SCHOOL OF MANAGEMENT STUDIES

A MINOR PROJECT REPORT ON

ORGANISATION REPORT

Submitted in partial fulfillment of the requirement for the award

of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By

VIDYASHRI T BUDIHAL

R16MB139

Under the guidance of

Prof. NITU GHOSH

August, 2017

Rukmini Knowledge Park

Kattigenahalli, Yelahanka, Bengaluru – 560064

www.reva.edu.in

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 CERTIFICATE BY THE UNIVERSITY

This is to certify that this project report on _______________ has been prepared
by ______________ Reg No:________ under my guidance and supervision in
partial fulfillment of the requirements of Master of Business Administration,
REVA University conducted by School of Commerce and Management.

Signature and name of the guide Signature of

the Director

Date:

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 STUDENT DECLARATION

I, VIDYASHRI BUDIHAL, Reg No R16MB139 hereby declare that this project

report titled ORGANISATION STUDY is my original work submitted in partial
fulfillment of the requirements for Master of Business Administration course of
REVA University under the guidance and supervision of NITU GHOSH. This has
not been submitted earlier for award of any other degree by REVA University or
any other University

Signature and name of the student

Date:

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 ACKNOWLEDGEMENTS

The word project comes from the Latin word projectum from the Latin verb
proicere, "before an action" which in turn comes from pro-, which denotes
precedence, something that comes before something else in time “to do". The
word "project" thus actually originally meant "before an action.

As I Vidyashri Budihal doing my MBA in Reva University it is very much

important for a MBA Student to do a project where I can connect my theoretical
knowledge to practical knowledge and can gain practice of the work place.

On this occasion I would like express my heart fill gratitude to Prof. NITU
GHOSH for reviewing my project weekly and helped me by providing all
valuable suggestions and necessary changes required. His support and feedbacks
have helped me to obtain a greater knowledge and was able to complete the
project successfully.

I would like to thank Director M.M.BAGALI for providing valuable suggestions

and changes required for me to complete the project.

I would like to extend warm gratitude to all schools, teachers, administrators and
all those who have helped me in completing the survey successfully.

I would like to thank all staff members of REVA University and RANNA
SUGARS for providing support in completion of project.

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LIST OF CONTENTS WITH PAGE NUMBERS

SL.NO PARTICULAR Page number

1 Executive summary

2 Introduction to organization study

3 Company profile

4 Industry profile

5 Competitive analysis

6 Summary of findings

7 Recommendations and Conclusion

8 Bibliography

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Executive Summary

RANNA SUGARS is the co-operative company. The project has been undertaken
on the topic “organization study at RANNA SUGARS” As it helps to
understand the business activities of the factory.

The factory is a well established production factory. It always maintained highest

international standards of excellence through quality. The company has ISO 9001-
2000certification. The factory established the principal objective of serving the
society through economic development and the motto being “growing with
farmers”. It has today grown to become a dynamic group of companies that makes
a fine case of youthful spirit and far-sighted vision. The group has covered the
path of success adopting innovative approach and has left in its wake rays of hope
for the people of Timmapur and surrounding regions. Ranna sugars has set the
path of the group to widespread economic activities with an unwaring
commitment and conviction Employment generation and community
development were the primary goals behind the limitations to the activities of the
group.

The production capacity of the factory is 5000 TCD per day and it manufacture of
sugars and by products like molasses and bagasse, generation of power,
distillation.

Where the organization ensures that all the employees are safe in the workplace
and it motivates the employees to stay in the organization for a long period and to
sustain the life.

In RANNA SUGARS the safety levels are followed according to “Factory Act
1948” and it is been practiced the same and followed all the rules and regulations
prescribed in the books of law.

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 CHAPTER-1

1.1 INTRODUCTION TO ORGANISATION STUDY

An organization is a social arrangement which pursues collective goals, which

controls its own performance and which has a boundary separating it from its
environment. As part of MBA student it’s an opportunity to understand about the
organization structure and functions. Here we get the first hand information and
understand the functions of various departments.

I did my organization study at Rytar Sahakari Sakkare Karkhane Niyamita. It was

great a learning experience as it is quite necessary for all the management
students. The main purpose of doing organization study to understand basic
functions, their purpose, achievements, competitors, the mission and vision of the
company and progress towards that.

All general information we get in course is all book knowledge, on which we

entirely cannot depend. It is very important to observe the actual working of an
organization and the overall structure of an organization. The
actual professionalism can be studied only through experience.

Organization concept

1. It is the process of identifying and grouping the work to be performed.

2. Clarifying and delegating responsibility and authority.

3. Establishing the relationship for the purpose of enabling people to work

efficiently together in accomplishing objectives.

1.2 Theoretical background of the study

Theories are formulated to explain, predict, and understand phenomena and, in

many cases, to challenge and extend existing knowledge within the limits of
critical bounding assumptions. The theoretical framework is the structure that can

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hold or support a theory of a research study. The theoretical framework introduces
and describes the theory that explains why the research problem under study
exists. A theoretical framework consists of concepts and, together with their
definitions and reference to relevant scholarly literature, existing theory that is
used for your particular study. The theoretical framework is most often not
something readily found within the literature.

The theoretical framework strengthens the study in the following ways:

 An explicit statement of theoretical assumptions permits the reader to

evaluate them critically.
 The theoretical framework connects the researcher to existing knowledge.
Guided by a relevant theory, you are given a basis for your hypotheses and
choice of research methods.
 Articulating the theoretical assumptions of a research study forces you to
address questions of why and how. It permits you to intellectually
transition from simply describing a phenomenon you have observed to
generalizing about various aspects of that phenomenon.
 Having a theory helps you identify the limits to those generalizations. A
theoretical framework specifies which key variables influence a
phenomenon of interest and highlights the need to examine how those key
variables might differ and under what circumstances.

By virtue of its applicative nature, good theory in the social sciences is of value
precisely because it fulfills one primary purpose: to explain the meaning, nature,
and challenges associated with a phenomenon, often experienced but unexplained
in the world in which we live, so that we may use that knowledge and
understanding to act in more informed and effective ways.

1.3 OBJECTIVES OF THE STUDY

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  To know the organizational framework and it’s functioning.
 To know about the company and its products.
 To study about the various departments and functioning.
 To provide suggestions for improvement to the company.

1.4 SCOPE OF THE STUDY

This study is being conducted for Ranna sugar factory, and this study tells us an
overall view of organization and functions carried out by different departments
like manufacturing, marketing, human resource, sales and finance etc.

METHODOLOGY OF ORGANISATIONAL STUDY

1. PRIMARY DATA - Primary data were collected from discussions with the Managerial
head of the various departments.
2. SECONDARY DATA - Secondary data were obtained from the annual report,
from the website and other concerned books.
1.5 Limitations of the study

 Due to time constraint the study was limited only to R.S.S.K.

 Lack of secondary data with company.
 There was no cooperation from employees from certain departments due
to their work load.

1.6 Rationale for selection of the topic and company

The reason for selecting the R.S.S.K factory is that, they are one of the largest
suppliers of sugar to the all over the India. They provided employment
opportunity to the rural people. The industry contains all the major areas of study.

CHAPTER-2

COMPANY PROFILE

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2.1 Inception and History, Type, Nature

The Rytar sahakari Sakkare karkhane Niyamita is a large scale agro

based industry. It is considered to belong to state co-operative sector.

The factory was registered on 29 th July 1982 itself and government has
given licensee for 2500TCD. In the same year government has given registration
number is DSK/REG/182-83 dated: 27/07/1982. From that onwards it started
issuing the shares to the public. This issuing of shares to comes to an end in the
year 1997. During those periods they purchased 200 acres of land at Timmapur
village at cost of Rs.24 lacs. The 1 st trial crushing was taken in the month from
19/05/1999 to 10/06/1999. The performance of the factory in this period as under.

Total cane 123.28MT

crushed
Sugar produced 407989Qtls.
Recovery 12.50

The factory has more than 500 employees on its role including some officers and
technical experts. Human resource being the most important assets of the
company all the efforts are made to enhance the motivational level and efficiency
of the employees.

VISION

 Development of the company.

 To produce the best quality of sugar to satisfy the customers.
 To achieve greater security of material.
 To become the most efficient producer end to end integration to
improve margins.
 To expand its capacity achieves end to end integration to margins.
 To bring overall productivity and efficiency throughout the organization
epically by value addition of its product in sugar a fluent waste.

Mission of The company:-

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  To become world class sugar producer in the nation.
 To improve the holders wealth by sustained profitable and financial
growth.
 To create a better environment intellectual satisfying and professionally
rewarding to the employees.
 To fulfill national and social obligation @ the responsible citizen of the
company.

Objectives of the company:-

 To obtain better price for sugar cane.
 To provide employment.
 To make overall development of mudhol taluk especially within the area
of operation.

Company profile

 Location: Rytar sahakari Sakkare karkhane Niyamit, Ranna Nagar,

Timmapur
 Started in: 25-11-1999
 Registered number: DSK/REG/1982-83
 Weekly holiday: Sunday

 Bankers of the company: Starting time:

Apex Bank Bangalore
North Canara DCC Bank Sirasi
South Canara DCC Bank Mangalore
KCC Bank Dharwad
DCC Bank Vijapur
DCC Bank Bagalkot
Present time:
Apex Bank Bangalore
DCC Bank Bagalkot
 Area of operation nationally: Andhra Pradesh, Madhya Pradesh
and Gujarat.
 No of workers: 567

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  No of shareholders: Beginning 1999-2000,10834,Present 2012-13,
20321
 Main products: Sugar
 By products: Biogas, Molases, Press mud, Bio gas

Nature of the business carried

Sugar production (Ranna sugar)

The plant is capable of crushing about 5000 tons cane per day (T.C.D) and
would be producing export quality crystal white sugar using the latest techniques
in the factory one of the most advanced in India. Robust and reliable equipment of
latest design, high efficiency and low power consumption have been installed
continuous operation all around the year. Due to abundant cane available in the
area operation, a minimum duration season of 7-8 months is assured i.e. to save
about 5 lacs tons of sugar of cane will be crushed during the season to produce
around 6.2 lacs quintals of sugar. When this is done, the turnover of company
right from beginning would be Rs100 corers and after meeting all the obligations,
there will be sizable surplus per year.

Power generation (RSSK power)

The company has undertaken to establish a mega project to generate power

using non conventional energy fuel i.e. baggasse which is a byproduct coming out
of sugarcane and available in plenty at the location employing very high pressure
(67ata) and high efficiency boilers and turbo generator sets. Out of 12.5
megawatts of power generated, 4.2 mgt will use captive consumption, living a
balance of 8.5 mgt to sell to Karnataka power transmission corporation Ltd,
K.P.T.C.L (Formerly Karnataka Electricity Board) all around the year.

Under the 10 years power purchase agreement entered into between the
factory and KPTCL. The power to be exported to grid at 110kv would be paid for

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through an assured letter of credit at Rs.3.02per unit initially with an escalation of
5%.

Every year i.e. to say 8.5MW of exported power will generate revenue of
about Rs.16 corers per year and after meeting incidental expense for generation,
there will be a sizeable surplus per year, which makes it a highly attractive
preposition.

Indian Renewable Energy Development Agency Ltd.(IRDEA),New Delhi,

Govt. of India undertaking has rightly considered this project as a “First Co-
generation Plant in Co-op sector” in Karnataka and his financed the project in a
big way forward establishment of this project.

2.2 Board of directors, Organization chart

Board of directors

Mr. Ramann.S.Talewad CHAIRMAN

Mr. A.B.Gorphade VICE CHAIRMAN

Mr. S.S.Pujari MANAGING DIRECTOR

DIRECTORS

Mr. D.S.Patil, Mr. R.A.Tungal, Mr. K.N.Paraddi, Mr. U.V.Sarawad,

Mr. A.M.Patil, Mr. G.P.Patil ,Mr. A.P.Patil, Mr. R.T.Patil .

All every Annual General Meeting on third of the total numbers directors, whose
period of office is liable to retire by rotation, shall retire in accordance with the
provisions of section 225 and 256 of the company act.1956 and they are eligible
for reappointment.

Organization chart
BOARD OF DIRECTORS

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 MANAGING DIRECTOR

PURCHASE SALES ACCOUNTS

ADMINISTRATION
AGRICULTURAL

SUPERVISORS SUPERVISOR
SUPERVISOR
SUPERVISORS SUPERVISOR

LABOUR LABOUR LABOUR

LABOUR LABOUR
CO-GENERATION
MANUFACTURING
ENGINEERING
STORE
SUPERVISOR SUPERVISOR
S SUPERVISOR
SUPERVISORS

LABOUR
LABOUR
LABOUR
LABOUR

2.3 Business operations

The Ranna sugar Services Comprises of highly experienced team of sugar

industry professionals who have operated and managed sugar plants, sugar
refineries, Co-generation, alcohol distilleries as well as Sugarcane estates.

The professionals have practical experience in sugar factory operations and

maintenance, Brownfield expansions, setting up Greenfield sugar projects and
sugarcane development program. Ranna sugars is the only consulting organization
in India which is 360 deg. company covering all aspects of Sugar, Co-gen and
Alcohol business, supported by team of professionals managing sugar business,
factory operations, project designs, engineering, technology know-how and
product marketing. Ranna sugar has highly specialized and low cost tailor made

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solutions for operational improvement program and to reduce factory operation &
maintenance cost. Ranna sugar is providing technical and O&M solutions to
African, Asian and Latin American Countries other than Indian Sub-continent.

Ranna is the only consulting organization in India which is 360 deg. company
covering all aspects of Sugar, Co-gen and Alcohol business, supported by team of
professionals managing sugar business, factory operations, project designs,
engineering, technology know-how and product marketing.

Complete planning and execution of land development, farm layouts, road

network, irrigation and drainage system for green field sugar projects.
Modern and beneficial technological development will be suggested to company
management by Experts. Since the implementation onus is with O&M agency,
risk of new technology will be mitigated.

Economic feasibility studies for new projects (sugar mills, sugar refineries) by
designing projects, as well as complete package of Cane Management System
(CMS) for making effective cane development plan.

2.4 PRODUCT PROFILE, MARKET SHARE, COMPETITORS,

FUNCTIONAL CHART:

PRODUCT PROFILE:

Main product By product

 Sugar: S1-30  Baggasse:
Power generation , Paper
S2-30
M2-30 production, Particle board,
Cattle feed & furfural.
 Molasses: Butanol, Yeast,
Industrial alcohol, High
protein molasses
 Filter cake: Manure,

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 Refined wax
 POWER
 FRESH MUD

MARKET SHARE:

There are total 20321 shares in factory. In that state government has highest worth
of share value i.e. is Rs.12,72,00,000. In 2012 they have stopped share collection
because they have collected highest share capital.

COMPETITORS:

The degree of competition for R.S.S.K is more, as other big organization like

 ICPL sugar ltd.

 Niranis private limited.
 Prabhulingeshwar ltd.
 Jamakhandi sugars mills ltd
 Sameerwadi sugars ltd.
 Renuka sugars ltd.

The sugar produced in this factory is good quality and competitive enough in
the market.

FUNCTIONAL CHART:

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2.5 FUTURE GROWTH AND PROSPECTS:

 Expansion of company’s business.

The company has decided that the company has been permitted for the
enhancement in cane crushing capacity from 5000 T.C.D to 7500 T.C.D.
From government of Karnataka in its global investors meeting held during
Sept 2006.
 Distillery / ethanol project.
Company received the letter of intern from Govt. of Karnataka to take up
distillery unit. Further our decision and approval given in the 9 th annual
general meeting to establish a distillery / ethanol project, implementation
distillery project commenced by appointing M/s. Vasantada sagar Institute,
Pune, as a consultant for the said project. However this decision had to be
dropped as no financial institutes come forwarding for financing the
project, due to loss is incurred by the company and sugar scenario.

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 CHAPTER -3

3.1 INDUSTRY – BRIEF HISTORY

India is the largest consumer and second largest producer of sugar in the world.

The Indian sugar industry is the second large agro industry located in the
rural India. The Indian sugar has turnover Rs.500 billion per annum & it
contributes almost Rs.22.5 billion to the central and state exchequer as tax, cess &
excise duty every year. Indian sugar industry has been a focal point for a socio
economic development in the rural areas.

About 50 million sugar farmers and a large number of agriculture labors

are involved in sugarcane cultivation and ancillary activities, constituting 7.5% of

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the rural population. Besides, the industry provides employment to 2 million
skilled /semi skilled workers and others mostly from rural areas. The industry not
only generates power for its own requirements but surplus for export to the grid
based on by-product-bagasse. It also produces ethyl alcohol, which is used for
industry portable uses, &can be used to manufacture ethanol, an ecology friendly
& renewable fuel for blending with petrol.

The sugar industry in the country uses only sugarcane as input; hence
sugarcane have been established in large sugar growing states like, UP,
Maharashtra , Karnataka, Gujarat, and Tamil nadu and AP. In the year 2005-06
these 6 states contribute more than 85% to total production in the country; UP,
Maharashtra, Karnataka together contribute more than 65% to total production.

There are broad areas of public intervention that Regulate the sugar market in
India.

1. Both the Central and the State Governments set a price for the

Sugarcane.

2. Sugar quantities to be sold in the market also impose on the sugar

Factories a so-called sugar levy, by which they are required to sell at below
market price to the public distribution centers.

In this paper the focus will be on the impact of Porters five force Model on
Shree Renuka Sugars ltd. SRSL west coast of India, near the Port of Kandla, Bajaj
Hindustan Ltd. BHL, Chitrakoot district in Uttar Pradesh, EID Parry India Ltd.
EID Ramanathapuram district, Balrampur Chini Mills Ltd. BCML. Sugar
production commenced in 1920's but it got industry status in late 20's/early 30's
when India had 29 sugar mills producing just 100,000 tons of sugar. The industry,
facing competition from imported sugar, sought tariff protection. Sugar
production picked up under the Sugar Industry Protection Act passed in 1932 and
country became self sufficient in 1935. Also cane pricing act was enforced to

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provide good cane price to farmer. This was followed by land reforms putting
ceiling on land holdings to protect small farmers, formation of cane grower
cooperatives and setting up of sugar mills jointly with farmers called as
co-operative mills on ownership and sharing basis. Today this sector produces
60% of country's production. Under the structured Industrial Development Policy,
sugar industry was part of the Five-Year Plans introduced in 1951 and has been
under the direct control of the Government ever since. Sugar industry is highly
politicized and so closely controlled by the Government which has no parallel in
the industry.

3.2 PORTER’S FIVE FORCES MODEL

1. Barriers to Entry and exit:

The Indian Sugar Industry is characterized with modest entry and exit
barriers. Integrated business model and increasing capital requirement in the
industry restrict new entrants. The Government earlier used to give incentives to
set up new plants by granting higher free sales quota for the first five to eight
years of operations that had led to mushrooming of small units. This incentive has
been withdrawn and the new sugar units are required to comply with the levy
quota regulation from first year of operations. The Government of India has also
put restriction on setting up of two sugar factories within the radius of 15 Kms.

2. Threat of substitutes:

Being an essential commodity the demand for sugar is not elastic. Alternate
sweeteners to refined sugar in India are gur and khandsari. But with increased per
capita income and easy availability of sugar at competitive rates, use of gur and
khandsari is seeing a downward trend and is mostly confined to rural areas.
Hence, threat of substitute is low in the industry.

3. Buyer bargaining power:

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 Indian sugar market is highly regulated by the Govt. influencing distribution,
purchase price of levy sugar and the free sale quota releases for sugar. Hence,
buyer’s power is highly restricted in this sector.

4. Supplier bargaining power:

Allocation of the area from where the sugarcane can be procured is allocated by
the government. The Sugar mills have no choice but to purchase all the Cane sold
to them, even if it exceeds their requirement. Sugar producers are not allowed to
own cane fields in India. Though recent sugar de-control is likely to give higher
pricing power to the mills, the government still can influence the prices with its
PDS system.

5. Industry Competition:

Competitiveness among the Indian sugar players is high. With around 500 units
engaged in production of sugar, the industry is highly fragmented. Private
Individual players do not have big market share. Cooperatives are relatively high
as they account for more than 50% of the industry’s production.

3.3 GROWTH AND PROSPECTS

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  Future Growth of India sugar market is expected to be led by increasing
sugarcane yield, rising demand of sugar by the consumers and increasing
sugar recovery rate.
 The sugar industry in India has a tremendous potential for growth. This
agro-based industry is a source of livelihood of 5core farmers and 5 lakh
workers employed in the sugar mills, according to estimates of experts.
 India is the second top producer of sugar in the world. The government
has to formulate a plan to meet the growing needs of the sugar cane
farmers, consumers and sugar mill owners and workers.
 With a total of about 600 mills in India, our country produces nearly 24
million tons of sugar each year. More importantly, this sector generates
rural direct as well as indirect employment.
 There is also need for coordination between the Centre and the state. At
present, the sugarcane producing states of the country include Uttar
Pradesh, Tamil Nadu, Karnataka and Gujarat. The state governments of
these should also be consulted to come up with good policies in this area.
 There is need for more investment inflows in the sugar industry. A
consistent policy is needed for some improvement in this area.
 Encouraging sugar mills to use alternative fuels and increasing the
percentage of ethanol-blended fuel is a step being considered by the
Centre. Cogeneration plants are the latest factor coming into play when it
comes to policies for the sugar industry.
 There has been an increase of acreage in the area under sugarcane, the
yield has stagnated. This is unlike all other agri-products such as rice. The
sugar industry has to be rescued so it can have access to a sweeter future
and its true potential can be unleashed.
 The sugar industry in India has witnessed a growth in recent years on
account of rising number of sugar factories in the country as well as the
increasing sugarcane yield in the country.
 According to the research report, the sugar market in India will grow at a
respectable rate due to the increasing sugarcane yield and dropping sugar
prices.

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  Sugar industry is the second largest agro-based industry in India and
contributes significantly to the socio-economic development of rural
population. It supports 50 million farmers and their families and provides
direct employment to over 0.5 million skilled and semi-skilled persons in
sugar mills and integrated industries.
 The Indian sugar industry plays a leading role in global sugar market
being the world’s second largest producer after Brazil, producing nearly 15
and 25% of global sugar and sugarcane, respectively.

CHAPTER-4

4.1 COMPETITIVE ANALYSIS

Competitive analysis in marketing and strategic management is an

assessment of the strengths and weaknesses of current and potential competitors.
This analysis provides both an offensive and defensive strategic context to
identify opportunities and threats. Profiling combines all of the relevant sources of
competitor analysis into one framework in the support of efficient and effective
strategy formulation, implementation, monitoring and adjustment.

Competitor analysis is an essential component of corporate strategy. It is

argued that most firms do not conduct this type of analysis systematically enough.
Instead, many enterprises operate on what is called "informal impressions,
conjectures, and intuition gained through the tidbits of information about
competitors every manager continually receives." As a result, traditional

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environmental scanning places many firms at risk of dangerous competitive blind
spots due to a lack of robust competitor analysis

A competitive analysis is a critical part of your company marketing plan.

With this evaluation, you can establish what makes your product or service
unique--and therefore what attributes you play up in order to attract your target
market.

Evaluate your competitors by placing them in strategic groups according to how

directly they compete for a share of the customer's dollar. For each competitor or
strategic group, list their product or service, its profitability, growth pattern,
marketing objectives and assumptions, current and past strategies, organizational
and cost structure, strengths and weaknesses, and size (in sales) of the
competitor's business.

The main objectives of doing competitor analysis can be summarized as follows:

1. To study the market;

2. To predict and forecast organization’s demand and supply;

3. To formulate strategy;

4. To increase the market share;

5. To study the market trend and pattern;

6. To develop strategy for organizational growth;

7. When the organization is planning for the diversification and expansion plan;

8. To study forthcoming trends in the industry;

9. Understanding the current strategy strengths and weaknesses of a competitor

can suggest opportunities and threats that will merit a response;

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10 Insight into future competitor strategies may help in predicting upcoming
. threats and opportunities.

STRENGTH:

 It is located in place where good infrastructure is available.

 The company’s concentration towards the quality of the product.
 The technological standards of the company.
 Modern equipments.
 High production efficiency.
 Good sources of raw material.
 Power generation.
 Large supply of fertilizer and good quality seeds.
 Timely payment.

WEAKNESSES:

The company needs improvement and should concentration timely customer

service.

 Labors turnover.
 The promotion procedure in the organization is too rigid.
 The companies not focus on all departments.
 The number of sugar factories nearby this factory.
 No schemes and offers.

OPPORTUNITIES:

 Expansion of projects likes paper unit, ethanol production, bio fertilizers.

 All these above projects will give the company maximum profits.

THREATS:

 Stiff competition by brands like, Godavari sugars, Nirani sugars and other
brands.
 Government intervention.
 Over production by all companies.

4.2 McKinsey’s 7-S:

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 McKinsey’s & co’s 7S framework provides a useful framework for analysis
the strategic attributes of an organization. The McKinsey Consulting Firm
identified strategy as only one of seven elements exhibited by the best managed
companies.

Strategy, structure and systems can be considered the “hardware” of success

whilst style, staff, skills and shared values can be seen as the “software”.

STRUCTURE:

The factory has vertical communication in the organization. The manager has
span of control on 10-20 members in each section. The departmentalization of
each department is based on its function. The employees has to follows the rules
and regulation the higher authorities.

The main functional department of Ranna sugar as follows:

 Cane development and procurement department.

 Production department.
 Administration department.
 Sales department.
 Account section.
 Time office.
 Purchase department.
 Share section.
 Stores department.
 Co-generation department.
 Security department.

1. Administration department:

Admin Department is head department of the all department handling

the factory and all departments.
The administration department is also making the new police for the
company developing purpose and labour grooving purposely they are making

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 new polices like safety polices, Medical police, Insurance police, and
Environment police.
The Ranna sugars factory is going on the admin department. The admin
department is book boon of the factory and all departments.

The admin department gives the suggestions to all departments of the factory
for improving the factory production and introducing the new products to the
society and the main functions are insurance, tender, correspondences and
reinstalling.

Structure of the Admin Department:-

Chairman & Managing Director

Executive Director

Whole time Director

Project co-ordinate

2. SHARE SECTION:

The share section is one of the important sections because more than half of the
share capital collected from the share holders.

The person who wants to become a member has to fulfill appropriate application
given by the share section authority. If the director approves the application, then

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he is treated as shareholder. After the approval he has to pay the amount
equivalent to face value of the share.

3. PURCHASE SECTION:

The work of purchase department is to purchase required goods in the factory

and maintain receipt and inspection of goods.

Methods of Purchase:-

Methods of purchasing very accounting to the nature of the demand in the plant
and conditions in the market in which material are be brought.

Following are the methods generally used:-

 Purchasing is requirement.
 Purchase for apeaitied period/schedule of purchasing keeping.
 Track of stock position of major items as indicated in the daily stock
register.
 Negotiations.
 Telephonic quotations.
 Market purchasing.
 Contract purchasing.
 Group purchasing of small items.

Financial aspects of purchasing:-

 Cash and credit purchasing :-

Generally purchasing of big amount made on credit based
some monopoly items payments are made advance are against
delivery purchase generally wholesalers small frequency is rare will
be purchased or cash payments.

 Purchasing Accounting:-
Purchasing A/c of invoices of suppliers are connected with
store goods respect notes and verified with purchase orders and
documents are completed and passed for payments.

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 Purchasing Procedure:-

 Receipt of the users.

 Analysis of the market receipt and manufacturing schedulers.
 Issues of enquiry letters.
 Receipts quotations.
 Issue of purchase orders.
 Follow-up of the purchase orders.
 Receipts and inspection of goods.
 Checking and completing the Transportation .

Administration Structure:-

Purchase manager

Asst Purchase manager

Clark

Computer operator

Peon & Driver

Steps involve in purchasing the material

 Raising requisition.
 Securitizing requisition.
 Vendor selection.
 Enquiry.
 Receiving quotation.
 Sending purchase order.

4. STORES SECTION:

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Store section is also important section in the administrative in the department. All
types of materials kept in this section. Which are required for the factory smooth
running. The store section works whole day and night. Shift is charging every 8
hours. This section is maintained by the stores keeper. The main work of this
section is providing material to the required departments.

Store Procedure:-
 Receipt of goods and signature of purchase department for engineering in
to gate in word register.
 The material received is entered in to stores receipt book with details
nominidatures and physically verification.
 The GRNS assented spies are sent to purchased and accounts Department
one copy with all documents is retained with stores.
 Daily stock register forwarded to purchase dept for major item.
 For thirty stock register is forwarded to verification of gate inward
quantity weight wherever necessary.
 Predation of goods receipt notes after verification of gat inward. Gauntly
weight where necessary.
 The quantity as per GRN is to be posted on bin cards provided items wise
in the receipt Coolum and as per the concern department.
 All other than above item failing below the minimum stock level position
or nil position as per purchase department concern department indent
department for procurement.
 Wightman of major material is made on weight bridge depends upon the
material incoming and outgoing.
 The six register are main tend which indicates the receipts consumption
and balance in quality value for costing and A/c purpose this register is
attaining which maintaining, referring, to GNR bin cards, purchase ,
vouchers cash vouchers.

5. TIME OFFICE:

Time office one of the important sections of administration department. They

prepare work shift for each employee on the basis of rotation.

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The factory runs three shifts in a season-

Shift Starting time Closing time

1st shift 4am 12pm
2nd shift 12pm 8pm
3rd shift 8pm 4am

Functions:

1. Showing the absent report to the HOD’s.

2. To receive the attendance cards from the workers.

3. To put attendance of the workers in the master role.

4. It arranges the duty to the workers, Maintains working bell.

5. It maintains salary register book.

6. SALES SECTION:

The main work of this department is to after sales of product based on tender.

 Sugar -Based on tender.

 Power -Based on tender.
 Distillery -Direct approach.

Functions of sales department:-

 Final section of tender.
 Maintain book keeping.
 Maintain the record.
 All sales related.
 Providing is part to finance management.

Objectives:-

 Main function of sales department is to affect sales is concerned

with the transfer of ownership or merchants on terms satisfactory
buyer and sales.

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  The basic objectives is obviously the achievement of profile
through services a sales department consists of person working
together with a view to market the product menu factored by the
organization itself are products purchased for sale.
 The sale result of the effort would maturely depend also on the
effort of the other operations and department such as research,
obverse, traffic, finance and credit.
 The sales department is the division of a organization that is
responsible for selling products and service.
 The main objectives of this department in any organization are to
attract and retain customers for the organization company.

Sugar packages:-

 50 Kg - (Per 1 bag)
 50Kg -(Just bag)
 100Kg –(Just bag)
Types of sugar sales:-

 Free sales.
 Lavy sales.
 Export sales.

Sales by product:-

 Sugars.
 Molasses.
 Biogas.

Structure of Sales Department:-

Chairmen & MD

Whole time Director

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 Sales Executives

Sales Clerk Sales Clerk

Sales Clerk

7. MARKETING DEPARTMENT:

This comes under sales section. The factory does not have separate marketing
department but it is controlled by the sales section.

8. MANUFACTURING DEPARTMENT:

It is one of the core parts in every process based industry. The factory is having all
well equipped labs, and the main activity of the lab is to check the content of
sugar in the sugar cane and fixing correct size and shape of the sugar. The lab
prepares hourly reports which advice on the addiction of the other chemicals in
production.

9. ACCOUNT SECTION:

It maintains all the transactions related to the factory dealings. It prepares P&L
account, balance sheet, etc. There are two account sections.

1. General accounts section: It deals with general receipts and payments, salary,
share amount etc.

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2. Cane account section: It deals cane accounts and cane bills. Purchase on the
daily basis and prepares account forthrightly basis and also take care of all cane
supplier.

10. Agriculture Department:-

Agriculture department is doing off season field staff is

allotted with village use cane service work. The center serves is updated in
computer and accordingly list is prepared.

At the commencement of the season field staff will prepared

date wise harvesting program based on the list, there after the cane cutting orders
or issue.

 Objectives:-
 To grow diseases and past.
 To grow maximum sugarcane in the near area of operation.
 To yield good quality of sugarcane.
 High recovery verifies.
 To enhance overall department of the cultivators.
 Main work with formers.
 The work is divided in to 2 wings.
 Development wing.
 Procurement wing.
 Developing wing.
It is related to activity doing in the field like altravation of
sugarcane the factory providing fertilizer doze to the formers train them by
calling scientist to give various methods to develop good crops give them
demonstration the development or field supervisor deserve the cops and
advice formers for inter altravation forming they grow 2 variations co- 86032
and co-c-611 both duration one year after material period. The filed duration
one year after maturity period. The field duration one year the field supervisor
with the help of re-lactometer or brick meter cane the quality of juice.

 Procurement wing :-
Program for harvesting of cane and transportations to the factory.
The cutting of sugarcane in done the factory here labors for 5800 Tone (one

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 person per day) the factory offer. The cane is control in cane great of this the
work of the department.

SKILL:

To accomplish the goals of the organization there should be right people with the
right skills. Skill refers to ability of person to perform certain task without
difficulty.

At Ranna sugar there is on job training process to the workers. It has right people
with right skilled to innovate new ideas, improved product with advanced
technology to achieve the goals of established standards.

STYLE:

The style which is describe to outside world. The style and behaviors exhibited
inside the organization. The internal style of the organization effects on their staff,
and their jobs. Therefore an organization is reflection of its culture.

The staffs of the organization are goal oriented. They are strong enough to achieve
the goals. They work with unity and complete the assigned work within given
time.

STRATEGY:

It is the way in which business makes action plans to improve its position in
relation to competition.

Ranna sugars have made strategy of introducing new technology for the
improvement of new product development, quality, and reliability of products
there by attaining the international standards.

 Pricing policy of sugarcane will be fixed by the firm for exporting.

 Additional promotion measures to double India’s exports.

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SYSTEM:

It refers to formal process and procedure used to manage organization work

system.

Ranna sugars has its own system in purchasing raw material from the formers and
vendors, producing qualified output with in relates to international standards,
offered to the customer with the fine packaging and provides good sales service.

Security system:

There is security system for the plant and properties of the factory on contract
basis, round clock security arrangement provided. Without an approved
permission no will be allowed to enter into the factory.

Accounting system:

 Factory has accounting system on accrual basis of income and

expenditure.
 There is accounting system for sales of excise duty and other taxes.

STAFF:

Staff is one of the important sources of the factory. It has line and staff
relationship. The hard working employees are essential in the development of the
factory.

They have highly qualified and experienced professionals who are ready to face
everyday challenges. Staffs are engineering, chemist, fitters, I.T.I, electricians,
skilled and unskilled workers. The young and motivated team has contributed to
the company success.

SHARED VALUES:

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 Employees share the same guiding values mission that is an excellently
managed company has a deriving purpose philosophy that is known and practiced
by everyone.

At Ranna sugars employees share same mission to the achievements of

organization goals.

Environment policy:

At Ranna sugars employee are decided to minimize the pollution conserve

natural resource.

Quality policy:

Quality is the first priority to satisfy the customer. It is achieved by maintaining

quality management system and continues improvement to its effectiveness.

Employees has been trained and motivated to improve the quality of their work
competence skill.

Other values
 Time and cost aware.
 Trust and cooperation.
 Respect to each other.
 Unity.

4.3 HR DEPARTMENT

In Ranna sugar instead of HR department there is labour welfare officer.

According to Factory Act 1948 occupier of every factory where 500 or more
workers, are employed, shall appoint at least one welfare officer.

ROLE OF WELFARE OFFICER:

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Recruitment:

According to the position they will recruit the employees. If the job position is
higher level they go through the process of recruitment to select the candidates or
else through experience. They will select the semiskilled/unskilled workers for the
lower level jobs.

Training and development:

Need based training:

It is given on the basis of determining the level of knowledge and skill needed for
that particular job. Next is to find out the how many employees should be trained.
On the basis of this need based training is given.

Induction training:

It is given to the newly recruited employees to understand the organization

activities, function, roles, procedure and policies of the organization. It is given to
introduce one employee to another.

Technology training:

To cope up with changing technology, Factory gives training to the workers to

handle the newly installed machines. Feedback is collected from the employees
about the effectiveness of the training program.

Personality development program:

It is given to improve the interpersonal skills of the both managers and workers on
regular period of time.

Applicability of factories act 1948 and Karnataka factories rules

1969

HEALTH

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  Cleanliness, Section11 :- All walls should be kept white washing or
colored washing for every 14 months, floors cleaned once in a week using
disinfectant or other thing.

 Disposal of waste and effluents section 12:- Effective arrangements for the
disposal of waste in factory.

 Ventilation and Temperature Section 13:- Adequate fresh air, ventilation,

comfort and prevent injury to health, important forth standards.

 Overcrowding, section 16:- On 1/4/49, at 9.9 cubic meters and of a factory

built after this date at least 14.2 cubic meters of space for every workers
employed.

 lighting Section 17:- Sufficient lights of natural or artificial or both

important fix the standards.

 Drinking water section 18:- based upon learns water should be supplied, in
every canteen, lunchroom and wash room and also available through
factory.

 Urinals Section 18:- There should be separate division for means and
women, sweepers should be employed for cleaning.

 Spittoons, section 19:- Should provide sufficient number of spittoons

prescribed in convenient places they shall be maintained clean and
hygiene.

SAFETY

 Fencing of Machinery, Section 21:- Special fencing facility for heavy

machinery, substantial construction which shall be kept in portion while
the parts of machinery they are fencing are in use.

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  Near Machinery in motion section 22:- no women or child is allowed to
clean, lubricate or to adjust any part of machine.

 Employment of young person in dangerous machinery, Section 23:- no

young person is allowed to work, perevatopms to be observed, left a
young person to work under the supervision by a person who as through
knowledge and experience.

 Casing of New machinery Section 26:- After completely full installation

only the person is allowed to work on machinery, guarding must be done
properly perishable improvement for 3 months with a fine of 500 and
above.

 Prohibition of women and children near cotton openers, Section 27:- no

women and children are employed in any part of a factory for prevention
cotton in which a cotton opener is at work.

 Executives weight section 34:- No women or young person shall unaided

by another person, weight limits should for each and every person.

 Protection to eyes Section 35:- Effective Screens or suitable goggles shall

be provided for protection of persons employed in, risk of injury to the
eyes by reason of explore to excessive light.

 Prevention in case of fire, Section 38:- In case of fire for the person
employed in, every window, door or other exit affording a measure of
escape of fire and it should be distinctively marked, warning signals
should be kept, if the exposures are kept in above ground floor then the
workers should be familiar with means to escape in case of fire.

WELFARE

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  Washing Facilities, Section 42:- Suitable washing facilities for workers,
like soap, nail brushes or other suitable means of cleaning. It should kept
clean and orderly condition.

In case of female workers are employed separate facilities shall be provided and
ensure interiors are not visible from and place where person of the other sex work
or pass.

 Facilities for sitting, Section 44:- Sitting arrangements must be done for
workers, standard may be fixed in case where work can be done by sitting
portion.

 First aid and ambulance room, Section 45:- Ready accemble during all
working hours, it should be trained professionals, who shall be available
during the working hours of the factory.

 Canteens Section 46:- More than 250 Employees, canteen should be kept
and canteen should be renewed under non-profitable basis, if there are
more than 1000 peoples, then the company should appoint a person for the
collection of menus , arrangements etc.

 Shelters, Rest rooms and Lunch room, Sec 47:- if there are more than 150
members then adequate and suitable shelters or rest rooms and suitable
lunch room with provision of drinking water, where workers can eat meal
they brought.

 Crèche, Section 48:- More than 50 women working then there shall be
provided suitable rooms and room for the use of children for the aged
below 6 years. necessary things should given for the women and kids like
cloths , soap and towels etc.,

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  Welfare officers, Section 49:- 500 or more workers are ordinary employed
then the organization will occupy employee in the factory such number of
welfare officers.

 dangerous operations, Section 87:- Kids, women adolescents and children

are probhited or restricted in certain operations declared to be dangerous.

 notice of Accidents, Section 88:- If a person works more than 48 Hours

then follow type of accidents occur.

a. Bursting of plant.

b. Failure of Crane.

c. Fire causing damage to any room.

d. Collatry.

 Notice of certain disease, Section 89:- The managers send the notice to
chief inspector and certifying surgeon.

 Certificate of fitness, Section 68, 70 and 98.

Accidents (Immediate process)

Cause:

Basic:

 Slip and fall, third person mistake.

 vehicles movement in internal like lifts etc., trainers mistake.

 working on machinery, lack of knowledge.

 usage of tools, not regular working condition of measuring.

 Not taking safety equipments.

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Personal preventionery safety measure: - Ear plugs, Mosque, helmets, industrial
safety shoes.

Treatment levels followed soon after accidents:

 Supervisor notice: - he will take injured to hospital (Basic treatment).

 Analysment of accident.

 Further treatment to higher hospital.

CHAPTER -5

SUMMARY OF FINDINGS:

The study is made for the purpose of finding the efficiency of the organization
therefore following are important findings that I found during my study.

 There is lack of modern technology.

 The plant is located in economic friendly environment. The firm is profit
motive organization.
 Some departments are not computerized. But administrative section is
computerized.
 The company maintains day to day transaction in the books of records is
kept manually.
 Communication made through telephone and internet.
 Production section is not clear.
 There is good industrial relation between management and employees.
 A facility given to the workers is good.
 The factory has very poor financial performance from since from 5 years
 Sales are decreased every year because of decrease in the sugar cane
crushing capacity.
 The factory has laboratory test to check for suitability of product to health
care.

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  There is discipline authorities and uniformity.
 The recruitment is done through the campus interview, advertisement and
internal sources.
 Training is provided on need base of the employees.
 There is strict security department in the factory.
 Budgetary control system has adopted for checking the industrial
performance.

CHAPTER -6

CONCLUSION AND RECOMMENDATIONS

CONCLUSION:

This 20 days Organization study on Ranna sugar Ltd. Has helped in

understanding theoretical aspects of implications to financial management of
company.

Ranna Sugar Ltd is very famous for quality products in various fields such
as sugar, liquor, co-generation etc.

The company follows proper recording system. The company moves to

face the challenges of 21 century. It is well equipped with technology and follows
modern management system.

RECOMMENDATIONS

Ranna sugar should make a separate HR department so they can understand the
needs and wants of the employees. It will help to provide training and orientation
programs and also takes care of the all HR activities for employees which in turn
increase the production.

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  Ranna sugars should make a new promotional strategy to increase the
sales and face the competition.
 They have to appoint specialized finance manager to improve financial
position of the company.
 The factory has to keep close eye on changing market to make new
strategy.
 The factory has to recruit the experienced employees to increase the
production.
 The factory should provide transport facility to the employees as there is
no convenient bus facility from the factory site to nearest city.
 The factory should provide uniform to its workers to maintain discipline in
the factory.
 Accurate position of the business cannot be estimated.
 The factory should have proper co-ordination between finance and
marketing.

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 BIBILOGRAPHY:

BOOKS-
Personnel and Human resource management- P.Subba Rao.
Marketing management.
Himalaya publications house.

MAGAZINES-

Company Prospects.

WEBSITES-

[email protected]
www.google.com

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