INTERNSHIP TRAINING REPORT

A Study conducted at

KRISHNA CO-OPERATIVE SUGAR FACTORY LIMITED ATHANI

submitted in partial fulfillment of the requirements

for the award of the degree of Master of Business Administration
Bangalore University

Submitted by

PRATEEK.S.KULKARNI
Reg. No. 09CQCMA076

Under the Guidance of

Mrs. L VIJAYASHREE
Faculty Designation
Assistant professor

DAYANANDA SAGAR COLLEGE OF MANAGEMENT

AND INFORMATION TECHNOLOGY
Shavige Malleshwara Hills, Kumaraswamy Layout, Bangalore – 560078.

2009-2011
 CERTIFICATE

This is to certify that the Internship Project titled “An Organisation

study at Federal bank Ltd”, submitted in partial fulfilment of the requirements for the
degree of Master of Business Administration to Bangalore University, and is a record of
original work carried out by Mr.PRATEEK.S.KULKARNI (Reg. No.09CQCMA076) under
the guidance of Ms.L.VIJAYASHREE during the academic year 2009-2011. This has
not been submitted to any other university or any institution for the award of any degree/
diploma/ certificate.

Dr. Maruti Ram Dr. M S Ramachandra

Head, M.B.A, DSCMIT Director-DSCMIT

Place: BANGALORE
Date:
 GUIDE CERTIFICATE

This is to certify that the Internship report titled “An Organisational study at Krishna

Co-operative Sugar Factory Ltd, Athani” submitted in partial fulfillment of the

requirement for the award of the degree of Master of Business Administration to

Bangalore University is a record of original work carried out by Mr.PRATEEK S

KULKARNI (Reg.No.06CQCM6068) under my supervision and guidance and that no

part of this report has been submitted for the award of any other

degree/diploma/certificate.

Place: Bangalore L.VIJAYASHREE

Assistant Professor
Date:
 STUDENT DECLARATION

I hereby declare that the Internship Project Report titled “An Organisational study at

Krishna Co-operative Sugar Factory Ltd, Athani” is an original work done by me,

submitted in partial fulfillment of the requirement for the award of the degree of Master

of Business Administration to Bangalore University, under the guidance of

Mrs.L.Vijayashree . This has not been submitted for the award of any other degree/

diploma/ certificate.

Place: Bangalore PRATEEK.S.KULKARNI

Date: (Reg.No.09CQCMA076)
 ACKNOWLEDGEMENT

I wish to express my sincere thanks to Dr. M.S.RAMACHANDRA . Director, Department of

Management Studies, Dayanada Sagar College, Bangalore for his prompt assistance and
encouragement in pursuing this summer internship.

I also wish to express my sincere gratitude to my corporate guide Mr M.K.Gurav for his
information and mentorship while undertaking the study at different departments.

It is my pleasure to thank Asst Prof.L,Vijayashree faculty, Department of Management

Studies, Administrative Management College for his / her valuable guidance which was
instrumental in the successful completion of this project.

Date: Aug, 2010 PRATEEK.S.KULKARNI

Place: Bangalore. Reg no.(09CQMA076)
 CONTENTS

CHAPTER 1: INTRODUCTION
1.1 General Introduction
1.2 Objective of the Study
1.3 Industrial Background of the Study
1.3.a Origin of the Industry
1.3.b Growth and Development of the Industry
1.3.c Present Status of the Industry
1.3.d Business Environment of the Industry
1.3.e Future of the Industry

CHAPTER 2: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization
2.2 Growth and Development of the Organization
2.3 Vision, Mission and Goals of the Organization
2.4 Present status and Future of the Organization
2.5 Organizational Structure and Organization Chart
2.6 SWOT Analysis of the Organization

CHAPTER 3: DETAILED STUDY OF THE DEPARTMENT

3.1 Human Resource Department
3.2 Finance Department
3.3 Marketing Department
3.4 Production Department
3.5 Purchasing Department
CHAPTER 4: STUDY OF SPECIFIC MANAGEMENT PROBLEM

CHAPTER 5: RECOMMENDATIONS AND CONCLUSION

APPENDIX

BIBLIOGRAPHY
 1.1 GENERAL INTRODUCTION

The Krishna Co-Operative Sugar Factory Limited, Athani, is a co-operative

society registered under Karnataka co-operative societies Act in 1969.

The Plant is located at Sankonatti Village of Athani in Belguam district. The

registration number of the company is DSK/REG/01/80-81 dated 10-03-1981. The
industrial license number of the factory is L.I.667 (1988) dated 02/11/1988.

The founder of this organization was Late Sri. A.B.Jakanur Ex min. of Karnataka.
At present it has an attractive campus with magnificent buildings over it. There are
totally 17,971 shareholders of TKCSFL and it has paid up share capital of Rs.18.37
Crores. During the year 2006-07, it has earned a net profit of Rs.2.15 crores. During the
same year it has produced 7.09 lakh Quintals of sugar and it has crushed 6.01 lakh
Tonnes of cane.

There are 610 workers in TKCSFL. It is paying salary of Rs. 1500,000 per month
to its workers. Total Turnover of sugar is Rs.60.03 crores.

The organization study of TKCSFL Athani included the overall study of different
departments and sections and sub sections. The departments studied were Finance
and Accounts department, Labour Welfare department, Purchase Department,
Marketing and Sales department, Production Department etc. Each department has its
own methods and procedures of working.
 By conducting the organizational study it was found that all the departments were
actively working towards the achievement of the goals and objectives of the company.
The management is also efficient in the work, so the company is achieving great
progress year by year.

The research study was conducted on the topic “A study on sugar pricing in
TKCSFL Athani For the purpose of Project work a sample of 30 tenderee or
respondents was covered. Also while administering Questionnaire care was taken to
ensure that the sample was the representative of the population.

The objective of the study was to know the factors influencing sugar pricing,
whether customers are satisfied with selling/tendering process etc.

By carrying out the study it was found that, the factors like grade of sugar, dust
freeness, transportation cost, Govt. policies and Sugar Release mechanism have
influence on pricing of sugar and also it was found that most of the customers are
satisfied with the selling or tendering process of TKCSFL Athani.

This project gave me an insight as to how the industry works and how important
this sector is to the economy. This project gave me a thorough experience of the sugar
industry.
1.2 objective of the study

1)To study about industry

2)To study about Organisation

3)To study about different Departments

4)To study about management problem

1.3INDUSTRY PROFILE

INTRODUCTION TO SUGAR INDUSTRY

The Indian sugar industry is a key driver of rural development, supporting India's
economic growth. The industry is inherently inclusive supporting over 50 million farmers
and their families, along with workers and entrepreneurs of almost 500 mills, apart from
a host of wholesalers and distributors spread across the country.
The industry is at a cross roads today, where it can leverage opportunities created by
global shifts in sugar trade as well as the emergence of sugarcane as a source of
renewable energy, through ethanol and cogeneration. While some of these
opportunities have been well researched in the past, there was a need to assess the
potential for India and to develop a comprehensive and actionable roadmap that could
enable the Indian industry to take its rightful place as a food and energy producer for
one of the world's leading economies.
India is second largest producer of sugarcane next to Brazil. As per last year
data, about 4 million hectares of land is under sugarcane with an average yield of 70
tones per hectare. India is largest producer of sugar including traditional sugar
sweetener, Khandasari and Gur equivalent to 26 million tones raw value followed by
Brazil in the second place at 18.5 million tones. Even in respect of white crystal sugar,
India has ranked No position 7 out of last 10 years.
Traditional Khandasari and Gur are consumed mostly by the rural population in
the early 1930’s nearly 2/3rd of sugarcane production was utilized for production of
alternate sweetener, Gur & Khandasari. With better standard of living and high income,
the sweetener demand has shifted to white sugar. About 1/3 rd of sugarcane production
is utilized by the Gur & Khandasari sectors. Being in the small scale sector, these two
sectors are completely free from controls and taxes, which are applicable to the sugar
sector.
1.3 a PROFILE OF THE SUGAR INDUSTRY

The advent of modern sugar industry began in 1930 with grant of tariff protection to the
Indian sugar industry. The number of sugar mills increased from 30 in the year 1930-31
to 135 in the year 1935 and the production during the same period increased from 1.20
lakh tones to 9.34 lakh tones under dynamic leadership of the private sector.

The era of planning for industrial development began in 1950-51 and government laid
down targets of sugar production and consumption licensed and installed capacity,
sugarcane production during each of the five year plan periods. The targets and
achievements various plan periods are given bellow.
1.3 b GROWTH OF INSTALLED CAPACITY

YEAR No of factories in Installed capacity Sugar production

operation (tones) (tones)

1950-51 139 16.7 11.0

1960-61 143 17.8 18.9
1970-71 174 24.5 30.2
1980-81 200 32.3 35.4
1990-91 229 43.1 39.5
2000-01 299 59.1 58.4
2005-06 415 127.6 167.3

2009-10 506 197 175

The small size new units licensed by the government were supported with a
scheme of announced on 25th November 1975 known as Sam path committee incentive.
It provides percentage of free sale quota to both new sugar factories and expansion in
existing units. This is to a mushrooming growth of relatively small sized sugar units in
the country.
Under the policy of licensing, government initially permitted small sized new units
of 1250 TCD capacity only and later on increased the minimum economic size of plant
to 2500 TCD similarly the capacity expansion initially allowed up to 3500 TCD only were
subsequently raised to ITCD and finally those expansion limits were withdrawn in 1990.
As a result the industry has grown horizontally with an all India per unit average
capacity of 500 TCD. As against this, these has been consolidation and move towards
larger per unit capacity all over the world, be evident from the following table.
Total sugar industries in India are 506 out of which 67 are public sector companies, 157
are private sector companies and 282 are co-operative societies. Total sugar industries
in Karnataka are 40 out of which two are public sector companies, 18 are private sector
companies, 19 are co-operative societies and one is joint venture.
Government enacted the Sugar Development Fund Act & Rules, which provides
for levy of per quintal of sugar known as Sugar Development Fund (SDF). The SDF is
utilized for granting term loans to sugar mills modernization and grants for research
projects in the sugar besides creation of buffer stocks as and when required to ensuring
price stability. Government de-licensed sugar sector in August 1998. It is now open to
entrepreneurs to set up mills without license but at distance of 15 kms away from the
existing factory. Sugar units free to expand their capacity and also put up higher
capacity new units.
1.3 c Present status of Indian Sugar Industry

No of sugar factories established 506

Total capital employed Rs. 50,000 crores
Total annual turnover Rs. 25,000 crores
Total payment to cane growers Rs. 18,000 crores
Contribution to central & state Rs. 1700 crores+800 crores
exchequers

Direct employment : rural educated Rs. 5.00 Lakhs

Farmers/families involved in sugar Rs. 45 million

cane (7.5% of rural population)

In global economy, the Indian sugar industry has achieved a number of milestones
Largest Sugar Producer in 7 out of 10 years
Second Largest Area under Cane/cane production
Amongst the cost effective industries with its field cost (Sugar cane) being the second
lowest, despite small land-holding and low productivity
Fourth efficient processor of sugar despite low capacity of its sugar plants as compared
very large-size plants in other parts of the world
1.3.d Business Environment of the Industry

The present policy of decontrol 10% of production by each unit is supplied for public
distribution system I as levy sugar at Govt. notified prices admittedly bellow 20% of the
actual cost of production. The levy sugar is I to the public irrespective of their economic
status. The balance 90% is sold in the free market against monthly/ issued by the
Government. This policy has been continuing since 1967-68 except for brief periods of
de-control during the years of surplus production and accumulated sugar stocks.
Government announces the Statutory Minimum price (SMP) for sugarcane every year
based on recommendations of the Commission for Agricultural Cost & Prices (CACP)
ORGANISATION PROFILE

The Krishna Co-Operative Sugar Factory Limited, Athani (Krishna Sahakari Sakkare
Karkhane Niyamit, Athani.) is a co-operative society registered under Karnataka co-
operative societies Act in 1969. The industrial license number of the factory is L.I.667
(1988) dated 02/11/1988. The Krishna Co-Operative Sugar Factory Limited, Athani is a
co-operative unit. It is situated near Sankonatti village, at a distance of about 6 Km from
Athani town. The factory at present has an attractive campus with magnificent buildings
over it.

Agriculture continues to be an extremely important sector in our country.

Cooperative system, as one of its main pillars providing vital support services, is crucial
for the transformation of agriculture. It is how inspired the founder Late Sri. A B
Jakanur, an agriculturist and a co-operator, to establish this factory during 2000-01 with
the financial support from cane growers of this area and the State Government, with an
initial crushing capacity 2500 TCD and as a stand-alone sugar industry. This factory had
faced a lot of problems all these years in coming out as a viable unit. Though this
factory had emerged in this area with a meager beginning, it had not only provided a
source of income for forming community but also created a sustainable employment
opportunity in this rural area.

After a lot of dispute on location of plant, near Sankonatti village, the construction
work started in year 1990 and completed in the year 2000. The factory was inaugurated
by Co-Operative minister of Karnataka State Sri H Vishwanath on 24/03/2002. The
regular production was started from 24/03/2002, and the first season lasts from
24/03/2002 to 09/04/2002.

The factory started on 24/03/2002 with initial Crushing capacity of 2500 TCD with
total expenditure of Rs.46.95 Crore. The area of operation covered 22 villages from
Athani Taluka,
 At present total sugar cane supplied to this sugar industry is from 15,000 acres
with average yield per acre of 25 MT.

The entire plant and Machinery has been supplied by M/s Triveni Engineering
and Industries Limited New Delhi, Rs. 28.17 Crore long-term loan was borrowed from
the Co-operative Banks. The factory had created a financial set backs due to the lack of
professionalism both in technical and financial managements and not adopted the range
of different bi-product activities and had suffered due to a weak governance on
efficiency, effectiveness, adaptability and internal and external accountability in the
management. However this cooperative and rural based industry must succeed if the
poor farmers and the rural unemployed youths have to be prosperous.
2.1ORIGIN OF THE ORGANISATION

Name of the Company The Krishna co operative Sugar

factory Limited Athani

Date of No. DSK/REG/01/80-81

Incorporation/Registration Date : 10-03-1981

Nature of Constitution Co-operative Sector

Factory code no. 40501

Date of commencement 12-06-2002

of commercial production of sugar

Crushing capacity 2500 TCD

Project Cost 48.86 crores

Activity under taker Production of sugar and its by

Products like Molasses and
Biogases

Working period 180-210 days

Type unit Large scale Agro based

manufacturing unit

Main raw material Sugar cane

Labour employed 530

Area of operation 22 villages

BOARD OF DIRECTORS
 1) Shri P.C. Savadi : Chairman

2) Shri J.A. Patil :ViceChairman

3 Shri G.M.Tewarmani : Director

4) Shri V.G.Kulkarni (satti) : Director

5) Shri C.H. Patil :Director

6) Shri S.D.Nandeshwar :Director

7) Shri G.M.Jatti : Director

8) Shri M.L.Patil : Director

9) Shri B.C.Hanji :Director

10) Shri V.G. Telasang :NomineeDirector

11) Smt. P.B.Reddy :NomineeDirector

12) Shri V.M.Shinge :NomineeDirector

13) Shri P.R.Mahajan :NomineeDirector

14) Shri I.M. Maniyar :Managing Director

2.2 Growth and Development of Organisation

2.3 Vision, Mission and Goals of the Organization
“To continue to remain the best performer among sugar manufacturing companies in
India & to provide more value to the shareholders by means of efficient capacity
utilization of its sugar, power and distillery based facilities.”

VISION

The vision statement of The Krishna Co-operative Sugar Factory Limited

is “We are dedicated to deliver overall value to our customers by delivering high quality
products, exceptional financial performance to our share holders & complete
satisfaction to cane growers, employees & stakeholders”.

MISSION

At TKCSFL, Athani, they believe in growth through quality, innovation and

Research and Development in Agriculture. Their mission is to reduce the overheads
and increase the profitability by maximum utility of raw material by way of producing
various products.
To encourage agro-based co-operative industry.
To develop co-operative movement in rural sector.
To encourage the farmers to grow sugarcane for production of sugar and its by-
products.

OBJECTIVES OF TKCSFL ATHANI

 To give the good market rate to the farmers who supply the sugar cane to their
factory.
To keep the good relations with the customers and. farmers and to maximize their
satisfaction.
Maximum utilization of man power and production capacity and proper utilization of
raw material for good recovery.
To promote the economic and social betterment among the members through self-
help and mutual aid in accordance with the co-operative principles specified in
the first schedule of the Act.
To encourage self-help, thrift and co-operation amongst member
To acquire lands either by way of purchase or otherwise for cultivation of sugar cane
and other crops and for erection of buildings, godowns, staff quarters,
administrative blocks etc., and for installation of machinery.
To manufacture sugar jaggery and their by-products out of sugar-cane grown and
supplied by members of the society and other and to sell the same to the best
advantage.
To undertake such other activities as are identical and conducive to the development
of the society.
To acquire and install machinery for the utilization of the by-products and buy raw
material and sell finished product in the course of utilizing and marketing the by-
products.

2.4 Present status and Future of the Organization

Crushing details:
Sl. Particulars 2001- 2002- 2003- 2005- 2008- 2009-
No. 2002 2003 2004 2006 2009 2010
1 Cane
Crushed 15778 312810 205135 146979 430018 601041
(MT)
2 Sugar
production 11003 351898 217680 158900 516169 705985
(Qtls)
3 Recovery 7.80 11.24 10.62 10.81 12.02 11.80
%

2.4Future strategies

1)Aligning farmer’s interest by making them shareholders of the company.

2)assisting farmer’s to yield more.
3)Increasing production of sugar by purchasing new plants.
4)To reduce lead time.
5)To crete viability out of liability.
6)To reduce waistages.

2.5 Organizational Structure and Organization Chart : -

 BOARD OF DIRECTORS

CHAIRMAN / MANAGING
DIRECTOR

CANE STORES & PURCHASE

MANAGER INTERNAL MANAGER MARKETIN CHIEF CHIEF
WORKS MANAGER
MANAGER PERSONNEL ADMINISTRATION MANAGER CIVILMANAGER
ENGINEERINFORMATIN TECNOLOGY
MANAGER AUDIT FINANCE G CHEMIST ENGINEER

ENGINEERING DY. CHIEF DY. CHIEFAST. CIVIL COMP.

STAFF ASST. CANE MANAGERSUPERVISO ASST A/C OFFICER MANAGER CHEMIST ENGINEERENGINEER PROGRAMMER
R MANAGER MARKETING

SUPERVISO CHEMIS ASST.

R AUDITING STAFF / SUPERVISO T ENGINEER SUPERVISO
CANE DEVT. OFFICER ASSISTANT MANAGER OPERATING STAFF
CLERK R R

WORKING
ASST. CANE DEPT. WORKING LAB CHEMIST JUNIOR ENGINEER
STAFF
OFFICRE STAFF WORKER /
CASHIER / CLERK
STAFF
SALES REPRESENTATIVE
SECTION
CANE INCHARGE
FIELD MAN FOREMAN
INSPECTOR

OPERATING STAFFOPERATING STAFF

LABOUR WELFARE GUEST HOUSE OFFICE
OFFICER SECURITY MANAGER INCHARGE SUPREDENT

WORKING
SECURITY STAFF
TIME KEEPER STAFF TELEPHONE OPERATOR,
OFFICER COOK, GUEST HOUSE ATTENDER
CLERK

WATCHMAN

FUNCTIONAL HEADS:
 Managing Director (M.D)
Chief Engineer
Chief Chemist
Chief Accountant
Cane Development Officer (C.D.O)
Office Superintendent
Accountant (Cane)
Labour Welfare Officer (L.W.O)
Civil Engineer
Accountant (General)
Store Keeper
Sales Officer
Purchase Officer
Time Keeper
Godown Keeper
Cashier
Security Head

2.6 SWOT Analysis of the Organization

SWOT ANALYSIS

Strengths:

Modern equipment and machinery.

Basic industry to agriculture.
Good source of raw material
Reduced wastages due to further usages of byproducts
Well defined infrastructure for better market connectivity
High profitability due to various by products (Product diversification) like
molasses,Biogases.
Healthy management labor relations
Superior product quality
Strong network from all aspects- location, transports, and infrastructure
Well-structured distribution channel.

WEAKNESSES:
Lower compensation for employees compared to other organization.
High cost of production due less capacity
No control on minimizing the losses during the process.
The company has to focus more on sales, marketing.
Factory is not an ISO certified.
Research and development department have not existed.
Seasonal production
Less skilled and efficient labour force.
Less control on minimizing the losses in process
Improper planning of investment for future growth.
The sugar release mechanism is controlled by government of India.
Absent of motivational incentives.

OPPORTUNITIES:
 The company can see the opportunities in diversification projects like:
Electricity generation
Ethanol i.e. substitutes for petrol
Liquor.
Fertilizers
Borrowing of low cost funds.
As Global sugar consumption is steadily on the rise and company can explore export
opportunities.
Increasing demand for sugar.

THREATS

The heavy competition from other competitors to get the raw materials as well as to
sell the products.
Frequent government intervention in the company policies
Large number of sugar factories within the same area.
No price stability.
Environmental norms by government which puts financial pressure
Due to uncertain rainfall procurement of raw material is being affected
The main raw material (i.e. sugarcane) may not sufficiently be available in future in
the given market.
Environmental pollution controls add up to the cost
Chapter 3

HUMAN RESOURCE MANAGEMENT (HRM): -

 Human Resource Management is a management function that helps managers
recruit, select, train and develops members for an organization. Obviously, HRM is
concerned with the people’s dimension in organizations.

Human Resource Management is the planning, organizing, directing and

controlling of procurement, development, compensation, integration, maintenance and
separation of human resources to the end that individual, organizational, and social
objectives are accomplished.
Thus, HRM refers to a set of programs, functions and activities designed and
carried out in order to maximize both employee as well as organizational effectiveness.

Employee’s Management in this Organization

General Administration and Establishment Section Time Office

Labour Welfare department(Wage and Salary administration)

RECRUITMENT AND SELECTION: -

All the rights of recruitment are invested with the Board of Directors. The factory has
good system of up grading. A promotion is given on the basis of experience,
qualification. For upgrading the workforce a committee of Board of Directors is
appointed. The up grading of workers is considered only when a vacancy exists in the
higher grades, the factory instead of recruiting people from outside gives preference to
their own personnel on the basis of qualifications, experiences and performance. The
possibility of promotion serves as an incentive.
Promotion is given to the workers if they are well experienced and also of good
qualification.

INTERNAL SOURCES: -

In TKCSFL ATHANI Internal search is made to identify surplus manpower so that

this manpower can be utilized elsewhere. This can be done through transfer and
promotion to employees in their positions.

EXTERNAL SOURCES: -

Some time it may not be possible to find out right manpower within the company,
especially in technical skill required jobs. Then they go for external sources. The major
external sources used by TKCSFL ATHANI are giving advertisements in news papers
and other Medias through personal contacts etc., after identifying the sources, the
recruitment process and selection process starts.

REMUNERATION SYSTEM: -
Remuneration to workers includes both monetary and non-monetary benefits
MONETARY BENEFITS: -
Salary.
Home rent allowances.
Dearness allowances.
Traveling allowances
Provident funds
Festival advances.
NON-MONETARY BENEFITS are subsided food and recreational facilities to
employees.

TIME OFFICE DEPARTMENT

This department is headed by head timekeeper. To maintain the register of
attendance of the factory staff to prepare the pay sheets and leave records and
personal services register of the staff.
Time office notes the time in and time out of employees. It also makes a note
of leave taken by employees. Thus performance of worker can be assessed from the
office.

FACTORY PREMISES
Inside: from 8:30am to 5:30pm
The lunch break is from 01:00 to 02:00 pm

LABOUR WELFARE DEPARTMENT: -

This department is headed by labour welfare officer. To look into the welfare
activities of the worker and solve the labour problems. The factory provides all the
necessary facilities. The purpose of providing welfare amenities is to facilitate the
development of total personality of working class for physical, mental, psychological,
cultural, social, moral and intellectual development the factory provides well planned
residential accommodation, medical facilities, educational facilities, drinking and
washing water, canteen, cycle stand, library etc. In addition, the factory has non-
statutory schemes for workers welfare. Consumers society, uniforms to watchman
production and engineering workers etc.
 People in this organization manifest themselves not only through individual’s
section but also through group interaction. When these people come to their work place
they come with not only technical skills and knowledge, but also with their personal
feelings, perception, desires, motives, attitudes and values etc. Therefore employee’s
management is a crucial part in this organization.
To establish and maintain sound organizational structure and desirable working
relationship between the employees and management and create facilities and
opportunities for employee growth and development, this organization created a
separate cell that is Labour Welfare Department.

Objectives: -
To secure for the worker fair wages.
To improve the working conditions and express share in the increased profitability.
To secure the workers security of employment and protect the larger interest of the
society.
To establish the relationship of Mutual Trust and Respect between Management and
Employees.

Functions: -

To promote harmonious relations between the factory management and worker.

To bring to the notice of Board of Directors the grievances of worker and to act as a
liaison officer between management and labour.
To study and understand the point of view of labour in order to help the management to
shape and formulate labour welfare policies.
To advice and assist the management in fulfillment of statutory and other obligations.
To encourage the formation of works, joint production councils, co-operative societies
and welfare committees and supervise their work.
To secure the provisions of amenities such as Canteen, Washing, First Aid, Shelter,
Rest Room and Lunch Room etc.
To suggest the measures which will serve to rise the standard of living of workers and in
general to promote their well being.

Welfare Facilities: -

Statutory facilities: -
Canteen
Washing facilities
Facilities for storing and drying clothes
Facilities for sitting
First Aid appliances
Shelter
Rest Room and Lunch Room
Leave facilities
Bonus, Incentives etc.

Non Statutory facilities: -

Co operative Societies
Recreation and festival committee
Nursery, Primary and High School
Community Hall
Banks
Flour Mill
Dish Cable Services
Hospital
Library
Job Specification in TKCSFL ATHANI
Every organization is made not made up only machineries but also consists
of people. Hence manpower is very essential and improvement in the production
industry .So TKCSFL ATHANI is having manpower sufficiently.
TABLE NO 2.2

Departments Orde Daily Enhancement No Tota

r Wages Change l

Engineering 121 60 57 09 247

Department

Production 88 37 31 09 165
Department

Cane 32 0 15 08 55
development
Department

Administration 11 20 16 12 59
Department

Civil Department 0 0 0 28 28

Time Office 2 2 0 00 04
Stores 14 29 0 0 43
Department

Vehicle 06 03 0 0 09
Department

Total 274 151 119 66 610

Staff: -
The employees are responsible for the success or failure of company.
There are totally 530 workers in the company.
No. of Workers
1) Permanent worker 320
2) Seasonal workers 290
610
Company is paying salary of Rs. 21, 00, 000 per month in season and 15,00,000 per
month in half Season to its workers.
Workers Shift System:

Sugar manufacturing process is continues process it needs employees to take

care of the operations 24 hours. So company employs its workers in 3 different shifts
and also provide weekly off on routine basis. The shift system of the company is as
follows.

Shifts Timings Break

I 4:00 am to 12:00 pm 30 min
II 12:00 pm to 8:00 pm 30 min
III 08:00 pm to 4:00 am 30 min
General and administration
8:00 am to 12:00 pm 60 min
1:00 pm to 5:00 pm

Central Office
10:00 am to 2:00 pm 30 min
02:30 pm to 5:30 pm
3.2 Finance Department

Finance plays a vital role in the functioning of all industrial units. Finance is the
lifeblood of the organization. In sugar Industry Finance and accounts Department has
very vital roles. The financial plan basically deals with raising and proper utilization of
funds. The funds can be raised by issue of shares as well as by raising loans through
various sources. The finance manager supported with accounts manager and an
accounts assistant manages finance department.

FUNCTIONS: -

They look after the overall financial requirements of the company.

They see that a proper inflow and outflow of income and expenditure is maintained.
Accounting of sales and sales realization.
Receipt of cash, cheque and bank drafts etc and issue of official receipts for the same
Maintenance of journal, expense ledger and general ledger.
Costing and accounting is framed and maintained.
Yearly budget is framed so that each department can meet their cash requirements.
Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting,
purchase forecasting etc.
Registration and scrutiny of sale orders pertaining to equipment and spare parts.
Finance Department consists of following Sections: -

General Accounts Section.

Cane Accounts Section.
Sales Section.
Cash Section.
An Accounts Officer is the head of this department. Accountant, sales manager, and
head cashier assist him.

AS FUNCTIONING OF EACH SECTION IS SUMMARIZED FOLLOWS: -

GENERAL ACCOUNTS SECTION:

General Accounts are looking after the passing of bills and payments.
Management is also done by General account section and preparation of financial
statements i.e., Balance sheet, profit and loss account is attended by general accounts
section.

CANE ACCOUNTS SECTION: -

The Bills and payment concerned to procurement of sugar cane, is attended by
cane accounts section. Payments like cane bills, transport and harvesting bills etc., are
prepared and passed in cane accounts section.
SALES SECTION:
It is looking after sales of sugar and by products like molasses, biogases and
other scrap materials. It is keeping records concerned to all sales section.
CASH SECTION:

It is looking after the payments of all general bills and salary bills apart from
cane payment and it is also looking after receipt of cash and cheque payment. All
accounts are maintained in usual manner.

Various records and books kept are: -

General ledger
Sub ledger
Subsidiary
Cash book
Bank book
Vouchers.
Each branch prepares trading and profits and loss account and Balance Sheet as
on 31st March every year. And the government Auditor audits the accounts.

DEBTS FROM BANKS AND FINANCIAL INSTITUTIONS

TABLE NO 2.5:-

Sl Name of the banks Amount

no
1 APPEX KARNATAKA GOVT BANK 6
BANGALORE CRORES
2 CANARA DCC BANK SIRSHI 5
CRORES
3 SOUTH CANARA DCC BANK MAGALORE 5
CRORES
4 BELGAUM DCC BANK BELGAUM 1
CRORES
5 SHIDESHWAR CO-OPERATIVE BANK 3
BIJAPUR CRORES
6 MARATHA URBAN CO-OPERATIVE BANK 2
BELGAUM CRORES
7 BELLAD BAGEWADI URBAN CO- 2
OPERATIVE BANK BELLAD BAGEWADI CRORES
8 SMS URBAN CO-OPERATIVE BANK 1.20
ATHANI CRORES
9 CHIKKODI URBAN CO-OPERATIVE BANK 1.50
CHIKKODI CRORES
10 SADALGA URBAN CO-OPERATIVE BANK 1.50
SADALGA CRORES

SHARE SECTION
The share section is the one of the important sections because more than half of the
capital is collected from shareholders .In this factory the shares are classified as;

TABLE NO 2.6:-
TYPES OF SHARES
“A CLASS ” Grower Member 13,048
shares

“B CLASS ” Co-operative Institution 89 Shares

“C CLASS ” State Government 01 shares

“D CLASS” Non Growers Members 4,309 shares

“E CLASS” Nominal Members 524 shares

“F CLASS” Associate Members

Note: -
(F Shares) An Associate membership of class F shall be open to the
individual who have invested in shares during the organization of the factory but cannot
been admitted in any of the above class of membership. They may hold shares of the
factory but shall not be entitled to become office bearer of the factor

3.3 Marketing Department

MARKETING AND SALES DEPARTMENT: -

The American Marketing Association offers the following formal definition:

Marketing is an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in the ways that benefit the organization and its stake holders.
It can be viewed Marketing Management as, an art and science of choosing
target markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value.

CHANNEL OF DISTRIBUTION: -

Most producers do not sell their goods directly to the final users. Between them
stands set of intermediaries performing a variety of function. Those intermediaries
constitute a marketing channel.
Marketing channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption.
Marketing channel decisions are among the most critical decisions facing
management. The channel chosen intimately affects all the other marketing decision.
The company’s pricing depends on whether it uses mass merchandisers or high quality
boutiques. The firm’s sales force and advertising decisions depends upon how much
training and motivation dealers need. In addition, the company's channel decisions
involve relatively long term commitments to other firms.

ROLE OF MARKETING MANAGER: -

 To collect information for sale forecasting.
Pricing the products as per the demand.
To appoint new dealers and distributors
.To have full and perfect knowledge of marketing conditions and policies
Marketing department also looks after dispatching goods to the vendors

.
FUNCTIONS OF SALES DEPARTMENT: -
Sales officer is responsible for selling the products.
To look after dispatch of the ordered products.
Suggestion, ideas, complaints, feedback from the market to the company.
Stocking planning, godown maintenance.

RELEASE MECHANISM OF SUGAR: -

The sale of sugar is controlled by the Chief Director of sugar, New Delhi through
release mechanism.
Sugar industry is basically a seasonal industry. Hence the sugar will be
produced during the season and the sugar thus produced will have to be marketed
throughout the year by the sugar mills.
The Directorate of sugar will release monthly sugar sale quota for the sugar
factories in India and the sugar thus released for the specific month will have to be sold
and dispatched before the end of the month.
In case any factory not able to sell the entire quantity of the sugar released for
the particular month, the remaining quantity will be treated as lapsed. So every factory
tries to sell their sugar quote of the month within the validity period.

SALES PROCEDURE: -
Procedure adopted for sale of sugar and power
Sugar: -
Domestic Sale of Sugar: -
The sugar is sold in the domestic market through tender system. Sugar tenders will be
called periodically from the various sugar traders. The traders are intimated well in
advance about the grade and quality being offered in tender over telephone. The sugar
tender is some times conducted at Karnataka Sugar Institute, Belgaum and also at
factory site. The officer of KSI will be present at the time of tenders. The rates will be
collected over telephone from the various parties along with grade and quantity of sugar
required by them. The parties who have offered higher price will be allotted the sugar
and they will be instructed to take the sugar delivery within the stipulated period. The
sugar will be sold against 100% payment. The rate of domestic price of sugar in the
state and the rate of neighboring sugar factories will be compared while selling the
sugar in tenders.

Export of Sugar: -

When the international price of sugar is remunerative compared to domestic

price of sugar, the company exports some of the stock of sugar. The sugar export is
mainly undertaken through the mercantile exports or through EXIM Corporation New
Delhi. The price for export sugar is negotiated taking into account, the prevailing
international sugar price and the price being offered by various sugar factories for
export of sugar. Once the rates are finalized, the company will enter into agreement with
the party. Then the party will obtain a release orders from chief Director of sugar, New
Delhi and necessary excise bond from the concerned authority. After completing all the
necessary formalities, sugar will be delivered to the party for export against full payment
of the consignment. After the export shipment is completed necessary documents in
proof of export of consignment will be collected from the parties. The same will be
submitted to the excise department.
Export of Power to the KPTCL Grid: -

In addition to the above company is also receiving its revenue from its power
plant. Company is having a power plant of 6.0 MW capacities. It is using about 4.0MW
for its own/captive consumption; the excess power of about 2.0MW is being exported to
the KPTCL.

3.4 PRODUCTION DEPARTMENT

Production management refers to the application of management principles to the

production function in a factory. In other words production management involves
application of planning, organizing, directing and controlling the production process.
A well-organized production function can offer competitive advantage to a firm
in the following areas.
 Higher quality
 More inventory turns
 Shorter new product lead time
 Greater flexibility
 Shorter manufacturing lead time
 Better customer satisfaction
 Reduced wastage

Laboratory

The factory is having well equipped lab, and the main activity of the lab is to
check the content of sugar cane & fixing the correct shape & size of sugar. The lab
prepares hourly reports which advice on the addition of the other chemicals in
production
 Chief chemist

Deputy chemist

PRODUCTION PROCESS

The main Raw material in the production of sugar is.

 Sugar cane.
The raw materials has to go through following stages before it become finished
product. The process in each stage is as under:

STAGE:1 SUGAR CANE SUPPLY.

The harvested and transported sugar can received is weighted on the weigh Bridge.
It is unloaded and kept on the feeder tables. It is fed to the cane carrier as per the
requirement.
Note: 4500 tons received, 1000 tons stocked and 3500 tons crushing per day.

STAGE:-2 MILLING OF CANE/ EXTRACTION OF JUICE.

This cane is passed through leveler and fibrizor by making the fine making the
fine chips. It is crushed through series of mills. Imbibitions hot water is added prior to
the last mill to extract more possible sugar. The Biogases from the last will is carried
through Biogases conveyor and required quantity of Biogases is fed to the boilers and
excess quality is sent for storage.

STAGE:-3 CLARIFICATION AND EVAPORATIONS.

The juice from all the mills is pumped to juice weighting scale. It is heated to
about 70-77’o c in the juice heaters. It is taken to continuous juice sulphitor in which
milk of lime and sulphur di-oxide gas are adjusted to maintain ph 7.0. It is again heated
in juice heaters to about 100 to 105’oc and sent to continuous clarifier. Clear juice is
taken to multiple effect evaporators to concentrate up to 60oc Bricks.
The settled mud from the bottom of the clarifier is taken to mud mixer to mix with
beguile and taken to continuous vacum filer. The filtrate is transferred to raw juice
receiving tank for treatment. The adhered mud on the screens is scraped and sent out
as filter cake, which will be used for composting the manure.

STAGE:-4 SUGAR MANUFACTURE AND CRYSTALLIZATION

PURING

The concentrated syrup from evaporator is taken to syrup sulpthitor to adjust Ph

4.8 to 5.2. This is stored in the supply tanks and fed to “A” masscult boiling by taking B-
seed as a footing. It is concentrated to 92o Bricks and dropped to the crystallizer. This
masscult is purged in the centrifugal machines. The adhered crystals are scraped to
hopper and treated with hot air and cold air blower. It is sent to grader the size for
gradation. This graded sugar is stored in SILOS. Weighed and bagged sugar bags are
transferred to respective godowns for stacking.

STAGE 5:- FURTHER PROCESS

While purging A- massecuite the A-light molasses received is sent to supply

tanks and fed to ‘B’- masscult boiling with b-grain as footing. This is purged in the
centrifugals. This sugar is used as B- seed and excess is melted and fed to ‘A’-
masscult’s. White purging low purity B- Heavy molasses obtained is used for boiling C-
massecuite with C- grain as footing.
This C- massecuite is taken for purging in Centrifugal machines. The final
molasses is separated, weighed and sent to storage tanks. C.F.Magma is sent to melt
supply tanks and fed to ‘A’ massecuite boiling. C-light molasses obtained is tired in
supply tanks and used for C- massecuite boiling and C- graining also 0.
 CHART SHOWING PRODUCT PROFILE

SUGAR CANE
BY-PRODUCTS

BAGASSES MOLASSES PRESS MUD

ETHANOLLLLLLlL RECTIFIED SPIRIT POTABLE ALCOHOL

MANURE

SUGAR
STEAMMMmMMMMM POWER JUICE HEATING

Sugar Production
Process
SUGAR:

The factory initially started crushing at the rate of 2500 Tonnes crushing per day (TCD).
It is needless to emphasis here that this factory has its own credibility and enjoys its
own sanctity in the sugar industry.

The TKCSFL Athani produces the sugar which can be classified as shown in the table
below. The sugar is divided in to three types based on the crystal size; they are large,
medium, and small. The production of these is dependent on the crushing capacity of
the factory. To produce large sized crystals it takes more time, which in turn affects the
crushing. As the size increases the impurity increases and colour of the crystals
decreases.

TABLE NO 2.5:-

Type of sugar Produced in TKCSFL Athani

TYPE OF SUGAR SIZE (IN MICRONS) %AGE PRODUCTION IN

2006
LARGE (L30) 1400 NILL
MEDIUM (M30) 1120 10-15%
SMALL (S30) 600 85-90%

DISTILLATION:

The unit uses molasses, which is waste in the production of sugar, as raw material for
distillation.

This molasses has about 40% to 45% of sugar in it. The yeast strain used in
fermentation process is Sacchromyces Uvarum.

BIOGASSES:
 The fibrous material of sugar cane which after extraction of juice comes out from
mill house is called Biogases and is used as fuel for Boilers. In TKCSFL they use the
Biogases for high pressure boilers to generate steam. Thus generated steam is used to
produce electric power by using Extraction Turbo Generation set. Thus produced power
is used to run the factory and excess power is exported through KEB Grid.

Co-Generation:

The factory started producing Power by using Biogases in the year 2002 with the
initial capacity of 6 MW... It installed turbo generator set of capacity 6 MW in the year
2002. As on 2006 the Factory has the total capacity of 6 MW, out of which 4 MW is
used for in-house consumption and the remaining power is transported.

Press mud:

The press mud is obtained in the process of juice purification process. It is used
as manure. In TKCSFL, the press mud is sold to the farmers.

PROCUREMENT
The factory obtains the sugarcane, which is required from more than 1000 farmers and
by the company farms and others raw materials which are required for the operation is
taken from the vendor, here vendors will be evaluated on the basis of price and quality
and then the required raw materials will be taken for the efficient vendors.
The transport of sugar cane from farmers to the factory will be engaged through Lorries,
which will be taken through bidding at the time of harvesting, and also farmers
themselves supply by their own bullock carts or by tractors.

CANE WEIGHMENT: -
There are 12 outlaying weigh bridges situated round about Athani for delivering the
sugarcane from the farmers. Double check has been provided over the weighment of
cane transported from out stations.

OPERATIONS: -

The sugarcane, which is carried by Lorries or other, will be directly fed to the
machine where the initial process starts. At the starting point there are knives, which
cut sugar cane bunches into individual sugar cane.
After this in the next step there are sharp cutter, which cuts the sugarcane
bunches into very small pieces. Then it will go to trade marbs (a series of rollers used
for crushing purpose) for crushing. Then the juice produced will go for further
processing and the Biogases will be left out there itself. Then they add flocculent [used
for mud setting] milk sanitation etc and then after it will go through pans and Masscuite
for this Masscuite they will add sodium Hydro Sulphite (to bleach the Masscuite) and it
will be separated out and the molasses will be sent to distillery and then white sugar will
be bagged.

3.5 PURCHASE DEPARTMENT

-
Purchase officer heads Purchase Department. He is responsible for purchasing
the spare parts required for the industry. The storekeeper is responsible for stacking;
maintaining and issuing required materials to the concerned section.

The important functions of this department are: -

 Purchasing materials
 Calling quotations
 Preparing C.S.Q (comparative statement quotation)
 Placing before meeting for decision
 Placing orders for supply of materials.
 Passing bills to Accounts section for payment.

PURCHASE DEPARTMENT HIERARCHY

PURCHASE MANAGER

GODOWN SUPERVISORS

STORE KEEPERS

ASSISTANTS

PROCEDURE OF PURCHASING: -

PROCESS OF PURCHASING MATERIAL OF PURCHASING DEPARTMENT

1. DETERMINATION OF PURCHASE BUDGET:
2. DETERMINATION OF QUANTITY
3. PURCHASE ORDER:
4. RECEIVING AND ISSUING RAW MATERIALS

PURCHASE DEPARTMENT SYSTEM

 Requirement requisition

Quoting of enquiry of suppliers

Requesting to send quotation

Used to draw the model of the item

Compare the items from parties

Calling parties for negotiation

(I.e. price, clarification, delivery period)

Compare the rates of the items

Place the order

Receiving the material (store)

Approval memo after receiving the material

Store dept will send the bill

Bill is sent it to the A/C officer

Verification of bill with order copy

MECHANICAL DEPARTMENT:
 This department is headed by Chief Engineer. It deals with the maintenance of
the sugar machinery and plant and to run all the sugar machinery and their devices
properly and smoothly in the season and to extract cane juice from the sugar cane.
This department has the following subsections.
1) Mill
2) Boiler
3) Sugar house

Functions:

1) To maintain performance of machines.

2) Installation of the machines.
3) Repairs of the machines.
4) On the job training to the employees in the section.
5) Looking after the electrical section.
6) Crystallizing drying and packing the refined sugar.

WATCH AND WARD: -

This department is headed by security officer. It provides security to the factory

and control on gates and supervision in day and night all over the factory area from
security point of view.
AGRICULTURAL DEPARTMENT: -

This is one of the important sections of the administration of TKCSFL Athani,

which plays a dominant role in buying of sugar cane, which is a main raw material to
sugar industries.
This department is headed by Cane development officer. It deals with the cane
procurement, harvesting (to reap) and development of cane and to make the provision
of proper seed of cane to the cultivators, soil testing and proper guideline for measuring
etc.
This dept helps the farmers for the production of good quality of sugarcane. The
total area of operation is 15,000 acres and is divided into 4 circles with 22 villages.

Facilities provided to the farmers:

1) Compost is provided to the farmers.

2) Pesticides are provided.
3) Agriculture development loans are provided.
4) Sugar is provided to the shareholders once in a year.
5) Recommendation letters to the banks to provide loans to farmers.
6) Provide cane seeds.
STRUCTURE:
CDO

Accounts Field

Head Clerk ACDO

Clerks Filed man

Slip boys
FUNCTIONS:

1) Issue of slips to the cane suppliers, harvesting gangs and transport parties.
2) Arrangement of the vehicles to supply the sugar cane.
3) Cane registration.
4) It makes the arrangement for harvesting gangs and transport parties.
5) It solves the farmers’ problems.
6) Improving cane quality.
7) Supply of sugar cane according to the requirement.
8) It supplies cane seeds to the farmers.
9) It provides fertilizers and pesticides to the farmers.
10) Provides information regarding cane suppliers, harvesting gangs and
transport parties to the cane accounts.
11) Hiring trucks and tractors.
CHAPTER 4
4.0 Specific Management Problems

1)The management is producing more quantity of M30 grade of sugar where as the
demand for
S30 grade of sugar is more.

2)The political intervention is very much in the factory.As the factory is owned by
government and controlled by the ministers.

3)Tenderee’s are facing lot of difficulty in transporting the sugar.

4)The factory is facing difficulties in exporting its products.

5)The management is finding problems as the sugar is not very dust free.

6)poor skilled workers.

The management is facing these difficulties and it is very necessary to overcome these
difficulties in order to compete with the other sugar industries in thye region mainly with
Renuka sugars which is growing rapidly compared to other sugar factoies in the region.

So the management needs tahe up some standard measures to overcome

the Loopholes of the factory and improvise the co9nditions of the factory.
 5 SUGGESTIONS

1)Produce more quantity of S30 grade of sugar to meet the demand requirements
and Produce less quantity of M30 grade of sugar

2)Reduce the level of difficulty for tenderee while transporting sugar;maintain good road
conditions and better connectivity to market.

3)Produce highly dust-free which has more market demand and value.

4)Try to explore export opportunities.

5)Increase the productivity and efficiency of workers by providing them proper training
Facilities.
Conclusion: -

 The Objective of the study was to study various departments and sections of the
KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, ATHANI. The company
has number of departments, viz., General Administration, Marketing department,
Purchase department, Finance and Accounts Departments etc. By conducting
the study it is concluded that all these departments are actively working towards
the achievement of the goals and objectives of the company. The management is
also efficient in the work, so the company is achieving great progress year by
year.

 The study on Sugar Pricing has helped in knowing, about the factors influencing
sugar pricing and satisfaction levels of customers or Tenderee with
tendering process of the company. It is concluded that the Tenderee were
satisfied with tendering process of the company but there are certain areas in
which the improvement is needed.
BIBLIOGRAPHY: -

BOOKS REFERRED: -

BUSINESS RESEARCH METHODOLOGY

By Donald R. Cooper & Pamela S. Schindler, Eighth Edition, Tata McGraw Hill
Publications.

MARKETING MANAGEMENT
By Philip Kottler & Kevin Lane Keller, 12 th edition, Prentice-Hall publications

HUMAN RESOURCE AND PERSONNEL MANAGEMENT

By K Aswathappa, Fourth Edition, Tata McGraw Hill Publications.

WEBSITES: -
www.sugarindustry.com

www.sugaronline.com

www.thehindubusinessline.com

www.spc.int