Sugar Industry Project

NIRANI SUGARS LTD.
MUDHOL
EXECUTIVE SUMMARY
KIMS,KUD,DHARWAD. Page 1
NIRANI SUGARS LTD. MUDHOL
India is the largest consumer and second largest producer of sugar in the world. The Indian sugar
industry is the second largest agro-industry located in the rural India. Indian sugar industry has been a
focal point for socio-economic development in the rural areas. The industry not only generates power
for its own requirements but surplus power for export to the grid based on by-product-Bagasses. It also
produces ethyl alcohol, which is used for industrial and potable uses, and can be used to the manufacture
of ethanol, an ecology friendly and renewable fuel for blending with petrol.
The unit was originally established in the year 1997-98 as a modern Khandasari
Sugar unit with a crushing capacity of 500 tones of cane per day and later converted into white crystal
sugar unit. This is one amongst the earliest Khandasari unit in the country, which started with a new
technology like:(a) High pressure boiler (32.0 ATA) (b) Multiple effect pressure evaporator system
with falling –film evaporator and also with captive power generation.
M/s.Nirani Sugar Litd. Now proposes to expand the sugar factory from the present capacity of 7500
TCD to 15000 TCD by adding a new plant of 7500 TCD, retaining the existing plant also. Also 62 MW
Cogen Power Plant is part of the expansion. The project appraisal was done by Mitcon Consultancy
Services Limited, Pune.
The study has been conducted on “Measuring effectiveness of distribution channel of
Nirani sugars limited”, It is a Descriptive Research.
PROJECT TITLE:
“Measuring effectiveness of distribution channel of NIRANI SUGARS LIMITED”
OBJECTIVES:
 To study the distribution channel of Nirani sugars limited,Mudhol.
 “To find out the feasibility of establishing new depots by the company.”
 “To understand factors influencing buying decision”.
 “To find out the packaging method adopted by sugar factories”.
METHODOLOGY:
SELECTION OF DATA COLLECTION METHODS:

 Primary and Secondary Data will be collected to carry out the research work
Research Design
It is a Descriptive Research. The study was based on both Primary and Secondary Data.
Primary data (Survey data):

Questionnaire, face-to-face interview with the wholesaler and retailers of Bagalkot District.
Secondary data
In this study, Secondary Data is used for exploratory research and secondary data
includes data collection from interaction with the company guide and with the officials and with the,
organizations Data, Brochures/newsletters, Reviews and Internet information websites.
MEASUREMENT TECHNIQUE:
 Questionnaire:
Questionnaire is a formalized instrument for asking information directly from the
wholesaler.During this research questionnaire will be used as measurement technique for getting
information from the wholesaler’s and retailer’s of Bagalkot district.
Sampling Plan
Sampling unit : WHOLESALER & RETAILER.
Sampling Method : Convenience Sampling

Sampling Size : 70 Retailers Respondents,20 Wholesaler.
Sample Area : Bagalkot,Kerur, Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti
Analysis: Using MS-Excel, and SPSS software
FINDINGS
 Price is the main factor considered by the most wholesalers and the retailers, while placing
orders.
 S1 is the most selling sugar grade in the local market by the wholesaler and retailers irrespective
of price and quality .
 97% retailers are aware about the different grades of sugar.
 86% of retailers are ready to buy the sugar , if Nirani sugars limited setup new depot in their
respective area.
 85% of retailers are not facing any stock problem, indicating the present distribution channel is
working fine.
Recommendation
 The company itself develop a cost effective eco packaging materials and distributing them
to retailers and wholesalers, this mechanism not only helps Nirani sugars to build its brand
and creates awareness about its brand.
 The Nirani sugar should go ahead with its proposed area to service up to new depots
nearing delivery location as the majority of retailers have shown acceptability towards to
buy sugar from Nirani sugar industry.
 The Nirani sugar should focus expanding its market, even on export market as it is facing
stiff competition in local market.
Conclusion:
Present distribution channel of Nirani sugar’s limited is working well.
INDUSTRY BACKGROUND
THE HISTORICAL BACKGROUND OF THE INDIAN SUGAR INDUSTRY:-
“India is the largest consumer and largest producer of sugar in the world.”
The sugar industry is proud to be an industry, which spreads the taste of sweetness to the mankind.
Sugar is generally made from sugarcane and beet. In India, sugar is produced mainly from sugarcane.
India had introduced sugarcane all over the world and is a leading country in making sugar from
sugarcane.
‘Saint Vishwamitra’ is known as the research person of the sugarcane in religious literature.We can find
the example of sugarcane in Vedic literature also as well as sugarcane.We can also find the reference of
sugar and the sugarcane in Patanjali’s Mahabashya and the treaty on the grammer of ‘Panini’.Greek
traveler ‘Niyarchus’ and Chinese traveler ‘Tai-Sung’ have mentioned in their travelogue that the people
of India used to know the methods of making sugar and juice from sugarcane the great Emperor
Alexander also carried sugarcane with him while returning to his country.
Thus from different historical reference and from some ‘Puranas’ it can be concluded that method of
making sugar from sugarcane was known to the people of Bihar.The historical evidence of sugar
industry prospering in ancient India concrete and this has helped to develop and prosper the co-operative
sugar movement in India.
NATIONAL SCENARIO OF SUGAR INDUSTRY
The first sugar mill in the country was set up in 1903 in the United Provinces. There are 566
installed sugar mills, of which 453 were in operation in the year 2002-03 and utilized 194.4 million
tones of sugarcane (69% of total cane production ) to produced 20.14 million tons of sugar. About 5
lakhs workmen are directly employed in the sugar industry besides many in industries, which utilize by-
products of sugar industry as raw material.
India is the largest consumer and second largest producer of sugar in the world. The
Indian sugar industry is the second largest agro-industry located in the rural India .Indian sugar industry
has been a focal point for social-economic development in the rural areas. About 50 million sugarcane
farmers and a large number of agriculture labors are involved in the sugarcane cultivation and ancillary
activities , constituting 7.5% of the rural population. Besides, the industry provides employment to about
2 million skilled/semi skilled workers and others mostly from the rural areas. The industry not only
generates power for its own requirement but surplus power for export to grid based on by-products –
Bagasses.It also produces ethyl alcohol, which is used for industrial and potable uses, and can be used to
manufacture Ethanol, an ecology friendly and renewable fuel for blending with petrol.
The sugar industry in the country uses only sugarcane as input: hence sugar
companies have been established in the large sugarcane growing states like Uttar Pradesh,
Maharashtra ,Karnataka, Gujarat,Tamilnadu,and Andhra Pradesh.In sugar year 2003-04, these six states
contributed more than 85% of total sugar production in the country: Uttar Pradesh, Maharashtra and
Karnataka together contribute more than 65% of total production. The Govt of India licensed new units
with an initial capacity of 1250 TCD up to the 1980s and with the revision in minimum economic size to
2500 TCD, the Govt de-licensed sugar sector in the year 11.September. 1988. The entrepreneur have
been allowed to set up sugar factories of expand the existing sugar factories as per the techno-economics
feasibility of the project. However, they are required to maintain a radial distance of 15 kms from the
existing sugar factory . After de-licensing, a number of new sugar plants of varying capacities have been
set up and the existing plants have substantially increased their capacity.
There are 566 installed sugar mills in the country as on March 31st 2005, with a production capacity
of 180 lack MTs of sugar, of which only 453 are working. These mills are located in 18 states of the
country.
COMPANY BACKGROUND
HISTORY OF NIRANI SUGARS LTD.
M/s. Nirani Sugars Limited (NSL), a company incorporated on the 6th Dec, 1995 under the
Companies Act, 1956 has applied for Term Loan of Rs. 15.90 crores to Sugar Development Fund(SDF)
for meeting part of the capital cost of its project envisaging modernization & up-gradation of existing
sugar factory with an installed capacity of 1250 TCD to 3750 TCD with substantial investment at Kulali
cross Mudhol Tq. Dist: Bagalkot, Karnataka State, NSL has included in the scope of the project, the co-
generation of surplus power also at a total project cost of about Rs. 97.00 crores. (Sugar unit Rs. 53.00
crores and cogeneration unit Rs. 44.00 crores). Total Cost of the Project, for the Sugar plant expansion
Rs. 5300 Lakhs, (Rs. 42.00 Crores for sugar and 11.00 crores loading from co-generation plant cost)
consisting of an Equity Contribution of Rs. 5.30 Crores Promoters, Rs. 15.90 crores equity from Sugar
development fund of Govt. of India & the balance of Rs. 31.80 crores funded through Term Loans from
the Financial Institutions/Banks.
The funding for the cogeneration plant costing Rs. 4400.00 Lakhs is
envisaged by obtaining Rs. 3080 Lakhs from IREDA, Rs 440.00 Lakhs from promoter’s contribution
and Rs. 880 Lakhs from sugar development fund.
M/s. Nirani Sugars Limited (NSL) is a company registered under
the Indian Companies Act, 1956, initially as Private Limited Company, vide registration certificate
number 08/19340 of 1995 dated 06.12.1995 by the registrar of companies in Karnataka, Bangalore,
Subsequently, the company has been converted into Public Limited Company vide Certificate of
Incorporation dated 15.02.2002 by ROC, Karnataka, Bangalore.
The unit was originally established in the year 1997-98 as a modern Khandasari Sugar unit with a
crushing capacity of 500 tonnes of cane per day and later converted into white crystal sugar unit. This is
one amongst the earliest Khandasari unit in the country, which started with a new technology like:
(a) High pressure boiler (32.0 ATA)
(b) Multiple effect pressure evaporator system with falling –film evaporator and also with
captive power generation.
Subsequently making use of the Government of India’s liberalized policy, vide Govt. of
India notification DCS/S/14/DTD 02-06-1998, which permitted Khandasari sugar units to use vacuum
system, they modernized the unit quickly by adding vacuum pans and vacuum evaporators. The capacity
of the plant was increased in stages to its present capacity of 1250 TCD during 2005-06. Now the plant
has increased to 7500 TCD.(2008-2010). The plant runs fairly efficiently and is self sufficient in fuel
and power. It has recorded an average sugar recovery of over 11 percent during 2008-2009 crushing
season.
M/s. Nirani Sugar Litd. Now proposes to expand the sugar factory from
the present capacity of 7500 TCD to 15000 TCD by adding a new plant of 7500 TCD, retaining the
existing plant also. Also 62 MW Cogen Power Plant is part of the expansion. The project appraisal was
done by Mitcon Consultancy Services Limted, Pune.
Objectives of Nirani Sugars Ltd.:-

1. Maximum, effective and efficient utilization of available resources.
2. To manufacture good quality sugar and bi-products.
3. Welfare of agriculturists
4. To provide comparative market rate to the farmers.
5. Proper co-ordination and co-operation among its members.
6. To maintain proper means of transportation to the farmers during season.
7. Provide modern techniques and methods and of cultivation and to supply seeds, fertilizers to the
farmers.
8. To undertake such other activities as are incidental and conductive to the development of society.
VISION
1. To expand production capacity to 15,000 T.C.D.
2. To produce 62 Megawatt electricity.
3. To produce 120,000 liters of distillery unit..
4. To produce 10,000 ton Bio fertilizers.
5. To establish agricultural development and resource center at Mudhol.
MISSION
1.We will provide products of superior quality at competitive price and ensure sustained profitability and growth.
2.We will protect the interest of all concerned promoters, shareholders, customers, distributors, employees and
community.
3.We believe in fair trade practice, standards and strive for total customer’s satisfaction, keeping the environment
eco friendly.
4.We believe that our people are most valuable assets for personal and organizational growth.
5.We will treat our people with dignity and look after the safety and welfare of individuals and there families.
6.We provide electricity which is major necessity for the country.
7.Sugar industries are providing ethanol which can be added in diesel and diesel is major requirement of the
nation.
COMPANY PROFILE
Name of the company : NIRANI SUGARS LIMITED. MUDHOL
Address : NIRANI SUGARS LIMITED.

No. 166, Kulali Cross,
Jamkhandi Road,
MUDHOL - 587313
DIST: BAGALKOT
Regd. Office : BBMP No.003,

House No. 4/02, left wing,
First floor, Nehru Nagar,
Sheshadripuram,
Bangalore – 560 001
Status of Company : Private limited company.
Constitution of the firm : Registered under companies act 1956
Financial Institutions : K.S.I.D.C

K.S.F.C
Bankers of the Company : I.C.I.C.I Bank Jamakhandi

S.B.I Mudhol Br.
Bank of India, Mudhol.
Punjab National Bank
Products : Sugar (L30, M30, S30)

Molasses, Press Mud, Bagasse.
BOARD OF MANAGEMENT
1. Shri. Hanamanth R. Nirani - Chairman & Managing Director

2. Shri. Sangamesh R. Nirani - Executive Director.
3. Smt. Kamala M. Nirani - Director.
4. Shri R V Vatnal - Director (Tech)
5. Shri. S.V. Kariyannavar - Chief Executive Officer.
6. Shri Sadanand E G - Chief General Manager (Tech)
7. Shri. G G Annigeri - General Manager (Cane)
8. Shri. Bandivadekar - G.M (Distillery)
9. Shri. M.S. Heggalagi - Sr. Manager
10.Shri. M.M . Hiremath - General Manager (Fin&Accts)
ORGANIZATION CHART
Chairman and MD
Executive Director Director (Tech)
Chief Executive Officer
Production Department Purchase Department Sales Department Administrative Department
Account Account Account Account
Engineering Manufacturing Time office Security Account Cane

Department Department Department Department Department
General
Electrical Mechanical Laboratory Cane
Account
Department Department Department Account
I.T
Department
FUNCTIONAL DEPARTMENTS IN N.S.L.

 Production Department
 Purchase Department
 Sales Department
 Mechanical Department
 Chemical Department
 Store Department
 Time Office Department
 Human resources development Department
PRODUCTION DEPARTMENT
Production department is most important part of the factory and it is divided into two departments
namely:
1. Engineering department
2. Manufacturing department
1. Engineering department:
The engineering department maintains all the work connected with plant and
machinery. Engineering department aims at enhancement of feeding capacity of factory. The department
is assisted by workshop.
Workshop:
Spares are fabricated using the lathe machine in the workshop and shaping like square,
cutting, fabricating etc. are done in the workshop. 75% of works of machinery are done in workshop.
This department has the following machines:
1. Lathe machines for around job.

2. Shaping machine of 32Inch for right angle planning
3. Hacksaw machine for cutting
4. Redial drilling machine for drilling hole
5. Grinding machine for tool grinding
2. Manufacturing department:
Manufacturing department is divided into 3 sections namely:
a) Laboratory department
b) Manufacturing department
c) Go-down
a) laboratory department:
Laboratory department plays a significant role in sugar production. The key
activity of laboratory is checking the content of sugar in the sugarcane and fixing the correct shape and
size of sugar. The laboratory prepares hourly reports which advice in the addition of other chemicals in
the production.
Other activities of the laboratory:

1. Determining and maintenance of temperature of boiling juice.
2. Determining the percentage of water content in the dilution of juice.
3. Determining the percentage and content of chemicals to be added during
production.
4. Finding the PH of water through universal indicator.
5. Choice of color and size for sugar.
6. To manage the time and quality.
PURCHASE DEPARTMENT
Purchase success and failure of any company depends on the cost of
materials, the proper buying of materials and procurement of materials at the right time from the right
source is having greater importance in any business. There is a need for separate department for buying
the materials know as Purchasing department.
The purchase section also connected to administrative department. In this section 3 workers are
working including purchase officers. This section is purchase all types of materials for the factory, plant
and machinery.
This department also maintains the quality of raw materials, by taking the sample of cane to
laboratory test then if the raw material will below standard then will be rejected, otherwise the raw
material will be purchased at the particular price.
FUCTIONS OF PURCHASE DEPARTMET

1.Receving purchasing requisition
2.Determing the volume of materials to be ordered
3.Placing orders
4.Inviting tenders and quotation from different suppliers
5.Checking and passing bills for payment.
6.Receving and inspecting materials.
SALES DEPARTMENT
Meaning
It is the department which handles sales process of the company.
Structure :
AGM
Central Excise officer
Salesman Salesman
Godown Keeper Godown Keeper
Loading supervisor Loading supervisor
Sugar House Clerks Sugar House Clerks
Sugar loading Sugar loading

labours labours
Sugar:
This unit is producing two different grades of sugar. They are S-30, M-30
grades. Production department sends weekly the report of sugar balance to “Karnataka Sugar
Federation” by telegram or letter by examining the sugar balance. Karnataka Sugar Federation sends
“released order” to the factory. The release order quantity differs every month. After receiving the
releasing order, the sales department sells the sugar through tender. The release order is the base of the
tender.
Molasses:
Molasses is the mother liquor in the massecuite which is separated from
crystals by mechanical means. The mother liquor is separated before the washing of crystals is termed
by light molasses. These are again classified as A, B, C etc. According to the grade of massecuite from
which they are obtained.
The heavy molasses obtained from the last grade of massecuite is termed as final
molasses or waste molasses.
Recovery is assumed to be 4% on cane crushed and the sale price is assumed to be 600/- per M.T.
Bagasses:
Bagasses is the residue of cane after crushing in one mill or a train of mills bagasse are named
successively as first mill bagasse, second mill bagasses and so on to last mill bagasses or final bagasses
or simply bagasse.
Bagasses produced are used in the generation of electricity and in the boiler house.
Surplus is however sold. The surplus bagasse is estimated at 3% cane crushed. The price assumed at Rs
400/- per M.T.
CANE DEVELOPMENT DEPARTMEANT:-

Objectives :-
1.To get high yield of sugarcane to factory in right time.
2.To improve variety of cane.
3.To develop the backward area.
4.To provide all facilities like seeds,fertilizers,unloading and loading charges.
5.To maintain registration of cane,gang and plantation.
The soil of the area is varying alluvial fertile soil is there on the bank of Krishna and
Ghataprabha river.Futher upwards, there is medium deep black soil,vary fertile well drained light to
medium clay soil, which has recived heavy application if from yard Manu science last 10-12 years also
is presently in some parts.
The main function of cane development department is to arrange for raw material, which is
required to factory. For this the order is recived by priority basis (that is growers who grows cane first in
his lead). They also provide a loading gang with 8 to 10 members per village and also a bonded tractor
for transportation.
Varieties of sugarcane:
At present COC-671, CO-8011 are very popular and the quality of sugarcane on the area where it
is grown. The oyher different qualities of Sugarcanes are: CO-94012, COC-86032, CO-8014 etc.
Here more than 85% of sugarcane of variety COC-671 that is mainly grown in this area. And this
variety is considered as the best and which provides good recovery.
MECHANICAL DEPARTMENT
Meaning
It is a season in which the maintenance of machineries, repairs and over all operation are
rendered by the workers. It is to Manufacture sugar by using machines.
Structure:
Work Manager
Chief Engineer
Asst. Engineer Asst. Engineer Asst. Engineer
Trainee. Engineer Trainee. Engineer Trainee. Engineer
Fitters Fitters Fitters
Mechanics Mechanics Mechanics
Turbine attender
Work shop attender Work shop attender Work shop attender
Turbine attender Turbine attender
CHEMICAL SECTION
Meaning
It means to take chemical tests before producing sugar and manufacturing of sugar from
sugar cane.
Structure
Chemical Department
Lab Incharge
Manufacturing Manufacturing Manufacturing

Chemist Chemist Chemist
Responsibilities:
The responsibility of this department is to test the product of the sugarcane and quality of sugar.
Chemicals used:
1. Sulphor
2. Lime
3. H2O2 (Hydrogen peroxide)
4. Orthophosporic acid
5. Alcohol.
6. Turckey red oil.
Cleaning Chemicals :
1. Caustic soda.
2. Washing soda.
3. Common salt.
STORE SECTION:-
It means storing of the equipment required to the factory for the smooth flow of process.
Structure
Purchase officer
Store officer
Store Accountant
Store Keeper
Asst Store Keeper
Store clerk
SECURITY DEPARTMENT
Security department works under M.D secretariat and office supervision. It is also considered in
administrative department. It works around 3 shifts as under:
1st shift - 8am to 8pm
2nd shift – 8pm to 8am
Organization chart of security department are done on the requirement of the factory as given
below:
Security officer
Supervisor
Head guards Ex- servicemen
Security guards (civilians)
The main works of the department:
1. They are maintaining peace and discipline within the factory premises.
2. To maintain works attention.
3. They check the incoming raw materials as per voucher.
4. The incoming materials are checked and if they are right, they will record inwards then they seal the
bill and leave inside.
5. The out going materials with proper gate pass will be recorded in outwards and they are sent
outwards.
6. If they are returnable they are recorded in books of returns and are returned
7. Check the loaded and unloaded vehicles and collect notes.
8. Submit daily activity report to the managing director.
HUMAN RESOURCE DEPARTMENT
This department plays a very important role in the company as there

are many numbers of workers working in this organization.
It mainly deals with the following:
1 Maintaining attendance records
2 Preparation of salary slips
3. Maintaining personal records
4. Maintaining leave records
Functions:
1. Maintenance of attendance records
2. Preparation of salary slips
3. Maintaining personnel records
There are about 530 employees working in this organization. There is a separate department called
“TIME OFFICE DEPARTMENT” for the maintenance of time in this organization.
Functions of time office department
1) Maintaining working bell.
2) Arranging duty to workers.
3) Distribution of salary according to workers attendance.
4) Sanctioning of leaves to workers.
The factory runs around 3 shifts in the season
First shift 4am to 12pm
Second shift 12pm to 8pm
Third shift 8pm to 4am

One general shift
8am to 5pm for both
seasonal and non-seasonal and for office workers 10.30 to 5.30pm
 Objectives
 Methodology
 Analysis
 Suggestions.
 Recommendation
 Questionnaire
 Bibliography
PROJECT TITLE:
“Measuring effectiveness of distribution channel of NIRANI SUGARS LIMITED”
OBJECTIVES:
 To study the distribution channel of Nirani sugars limited,Mudhol.
 “To find out the feasibility of establishing new depots by the company.”
 “To understand factors influencing buying decision”.
 “To find out the packaging method adopted by sugar factories”.
METHODOLOGY:
SELECTION OF DATA COLLECTION METHODS:

 Primary and Secondary Data will be collected to carry out the research work
Research Design
It is a Descriptive Research. The study was based on both Primary and Secondary Data. The Primary
Data was collected through asking the questions consisting of following categories.
 Open-ended questions.
 Close –ended questions.
Primary data (Survey data):

Information will be collected directly from the wholesalers and retailer’s of the
Bagalkot district for the project work. The survey data collected during the study includes the data
collected through questionnaire, face-to-face interview with the wholesaler and retailers of Bagalkot
District.
Secondary data
In this study, Secondary Data is used for exploratory research and secondary data
includes data collection from interaction with the company guide and with the officials and with the,
organizations Data, Brochures/newsletters, Reviews and Internet information websites.
MEASUREMENT TECHNIQUE:
 Questionnaire:
Questionnaire is a formalized instrument for asking information directly from the wholesaler and
retailer of Bagalkot District namely Kerur,Jamakhandi,Mudhol,Mahalingpur,Kaladgi and
Banahatti During this research questionnaire will be used as measurement technique for getting
information from the wholesaler’s and retailer’s of Bagalkot district.
Select the sample:

Sampling unit: Wholesalers and Retailers of the Bagalkot District
Extended To: Kerur, Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti.
Time: 8 weeks (starting from 4th June to 4th August 2010)
Specify sampling unit:
The sampling units will be the Retailer and Wholesaler of Bagalkot District namely Kerur,
Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti.
Sampling Design
The research was mainly opted on wholesaler and retailer’s survey and company.
The sample selected for Retailer survey was of cluster sample. Sample size of 70
respondents, and the sample selected for wholesaler was 20 respondents.
Sample Character
Respondents who sell sugar in there wholesale and Retail outlet were sources of data
collection.
. Sampling Plan
Sampling unit : WHOLESALER & RETAILER.
Sampling Method : Convenience Sampling
Sampling Size : 70 Retailers Respondents,20 Wholesaler.
Sample Area : Bagalkot,Kerur, Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti
RETAILERS
 Awareness about the grading of sugar.
AWARENESS ABOUT THE GRADING OFSUGAR

3%
YES
NO
97%
Awareness about grading Percentage(%)

Yes 97%
No 3%
 ANALYSIS
The data reveals that 97% of the retailers are aware about the different grades of sugar practiced
by sugar mills and only 3% of retailers are not aware about the different grades of sugar.
 Sales of different grades of sugar from Retailers.
Sales of different
2% grades of suagr
1%
M-30
0% 20%
S1
S2
18% 58% M-30 and S1
M-30 and S2
S1 and S2
1% All three
No of Retailers Sugar grade Percentage(%)

1 M-30 2%
41 S1 58%
1 S2 1%
13 M-30 and S1 18%
0 M-30 and S2 0%
14 S1 and S2 20%
1 All three 1%
Analysis.
From the above graph and table we get that 58% of the retailers will sell S1 grade sugar
only and 18% retailers will sell M-30 and S1 graded sugar,20%of the retailers will sell S1 & S2 graded
sugar, and 2% of retailers will sell M-30 grade sugar and 1% ,1% of retailers will sell only S2 and all
three graded sugar.
Interpretation-
From the above analysis we get that most of the retailers will prefer to sell S1 graded
sugar more than the other two grade sugars.(M-30 and S2).
Factors influencing during purchase of sugar.
Factors No.of retailers % of total

Quality 21 30%
Price 28 40%
Availability 8 11%
Service 13 19%
Total 70 100%
Factors influencing during purchase of sugar
19%
30%
11% quality
40% price
availability
service
Analysis-
♦ From the table we get that out of 70 retailers 28 i,e 40% retailers consider price as main
factor,21 i,e 30% retailers consider quality as main factor,13 i,e 19% retailer consider service as
main factor and 8 i,e 11% retailer consider availability as main factor.
Interpretation-
♦ From graph we can get that most of the retailers who are in business irrespective of number of
years in business will consider price as the main factor ,then they will look for the quality, then
they will look in to the availability and service provided by the wholesaler.
♦ By this we can get that their is sufficient supply of sugar in the market, just retailers look for
good price and good quality of the sugar.
Stock problem
 Responses of Retailers about the stock problem.
Stock problem No of Retailers % of Total

Yes 10 14%
No 60 86%
Total 70 100%
YES
14%
NO
86%
Analysis and Interpretation-

♦From the table we get that out of 70 retailers 60 retailers are not facing any
stock problem, and only 10 people are facing stock problem.
♦It generates a signal that present distribution channel is satisfied one.
Stock problem
 Responses of Retailers about the stock problem.
Stock problem No of Retailers % of Total

Yes 10 14%
No 60 86%
Total 70 100%
YES
14%
NO
86%
Analysis and Interpretation-

♦From the table we get that out of 70 retailers 60 retailers are not facing any
stock problem, and only 10 people are facing stock problem.
♦It generates a signal that present distribution channel is satisfied one.
 Different package styles practiced by the retailers.
Package style(kg) No of retailers % of Total

1 21 30%
2 19 27.1%
5 18 25.7%
More than 5 12 17.1%
Total 70 100%
Analysis and Interpretation:

♦ From table and graph we will get that 30% of the retailers sell their sugar by making 1kg
packs,27% retailers sell their sugar by making 2kg packs most, 26% retailers sell their sugar by
making 5 kg packs most, 17% retailers sell their sugar by making more than 5 kg packs.
♦ 1kg,2kg,5kg packaging style is adopted by the most of the retailers.
 Acceptability of New depots (New distribution channel)
Acceptability of New depots.

yes no
14%
86%
Acceptance No of retailers % of Total

Yes 60 86%
No 10 14%
Total 70 100%
Analysis and interpretation-
♦ The data reveals that 86% of the retailers are ready to buy the sugar from the Nirani
sugars company if it set up new depots in there area
♦ 14% retailers not accepted to buy the sugar from the Nirani sugars limited if it set
up new depots in there area. So its good to set up new depots in there area.
Wholesaler;
Factors influencing the wholesaler during purchase of the sugar from the company.
Factor No of wholesaler % of Total

Quality 5 25%
Price 12 60%
Availability 3 15%
Total 20 100
♦ The data reveals that 60% of the wholesalers will consider price as the prime factor while
purchasing of sugar from the sugar factories.
♦ 25% of the wholesalers look for the quality factor as the major factor, and 15% of the
wholesalers will consider availability as the main factor.
 Profit margin of wholesaler/quintal
Profit margin(Rs) No of wholesalers % of Total

Rs 50 7 35%
Rs 100 13 65%
Total 20 100%

 The data reveals that the 65% wholesaler get profit up to Rs 100 /quintal.
 35% of the wholesalers will get profit up to Rs 50/quintal.
 Sale of sugar to final consumer from wholesalers.
yes
20%
no
80%
Sale to final consumer No of wholesaler % of total

Yes 4 20%
No 16 80%
Total 20 100%

♦ The data reveals that 80% of the wholesalers sell sugar to the final consumers
♦ 20% of the wholesalers don’t sell sugar to the final consumer.
FINDINGS
 Price is the main factor considered by the most wholesalers and the retailers, while placing
orders.
 S1 is the most selling sugar grade in the local market by the wholesaler and retailers irrespective
of price and quality .
 97% retailers are aware about the different grades of sugar.
 86% of retailers are ready to buy the sugar , if Nirani sugars limited setup new depot in their
respective area.
 85% of retailers are not facing any stock problem, indicating the present distribution channel is
working fine.
 Packaging method used by the most of the wholesaler as 100kg,50kg and 25kg.(most as 100 kg)
 Packaging method used by the most of the retailers as 1kg, 2kg and 5kg.
 Package material used by the most of the wholesaler is Gunny bag.
 package material used by the most of the retailer is plastic bags.
Recommendation
 The company itself develop a cost effective eco packaging materials and distributing them
to retailers and wholesalers, this mechanism not only helps Nirani sugars to build its brand
and creates awareness about its brand.
 The Nirani sugar should go ahead with its proposed area to service up to new depots
nearing delivery location as the majority of retailers have shown acceptability towards to
buy sugar from Nirani sugar industry.
 The Nirani sugar should focus expanding its market, even on export market as it is facing
stiff competition in local market.
QUESTIONNAIRE(wholesaler)
NAME: _____________________________________
NAME OF THE SHOP: _________________________
1) Do you sell sugar in your business unit?
Yes no
2) From how many years are you into the business of selling sugar?
a. 0-2 years
b. 2-5 years
c. 5-10 years
d. 10+years
3) From where you will purchase sugar for resale purpose?
_____________________________________________________________________
4) What factors you consider while buying sugar?
a. Quality b. price. c. availability d. service e. others
5) Are you aware of grading of sugar?

Yes No
6) Name of grade of sugar sold by you. ( among these 1) M-30, 2) S1, 3) S2? )
a. only 1 b. only 2 c. only 3 d. 1 and 2
e. 1 and 3 f. 2 and 3 g. all three
7) What is the average sale per day?
_________________________________________________________________________
8) Name the areas from which retailers come in your shop to buy sugar.
_______________________________________________________________________
_______________________________________________________________________
9) What factors retailers look while purchasing sugar from you?

10) At what rate you are selling sugar per quintal?
______________________________________________________________________
11) What is your profit margin per quintal?
______________________________________________________________________
12) How do you pack your sugar?
______________________________________________________________________
13) Name the package material used by you?
______________________________________________________________________
14) How many retailers buy from you?

a. <5 b. 5 to 10 c. 10 to 20 d. 20 to 30 e. >30
15) DO you sell to final consumer?
Yes No
If yes, how?
_____________________________________________________________________________
16) Have you faced any stock problem?

Yes No
a) If yes, give reason.
_____________________________________________________________________
_____________________________________________________________________
QUESTIONNAIRE(Retailer)
NAME: _____________________________________
NAME OF THE SHOP: _________________________
1)Do you sell sugar in your unit?
Yes no
2)From how many years are you into the business of selling sugar?
e. 0-2 years
f. 2-5 years
g. 5-10 years
h. 10+years
3)From where you will purchase sugar for resale purpose?
_____________________________________________________________________
4) If the NIRANI Sugars company setup its own depot in your area do you buy from them?
Yes No
5) What factors you consider while buying sugar?

6) Are you aware of grading of sugar?
Yes No
7) Name of grade of sugar sold by you.(among these 1) M-30, 2) S1, 3) S2?)

a. only 1 b. only 2 c. only 3 d. 1 and 2
e. 1 and 3 f. 2 and 3 g. all three
8) What is the average sales per day?

_________________________________________________________________________
9) What factors customers look while purchasing sugar from you?

10) At what rate you are selling sugar per kg?
______________________________________________________________________
11) What is your profit margin per kg?
______________________________________________________________________
12) How do you pack your sugar?
______________________________________________________________________
13) Name the package material used by you?
______________________________________________________________________
14) Is the sales more in bulk quantity or in small quantity?

Bulk small.
15) What Kg of sugar is purchased by the customers mostly?

1) 1 Kg 2) 2 kg 3) 5Kg 4) 10 kg 5) more than 5 kg
16) Have you faced any stock problem?
Yes No
b) If yes, give reason .
_____________________________________________________________________
_____________________________________________________________________
BIBLIOGRAPHY:
 Reference Books:
o Marketing : Philip Kotler

o Marketing Research : David A.Aaker,V.kumar
 The responses of the respondents are assumed to be true.
 Some of the journals of the company
 Websites:
http://www.goole.com

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NIRANI SUGARS LTD.

SELECTION OF DATA COLLECTION METHODS:

Primary data (Survey data):

Sampling Method : Convenience Sampling

of price and quality .

 97% retailers are aware about the different grades of sugar.

THE HISTORICAL BACKGROUND OF THE INDIAN SUGAR INDUSTRY:-

NATIONAL SCENARIO OF SUGAR INDUSTRY

HISTORY OF NIRANI SUGARS LTD.

Objectives of Nirani Sugars Ltd.:-

6.We provide electricity which is major necessity for the country.

Name of the company : NIRANI SUGARS LIMITED. MUDHOL

Address : NIRANI SUGARS LIMITED.

Regd. Office : BBMP No.003,

Status of Company : Private limited company.

Constitution of the firm : Registered under companies act 1956

Financial Institutions : K.S.I.D.C

Bankers of the Company : I.C.I.C.I Bank Jamakhandi

Products : Sugar (L30, M30, S30)

1. Shri. Hanamanth R. Nirani - Chairman & Managing Director

Executive Director Director (Tech)

Chief Executive Officer

Production Department Purchase Department Sales Department Administrative Department

Account Account Account Account

Engineering Manufacturing Time office Security Account Cane

FUNCTIONAL DEPARTMENTS IN N.S.L.

1. Lathe machines for around job.

Other activities of the laboratory:

FUCTIONS OF PURCHASE DEPARTMET

Central Excise officer

Godown Keeper Godown Keeper

Loading supervisor Loading supervisor

Sugar House Clerks Sugar House Clerks

Sugar loading Sugar loading

CANE DEVELOPMENT DEPARTMEANT:-

Asst. Engineer Asst. Engineer Asst. Engineer

Trainee. Engineer Trainee. Engineer Trainee. Engineer

Fitters Fitters Fitters

Mechanics Mechanics Mechanics

Work shop attender Work shop attender Work shop attender

Turbine attender Turbine attender

Manufacturing Manufacturing Manufacturing

Asst Store Keeper

Head guards Ex- servicemen

Security guards (civilians)

The main works of the department:

HUMAN RESOURCE DEPARTMENT

This department plays a very important role in the company as there

The factory runs around 3 shifts in the season

First shift 4am to 12pm

Second shift 12pm to 8pm

Third shift 8pm to 4am

SELECTION OF DATA COLLECTION METHODS:

Primary data (Survey data):

Select the sample:

Specify sampling unit:

 Awareness about the grading of sugar.

AWARENESS ABOUT THE GRADING OFSUGAR

Awareness about grading Percentage(%)

No of Retailers Sugar grade Percentage(%)

Factors influencing during purchase of sugar.

Factors No.of retailers % of total

Factors influencing during purchase of sugar