFACTURING 2.03 10,42,37,273.51 10,06,19,886.51
EXPENSES
ADMINISTRATIVE 2.04 1,70,15,269.85 1,56,56,050.91
EXPENSES
RAW SUGAR CON 2.05 0.00 0.00
SELLING &
DISTRUBUTION 2.06 80,05,581.79 58,71,146.53
EXPENSES
FINANCIAL CHARGES 2.08 9,39,89,812.18 8,42,08,069.22
FRINGE BENEFIT TAX 0.00 0.00
3   c+   
CONSUMPTION OF  50,70,45,171.80 18,07,26,782.00
COAL

51
FINANCIAL CHARGES 2.08 4,23,29,513.00 4,40,41,807.00
COGENARATION 2.07 2,20,14,743.84 2,74,81,260.49
EXPENSES
DECREASE (+)/ -4,96,59,242.00 3,58,79,023.00
INCREASE (-)IN
FINISHED GOODS &
BY PRODUCTS

  26(v6(6::6ã;:V 26:;6;v6<<6vã;:
PROFIT BEFORE TAX 16,43,33,523.11 13,53,89,670.58
LESS:
TOTAL 1.05 9,99,21,321.58? 10,54,31,598.83
DEPRECIATION
OPBPT 6,44,12,201.53 2,99,58,076.75
LESS:
MAT 80,62,568.47 34,57,848.06
FRINGE BEN TAX 3,61,300.96 4,22,265.35

PAT 5,59,88,332.10 2,60,77,963.34


ADD: DEFERRED TAX 1,42,87,317.48 97,82,681.49
ON INCOME
NET PROFIT 7,02,75,649.58 3,58,60,644.83
LOSS B/F PREV YEAR 0.00 10,96,685.81

 = :6:v6:V6(;V< ã6V<6:6((<ã










52


 %%'ã2:ãv::;
  

ã2:ãv::;

ã2:ãv::<
  
1) 
 
  :
A.SHARE HOLDERS 1.01 36,85,64,570.00 36,85,64,570.00
CAPITAL
B. RESERVES & 1.02 13,85,82,726.87 6,83,07,077.29
SURPLUS

>
(  V:6:26(:6v;<: (ã<:2(:v;
v
  +
A. SECURED LOAN 1.03 1,09,77,11,813.34 1,30,46,23,164.25
B. UNSECURED 1.04 1,11,19,677.96 1,11,19,677.96
LOAN


>(  22:<<ã2(;2ã: 2ã2V:(v<(vv2


?  22V;:<:<<2: 2:Vv2((<;V

c
c    
  +   
2c7
 + 1.05  
A. GROSS BLOCK 1,36,85,00,318.63 1.32,25,99,159.77
B. DEP TO DATE 68,63,85,853.17 58,83,83,050.33
 8 <6v262(6(V( :ã6(v626ãvv<

D. CAPITAL W.I.P 1,07,67,316.69 1,74,16,32,471.72


>(  ;6v<6<26:<v2V :V626ãv6(:2:v
ã? c    1.06 V6ãV6;:::: V6ãV6;::::


>(

53

( 
 6   

&

 +   
A. INVENTORIES 2:: V:6v<6<<6(;2<: (V6v26v<6ã2:2(
B. SUNDRY DEBTORS 2:< v<6ã6ã:6ãã;2v vã6;<6(<6:ãv;
C. CASH & BANK BAL 2:; 2;6ãV6:(6:v2: (6ã6:v6;;v<2
D. LOANS & ADVANCES 22: 2(6:v62ã6;:V(: v6ãã6;:6V(;<V


>(  262v6ã:62ã6:V:(V 26::626:6;2:;
 +
 c
ccc 
&PROVISION:
PROVISIONS TOTAL µF¶ 1.11 28,67,05,078.55 19,77,81,345.58
   

 3 2,88,11,118.20 5,08,92,582.85


DEFERRED REV EXP µH¶ 5,74,41,308.92 4,31,53,991.44
DEFERRED TAX ASSET 0.00 0.00
µH¶
PROFIT & LOSS A/C µJ¶


?? ??c?  2626V;6:<6:<<2: 26V6:262:6V2Vv




54

 
 
c c +
As sugarcane is the important raw-material which is processed to manufacture sugar. As
like other manufacturing companies which are totally dependent on raw-material, DSCL
is also dependent on sugarcane. So, DSCL has a separate department named Cane
Development Department

In Cane Development Department we have one more separate Department called Cane
Accounts section. Cane Development Department means it is a department which
supervises and motivates farmers to grow good quality of cane. So that the company can
get good recovery percentage and abundant sugarcane for production.

  c 
In cane development department there are totally 149 employees including General
Manager. The list of other employees as follows;

-! 0%'  $-/" #-! 0


Factory Farm + Farm Asst (5+1)=6
Zonal Office 5
Asst Cane Officer 10
Junior asst 10
Circle Officer 51
Circle Field Asst 51
Cane Office 6
Senior Asst 1
Junior Asst 2

'+ In cane account section a separate accounting system is followed where cane
purchase, loan to farmers & cane development related transaction are recorded, then it is
send to finance department for further information.

55



c 

 c +

   c
c    
Deputy Chief Accounts Officer 1
Staff Members 5
Attenders 2




 
 +





FACTORY FARM ZONAL OFFICE CANE OFFICE

FARM Asst Asst CANE OFFICER Sr Asst


Jr Asst

CIRCLE OFFICER

56

  +
The sugarcane growing season is classified into three types as follows;

a)? Early Variety- in the month of July, August, September, October


b)? Mid-late Variety- November, December
c)? Late Variety- January, February & March.

. -%0# !! ,'.# !! ," %*)! -'@

1)? The company give loan to farmers to produce more sugarcane & loan is given
according to the size of land the farmer cultivates & quantity of other things like
pesticides, fertilizers etc which are required for growing of sugarcane.
2)? The company has appointed 51 field officers & 51 circle officers who frequently
motivates, supervise & guide the farmers so the company can get good &
abundant raw materials for production.
3)? The interest rate is 12% on loan given to farmers and the loan is recovered when
cane is supplied by the farmers to the company & the remaining payment is done
within 35 days after supply.
4)? Company also pays advances according to the quantity of supply. Advances are
given twice in a week that is Tuesday & Friday. (This is also is recovered in final
bill).
5)? Lastly all this process is supervised by the field & circle officers to see to that the
loans are properly employed for whom they are given.
6)? Quality of sugarcane is frequently checked (while in growing stage) & it is also
checked before and after purchase of sugarcane.

57
  
c+

1)? The current price of sugarcane per tonne is Rs. 1543/.


2)? The company is having 9783 suppliers & all are farmers.
3)? The company has targeted to crush 700000 tonnes of sugarcane this year. Last
year 624834 tonnes of sugar is supplied.

Under the dynamic management of the company, a long perspective of bringing


more & more land under sugarcane cultivation is always kept in view. The figures as
follows;

Year Area under sugarcane cultivation ( in acres)


2006-07 3,859
2007-08 10,295
2008-09 18,238
2009-10 20,000

58


 c 
?
Strength and weaknesses are essentially internal to the organization and relate to the
matter concerning resources, programs and organization in key areas such as ?
‡? Sales
‡? Marketing
‡? Capacity
‡? Manufacturing cost etc
Opportunity and Threat are external to the organization and can exist or develop in
the following areas
‡? Size & Segmentation
‡? Growth pattern and maturity
‡? International dimensions
‡? Relative attractive of segments
‡? New Technologies etc

59
  
" 80, "* "' 

1 AUTOMATIZED The production of sugar plant is fully automatized

2 COST lowest cost producer

3 EXPERIENCE 36 years of experience

4 BRAND Brand name established

5 SPEED Faster decision making


8   
" 80 "* "' 

Lack of skilled labor of the company is


1 SKILLED LABOR situated in rural areas

The capacity of sugarcane crushing is


2 CAPACITY less compare to supply of sugarcane.

3 INFRASTRUCTURE The infrastructure is not developed

4 FINANCE Lack of financial funds

60
 cc 

! 80 "* "' 

1 SUGARCANE The supply of sugarcane is abundant.

2 FREE MARKET The ratio of free market is increased by 90%

3 FOREIGN MARKET The central Govt is encouraging for foreign market.

CENTRAL
4 The central Govt is giving subsidy.
GOVERNMENT


 

" 80, "* "' 

GOVERNMENT The price & quantity of supply of sugar is


2 fixed by Govt.
INTERVENTION

The export market is very compitative


3 EXPORT because of low cost production of sugar
from countries like Brazil, Thailand etc.


?
61
c c 

c   c c +
? Growth is the main objective or goal of any organization & the organization will
be frequently working on it.
? The government plays an important role in framing policies & procedures for
sugar industry.
? Flow of information & understanding between departments plays an important
role for the success of an organization.
? Each and every department is interlinked & acts as a source of information to one
another.
? The effect of external factors like, suppliers(farmers), government, natural
environment etc plays an important role in agro-based industries



c
c c c +
? The production plant & COGEN plant is fully computerized.
? The company is planning to increase its sugarcane crushing capacity.
? The company is planning to supply its power to TATA Company limited.
? The company is showing more interest towards foreign market.
? The company has a separate department called cane development department
where farmers are encouraged by giving loans to grow more & more
sugarcane.
? The company has adopted new techniques & procedures to cut the total cost.






62
  c +

? The company should increase its production capacity as the supply is more
compared to capacity.
? The company should import some more sophisticated machinery to reduce
cost of production, so that it can compete in foreign market.
? The departments in the organization should be systematically arranged.
? The company should increase its warehouse capacity & to renovate the
existing warehouse.
? The company should recruit experienced & young managers which will helps
in adopting new managerial techniques.
? Medical allowances should be increased because they will not get proper
treatment from that amount.
? Special incentives should be given to encourage employees.

63
  c +

Sugar industry a seasonal, agro-based industry occupies an important place in the
economy. It has an immense potential for transforming the rural economy into self-
generating one. The industry can expect to grow and emerge as a key player in the
international arena.

DAVANGERE SUGAR COMPANY LIMITED has made great efforts after its
privatization and succeeded in market from past 36 years and it is frequently working on
its objective i.e growth, as DSCL believes growth as the success of the organization.

I conclude that, the internship study at dscl gave me an insight of how an organization
works. The objective of my study was complete.

64
cc 
 

During this project the required information has been collected through various sources.
While going through the Organizational Study at ³Davanger sugar company private
limited´.
, I came to know various facts about the company from both primary & secondary
sources.

? A ? , 2007, Human Resource and Personnel Management, Fourth


edition, The McGraw-Hill companies.
? A ? ? ? A ? 

? , 2002, Production & Operation
Management, First edition, Himalaya Publishing House.
? A
? ? A
 2003, Marketing Management, Millennium edition, The
McGraw-Hill companies.
? Financial Result of the company.
? Company website. WWW.DSCL.COM
? www.google.com
? Annual Report of the Company.
? Company Profile

65