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CHAPTER – II
PROFILE OF THE SELECTED SUGAR MILLS IN TAMILNADU
n this chapter, the profile of the eight cooperative sugar mills and eight private
sugar mills in Tamil Nadu under the study, is given.
2.1 COOPERATIVE SUGAR MILLS
2.1.1. AMARAVATHI COOPERATIVE SUGAR MILLS LIMITED
Amaravathi Cooperative Sugar Mills Ltd. is situated at Krishnapuram, Udumalpet
Taluk, Coimbatore district. It started its commencement during the year 1960. Its present
crushing capacity is 1250 M.T.
TABLE 2.1
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 1400 1400 1400 1400 1250
2. Cane Crushed (MT) 27580 233824 236188 199140 143505
3. Sugar Produced (Qtls) 20699 232734 231690 189420 133505
4. Recovery % 8.59 9.92 9.71 9.51 9.30
Source: Annual Reports of TNCSF.
During the year 1997-1998, the mill got the award of State Level Best
Cooperative Society.
2.1.2. CHENGALRAYAN COOPERATIVE SUGAR MILLS LIMITED
Chengalrayan Cooperative Sugar Mills Ltd. is situated at Periasevalai, Ulundurpet
Taluk, Villupuram district. It started its maiden season during 1980. Its present crushing
capacity is 3000 M.T.
I
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TABLE 2.2
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 3000 3000 3000 3000 3000
2. Cane Crushed (MT) 371912 602246 742656 544799 350203
3. Sugar Produced (Qtls) 311568 552862 631020 506943 303650
4. Recovery % 8.38 7.87 8.82 9.30 8.67
Source: Annual Reports of TNCSF.
TABLE 2.3
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Awards & Prizes Description / Remarks
1. 1984-85 and 1985-1986 - Tamil Nadu
Coop. Sugar Federation„s Award Best Coop. Sugar Mills in Tamil Nadu.
2. 1987-88 - Dr. Mahalingam Award Cane Development Achievement.
3. 1988-89 National Federation of Coop.
Sugar Factories‟ Award Efficiency Award.
4. 1991-92 -National Federation of Coop.
Sugar Factories -Third Prize Cane Development Achievement.
5. 1993-94 - National Federation of
Coop. Sugar Factories‟ Award Cane Development Award.
6. 1995 – Tamil Nadu Coop. Sugar
Federation „s Award Best Coop. Sugar Mills in Tamil Nadu.
7. 1997 - Tamil Nadu Coop. Sugar
Federation - Second Prize
Maximum Utilization of Bio inputs in
Sugar mills level.
8. 1999-2000 Tamil Nadu Coop. Sugar
Federation - Second Prize
Maximum Utilization of Bio inputs in
Sugar mill level.
9. 2000-2001 Tamil Nadu Coop. Sugar
Federation in - Third Prize Utilization of Bio inputs.
10. 2004-2005 N.F.C.S.F. New Delhi -
Second Prize
Cane Development and Other Recovery
Area.
Source: Annual Reports of TNCSF.
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2.1.3. CHEYYAR COOPERATIVE SUGAR MILLS LIMITED
Cheyyar Cooperative Sugar Mills Ltd. is situated at Anakkavur, Thenthandalam,
Cheyyar taluk, Tiruvannamalai district. It started its crushing during 1991. Its present
crushing capacity is 2500 M.T.
TABLE 2.4
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 2500 2500 2500 2500 2500
2. Cane Crushed (MT) 283845 464806 612693 451886 218890
3. Sugar Produced (Qtls) 242713 408748 571980 426471 188640
4. Recovery % 8.44 10.42 9.34 9.44 8.61
Source: Annual Reports of TNCSF.
TABLE 2.5
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Awards & Prizes Description/Remarks
1. ISO 9001:2000 Certificate obtained for Quality
Management system.
2. Safety Award-2004 Longest Accident free period.
3.
Merit Certificate for break through made
in recovery by popularising wonder cane
Coc 671 -1982- by TNCSF.
--
4. Dr. N. Mahalingam Award For Manufacturing section 1996-1997.
5. Dr. N. Mahalingam Award For Manufacturing section 2000-2001.
6.
Crushing season: a) Average recovery
10.01% is more than Peak season
recovery 10.0%. b) By supplying good
clean, green cane, have achieved more
than 10% recovery continuously for 135
days.
--
Source: Annual Reports of TNCSF.
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2.1.4. THE DHARMAPURI DISTRICT COOPERATIVE SUGAR MILLS
LIMITED
The Dharmapuri District Cooperative Sugar Mills Ltd. is situated at Palacode
Taluk, Dharmapuri district. It started its first crushing, during 1972. Its present crushing
capacity is 2000 M.T.
TABLE 2.6
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 2000 2000 2000 2000 2000
2. Cane Crushed (MT) 314260 333908 453617 289900 219672
3. Sugar Produced (Qtls) 337234 371158 478347 256252 236430
4. Recovery % 10.93 10.79 10.60 11.15 10.76
Source: Annual Reports of TNCSF.
TABLE 2.7
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Awards and Prizes Description/Remarks
1. Productivity efficiency for the year 1987-
1988 - I place in the state Government of Tamil Nadu.
2. Award for the better performance for the
year 1988-1989 National Productivity Council,
3. State Safety I prize awarded for the year
1996 Government of Tamil Nadu.
4. Shield given for Highest Bio-fertilizer
usage during 1999-2000 season
Tamil Nadu Coop. Sugar
Federation, Chennai
5.
State level I and II awards for the three
years i.e from 1999, 2000,2001 for the best
performance
Government of Tamil Nadu.
6. S.V.B Memorial Award for the Best Cane
Development during 2001-2002. SISMA
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7. 2004-2005 Best Cane Development award. Director of Sugar, Chennai.
8.
National level II prize awarded by
Honourable Agricultural Minister for Cane
Development during 2005-2006 season.
Government of India.
9. National award for the best Cane
Development during 2005-2006 season.
National Coop. Sugar Federation,
New Delhi
10. Memento given for proper loan repayment
during 2005-2006 State Bank of India, Palacode,
11.
In the Central Excise Day Celebration
2010, "Revenue Performance Award 2010"
was given for being the higher Central
Excise duty paying unit for the year 2010.
Central Excise Department.
12.
In the 40th Annual Convention of South
India Sugarcane & Sugar Technologist
Association (SISSTA) the mill has received
"Highest Recovery Award" for the highest
sugar recovery among all sugar mills in
South India
South Indian Sugarcane and Sugar
Technologists Association.
13.
In the 50th Cooperative Week Celebration,
the Honourable Agricultural Minister of
Tamil Nadu presented „Best Cooperative
Organization‟ award to the mills.
Government of Tamil Nadu.
Source: Annual Reports of TNCSF.
2.1.5. THE KALLAKURICHI-I COOPERATIVE SUGAR MILLS LIMITED
The Kallakurichi-I Cooperative Sugar Mills Ltd. is situated at Moongilthuraipattu,
Sankarapuram Taluk, Villupuram District. It commenced its first crushing during 1966-
1967. Its present crushing capacity is 2500 M.T.
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TABLE 2.8
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 2500 2500 2500 2500 2500
2. Cane Crushed (MT) 404179 491170 582139 471945 380682
3. Sugar Produced (Qtls) 365135 451384 517200 447100 335900
4. Recovery % 9.04 9.19 8.88 9.47 8.75
Source: Annual Reports of TNCSF.
TABLE 2.9
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Details of Awards & Prizes Awards / Prizes issued by
1. National Award for Technical
Efficiency (Other Recovery Zone) –
First and Second Prize for the year
2001-2002 and 2004-2005.
National Federation of Cooperative
Sugar Factories, New Delhi.
2. State Award for Maximum Utilization
of Bio-inputs – First Prize for the year
2001-2002.
Tamil Nadu Cooperative Sugar
Federation, Chennai.
3. SVP Memorial Award for Factory
Performance – First Prize for the year
2001-2002
South Indian Sugarcane and Sugar
Technologists‟ Association.
4. State Award for Best Cooperative
Society – First Prize for the years 2002,
2004 and 2005.
Government of Tamil Nadu.
5. State Award for Best Performance –
Second Prize for the year 2004-2005. Director of Sugar, Chennai.
6. Best Cane Development Award –
Tamil Nadu Region – First Prize for
the year 2009-2010
South Indian Sugarcane and Sugar
Technologists‟ Association.
Source: Annual Reports of TNCSF.
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2.1.6. THE KALLAKURICHI-II COOPERATIVE SUGAR MILLS LIMITED
The Kallakurichi-II Cooperative Sugar Mills Ltd. is situated at Kachirayapalayam,
Kallakurichi Taluk, Villupuram district. It started its maiden season during 1997-1998. Its
present crushing capacity is 2500 M.T.
TABLE 2.10
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 2500 2500 2500 2500 2500
2. Cane Crushed (MT) 388353 473116 602461 467586 211900
3. Sugar Produced (Qtls) 373718 471779 559430 468741 191200
4. Recovery % 9.62 9.19 9.30 10.02 9.01
Source: Annual Reports of TNCSF.
TABLE 2.11
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Year Details of Award Award issued by
1. 1997-
1998
National Federation of Coop. Sugar
Factories, Technical Efficiency
Award, First Prize.
National Federation of
Coop. Sugar Factories Ltd.,
New Delhi.
2. 1997-
1998
Dr.N.Mahalingam Award
(Productivity Leads to Prosperity,
Overall Productivity).
Dr. N. Mahalingam.
3. 2000
48th All India Coop. Weekly
Celebration Award for best Coop.
Society in State Level.
Tamil Nadu Coop. Union.
4.
2000-
2001
Dr.N.Mahalingam Award
(Productivity) Dr. N. Mahalingam.
5. 2000-
2001
State Level Best Performance Award
(Second Prize).
Tamil Nadu Coop. Sugar
Federation Ltd.,
6. 2000-
2001
Maximum Utilization of Bio-Inputs
Award (Second Prize).
Tamil Nadu Coop. Sugar
Federation Ltd.,
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S.No. Year Details of Award Award issued by
7. 2000-
2001
National Federation of Coop. Sugar
Factories Technical Efficiency
Award (First Prize), Other Recovery
Area.
National Federation of
Coop. Sugar Factories Ltd.,
New Delhi.
8. 2000-
2001
Second price, Best cane production
award
The South India Sugarcane
and Sugar Technologists‟
Association. (SISSTA)
9. 2002
49th All India Coop. Weekly
Celebration Award for best Coop.
Society in State Level.
Tamil Nadu Coop. Union.
10. 2004-
2005
State Level Best Performance Award
(First Prize).
Tamil Nadu Coop. Sugar
Federation Ltd.,
11. 2005
52nd
All India Coop. Weekly
Celebration Award for best Coop.
Society in State Level.
Tamil Nadu Coop. Union.
12. 2004-
2005
National Federation of Coop. Sugar
Factories Ltd., (VasantdadaPatil
Award) for Best Coop. Sugar Factory
in India.
National Federation of
Coop. Sugar Factories Ltd.,
New Delhi.
13. 2004-
2005
State Level Best Performance
Award.
Tamil Nadu Coop. Sugar
Federation Ltd.,
14. 2005-
2006
Central Excise Commissionerate,
Pondicherry. (Top Assesses) Central Excise Pondicherry.
15. 2006
53rd
All India Coop. Weekly
Celebrations Award for best Coop.
Society in State Level.
Tamil Nadu Coop. Union.
16. 2006-
2007
Technical Efficiency Award other
Recovery Area (First Prize).
National Federation of
Coop. Sugar Factories Ltd.,
New Delhi.
17. 2007
54th All India Coop. Weekly
Celebrations Award for best Coop.
Society in State Level (First Prize).
Tamil Nadu Coop. Union.
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S.No. Year Details of Award Award issued by
18. 2007-
2008
Financial Management First Prize
Other Recovery zone
National Federation of
Coop. Sugar Factories Ltd.,
New Delhi.
19. 2008
55th All India Coop. Weekly
Celebrations Award for best Coop.
Society in State Level (Second
Prize).
Tamil Nadu Coop. Union.
20. 2007-
2008
Best Technical Efficiency Award
(Second Prize) for Tamil Nadu
Region.
The South India Sugarcane
& Sugar Technologists‟
Association. (SISSTA)
21. 2008-
2009
Highest Recovery Award for Tamil
Nadu – Medium Recovery Zone.
The South India Sugarcane
& Sugar Technologists‟
Association. (SISSTA)
22. 2008-
2009
First prize for Cane Development In
Other Recovery Area.
National Federation of
Coop. Sugar Factories Ltd.,
New Delhi.
23. 2008-
2009
56th All India Coop. Weekly
Celebrations Award for best Coop.
Society in State Level.
Tamil Nadu Coop. Union.
Source: Annual Reports of TNCSF.
2.1.7. THE SUBRAMANIA SIVA COOPERATIVE SUGAR MILLS LIMITED
The Subramania Siva Cooperative Sugar Mills Ltd., is situated at Gopalapuram,
Alapuram post, Pappireddipatty Taluk. It started its first crushing season during 1992. Its
present crushing capacity is 2500 M.T.
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TABLE 2.12
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 2500 2500 2500 2500 2500
2. Cane Crushed (MT) 346495 470591 601876 475362 316640
3. Sugar Produced (Qtls) 357486 498817 627077 517930 340625
4. Recovery % 10.32 10.60 10.42 10.90 10.76
Source: Annual Reports of TNCSF.
TABLE 2.13
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Awards and Prizes Description / Remarks
1
Dr.N.Mahalingam award for the outstanding
performance in Sugar Industry in the 2000-01
crushing season.
Outstanding performance
2
First prize for technical efficiency of other
zone area for the year 2002-2003 crushing
season.
Technical Efficiency
3 I.S.O 9001-2000 Certified
4
Award for the best performance of accounts
and completion of 2004-05 Audit by 1st
among Cooperative and Public Sector Sugar
Mills in Tamil Nadu State.
Best performance in completion of
audit.
5
Best factory performance 2005-2006 by
SISSTA. Second prize for Technical
Efficiency 2005-2006 by National Federation
of Cooperative Sugar Factories Ltd., New
Delhi.
Factory performance
6 Second price for Best Technical Efficiency
Award for 2009-2010, in Tamil Nadu Technical Efficiency.
Source: Annual Reports of TNCSF.
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2.1.8. THE SALEM COOPERATIVE SUGAR MILLS LIMITED
The Salem Cooperative Sugar Mills Ltd. is situated at Mohanur, Namakkal Taluk,
and district. It commenced its first crushing during 1964. Its present crushing capacity is
2500 M.T.
TABLE 2.14
CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND
RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010
S.No. Particulars 2005-
2006
2006-
2007
2007-
2008
2008-
2009
2009-
2010
1. Crushing Capacity
(TCD) 2500 2500 2500 2500 2500
2. Cane Crushed (MT) 418495 533363 597244 432473 390403
3. Sugar Produced (Qtls) 405619 537050 586106 436498 375850
4. Recovery % 9.69 10.05 9.81 10.02 9.62
Source: Annual Reports of TNCSF.
TABLE 2.15
AWARDS AND PRIZES, ACHIEVED BY THE MILLS
S.No. Awards & Prizes Description/Remarks
1 Best Performance Award given by Nation Federation of
Coop. Sugar Factories, New Delhi 1986-1987
2 Best Engineering Performance – Dr.Mahalingam
Award 1986-1987
3 Best Engineering Performance – Dr.Mahalingam
Award 1987-1988
4 Best Cane Development Award given by National
Federation of Coop.Sugar Factories, New Delhi 1991-1992
5
Best Technical and Other Efficiency Award given by
National Federation of Coop.Sugar Factories, New
Delhi.
1999-2000
6 Best Coop.Society Award given by Tamil Nadu
Coop.Union,Tamil Nadu 1999-2000
7 Quality Efficiency Award for Export Sugar given by
N.F.C.S.F. New Delhi 2001-2002
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S.No. Awards & Prizes Description/Remarks
8
Best Performance in South India, SVP Memorial
Award given by South Indian Sugar Cane and Sugar
Technologists Association.
2002-2003
9 Best Coop. Institution in Tamil Nadu, Award given by
Tamil Nadu Coop. Union. 2002-2003
10
Best Technical and other Efficiency Award given by
National Federation of Coop. Sugar Factories, New
Delhi.
2002-2003
11
Best Cane Development in other Recovery area, Award
given by National Federation of Coop. Sugar Factories,
New Delhi.
2002-2003
12 Best Cooperative Institution in the State, Award given
by State Cooperative Union. 2005-2006
13 Best Cooperative Institution in the State, Award given
by State Cooperative Union. 2006-2007
14 National Federation of Coop. Sugar factory,
Cane Development 2006-2007
15 National Federation of Coop. Sugar factory,
Cane Development 2007-2008
16 National Award, Technical Efficiency 2008-2009
17 Best cane development Award – SISSTA 2008-2009
Source: Annual Reports of TNCSF.
2.2 PRIVATE SECTOR SUGAR MILLS
2.2.1. BANNARI AMMAN SUGARS
Bannari Amman Sugars is an India-based integrated sugar manufacturing
company. Bannari Amman Sugars is an offshoot of the legendary Bannari Amman Group. It
is one of the India‟s largest industrial conglomerates. Bannari Amman Sugars Limited
(BASL) was incorporated in December 1983. The company was promoted by
S.V.Balasubramanian and K.S.Thirumalaiswamy to manufacture sugar, in Southern India.
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Sugar unit-I is near Sathyamangalam of Erode District, Tamil Nadu State, started
its commercial production in the year 1986, with an initial capacity of 1250 tonnes of Cane
crush per day, and expanded to 2500 tonnes in 1998. The crushing capacity is now
expanded to 4000 TCD. The unit has many credits and firsts, in the sugar industry of the
country. An EN/ISO 9002 unit accredited by RWTUV of Germany in 1997, for its good
system of quality management ensuring a better product. This has been upgraded to ISO
9001:2000 valid up to 20.7.2010. The unit's sugar is also marketed in consumer packs of
one kg in select cities of Tamil Nadu. The Sugar Unit-I has an imported facility to produce
300MT of Refined Sugar per Day and the same is mainly marketed to Pharmaceutical and
Food Industries. For manufacture and supply of refined sugar TUV of GERMANY in 2007
accredited HACCP certificate, for its management system as per Codex Aliemtarius
commission (Recommended international codex of practice - General principles of Food
Hygiene CAC/ RCP 1- 1969, rev.4 (2003). Bannari's ONE-UP Refined Sugar in one Kg.
consumer packs is available in the market. Bannari Amman Sugars Limited produces Bio
Products for Soil fertility, high yield and toxic free farming. High quality fertilizers
and pesticides for healthy crop and for better pest management are offered at low prices.
The Second Unit of Bannari Amman Sugars Limited, near Nanjangud in Mysore
District of Karnataka State, started the commercial production in the year 1992 with an
initial cane crushing capacity of 2500 tonnes per day and expanded to a capacity of 5000
tonnes in the year 2000. Another expansion to 7500 tonnes cane crush per Day was
completed in July 2006. A Sugar Refinery Plant with a capacity of 500 MT per day has
been installed. The Distillery at their Sugar Unit-2, to produce 60,000 litres of Industrial
Alcohol per day, has commenced its production from March 2005. An incineration plant to
burn spent wash with 2 MW power generations is in operation, in the Distillery. Alcohol
produced in this distillery in the year 2009-2010 is 116.44 lakh litres.
The third sugar unit has a cane crushing capacity of 2500 TCD in Kunthur Village
near Kollegal in Karnataka by way of amalgamation of M/s. Maheswara Sugars Ltd, with
the company. The Karnataka Government has approved the proposal to change the location
of this sugar plant and to establish a new Sugar Plant with 6000 Tonnes Cane per Day from
the existing capacity of 2500 TCD besides setting up of a 28.8 MW Co-generation Plant.
The fourth sugar unit is a new Integrated Sugar Complex comprising of 5000 TCD
sugar plant, 28MW co-generation plant, distillery ethanol plant and a bio composting unit at
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Kolundampattu Village, Thandarampattu Taluk, Tiruvannamalai District. The sugar unit has
started its maiden cane crush from 27-01-2010.
Bannariamman Sugars‟s sugarcane crushing capacity in the four units is now more
than fifteen times at 19,000 tonnes of cane crush / day, from the initial capacity 1250 TCD
of its first sugar unit. The total cane crushed in the year 2009-2010 is 14.65 Lakh tonnes.
The Group‟s business activities include areas like manufacturing, trading,
distribution and financing. Bannari Amman Group manufacturing and trading business
includes production of sugar, alcohol, liquor, granite and cotton yarn. Further, its trading
activities include distribution of automobiles and related auto parts of renowned brands and
financing. Furthermore, the service sector includes business portfolios like wind power
energy, education, health care, and real estate.
2.2.2. DHARANI SUGARS AND CHEMICALS
Dharani Sugar and Chemicals was incorporated in the year 1987 in Tamil Nadu
and was promoted by Palani G.Periasamy and his associates. The company belongs to the
PGP group, which comprises of Dharani Finance, Dharani Cements, Pallava Hotels and
PGP International. The company‟s sugar plants are located at Dharani Nagar, Polur, Tamil
Nadu and its revenue is $133.098, its market capacity is 1145.0820546 (` in Millions), and
the total income is `5926.176 million (year ending March, 2010). The net Profit is `456.29
million (year ending March, 2010). The company‟s distillery plant is in Dharani Nagar and
co-generation power plant is in Polur. Its total installed capacity of sugar is 5,000 TCD,
distillery is 30 KLS per day and power co-generation 15 MW. Dharani Sugar is engaged in
the manufacture of sugar and its by-products like bagasse, molasses and industrial alcohol.
The power produced from co-generation exported to meet TNEB grids. It operates in three
segments: sugar, distillery and power.
2.2.3 E.I.D. PARRY (INDIA) LIMITED
E.I.D.Parry (India) Limited is one of the largest business groups in the country. The
company is engaged in the manufacture and marketing of a wide-range of products that
includes sugars, Bio-pesticides and Neutraccuticals. It is a diversified company. It has also
been a pioneer in many fields, including setting up of India's first chemical fertilizer plant
(in Ennore), sugar plant (in Nellikuppam) and sanitary-ware plant (in Ranipet). Over the last
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few years, E.I.D. Parry has been sharpening its focus and narrowing its business spread. It
also exited the seeds business (now a joint venture with Monsanto), tiles business (in
Karaikal) and the electronics business. It is a pioneer in the manufacture of white sugar
from sugarcane. The British trader, Thomas Parry established the House of Parry in the year
1788. Parry set up the first sugar factory in 1842 at Nellikuppam in Tamil Nadu. In the year
1975, the company was converted into an Indian company. The company became the
member of the Murugappa Group in the year 1981.
Parry derives majority of its income from its sugar operations, viz., sugar, molasses,
alcohol and co-generation of power. All the four sugar factories of the Company are
located in Tamil Nadu, viz., at Nellikuppam, Pugalur, Pettavaittalai and Pudukottai with a
combined cane crushing capacity of 14000 tonnes/day and a factory at Pondicherry. The
Nellikuppam unit, an integrated sugar complex, comprises of a distillery unit (capacity 135
lakh lines), a 24.5 MW co-generation power plant and an organic manure plant. The
company's application for producing ethanol (capacity 90 lakh litres) is awaiting regulatory
clearances. The company is setting up a facility for producing high grade sugar. At Pugalur,
the company is having up a 22 MW co-generation power plant, which is partly funded by
the Tamil Nadu Newsprint Limited (TNPL). The company has R & D facility in all its units
with a central facility at Bangalore engaged in breeding, entomology, soil testing, tricho
production etc. The company's tissue culture lab, with a capacity to produce three million
plantlets, provides disease-free seedlings to cane growers. The R& D wing also develops
and propagates the best agricultural practices to cane growers, to maximize the per acre
yield and new varieties for improving cane yield.
Performance due to drought conditions prevalent in Tamil Nadu, cane crushing in all
the sugar factories was lower by 22 per cent a t 26 .8 lakh tonnes (L.T) with a
recovery of 9 .49 per cent. The company had taken various quality improvement
measures to produce quality sugar (low ICUMSA) and medium sized grains to improve its
sale in new markets. The company sold 2.67 L.T of sugar in the domestic market and
exported a small quantity (about 6000 T). The co-generation power plant at Nellikuppam
sold 884 lakh units to Tamil Nadu Electricity Board. In spite of constraints on availability of
biomass fuel, improved operational efficiencies helped to maintain the targeted power
output and sale. The Nellikuppam distillery produced 19.90 lakh litres of alcohol. The
operation of the distillery was suspended (shut down) for most of the year, due to non-
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renewal of distillery license by the Tamil Nadu Government. Acetic Acid plant produced
3429 MT. The lower production was due to non-availability of captive alcohol and higher
prices in the open market. The company continues to focus on improving the operational
efficiency viz., steam & power consumption, of the units and also resorting to various cost
reduction measures to become the least cost producer of sugar. The Nellikuppam and
Pettavaithalai factories have been accredited with ISO 9001:2000 certification. The
Pudukottai factory has been accorded ISO 14001:1996 certification.
Operating Results
Sales 2003 - 04 2002 - 03 2001 - 02
Sugar ( VOL.MT) 273263 325889 353184
Chemicals (Volume MT) Acetic Acid &
Ethyl Acetate 3770 11591 9773
Value (Rs. Crore*) 415 468 529
Operating Profit (Rs. Crore) 34.58 21.83 52.91
Source :www.eidparry.com
* includes chemicals and value of export of power to grid.
The company manages the major risks associated with the sugar business with the
following approach:
i. The company makes considerable efforts, to make cane growing viable for the
farmers. This includes developing high yielding, pest-resistant and water-efficient
varieties, and extension service in the form of best agro practices, arranging inputs
like fertilizer and banking facility. The company's record of fair and transparent
dealing, prompt cane payment and regular communication are the keys to retain
supply continuity. The company can also make good the cane deficit to the extent
possible, by procuring cane from adjacent areas and raw sugar import for processing
to white sugar.
ii. Jointly with SISMA / ISMA and State/Central Govt., agencies, the Company
pursues the comprehensive implementation of the Mahajan Committee report, so
that the legitimate concerns of all stakeholders are addressed.
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iii. The Company has diversified its product portfolio (like low ICUMSA sugar, refined
and medium grain sugar) and extended its marketing reach. These activities have
supported cost effective expansion of crushing capacity and improved realization.
The coming into effect of a proper commodity exchange will help manage price
volatility better.
The manufacture of ethanol for blending with petrol is a significant business
opportunity for the industry and their company is gearing up to manufacture ethanol at the
existing distillery facility at Nellikuppam. With the planned sugar refinery project for high
grade sugar and automation at the Nellikuppam unit for improved efficiencies along with a
cogeneration unit at Pugalur, the company is confident of maintaining its future
competitiveness.
2.2.4 KOTHARI SUGARS AND CHEMICALS LIMITED (KSCL)
Kothari Sugars And Chemicals Limited (KSCL) was incorporated on seventh
November, 1960 with a unit in Tamil Nadu. KSCL has come into the fields of sugar,
distillery, petrochemicals, drugs etc. It has three units namely, Kattur, Sathamangalam and
Pandavapura Unit. The Kattur unit is located in Kattur village of Trichy District, which is
about 30 km from Trichy and six km from Lalgudi railway station. In addition to sugar
production, this unit also has facilities for co-generation of power, distillery and bio-
compost. This unit was established in 1961 and is one of the earliest sugar factories to be set
up in the state of Tamil Nadu. The sugar factory was initially commissioned with a crushing
capacity of 1250 TCD. Subsequently the capacity was raised to1500 TCD during 1968-
1969. In 1974-1975 the capacity was increased to 2000 TCD and by 1985-1986 it achieved
2500 TCD. It was expanded to its current capacity of 2900 TCD during 1994-1995, which
demonstrates their commitment to continuous improvement.
To strengthen the business model and values, a co-generation unit with 11 MW was
commissioned in 1996 and a distillery plant with a production capacity of 45 KLPD
Rectified Spirit, which is inclusive of 10 KLPD Extra Neutral Alcohol was commissioned
in 1993. When the ethanol policy was implemented by the Government of India, an
Anhydrous Alcohol plant with a production capacity of 30 KLPD was installed in 2003.
The distillery plant capacity was increased from 45 KLPD to 60 KLPD in 2008.
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Cane for this factory is being supplied from Lalgudi, Manachanallur and part of
Manapparai, Thuraiyur and Musiri taluks. This unit is also equipped with a unique facility
of producing white sugar by processing raw sugar along with cane.
In the distillery unit, as part of the effluent treatment system, Bio-Compost is
manufactured as a value added product with pressmud and distillery effluent. For this, there
is a bio-yard of 16.50 acres with specific machines (Aerotiller). The bio-compost is
manufactured scientifically in the bio-yard and is constructed with RCC underlined with
HDPE sheets.
As part of their commitment to “KissanVikas”, they are running a primary school in
their factory premises for imparting education to the rural children from the inception of the
factory. As a corporate social responsible citizen, they are conducting camps for blood
donation and polio plus along with the Rotary Club of Kattur.
The Kattur unit is certified with ISO 9001–2000 and ISO 14001–2004 which is an
endorsement for their commitment to “Quality” and “Care for the environment”. In addition
to ISO, they also have Quality Management Systems like formation of Quality Circles,
implementation, etc.
Sathamangalam unit is located in Sathamangalam village of Ariyalur district, which
is about 50 km from Trichy, and also near the road connecting Ariyalur and Thanjavur
national highway. Both the railway stations of Thanjavur and Ariyalur are in close
proximity. This unit was commissioned in 2007 with sugar and co-generation plants. The
crushing capacity of the sugar plant is 3000 TCD, which can be expandable to 5000 TCD
and the co-generation has a power generation capacity of 22MW. This project was
completed within a record time of ten months, and during the trial run itself, the mill and the
co-generation plants showed outstanding results. Cane is supplied to this factory from
Ariyalur, Thirumanur, Keelpalur, Nagamangalam and Elakurichy areas. This unit is also
engaged in lots of socio-economic activities like road development, conducting medical
camps, programs for upliftment of farmers, etc.
Pandavapura unit is a cooperative sector unit commissioned in 1959. From 2006
onwards, Kothari Sugars had taken this factory on lease from Pandavapura Sahakare
Sakkare Karkhane Ltd (PSSK Ltd). This unit is situated in a place called Pandavapura, a
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part of Mandya District, Karnataka. This unit is situated four kms from Srirangapatana, near
the Srirangapatna-Bidar highway and very close to Pandavapura Railway Station. Cane for
this factory is being supplied from Pandavapura, Srirangapatna and part of K.R. pet areas,
which are located around K.R.S. Dam with full of irrigation canals. This unit is also
engaged in social activities like conducting medical camps, etc.
2.2.5 PONNI SUGARS
Ponni Sugars is the brain child of late S.Viswanathan, affectionately referred to as
SV by his friends & associates, a renowned industrialist of the South.
The late S.Viswanathan entered the sugar industry rather late in his illustrious career. Sugar
was just incidental to his cherished goal. He despised the denudation of precious forest
wealth in producing paper. He realized long before that for the long term survival of paper
industry, a strategic shift to a sustainable, viable alternative source of raw material was
imperative. For this, he sought to create an interdependence, which he called a marriage,
between paper and sugar industries to resolve the raw material shortage for paper industry,
strengthen the viability of sugar industry and simultaneously preserve forest cover and
protect environment for public good. Late S. Viswanathan in this resolve, promoted Ponni
Sugars, which became the first sugar mill in the country to use alternative fuel in its boilers
and release its bagasse in entirely for paper making.
The company which had operated sugar mills both in Tamil Nadu and Orissa has
spinned off its Tamil Nadu mills into a separate company i.e. Ponni Sugars (Erode) Ltd.
with effect from April 1, 1990 as part of restructuring plan. This was necessitated by the
heavy loss incurred on the Orissa operations of the company. Subsequent to this demerger,
the name of the company is changed to the present one viz. Ponni Sugars and Chemicals
Limited. The company manufactures and sells sugar and the by-products of the
manufacturing process, namely, bagasse, molasses and pressmud. Bagasse is sold to its
group company, Sheshasayee Paper and Boards. The expansion of its Erode unit from 1250
TCD to 2500 TCD was completed and commissioned in November, 1994.
2.2.6 RAJSHREE SUGARS AND CHEMICALS LIMITED (RSCL)
Rajshree Sugars & Chemicals Limited (RSCL) is incorporated on 13th
December,
1985. It was promoted by the late G.Varadaraj of the Coimbatore based PSG family. The
company manufactures and markets white crystal sugar and industrial alcohol with installed
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capacities of 6000 TCD and 45 KL/day respectively. It is a public limited company listed on
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The company has
interests across integrated fields such as Sugar, Distillery, Power and Biotechnology. RSCL
with its Corporate Office in Coimbatore has three modern sugarcane based integrated bio-
refinery complexes located at Varadaraj Nagar in Theni District, Mundiampakkam in
Villupuram District, Gingee in Thiruvannamalai District of Tamil Nadu and one unit at
Zaheerabad in Medak District of Andhra Pradesh with easy access to Tuticorin, Chennai
and Visakhapatnam ports. The company has also been exploring various options in the
sugar and allied industries in both areas within the country and overseas.
2.2.7 SAKTHI SUGARS
Thiru. P. Nachimuthu Gounder laid the foundation for Sakthi groups and his son
Thiru.N.Mahalingam brought with him fresh and new industries, adding more momentum
to the growth. It is one of the largest producers of white crystal sugar in the country,
accounting for a capacity of 19,500 tonnes of cane crush per day (TCD). In coherence with
Sakthi Sugars' continued effort to enhance the efficiency of production, many initiatives
have been put to practice time and again, to enrich the quality of production process to
unmatched standards. Some such initiatives are listed below,
Scientific farming.
Continuous R&D in sugar rich, pest resistant and high yielding sugarcane varieties.
Mechanization of cane harvesting.
Efficient Sugar manufacturing process to reduce sugar loss.
Ensuring cleanliness and hygiene at their best in factory sites.
Auto Setting Mill facilities.
Energy Saving Schemes like planetary gear boxes, Automated cooling and
condensing system, vertical continuous pan, etc.,
The Sakthi Nagar Unit, a pioneer that introduced Mechanical Cane Harvester in the
country, was established in the year 1964 at Sakthi Nagar in Erode District, Tamil Nadu
with an initial capacity of 1250 TCD, scaling higher in stages, today, the Unit has
consolidated its growth with an aggregate capacity of 9000 TCD. The Unit is strategically
placed in terms of its location. It is situated in the most favorable climatic zone of the
country that hosts more than 35,000 acres of sugarcane cultivation, well irrigated by Rivers
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and Canals. Nonetheless benchmarking its own records and operating all 365 days in a year,
the Sakthi Nagar unit has recorded the highest cane crush of 22.35 Lakh M.T during 2006–
2007 seasons. The plant achieved more than 1000 days of continuous cane crushing during
2004-2007.
The Unit has won the National Award for Exemplary Export Performance and has
also won National Efficiency Award for many years. The Unit also has the distinct capacity
of Raw Sugar Processing to produce high quality sugar using conventional equipments. The
Unit recorded its Lowest Total Losses achieved for three consecutive seasons 1987-1988,
1988-1989 and 1989-1990 and also achieved first position in reduced Mill Extraction – for
the seasons – 1987-1988 and 1988-1989.
The Sivaganga unit was established in the year 1988–1989 at Padamathur in
Sivaganga District, Tamil Nadu. It has an advanced infrastructure equipped with Auto
Setting Mills and the technical know-how to process raw sugar. The plant which was begun
with a capacity of 2500 TCD, has expanded to 4000 TCD. The plant recorded the highest
cane crush of 10 lakh MT in the 2007-2008 season.
In the year 1994 at Dhenkanal, Orissa, the unit was established with an initial
capacity of 2500 TCD. Its strategic proximity to the Paradeep Port gave the unit the much
sought after logistical advantage to the Unit, helping it to realize cost advantage in
transportation of shipments, during the Import & Export of raw sugar and white sugar. The
plant has the infrastructure and technology to produce high quality sugar by processing Raw
Sugar using conventional equipments. It is one of the very few sugar plants in Orissa state
operating for more than 120 days in a season. In the year 1994 it pioneered the processing
of raw sugar to produce high quality white sugar, using conventional equipments in India.
The plant with the capacity of 4000TCD was instituted in the year 2007 at
Poondurai Semur in Erode District, Tamil Nadu. In the Trial Season during 2007 the Unit
crushed 711609 MT of Cane with an average recovery of 9.11 per cent, which is a rare feat
and a remarkable achievement in the national level. Subsequently, it produced a laudable
quantum of 1.21 Lakh quintals of 45 ICUMSA sugar, which was exported. The Unit also
introduced Decanters for removing impurities from the juice as against Vacuum filters and
also installed energy saving equipments to minimize steam consumption and loss.
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2.2.8 THIRU AROORAN SUGARS
Thiru Arooran Sugars, the Tamil Nadu based sugar company is basically a sugar
company, is in the business of manufacturing of sugar, potable and industrial alcohol and
ethanol was founded in the year 1954. The sugarcane crushing capacity is 7500 MT per day.
A distillery unit with 60 KLPD was started on June 30, 2003. In January 1998, the company
has relocated the sugar plant from Vadapathimangalam to Kollumangudi and again in 2001-
2002, the company relocated the sugar plant at Kollumangudi to A-Chittoor village, in
Vridhachalam Taluk of Cuddalore district, due to non-availability of adequate quantity of
sugarcane in the command area.
Its revenue is $132.186 and its market capacity is `1781.8181938 (` in Millions), its
total income is `6052.623689, and its net profit is `415.426947 million (year ending
December, 2009). Shree Ambika Sugars is an associate company while Terra Energy is a
subsidiary of Thiru Arooran.