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INTERNSHIP TRAINING REPORT A Study conducted at KRISHNA CO-OPERATIVE SUGAR FACTORY LIMITED ATHANI submitted in partial fulfillment of the requirements for the award of the degree of Master of Business Administration Bangalore University Submitted by PRATEEK.S.KULKARNI Reg. No. 09CQCMA076 Under the Guidance of Mrs. L VIJAYASHREE Faculty Designation Assistant professor
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Page 1: In Plant Training.dot

INTERNSHIP TRAINING REPORT

A Study conducted at

KRISHNA CO-OPERATIVE SUGAR FACTORY LIMITED ATHANI

submitted in partial fulfillment of the requirements

for the award of the degree of Master of Business Administration

Bangalore University

Submitted by

PRATEEK.S.KULKARNIReg. No. 09CQCMA076

Under the Guidance of

Mrs. L VIJAYASHREEFaculty Designation

Assistant professor

DAYANANDA SAGAR COLLEGE OF MANAGEMENT AND INFORMATION TECHNOLOGY

Shavige Malleshwara Hills, Kumaraswamy Layout, Bangalore – 560078.

2009-2011

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CERTIFICATE

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

study at Federal bank Ltd”, submitted in partial fulfilment of the requirements for the

degree of Master of Business Administration to Bangalore University, and is a record of

original work carried out by Mr.PRATEEK.S.KULKARNI (Reg. No.09CQCMA076) under

the guidance of Ms.L.VIJAYASHREE during the academic year 2009-2011. This has

not been submitted to any other university or any institution for the award of any degree/

diploma/ certificate.

Dr. Maruti Ram Dr. M S Ramachandra

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

Place: BANGALORE Date:

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GUIDE CERTIFICATE

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

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

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

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

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

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

degree/diploma/certificate.

Place: Bangalore L.VIJAYASHREE Assistant Professor

Date:

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STUDENT DECLARATION

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

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

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

of Business Administration to Bangalore University, under the guidance of

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

diploma/ certificate.

Place: Bangalore PRATEEK.S.KULKARNI

Date: (Reg.No.09CQCMA076)

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ACKNOWLEDGEMENT

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

Management Studies, Dayanada Sagar College, Bangalore for his prompt assistance and

encouragement in pursuing this summer internship.

I also wish to express my sincere gratitude to my corporate guide Mr M.K.Gurav for his

information and mentorship while undertaking the study at different departments.

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

Studies, Administrative Management College for his / her valuable guidance which was

instrumental in the successful completion of this project.

Date: Aug, 2010 PRATEEK.S.KULKARNI

Place: Bangalore. Reg no.(09CQMA076)

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CONTENTS

CHAPTER 1: INTRODUCTION

1.1 General Introduction

1.2 Objective of the Study

1.3 Industrial Background of the Study

1.3.a Origin of the Industry

1.3.b Growth and Development of the Industry

1.3.c Present Status of the Industry

1.3.d Business Environment of the Industry

1.3.e Future of the Industry

CHAPTER 2: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization

2.2 Growth and Development of the Organization

2.3 Vision, Mission and Goals of the Organization

2.4 Present status and Future of the Organization

2.5 Organizational Structure and Organization Chart

2.6 SWOT Analysis of the Organization

CHAPTER 3: DETAILED STUDY OF THE DEPARTMENT

3.1 Human Resource Department

3.2 Finance Department

3.3 Marketing Department

3.4 Production Department

3.5 Purchasing Department

CHAPTER 4: STUDY OF SPECIFIC MANAGEMENT PROBLEM

CHAPTER 5: RECOMMENDATIONS AND CONCLUSION

APPENDIX

BIBLIOGRAPHY

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1.1 GENERAL INTRODUCTION

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

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

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

registration number of the company is DSK/REG/01/80-81 dated 10-03-1981. The

industrial license number of the factory is L.I.667 (1988) dated 02/11/1988.

The founder of this organization was Late Sri. A.B.Jakanur Ex min. of Karnataka.

At present it has an attractive campus with magnificent buildings over it. There are

totally 17,971 shareholders of TKCSFL and it has paid up share capital of Rs.18.37

Crores. During the year 2006-07, it has earned a net profit of Rs.2.15 crores. During the

same year it has produced 7.09 lakh Quintals of sugar and it has crushed 6.01 lakh

Tonnes of cane.

There are 610 workers in TKCSFL. It is paying salary of Rs. 1500,000 per month

to its workers. Total Turnover of sugar is Rs.60.03 crores.

The organization study of TKCSFL Athani included the overall study of different

departments and sections and sub sections. The departments studied were Finance

and Accounts department, Labour Welfare department, Purchase Department,

Marketing and Sales department, Production Department etc. Each department has its

own methods and procedures of working.

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By conducting the organizational study it was found that all the departments were

actively working towards the achievement of the goals and objectives of the company.

The management is also efficient in the work, so the company is achieving great

progress year by year.

The research study was conducted on the topic “A study on sugar pricing in

TKCSFL Athani For the purpose of Project work a sample of 30 tenderee or

respondents was covered. Also while administering Questionnaire care was taken to

ensure that the sample was the representative of the population.

The objective of the study was to know the factors influencing sugar pricing,

whether customers are satisfied with selling/tendering process etc.

By carrying out the study it was found that, the factors like grade of sugar, dust

freeness, transportation cost, Govt. policies and Sugar Release mechanism have

influence on pricing of sugar and also it was found that most of the customers are

satisfied with the selling or tendering process of TKCSFL Athani.

This project gave me an insight as to how the industry works and how important

this sector is to the economy. This project gave me a thorough experience of the sugar

industry.

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1.2 objective of the study

1)To study about industry

2)To study about Organisation

3)To study about different Departments

4)To study about management problem

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1.3INDUSTRY PROFILE

INTRODUCTION TO SUGAR INDUSTRY The Indian sugar industry is a key driver of rural development, supporting India's

economic growth. The industry is inherently inclusive supporting over 50 million farmers

and their families, along with workers and entrepreneurs of almost 500 mills, apart from

a host of wholesalers and distributors spread across the country.

The industry is at a cross roads today, where it can leverage opportunities created by

global shifts in sugar trade as well as the emergence of sugarcane as a source of

renewable energy, through ethanol and cogeneration. While some of these

opportunities have been well researched in the past, there was a need to assess the

potential for India and to develop a comprehensive and actionable roadmap that could

enable the Indian industry to take its rightful place as a food and energy producer for

one of the world's leading economies.

India is second largest producer of sugarcane next to Brazil. As per last year

data, about 4 million hectares of land is under sugarcane with an average yield of 70

tones per hectare. India is largest producer of sugar including traditional sugar

sweetener, Khandasari and Gur equivalent to 26 million tones raw value followed by

Brazil in the second place at 18.5 million tones. Even in respect of white crystal sugar,

India has ranked No position 7 out of last 10 years.

Traditional Khandasari and Gur are consumed mostly by the rural population in

the early 1930’s nearly 2/3rd of sugarcane production was utilized for production of

alternate sweetener, Gur & Khandasari. With better standard of living and high income,

the sweetener demand has shifted to white sugar. About 1/3rd of sugarcane production

is utilized by the Gur & Khandasari sectors. Being in the small scale sector, these two

sectors are completely free from controls and taxes, which are applicable to the sugar

sector.

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1.3 a PROFILE OF THE SUGAR INDUSTRY

The advent of modern sugar industry began in 1930 with grant of tariff protection to the

Indian sugar industry. The number of sugar mills increased from 30 in the year 1930-31

to 135 in the year 1935 and the production during the same period increased from 1.20

lakh tones to 9.34 lakh tones under dynamic leadership of the private sector.

The era of planning for industrial development began in 1950-51 and government laid

down targets of sugar production and consumption licensed and installed capacity,

sugarcane production during each of the five year plan periods. The targets and

achievements various plan periods are given bellow.

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1.3 b GROWTH OF INSTALLED CAPACITY

YEAR No of factories in

operation

Installed capacity

(tones)

Sugar production

(tones)

1950-51 139 16.7 11.0

1960-61 143 17.8 18.9

1970-71 174 24.5 30.2

1980-81 200 32.3 35.4

1990-91 229 43.1 39.5

2000-01 299 59.1 58.4

2005-06 415 127.6 167.3

2009-10 506 197 175

The small size new units licensed by the government were supported with a

scheme of announced on 25th November 1975 known as Sam path committee incentive.

It provides percentage of free sale quota to both new sugar factories and expansion in

existing units. This is to a mushrooming growth of relatively small sized sugar units in

the country.

Under the policy of licensing, government initially permitted small sized new units

of 1250 TCD capacity only and later on increased the minimum economic size of plant

to 2500 TCD similarly the capacity expansion initially allowed up to 3500 TCD only were

subsequently raised to ITCD and finally those expansion limits were withdrawn in 1990.

As a result the industry has grown horizontally with an all India per unit average

capacity of 500 TCD. As against this, these has been consolidation and move towards

larger per unit capacity all over the world, be evident from the following table.

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Total sugar industries in India are 506 out of which 67 are public sector companies, 157

are private sector companies and 282 are co-operative societies. Total sugar industries

in Karnataka are 40 out of which two are public sector companies, 18 are private sector

companies, 19 are co-operative societies and one is joint venture.

Government enacted the Sugar Development Fund Act & Rules, which provides

for levy of per quintal of sugar known as Sugar Development Fund (SDF). The SDF is

utilized for granting term loans to sugar mills modernization and grants for research

projects in the sugar besides creation of buffer stocks as and when required to ensuring

price stability. Government de-licensed sugar sector in August 1998. It is now open to

entrepreneurs to set up mills without license but at distance of 15 kms away from the

existing factory. Sugar units free to expand their capacity and also put up higher

capacity new units.

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1.3 c Present status of Indian Sugar Industry

No of sugar factories established 506

Total capital employed Rs. 50,000 crores

Total annual turnover Rs. 25,000 crores

Total payment to cane growers Rs. 18,000 crores

Contribution to central & state

exchequers

Rs. 1700 crores+800 crores

Direct employment : rural educated Rs. 5.00 Lakhs

Farmers/families involved in sugar

cane (7.5% of rural population)

Rs. 45 million

In global economy, the Indian sugar industry has achieved a number of milestones

Largest Sugar Producer in 7 out of 10 years

Second Largest Area under Cane/cane production

Amongst the cost effective industries with its field cost (Sugar cane) being the second

lowest, despite small land-holding and low productivity

Fourth efficient processor of sugar despite low capacity of its sugar plants as compared

very large-size plants in other parts of the world

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1.3.d Business Environment of the Industry

The present policy of decontrol 10% of production by each unit is supplied for public

distribution system I as levy sugar at Govt. notified prices admittedly bellow 20% of the

actual cost of production. The levy sugar is I to the public irrespective of their economic

status. The balance 90% is sold in the free market against monthly/ issued by the

Government. This policy has been continuing since 1967-68 except for brief periods of

de-control during the years of surplus production and accumulated sugar stocks.

Government announces the Statutory Minimum price (SMP) for sugarcane every year

based on recommendations of the Commission for Agricultural Cost & Prices (CACP)

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ORGANISATION PROFILE

The Krishna Co-Operative Sugar Factory Limited, Athani (Krishna Sahakari Sakkare

Karkhane Niyamit, Athani.) is a co-operative society registered under Karnataka co-

operative societies Act in 1969. The industrial license number of the factory is L.I.667

(1988) dated 02/11/1988. The Krishna Co-Operative Sugar Factory Limited, Athani is a

co-operative unit. It is situated near Sankonatti village, at a distance of about 6 Km from

Athani town. The factory at present has an attractive campus with magnificent buildings

over it.

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

Cooperative system, as one of its main pillars providing vital support services, is crucial

for the transformation of agriculture. It is how inspired the founder Late Sri. A B

Jakanur, an agriculturist and a co-operator, to establish this factory during 2000-01 with

the financial support from cane growers of this area and the State Government, with an

initial crushing capacity 2500 TCD and as a stand-alone sugar industry. This factory had

faced a lot of problems all these years in coming out as a viable unit. Though this

factory had emerged in this area with a meager beginning, it had not only provided a

source of income for forming community but also created a sustainable employment

opportunity in this rural area.

After a lot of dispute on location of plant, near Sankonatti village, the construction

work started in year 1990 and completed in the year 2000. The factory was inaugurated

by Co-Operative minister of Karnataka State Sri H Vishwanath on 24/03/2002. The

regular production was started from 24/03/2002, and the first season lasts from

24/03/2002 to 09/04/2002.

The factory started on 24/03/2002 with initial Crushing capacity of 2500 TCD with

total expenditure of Rs.46.95 Crore. The area of operation covered 22 villages from

Athani Taluka,

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At present total sugar cane supplied to this sugar industry is from 15,000 acres

with average yield per acre of 25 MT.

The entire plant and Machinery has been supplied by M/s Triveni Engineering

and Industries Limited New Delhi, Rs. 28.17 Crore long-term loan was borrowed from

the Co-operative Banks. The factory had created a financial set backs due to the lack of

professionalism both in technical and financial managements and not adopted the range

of different bi-product activities and had suffered due to a weak governance on

efficiency, effectiveness, adaptability and internal and external accountability in the

management. However this cooperative and rural based industry must succeed if the

poor farmers and the rural unemployed youths have to be prosperous.

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2.1ORIGIN OF THE ORGANISATION

Name of the Company The Krishna co operative Sugar factory Limited Athani

Date of Incorporation/Registration

No. DSK/REG/01/80-81Date : 10-03-1981

Nature of Constitution Co-operative Sector

Factory code no. 40501

Date of commencement of commercial production of sugar

12-06-2002

Crushing capacity 2500 TCD

Project Cost 48.86 crores

Activity under taker Production of sugar and its by Products like Molasses and Biogases

Working period 180-210 days

Type unit Large scale Agro based manufacturing unit

Main raw material Sugar cane

Labour employed 530

Area of operation 22 villages

BOARD OF DIRECTORS

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1) Shri P.C. Savadi : Chairman

2) Shri J.A. Patil :ViceChairman

3 Shri G.M.Tewarmani : Director

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

5) Shri C.H. Patil :Director

6) Shri S.D.Nandeshwar :Director

7) Shri G.M.Jatti : Director

8) Shri M.L.Patil : Director

9) Shri B.C.Hanji :Director

10) Shri V.G. Telasang :NomineeDirector

11) Smt. P.B.Reddy :NomineeDirector

12) Shri V.M.Shinge :NomineeDirector

13) Shri P.R.Mahajan :NomineeDirector

14) Shri I.M. Maniyar :Managing Director

2.2 Growth and Development of Organisation

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2.3 Vision, Mission and Goals of the Organization

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“To continue to remain the best performer among sugar manufacturing companies in

India & to provide more value to the shareholders by means of efficient capacity

utilization of its sugar, power and distillery based facilities.”

VISION

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

is “We are dedicated to deliver overall value to our customers by delivering high quality

products, exceptional financial performance to our share holders & complete

satisfaction to cane growers, employees & stakeholders”.

MISSION

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

Research and Development in Agriculture. Their mission is to reduce the overheads

and increase the profitability by maximum utility of raw material by way of producing

various products.

To encourage agro-based co-operative industry.

To develop co-operative movement in rural sector.

To encourage the farmers to grow sugarcane for production of sugar and its by-

products.

OBJECTIVES OF TKCSFL ATHANI

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To give the good market rate to the farmers who supply the sugar cane to their

factory.

To keep the good relations with the customers and. farmers and to maximize their

satisfaction.

Maximum utilization of man power and production capacity and proper utilization of

raw material for good recovery.

To promote the economic and social betterment among the members through self-

help and mutual aid in accordance with the co-operative principles specified in

the first schedule of the Act.

To encourage self-help, thrift and co-operation amongst member

To acquire lands either by way of purchase or otherwise for cultivation of sugar cane

and other crops and for erection of buildings, godowns, staff quarters,

administrative blocks etc., and for installation of machinery.

To manufacture sugar jaggery and their by-products out of sugar-cane grown and

supplied by members of the society and other and to sell the same to the best

advantage.

To undertake such other activities as are identical and conducive to the development

of the society.

To acquire and install machinery for the utilization of the by-products and buy raw

material and sell finished product in the course of utilizing and marketing the by-

products.

2.4 Present status and Future of the Organization

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Crushing details:

Sl.

No.

Particulars 2001-

2002

2002-

2003

2003-

2004

2005-

2006

2008-

2009

2009-

2010

1 Cane

Crushed

(MT)

15778 312810 205135 146979 430018 601041

2 Sugar

production

(Qtls)

11003 351898 217680 158900 516169 705985

3 Recovery

%

7.80 11.24 10.62 10.81 12.02 11.80

2.4Future strategies

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

2)assisting farmer’s to yield more.

3)Increasing production of sugar by purchasing new plants.

4)To reduce lead time.

5)To crete viability out of liability.

6)To reduce waistages.

2.5 Organizational Structure and Organization Chart : -

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BOARD OF DIRECTORS

WORKS MANAGERMANAGER PERSONNEL ADMINISTRATION CANE MANAGERMANAGER INTERNAL AUDIT STORES & PURCHASE MANAGERMANAGER FINANCEMARKETING CHIEF CHEMISTCHIEF ENGINEER CIVIL ENGINEERMANAGER INFORMATIN TECNOLOGY

ENGINEERING STAFF

SUPERVISOR

ASST. CANE MANAGER

CANE DEVT. OFFICER

SUPERVISOR

AUDITING STAFF / CLERK

ASST MANAGER

WORKING STAFF

A/C OFFICER

SUPERVISOR

CASHIER / CLERK

SECURITY MANAGERLABOUR WELFARE OFFICER GUEST HOUSE INCHARGEOFFICE SUPREDENT

DY. CHIEF CHEMIST

CHEMIST

LAB CHEMIST

SECTION INCHARGE

OPERATING STAFF

DY. CHIEF ENGINEER

ASST. ENGINEER

JUNIOR ENGINEER

FOREMAN

OPERATING STAFF

WORKING STAFF

AST. CIVIL ENGINEER

SUPERVISOR

COMP. PROGRAMMER

OPERATING STAFF

TIME KEEPER STAFFSECURITY OFFICER COOK, GUEST HOUSE ATTENDERTELEPHONE OPERATOR, CLERK

WATCHMAN

ASST. CANE DEPT. OFFICRE

CANE INSPECTOR FIELD MAN

WORKING STAFF

MANAGER MARKETING

ASSISTANT MANAGER

SALES REPRESENTATIVEWORKER / STAFF

CHAIRMAN / MANAGING DIRECTOR

FUNCTIONAL HEADS:

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Managing Director (M.D)

Chief Engineer

Chief Chemist

Chief Accountant

Cane Development Officer (C.D.O)

Office Superintendent

Accountant (Cane)

Labour Welfare Officer (L.W.O)

Civil Engineer

Accountant (General)

Store Keeper

Sales Officer

Purchase Officer

Time Keeper

Godown Keeper

Cashier

Security Head

2.6 SWOT Analysis of the Organization

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SWOT ANALYSIS

Strengths:

Modern equipment and machinery.

Basic industry to agriculture.

Good source of raw material

Reduced wastages due to further usages of byproducts

Well defined infrastructure for better market connectivity

High profitability due to various by products (Product diversification) like

molasses,Biogases.

Healthy management labor relations

Superior product quality

Strong network from all aspects- location, transports, and infrastructure

Well-structured distribution channel.

WEAKNESSES:

Lower compensation for employees compared to other organization.

High cost of production due less capacity

No control on minimizing the losses during the process.

The company has to focus more on sales, marketing.

Factory is not an ISO certified.

Research and development department have not existed.

Seasonal production

Less skilled and efficient labour force.

Less control on minimizing the losses in process

Improper planning of investment for future growth.

The sugar release mechanism is controlled by government of India.

Absent of motivational incentives.

OPPORTUNITIES:

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The company can see the opportunities in diversification projects like:

Electricity generation

Ethanol i.e. substitutes for petrol

Liquor.

Fertilizers

Borrowing of low cost funds.

As Global sugar consumption is steadily on the rise and company can explore export

opportunities.

Increasing demand for sugar.

THREATS

The heavy competition from other competitors to get the raw materials as well as to

sell the products.

Frequent government intervention in the company policies

Large number of sugar factories within the same area.

No price stability.

Environmental norms by government which puts financial pressure

Due to uncertain rainfall procurement of raw material is being affected

The main raw material (i.e. sugarcane) may not sufficiently be available in future in

the given market.

Environmental pollution controls add up to the cost

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Chapter 3

HUMAN RESOURCE MANAGEMENT (HRM): -

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General Administration and

Establishment SectionLabour Welfare

department

Time Office(Wage and Salary

administration)

Employee’s Management in this Organization

Human Resource Management is a management function that helps managers

recruit, select, train and develops members for an organization. Obviously, HRM is

concerned with the people’s dimension in organizations.

Human Resource Management is the planning, organizing, directing and

controlling of procurement, development, compensation, integration, maintenance and

separation of human resources to the end that individual, organizational, and social

objectives are accomplished.

Thus, HRM refers to a set of programs, functions and activities designed and

carried out in order to maximize both employee as well as organizational effectiveness.

RECRUITMENT AND SELECTION: -

All the rights of recruitment are invested with the Board of Directors. The factory has

good system of up grading. A promotion is given on the basis of experience,

qualification. For upgrading the workforce a committee of Board of Directors is

appointed. The up grading of workers is considered only when a vacancy exists in the

higher grades, the factory instead of recruiting people from outside gives preference to

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their own personnel on the basis of qualifications, experiences and performance. The

possibility of promotion serves as an incentive.

Promotion is given to the workers if they are well experienced and also of good

qualification.

INTERNAL SOURCES: -

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

this manpower can be utilized elsewhere. This can be done through transfer and

promotion to employees in their positions.

EXTERNAL SOURCES: -

Some time it may not be possible to find out right manpower within the company,

especially in technical skill required jobs. Then they go for external sources. The major

external sources used by TKCSFL ATHANI are giving advertisements in news papers

and other Medias through personal contacts etc., after identifying the sources, the

recruitment process and selection process starts.

REMUNERATION SYSTEM: -

Remuneration to workers includes both monetary and non-monetary benefits

MONETARY BENEFITS: -

Salary.

Home rent allowances.

Dearness allowances.

Traveling allowances

Provident funds

Festival advances.

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NON-MONETARY BENEFITS are subsided food and recreational facilities to

employees.

TIME OFFICE DEPARTMENT

This department is headed by head timekeeper. To maintain the register of

attendance of the factory staff to prepare the pay sheets and leave records and

personal services register of the staff.

Time office notes the time in and time out of employees. It also makes a note

of leave taken by employees. Thus performance of worker can be assessed from the

office.

FACTORY PREMISES

Inside: from 8:30am to 5:30pm

The lunch break is from 01:00 to 02:00 pm

LABOUR WELFARE DEPARTMENT: -

This department is headed by labour welfare officer. To look into the welfare

activities of the worker and solve the labour problems. The factory provides all the

necessary facilities. The purpose of providing welfare amenities is to facilitate the

development of total personality of working class for physical, mental, psychological,

cultural, social, moral and intellectual development the factory provides well planned

residential accommodation, medical facilities, educational facilities, drinking and

washing water, canteen, cycle stand, library etc. In addition, the factory has non-

statutory schemes for workers welfare. Consumers society, uniforms to watchman

production and engineering workers etc.

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People in this organization manifest themselves not only through individual’s

section but also through group interaction. When these people come to their work place

they come with not only technical skills and knowledge, but also with their personal

feelings, perception, desires, motives, attitudes and values etc. Therefore employee’s

management is a crucial part in this organization.

To establish and maintain sound organizational structure and desirable working

relationship between the employees and management and create facilities and

opportunities for employee growth and development, this organization created a

separate cell that is Labour Welfare Department.

Objectives: -

To secure for the worker fair wages.

To improve the working conditions and express share in the increased profitability.

To secure the workers security of employment and protect the larger interest of the

society.

To establish the relationship of Mutual Trust and Respect between Management and

Employees.

Functions: -

To promote harmonious relations between the factory management and worker.

To bring to the notice of Board of Directors the grievances of worker and to act as a

liaison officer between management and labour.

To study and understand the point of view of labour in order to help the management to

shape and formulate labour welfare policies.

To advice and assist the management in fulfillment of statutory and other obligations.

To encourage the formation of works, joint production councils, co-operative societies

and welfare committees and supervise their work.

To secure the provisions of amenities such as Canteen, Washing, First Aid, Shelter,

Rest Room and Lunch Room etc.

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To suggest the measures which will serve to rise the standard of living of workers and in

general to promote their well being.

Welfare Facilities: -

Statutory facilities: -

Canteen

Washing facilities

Facilities for storing and drying clothes

Facilities for sitting

First Aid appliances

Shelter

Rest Room and Lunch Room

Leave facilities

Bonus, Incentives etc.

Non Statutory facilities: -

Co operative Societies

Recreation and festival committee

Nursery, Primary and High School

Community Hall

Banks

Flour Mill

Dish Cable Services

Hospital

Library

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Job Specification in TKCSFL ATHANI

Every organization is made not made up only machineries but also consists

of people. Hence manpower is very essential and improvement in the production

industry .So TKCSFL ATHANI is having manpower sufficiently.

TABLE NO 2.2

Departments Orde

r

Daily

Wages

Enhancement No

Change

Tota

l

Engineering

Department

121 60 57 09 247

Production

Department

88 37 31 09 165

Cane

development

Department

32 0 15 08 55

Administration

Department

11 20 16 12 59

Civil Department 0 0 0 28 28

Time Office 2 2 0 00 04

Stores

Department

14 29 0 0 43

Vehicle

Department

06 03 0 0 09

Total 274 151 119 66 610

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Staff: -

The employees are responsible for the success or failure of company.

There are totally 530 workers in the company.

No. of Workers

1) Permanent worker 320

2) Seasonal workers 290

610

Company is paying salary of Rs. 21, 00, 000 per month in season and 15,00,000 per

month in half Season to its workers.

Workers Shift System:

Sugar manufacturing process is continues process it needs employees to take

care of the operations 24 hours. So company employs its workers in 3 different shifts

and also provide weekly off on routine basis. The shift system of the company is as

follows.

Shifts Timings Break

I 4:00 am to 12:00 pm 30 min

II 12:00 pm to 8:00 pm 30 min

III 08:00 pm to 4:00 am 30 min

General and administration

8:00 am to 12:00 pm 60 min

1:00 pm to 5:00 pm

Central Office

10:00 am to 2:00 pm 30 min

02:30 pm to 5:30 pm

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3.2 Finance Department

Finance plays a vital role in the functioning of all industrial units. Finance is the

lifeblood of the organization. In sugar Industry Finance and accounts Department has

very vital roles. The financial plan basically deals with raising and proper utilization of

funds. The funds can be raised by issue of shares as well as by raising loans through

various sources. The finance manager supported with accounts manager and an

accounts assistant manages finance department.

FUNCTIONS: -

They look after the overall financial requirements of the company.

They see that a proper inflow and outflow of income and expenditure is maintained.

Accounting of sales and sales realization.

Receipt of cash, cheque and bank drafts etc and issue of official receipts for the same

Maintenance of journal, expense ledger and general ledger.

Costing and accounting is framed and maintained.

Yearly budget is framed so that each department can meet their cash requirements.

Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting,

purchase forecasting etc.

Registration and scrutiny of sale orders pertaining to equipment and spare parts.

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Finance Department consists of following Sections: -

General Accounts Section.

Cane Accounts Section.

Sales Section.

Cash Section.

An Accounts Officer is the head of this department. Accountant, sales manager, and

head cashier assist him.

AS FUNCTIONING OF EACH SECTION IS SUMMARIZED FOLLOWS: -

GENERAL ACCOUNTS SECTION:

General Accounts are looking after the passing of bills and payments.

Management is also done by General account section and preparation of financial

statements i.e., Balance sheet, profit and loss account is attended by general accounts

section.

CANE ACCOUNTS SECTION: -

The Bills and payment concerned to procurement of sugar cane, is attended by

cane accounts section. Payments like cane bills, transport and harvesting bills etc., are

prepared and passed in cane accounts section.

SALES SECTION:

It is looking after sales of sugar and by products like molasses, biogases and

other scrap materials. It is keeping records concerned to all sales section.

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CASH SECTION:

It is looking after the payments of all general bills and salary bills apart from

cane payment and it is also looking after receipt of cash and cheque payment. All

accounts are maintained in usual manner.

Various records and books kept are: -

General ledger

Sub ledger

Subsidiary

Cash book

Bank book

Vouchers.

Each branch prepares trading and profits and loss account and Balance Sheet as

on 31st March every year. And the government Auditor audits the accounts.

DEBTS FROM BANKS AND FINANCIAL INSTITUTIONS

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TABLE NO 2.5:-

Sl

no

Name of the banks Amount

1 APPEX KARNATAKA GOVT BANK

BANGALORE

6

CRORES

2 CANARA DCC BANK SIRSHI 5

CRORES

3 SOUTH CANARA DCC BANK MAGALORE 5

CRORES

4 BELGAUM DCC BANK BELGAUM 1

CRORES

5 SHIDESHWAR CO-OPERATIVE BANK

BIJAPUR

3

CRORES

6 MARATHA URBAN CO-OPERATIVE BANK

BELGAUM

2

CRORES

7 BELLAD BAGEWADI URBAN CO-

OPERATIVE BANK BELLAD BAGEWADI

2

CRORES

8 SMS URBAN CO-OPERATIVE BANK

ATHANI

1.20

CRORES

9 CHIKKODI URBAN CO-OPERATIVE BANK

CHIKKODI

1.50

CRORES

10 SADALGA URBAN CO-OPERATIVE BANK

SADALGA

1.50

CRORES

SHARE SECTION

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The share section is the one of the important sections because more than half of the

capital is collected from shareholders .In this factory the shares are classified as;

TABLE NO 2.6:-

TYPES OF SHARES

“A CLASS ” Grower Member 13,048

shares

“B CLASS ” Co-operative Institution 89 Shares

“C CLASS ” State Government 01 shares

“D CLASS” Non Growers Members 4,309 shares

“E CLASS” Nominal Members 524 shares

“F CLASS” Associate Members

Note: -

(F Shares) An Associate membership of class F shall be open to the

individual who have invested in shares during the organization of the factory but cannot

been admitted in any of the above class of membership. They may hold shares of the

factory but shall not be entitled to become office bearer of the factor

3.3 Marketing Department

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MARKETING AND SALES DEPARTMENT: -

The American Marketing Association offers the following formal definition:

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer

relationships in the ways that benefit the organization and its stake holders.

It can be viewed Marketing Management as, an art and science of choosing

target markets and getting, keeping, and growing customers through creating,

delivering, and communicating superior customer value.

CHANNEL OF DISTRIBUTION: -

Most producers do not sell their goods directly to the final users. Between them

stands set of intermediaries performing a variety of function. Those intermediaries

constitute a marketing channel.

Marketing channels are sets of interdependent organizations involved in the

process of making a product or service available for use or consumption.

Marketing channel decisions are among the most critical decisions facing

management. The channel chosen intimately affects all the other marketing decision.

The company’s pricing depends on whether it uses mass merchandisers or high quality

boutiques. The firm’s sales force and advertising decisions depends upon how much

training and motivation dealers need. In addition, the company's channel decisions

involve relatively long term commitments to other firms.

ROLE OF MARKETING MANAGER: -

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To collect information for sale forecasting.

Pricing the products as per the demand.

To appoint new dealers and distributors

.To have full and perfect knowledge of marketing conditions and policies

Marketing department also looks after dispatching goods to the vendors

.

FUNCTIONS OF SALES DEPARTMENT: -

Sales officer is responsible for selling the products.

To look after dispatch of the ordered products.

Suggestion, ideas, complaints, feedback from the market to the company.

Stocking planning, godown maintenance.

RELEASE MECHANISM OF SUGAR: -

The sale of sugar is controlled by the Chief Director of sugar, New Delhi through

release mechanism.

Sugar industry is basically a seasonal industry. Hence the sugar will be

produced during the season and the sugar thus produced will have to be marketed

throughout the year by the sugar mills.

The Directorate of sugar will release monthly sugar sale quota for the sugar

factories in India and the sugar thus released for the specific month will have to be sold

and dispatched before the end of the month.

In case any factory not able to sell the entire quantity of the sugar released for

the particular month, the remaining quantity will be treated as lapsed. So every factory

tries to sell their sugar quote of the month within the validity period.

SALES PROCEDURE : -

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Procedure adopted for sale of sugar and power

Sugar: -

Domestic Sale of Sugar: -

The sugar is sold in the domestic market through tender system. Sugar tenders will be

called periodically from the various sugar traders. The traders are intimated well in

advance about the grade and quality being offered in tender over telephone. The sugar

tender is some times conducted at Karnataka Sugar Institute, Belgaum and also at

factory site. The officer of KSI will be present at the time of tenders. The rates will be

collected over telephone from the various parties along with grade and quantity of sugar

required by them. The parties who have offered higher price will be allotted the sugar

and they will be instructed to take the sugar delivery within the stipulated period. The

sugar will be sold against 100% payment. The rate of domestic price of sugar in the

state and the rate of neighboring sugar factories will be compared while selling the

sugar in tenders.

Export of Sugar: -

When the international price of sugar is remunerative compared to domestic

price of sugar, the company exports some of the stock of sugar. The sugar export is

mainly undertaken through the mercantile exports or through EXIM Corporation New

Delhi. The price for export sugar is negotiated taking into account, the prevailing

international sugar price and the price being offered by various sugar factories for

export of sugar. Once the rates are finalized, the company will enter into agreement with

the party. Then the party will obtain a release orders from chief Director of sugar, New

Delhi and necessary excise bond from the concerned authority. After completing all the

necessary formalities, sugar will be delivered to the party for export against full payment

of the consignment. After the export shipment is completed necessary documents in

proof of export of consignment will be collected from the parties. The same will be

submitted to the excise department.

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Export of Power to the KPTCL Grid: -

In addition to the above company is also receiving its revenue from its power

plant. Company is having a power plant of 6.0 MW capacities. It is using about 4.0MW

for its own/captive consumption; the excess power of about 2.0MW is being exported to

the KPTCL.

3.4 PRODUCTION DEPARTMENT

Production management refers to the application of management principles to the production function in a factory. In other words production management involves application of planning, organizing, directing and controlling the production process.

A well-organized production function can offer competitive advantage to a firm in the following areas.

Higher quality

More inventory turns

Shorter new product lead time

Greater flexibility

Shorter manufacturing lead time

Better customer satisfaction

Reduced wastage

Laboratory

The factory is having well equipped lab, and the main activity of the lab is to

check the content of sugar cane & fixing the correct shape & size of sugar. The lab

prepares hourly reports which advice on the addition of the other chemicals in

production

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PRODUCTION PROCESS

The main Raw material in the production of sugar is.

Sugar cane.

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

STAGE:1 SUGAR CANE SUPPLY.

The harvested and transported sugar can received is weighted on the weigh Bridge. It is unloaded and kept on the feeder tables. It is fed to the cane carrier as per the requirement.

Note: 4500 tons received, 1000 tons stocked and 3500 tons crushing per day.

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

This cane is passed through leveler and fibrizor by making the fine making the

fine chips. It is crushed through series of mills. Imbibitions hot water is added prior to

the last mill to extract more possible sugar. The Biogases from the last will is carried

through Biogases conveyor and required quantity of Biogases is fed to the boilers and

excess quality is sent for storage.

STAGE:-3 CLARIFICATION AND EVAPORATIONS.

The juice from all the mills is pumped to juice weighting scale. It is heated to

about 70-77’o c in the juice heaters. It is taken to continuous juice sulphitor in which

milk of lime and sulphur di-oxide gas are adjusted to maintain ph 7.0. It is again heated

Deputy chemist

Chief chemist

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in juice heaters to about 100 to 105’oc and sent to continuous clarifier. Clear juice is

taken to multiple effect evaporators to concentrate up to 60oc Bricks.

The settled mud from the bottom of the clarifier is taken to mud mixer to mix with

beguile and taken to continuous vacum filer. The filtrate is transferred to raw juice

receiving tank for treatment. The adhered mud on the screens is scraped and sent out

as filter cake, which will be used for composting the manure.

STAGE:-4 SUGAR MANUFACTURE AND CRYSTALLIZATION PURING

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

4.8 to 5.2. This is stored in the supply tanks and fed to “A” masscult boiling by taking B-

seed as a footing. It is concentrated to 92o Bricks and dropped to the crystallizer. This

masscult is purged in the centrifugal machines. The adhered crystals are scraped to

hopper and treated with hot air and cold air blower. It is sent to grader the size for

gradation. This graded sugar is stored in SILOS. Weighed and bagged sugar bags are

transferred to respective godowns for stacking.

STAGE 5:- FURTHER PROCESS

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

tanks and fed to ‘B’- masscult boiling with b-grain as footing. This is purged in the

centrifugals. This sugar is used as B- seed and excess is melted and fed to ‘A’-

masscult’s. White purging low purity B- Heavy molasses obtained is used for boiling C-

massecuite with C- grain as footing.

This C- massecuite is taken for purging in Centrifugal machines. The final

molasses is separated, weighed and sent to storage tanks. C.F.Magma is sent to melt

supply tanks and fed to ‘A’ massecuite boiling. C-light molasses obtained is tired in

supply tanks and used for C- massecuite boiling and C- graining also 0.

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SUGAR CANE

SUGAR

BAGASSES MOLASSES PRESS MUD

ETHANOLLLLLLlL RECTIFIED SPIRIT POTABLE ALCOHOL

BY-PRODUCTS

CHART SHOWING PRODUCT PROFILE

STEAMMMmMMMMM POWER JUICE HEATINGMANURE

Sugar Production Process

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SUGAR:

The factory initially started crushing at the rate of 2500 Tonnes crushing per day (TCD).

It is needless to emphasis here that this factory has its own credibility and enjoys its

own sanctity in the sugar industry.

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

TABLE NO 2.5:-

Type of sugar Produced in TKCSFL Athani

TYPE OF SUGAR SIZE (IN MICRONS) %AGE PRODUCTION IN 2006

LARGE (L30) 1400 NILL

MEDIUM (M30) 1120 10-15%

SMALL (S30) 600 85-90%

DISTILLATION:

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

distillation.

This molasses has about 40% to 45% of sugar in it. The yeast strain used in

fermentation process is Sacchromyces Uvarum.

BIOGASSES :

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The fibrous material of sugar cane which after extraction of juice comes out from

mill house is called Biogases and is used as fuel for Boilers. In TKCSFL they use the

Biogases for high pressure boilers to generate steam. Thus generated steam is used to

produce electric power by using Extraction Turbo Generation set. Thus produced power

is used to run the factory and excess power is exported through KEB Grid.

Co-Generation:

The factory started producing Power by using Biogases in the year 2002 with the

initial capacity of 6 MW... It installed turbo generator set of capacity 6 MW in the year

2002. As on 2006 the Factory has the total capacity of 6 MW, out of which 4 MW is

used for in-house consumption and the remaining power is transported.

Press mud:

The press mud is obtained in the process of juice purification process. It is used

as manure. In TKCSFL, the press mud is sold to the farmers.

PROCUREMENT

The factory obtains the sugarcane, which is required from more than 1000 farmers and

by the company farms and others raw materials which are required for the operation is

taken from the vendor, here vendors will be evaluated on the basis of price and quality

and then the required raw materials will be taken for the efficient vendors.

The transport of sugar cane from farmers to the factory will be engaged through Lorries,

which will be taken through bidding at the time of harvesting, and also farmers

themselves supply by their own bullock carts or by tractors.

CANE WEIGHMENT: -

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There are 12 outlaying weigh bridges situated round about Athani for delivering the

sugarcane from the farmers. Double check has been provided over the weighment of

cane transported from out stations.

OPERATIONS: -

The sugarcane, which is carried by Lorries or other, will be directly fed to the machine where the initial process starts. At the starting point there are knives, which cut sugar cane bunches into individual sugar cane.

After this in the next step there are sharp cutter, which cuts the sugarcane

bunches into very small pieces. Then it will go to trade marbs (a series of rollers used

for crushing purpose) for crushing. Then the juice produced will go for further

processing and the Biogases will be left out there itself. Then they add flocculent [used

for mud setting] milk sanitation etc and then after it will go through pans and Masscuite

for this Masscuite they will add sodium Hydro Sulphite (to bleach the Masscuite) and it

will be separated out and the molasses will be sent to distillery and then white sugar will

be bagged.

3.5 PURCHASE DEPARTMENT-

Purchase officer heads Purchase Department. He is responsible for purchasing

the spare parts required for the industry. The storekeeper is responsible for stacking;

maintaining and issuing required materials to the concerned section.

The important functions of this department are: -

Purchasing materials

Calling quotations

Preparing C.S.Q (comparative statement quotation)

Placing before meeting for decision

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PURCHASE MANAGER

GODOWN SUPERVISORS

STORE KEEPERS

ASSISTANTS

Placing orders for supply of materials.

Passing bills to Accounts section for payment.

PURCHASE DEPARTMENT HIERARCHY

PROCEDURE OF PURCHASING: -

PROCESS OF PURCHASING MATERIAL OF PURCHASING DEPARTMENT

1. DETERMINATION OF PURCHASE BUDGET:

2. DETERMINATION OF QUANTITY

3. PURCHASE ORDER:

4. RECEIVING AND ISSUING RAW MATERIALS

PURCHASE DEPARTMENT SYSTEM

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Requirement requisition

Quoting of enquiry of suppliers

Requesting to send quotation

Used to draw the model of the item

Compare the items from parties

Calling parties for negotiation (I.e. price, clarification, delivery period)

Compare the rates of the items

Place the order

Receiving the material (store)

Approval memo after receiving the material

Store dept will send the bill

Bill is sent it to the A/C officer

Verification of bill with order copy

MECHANICAL DEPARTMENT:

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This department is headed by Chief Engineer. It deals with the maintenance of

the sugar machinery and plant and to run all the sugar machinery and their devices

properly and smoothly in the season and to extract cane juice from the sugar cane.

This department has the following subsections.

1) Mill

2) Boiler

3) Sugar house

Functions:

1) To maintain performance of machines.

2) Installation of the machines.

3) Repairs of the machines.

4) On the job training to the employees in the section.

5) Looking after the electrical section.

6) Crystallizing drying and packing the refined sugar.

WATCH AND WARD : -

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

and control on gates and supervision in day and night all over the factory area from

security point of view.

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AGRICULTURAL DEPARTMENT: -

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

which plays a dominant role in buying of sugar cane, which is a main raw material to

sugar industries.

This department is headed by Cane development officer. It deals with the cane

procurement, harvesting (to reap) and development of cane and to make the provision

of proper seed of cane to the cultivators, soil testing and proper guideline for measuring

etc.

This dept helps the farmers for the production of good quality of sugarcane. The

total area of operation is 15,000 acres and is divided into 4 circles with 22 villages.

Facilities provided to the farmers:

1) Compost is provided to the farmers.

2) Pesticides are provided.

3) Agriculture development loans are provided.

4) Sugar is provided to the shareholders once in a year.

5) Recommendation letters to the banks to provide loans to farmers.

6) Provide cane seeds.

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STRUCTURE:

Accounts Field

Head Clerk

Clerks

ACDO

Filed man

Slip boys

CDO

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FUNCTIONS:

1) Issue of slips to the cane suppliers, harvesting gangs and transport parties.

2) Arrangement of the vehicles to supply the sugar cane.

3) Cane registration.

4) It makes the arrangement for harvesting gangs and transport parties.

5) It solves the farmers’ problems.

6) Improving cane quality.

7) Supply of sugar cane according to the requirement.

8) It supplies cane seeds to the farmers.

9) It provides fertilizers and pesticides to the farmers.

10) Provides information regarding cane suppliers, harvesting gangs and

transport parties to the cane accounts.

11) Hiring trucks and tractors.

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CHAPTER 4

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4.0 Specific Management Problems

1)The management is producing more quantity of M30 grade of sugar where as the demand for S30 grade of sugar is more. 2)The political intervention is very much in the factory.As the factory is owned by government and controlled by the ministers.

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

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

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

6)poor skilled workers.

The management is facing these difficulties and it is very necessary to overcome these difficulties in order to compete with the other sugar industries in thye region mainly with Renuka sugars which is growing rapidly compared to other sugar factoies in the region. So the management needs tahe up some standard measures to overcome the Loopholes of the factory and improvise the co9nditions of the factory.

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5 SUGGESTIONS

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

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

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

4)Try to explore export opportunities.

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

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Conclusion: -

The Objective of the study was to study various departments and sections of the

KRISHNA SAHAKARI SAKKARE KARKHANE NIYAMIT, ATHANI. The company

has number of departments, viz., General Administration, Marketing department,

Purchase department, Finance and Accounts Departments etc. By conducting

the study it is concluded that all these departments are actively working towards

the achievement of the goals and objectives of the company. The management is

also efficient in the work, so the company is achieving great progress year by

year.

The study on Sugar Pricing has helped in knowing, about the factors influencing

sugar pricing and satisfaction levels of customers or Tenderee with

tendering process of the company. It is concluded that the Tenderee were

satisfied with tendering process of the company but there are certain areas in

which the improvement is needed.

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BIBLIOGRAPHY: -

BOOKS REFERRED: -

BUSINESS RESEARCH METHODOLOGY

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

Publications.

MARKETING MANAGEMENT

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

HUMAN RESOURCE AND PERSONNEL MANAGEMENT

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

WEBSITES: -

www.sugarindustry.com

www.sugaronline.com

www.thehindubusinessline.com

www.spc.int