INTERNSHIP TRAINING REPORT OF ARIGNAR ANNA SUGAR MILL, KURUNGULAM

Submitted by RAJALAKSHMI.G

Reg. No. 108001107032

in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

in DEPARTMENT OF MANAGEMENT STUDIES

HINDUSTHAN COLLEGE OF ENGINEERING AND TECHNOLOGY COIMBATORE-641 032 JULY-2011

HINDUSTHAN COLLEGE OF ENGINEERING AND TECHNOLOGY, COIMBATORE-641 032

DEPARTMENT OF MANAGEMENT STUDIES
JULY-2011

This is to certify that the

INTERNSHIP TRAINING AT ARIGNAR ANNA SUGAR MILL, KURUNGULAM

is the bonafide training record done by RAJALAKSHMI.G Reg. No. 108001107032
of MBA (Master of Business Administration) during the year 2011-2012.

FACULTY GUIDE

HEAD OF THE DEPARTMENT

Submitted for the report Viva-Voce examination held on ________________________

INTERNAL EXAMINER

EXTERNAL EXAMINER

DECLARATION
I affirm that the internship training at ARIGNAR ANNA SUGAR MILL, KURUNGULAM being submitted in partial fulfillment for the award of degree of MASTER OF BUSINESS ADMINISTRATION is a record of work carried out by me. It is not formed the part of any other record work submitted for award of any degree or diploma, either in this or any other University.

RAJALAKSHMI.G (108001107032)

I certify that the declaration made above by the candidate is true.

Signature of the guide

Dr.S.KAMALASARAVANAN, M.com, MBA, M.Phil, PhD, Assistant Professor Department of Management studies

ACKNOWLEDGMENT
I first and foremost thank to lord god almighty for giving me grace and knowledge to complete this training work successfully. My sincere and hearty thanks to Dr.V.DURAISAMY, ME, Ph.D, principal, Hindusthan college of Engineering and Technology, Coimbatore, for giving me opportunity to do the training. I wish to convey my profuse thanks to Dr.V.SURESH, M.com, MBA., M.Phil, PGDCA, SLST, PGDFM., PhD . Head of the department of MANAGEMENT STUDIES and help throughout the training. I admit my thanks to Dr.S.KAMALASARAVANAN, M.com, MBA, M.Phil, PhD, Assistant professor ,department of Management studies, Hindusthan college of Engineering and technology, Coimbatore, for the continuous guidance to accomplish my training work, and I thank all the other faculty members of the department of management studies for their valuable support in my internship training work. I am deeply indebted to MR.J.RAGHAAN .B.sc (DRO former CE) and Mr.M.V.MARIAPPAN DRO CE(FAC) for giving me the permission and arranged for the needeful help and enabling me to undertake training in their esteemed and reputed organization. Last but not least I submit my thanks to my parents, family members and friends for providing me their support o my work.

RAJALAKSHMI.G

CONTENTS

CHAPTER NO
1

TITLE
INTRODUCTION 1.1 SUGAR INDUSTRY 1.2 ORGANISATION PROFILE

PAGE NO

1 16 24

2 3

ORGANISATION STRUCTURE ROLE OF DEPARTMENTS 3.1 ADMINISTRATION DEPARTMENT 3.2 PURCHASE DEPARTMENT 3.3 CANE DEPARTMENT 3.4 PRODUCTION DEPARTMENT 3.5 PERSONNEL DEPATMENT 3.6 ACCOUNTS DEPARTMENT 3.7 SALES DEPARTMENT 3.8 HUMAN RESOURSE DEPARTMEN 3.9 CHEMISTRY DEPARTMENT

25 26 30 35 46 49 52 53 58 60 64

4 5

PROBLEMS IN SUGAR INDUSTRIES CONCLUSION

CHAPTER 1 1.1 INTRODUCTION ABOUT TAMILNADU SUGAR INDUSTRIES

The history of sugar reflects industrial growth. Most humans appreciate sweet tastes, which has created demand for sweeteners, which in turn has fueled increases in the production of sugar. This has helped make more sugar available at affordable prices (within the constraints of soil fertility, land availability and a supply of biddable labor), leading to the development of more food products containing sugar and the addition of more sugar to existing products, accompanied by a growing average intake of sugar by consumers.

Because of the need for labor-intensive processing to turn sugarcane into end products, much of the history of the sugar industry has had associations with large-scale slavery.

EARLY USE OF SUGARCANE IN INDIA Originally, people chewed sugarcane raw to extract its sweetness. Indians discovered how to crystallize sugar during the Gupta dynasty, around 350 AD. Sugarcane was originally from tropical South Asia and Southeast Asia. Different species likely originated indifferentlocations with S. barberi originating in India and S. edule and S. officinarum coming from New Guinea Indian sailors, consumers of clarified butter and sugar, carried sugar by various trade routes. Traveling Buddhist monks brought sugar crystallization methods to China. During the reign of Harsha (r. 606647) in North India, Indian envoys in Tang China taught sugarcane cultivation methods after Emperor Taizong of Tang (r. 626649) made his interest in sugar known, and China soon established its first sugarcane cultivation in the seventh century. Chinese documents confirm at least two missions to India, initiated in 647 AD, for obtaining technology for sugar-refining. In South Asia, the Middle East and China, sugar became a staple of cooking and desserts.In the year 1792, sugar rose by degrees to an enormous price in Great Britain. The East India Company were called upon to lend their assistance to lowering of the price of sugar. On the 15th of March 1792, his Majesty's Ministers to the British Parliament,presented a report related to production of sugar in British India. Lieutenant J. Paterson, of the Bengal
6

establishment, reported that sugar could be cultivated in India with many superior advantages, and at less expense than in the West Indies. Early refining methods involved grinding or pounding the cane in order to extract the juice, and then boiling down the juice or drying it in the sun to yield sugary solids that looked like gravel. The Sanskrit word for "sugar" (sharkara) also means "gravel" or "sand". Similarly, the Chinese use the term "gravel sugar" for what the West knows as "table sugar" CANE SUGAR IN THE MUSLIM WORLD AND EUROPE The ancient Greeks & Romans knew sugar, but primarily only as an imported medicine, and not as a food. For example Dioscorides in Greek in the 1st century (AD) wrote: "There is a kind of coalesced honey called sugar found in reeds in India and Arabia Felix [Yemen], similar in consistency to salt and brittle enough to be broken between the teeth like salt. It is good dissolved in water for the intestines and stomach, and taken as a drink to help a painful bladder and kidneys." During the medieval "Muslim Agricultural Revolution", Arab entrepreneurs adopted sugar production techniques from India and then refined and transformed them into a large-scale industry. Arabs set up the first sugar mills, refineries, factories and plantations. The Arabs and Berbers spread the cultivation of sugar throughout the Arab Empire and across much of the Old World, including Western Europe after they conquered most of the Iberian Peninsula in the eighth century AD. Ponting traces the spread of the cultivation of sugarcane from its introduction into Mesopotamia, then the Levant and the islands of the eastern Mediterranean, especially Cyprus, by the 10th century. He also notes that it spread along the coast of East Africa to reach Zanzibar. Crusaders brought sugar home with them to Europe after their campaigns in the Holy Land, where they encountered caravans carrying "sweet salt". Early in the 12th century, Venice acquired some villages near Tyre and set up estates to produce sugar for export to Europe, where it supplemented honey as the only other available sweetener. Crusade chronicler William of Tyre, writing in the late 12th century, described sugar as "very necessary for the use and health of mankind".Ponting recounts the trials of the early European sugar entrepreneurs
7

The crucial problem with sugar production was that it was highly labour-intensive in both growing and processing. Because of the huge weight and bulk of the raw cane it was very costly to transport, especially by land, and therefore each estate had to have its own factory. There the cane had to be crushed to extract the juices, which were boiled to concentrate them, in a series of backbreaking and intensive operations lasting many hours. However, once it had been processed and concentrated, the sugar had a very high value for its bulk and could be traded over long distances by ship at a considerable profit. The [European sugar] industry only began on a major scale after the loss of the Levant to a resurgent Islam and the shift of production to Cyprus under a mixture of Crusader aristocrats and Venetian merchants. The local population on Cyprus spent most of their time growing their own food and few would work on the sugar estates. The owners therefore brought in slaves from the Black Sea area (and a few from Africa) to do most of the work. The level of demand and production was low and therefore so was the trade in slaves no more than about a thousand people a year. It was little greater when sugar production began in Sicily. In the Atlantic islands [the Canaries, Madeira, and the Cape Verde Islands], once the initial exploitation of the timber and raw materials was over, it rapidly became clear that sugar production would be the most profitable way of using the new territories. The problem was the heavy labour involved the Europeans refused to work as more than supervisors. The solution was to bring in slaves from Africa. The crucial developments in this trade began in the 1440s.. The 1390s saw the development of a better press, which doubled the juice obtained from the cane. This permitted economic expansion of sugar plantations to Andalusia and to the Algarve. It started in Madeira in 1455, using advisers from Sicily and (largely) Genoese capital for the mills. The accessibility of Madeira attracted Genoese and Flemish traders keen to bypass Venetian monopolies. "By 1480 Antwerp had some seventy ships engaged in the Madeira sugar trade, with the refining and distribution concentrated in Antwerp. The 1480s saw sugar production extended to the Canary Islands. By the 1490s Madeira had overtaken Cyprus as a producer of sugar." African slaves also worked in the sugar plantations of the Kingdom of Castile around Valencia. In the 16th century Rabbi Yosef Karo, the author of the Shulchan Aruch, the code of Jewish law, mentions the use of sugar mixed with the juice of lemons and water by Jews in Cairo, Egypt to make lemonade on Sabbath. (Orech Chayim, Hilchot Shabbat)
8

SUGAR CULTIVATION IN THE NEW WORLD In August 1492, shortly before his historic voyage to the New World, Christopher Columbus stopped at Gomera in the Canary Islands. The purpose of this visit was to pick up wine and water for the trip, intending to stay there for only four days. He became romantically involved with the governor of the island, es:Beatriz de Bobadilla y Ossorio (article in Spanish), and stayed a month. When he finally sailed she gave him cuttings of sugarcane, which became the first to reach the New World. The Portuguese took sugar to Brazil. By 1540, Santa Catalina Island had 800 cane sugar mills and the north coast of Brazil, Demarara, and Surinam had another 2,000. Hispaniola had its first sugar harvest in 1501. Sugar mills had been constructed in Cuba and Jamaica by the 1520s. Approximately 3,000 small mills built before 1550 in the New World created an unprecedented demand for cast iron gears, levers, axles and other implements. Specialist trades in moldmaking and iron casting developed in Europe due to the expansion of sugar production. Sugar mill construction developed technological skills needed for a nascent industrial revolution in the early 17th century. After 1625 the Dutch carried sugarcane from South America to the Caribbean islands, where it was grown from Barbados to the Virgin Islands. Contemporaries often compared the worth of sugar with valuable commodities including musk, pearls, and spices. Prices declined slowly as production became multi-sourced, especially through British colonial policy. Formerly an indulgence of the rich, sugar became increasingly common among the poor. Sugar production increased in mainland North American colonies, in Cuba, and in Brazil. African slaves became the dominant source of plantation workers, as they proved more resistant to the diseases of malaria and yellow fever. (European indentured servants remained in shorter supply, susceptible to disease and overall forming a less economic investment. European diseases such as smallpox had reduced the numbers of local Native Americans). But replacement of Native American with African slaves also occurred because of the high death rates on sugar plantations. The British West Indies imported almost 4 million slaves, but had only 400,000 African Americans left after slavery ended in the British Empire in 1838.

With the European colonization of the Americas, the Caribbean became the world's largest source of sugar. These islands could supply sugarcane using slave labor and produce sugar at prices vastly lower than those of cane sugar imported from the East. Thus the economies of entire islands such as Guadaloupe and Barbados became based on sugar production. By 1750 the French colony known as Saint-Domingue (subsequently the independent country of Haiti) became the largest sugar producer in the world. Jamaica too became a major producer in the 18th century. Sugar plantations fueled a demand for manpower; between 1701 and 1810 ships brought nearly one million slaves to work in Jamaica and in During the eighteenth century, sugar became enormously popular. Britain, for example, consumed five times as much sugar in 1770 as in 1710. By 1750 sugar surpassed grain as "the most valuable commodity in European trade it made up a fifth of all European imports and in the last decades of the century four-fifths of the sugar came from the British and French colonies in the West Indies." The sugar market went through a series of booms. The heightened demand and production of sugar came about to a large extent due to a great change in the eating habits of many Europeans. For example, they began consuming jams, candy, tea, coffee, cocoa, processed foods, and other sweet victuals in much greater numbers. Reacting to this increasing craze, the islands took advantage of the situation and set about producing still more sugar. In fact, they produced up to ninety percent of the sugar that the western Europeans consumed. Some islands proved more successful than others when it came to producing the product. In Barbados and the British Leeward Islands sugar provided 93% and 97% respectively of exports. Planters later began developing ways to boost production even more. For example, they began using more manure when growing their crops. They also developed more advanced mills and began using better types of sugarcane. In the eighteenth century "the French colonies were the most successful, especially Saint-Domingue, where better irrigation, water-power and machinery, together with concentration on newer types of sugar, increased profits." Despite these and other improvements, the price of sugar reached soaring heights, especially during events such as the revolt against the Dutch and the Napoleonic Wars. Sugar remained in high demand, and the islands' planters knew exactly how to take advantage of the situation.

10

As Europeans established sugar plantations on the larger Caribbean islands, prices fell, especially in Britain. By the 18th century all levels of society had become common consumers of the former luxury product. At first most sugar in Britain went into tea, but later confectionery and chocolates became extremely popular. Many Britons (especially children) also ate jams. Suppliers commonly sold sugar in the form of a sugarloaf and consumers required sugar nips, a pliers-like tool, to break off pieces. Sugarcane quickly exhausts the soil in which it grows, and planters pressed larger islands with fresher soil into production in the nineteenth century as demand for sugar in Europe continued to increase: "average consumption in Britain rose from four pounds per head in 1700 to eighteen pounds in 1800, thirty-six pounds by 1850 and over one hundred pounds by the twentieth century." In the 19th century Cuba rose to become the richest land in the Caribbean (with sugar as its dominant crop) because it formed the only major island landmass free of mountainous terrain. Instead, nearly three-quarters of its land formed a rolling plain ideal for planting crops. Cuba also prospered above other islands because Cubans used better methods when harvesting the sugar crops: they adopted modern milling methods such as watermills, enclosed furnaces, steam engines, and vacuum pans. All these technologies increased productivity. Cuba also retained slavery longer than the most of the rest of the Caribbean islands. After the Hatian Revolution established the independent state of Haiti, sugar production in that country declined and Cuba replaced Saint-Domingue as the world's largest producer. Long established in Brazil, sugar production spread to other parts of South America, as well as to newer European colonies in Africa and in the Pacific, where it became especially important in Fiji. Mauritius, Natal and Queensland in Australia started growing sugar. The older and newer sugar production areas now tended to use indentured labour rather than slaves, with workers "shipped across the world ... [and] ... held in conditions of near slavery for up to ten years... In the second half of the nineteenth century over 450,000 indentured labourers went from India to the British West Indies, others went to Natal, Mauritius and Fiji (where they became a majority of the population). In Queensland workers from the Pacific islands were moved in, on Hawaii. They came from China and Japan. The Dutch transferred large numbers of people from Java to Surinam." It is said that the sugar plantations would not have strove without the aid of the
11

African slaves. In Colombia, the planting of sugar started very early on, and entrepreneurs imported many African slaves to cultivate the fields. The industrialization of the Colombian industry started in 1901 with the establishment of Manuelita, the first steam-powered sugar mill in South America, by Latvian Jewish immigrant James Martin Eder. While no longer grown and processed by slaves, sugar from developing countries has an ongoing association with workers earning minimal wages and living in extreme poverty. THE RISE OF BEST SUGAR In 1747 the German chemist Andreas Marggraf identified sucrose in beet root. This discovery remained a mere curiosity for some time, but eventually Marggraf's student Franz Achard built a sugar beet processing factory at Cunern in Silesia (in present-day Konary in Poland), under the patronage of King Frederick William III of Prussia (reigned 17971840). While never profitable, this plant operated from 1801 until it suffered destruction during the Napoleonic Wars (ca. 18021815). Napoleon, cut off from Caribbean imports by a British blockade, and at any rate not wanting to fund British merchants, banned imports of sugar in 1813. The beet sugar industry that emerged in consequence grew, and sugar beet provides approximately 30% of world sugar production. In the developed countries, the sugar industry relies on machinery, with a low requirement for manpower. A large beet refinery producing around 1,500 tonnes of sugar a day needs a permanent workforce of about 150 for 24-hour production. MECHANIZATION Beginning in the late 18th century, the production of sugar became increasingly mechanized. The steam engine first powered a sugar mill in [Jamaica] in 1768, and soon after, steam replaced direct firing as the source of process heat. In 1813 the British chemist Edward Charles Howard invented a method of refining sugar that involved boiling the cane juice not in an open kettle, but in a closed vessel heated by steam and held under partial vacuum. At reduced pressure, water boils at a lower temperature, and this
12

development both saved fuel and reduced the amount of sugar lost through caramelization. Further gains in fuel-efficiency came from the multiple-effect evaporator, designed by the American engineer Norbert Rillieux (perhaps as early as the 1820s, although the first working model dates from 1845). This system consisted of a series of vacuum pans, each held at a lower pressure than the previous one. The vapors from each pan served to heat the next, with minimal heat wasted. Modern industries use multiple-effect evaporators for evaporating water. The process of separating sugar from molasses also received mechanical attention: David Weston first applied the centrifuge to this task in Hawaii in 1852. OTHER SWEETENERS In the United States and Japan, high-fructose corn syrup has replaced sugar in some uses, particularly in soft drinks and processed foods. The process by which high-fructose corn syrup is produced was first developed by Richard O. Marshall and Earl P. Kooi in 1957. The industrial production process was refined by Dr. Y. Takasaki at Agency of Industrial Science and Technology of Ministry of International Trade and Industry of Japan in 19651970. HFCS was rapidly introduced to many processed foods and soft drinks in the U.S. from about 1975 to 1985. A system of sugar tariffs and sugar quotas imposed in 1977 in the United States significantly increased the cost of imported sugar and U.S. producers sought cheaper sources. High-fructose corn syrup, derived from corn, is more economical because the domestic U.S. and Canadian prices of sugar are twice the global price
[24]

and the price of corn is kept low through

government subsidies paid to growers.[25][26] HFCS became an attractive substitute, and is preferred over cane sugar among the vast majority of American food and beverage manufacturers. Soft drink makers such as Coca-Cola and Pepsi use sugar in other nations, but switched to HFCS in the U.S. in 1984.[27] The increase of HFCS usage in processed foods is linked to various health conditions, these include metabolic syndrome, hypertension, de novo lipogenesis, dyslipidemia, hepatic steatosis inflammation, hepatic insulin resistance, obesity, CNS leptin resistance, promoting continuous consumption. For reference on the subject see presentation by Robert H. Lustig, MD,
13

UCSF Professor of Pediatrics in the Division of Endocrinology, which explores the damage caused by sugary foods. He argues that fructose (too much) and fiber (not enough) appear to be cornerstones of the obesity epidemic through their effects on insulin. Series: UCSF Mini Medical School for the Public [7/2009] [Health and Medicine] [Show ID: 16717] The average American consumed approximately 37.8 lb (17.1 kg) of HFCS in 2008, versus 46.7 lb (21.2 kg) of sucrose. The Agro based sugar mills play an important role in the economic growth of rural areas with the sole aim to generate large scale direct employment. Apart from that, a lot of indirect employment to rural population is also provided. Tamil Nadu Sugar industry is responsible for about 10% of the total sugar production in India. Majority of sugar units in Tamil Nadu lies with the cooperative sector, with some private players' also gathering momentum.

PRESENT STATES OF SUGAR

At present, the sugar industry in Tamil Nadu stands in a total mess similar to that of the other rural industries. The sugar industry had faced a boom in the 1980s but the crisis era started from 1990, all after the economic liberalization. With the surge in the procurement price of sugarcane, surplus production and reduction in the open market sugar price, directed the industry and the sugar factories, thereafter to have a glut of stocks.

At present the Tamil Nadu sugar industry com. A prices of 41 Sugar Mills in Tamil Nadu, with 16 of them in the co-operative sector, 3 sugar mills in public sector and 22 Sugar Mills in the private sector. At present, around 38 Sugar Mills are operational, while 3 mills viz. Madurantakam Co-operative Sugar Mill (from 2001-02 season) Madura Sugars (from 2002-03 season) and Arunachalam Sugar Mills (from 2003-04 season) have stopped functioning. Sugar is made from sugarcane, which was arguably discovered thousands of years ago in New Guinea. From there, the route was traced to India and Southeast Asia. It was India which began producing sugar following the process of pressing sugarcane to extract juice and boil it to get crystals.
14

It was in 1950-51 the government of India made serious industrial development plans and set the targets for production and consumption of sugar. It projected the license and installment capacity for the sugar industry in its Five Year Plans.

Sugar production in Tamil Nadu

Area registered Sugarcane crushed Sugar produced (Lakh Hectare) (LMT) 92.80 114.92 231.46 274.49 229.68 166.41 (LMT) 9.20 11.09 21.38 25.39 21.41 16.16

Year

Recovery % 9.92 9.65 9.24 9.25 9.32 9.71

2003-04 1.40 2004-05 2.56 2005-06 2.97 2006-07 3.03 2007-08 2.89 2008-09 2.25

NINE NEW INTEGRATED SUGAR COMPLEXES IN TAMILNADU

Name of Mills Kothari-Sathamangalam Rajshree- Semmedu Sakthi-Modakurichi Dharani- Kalaianallur Empee Sugars-Idaikal Shree Ambika-Manjini Dhanalakshmi Srinivasan-Udumbiyam Bannariamman- Kolunthampattu Madras Cements Vengur Taluk Ariyalur Gingee Erode Sankarapuram Ambasamudram Attur Veppanthattai Thandarampattu Tirukoilur District Ariyalur Villupuram Erode Villupuram Tirunelveli Salem Perambalur Tiruvannamalai Villupuram

15

SETTING UP NEW INTEGARTED SUGAR COMPLEXES IN TAMILNADU

The Sugar industry in Tamil Nadu have come out as a tool for economic translation and the Government had therefore decided set up nine new sugar mills in the state. The new mills have been set up following the guidelines and they will function as integrated Sugar complexes. Till now, three projects viz. Sakthi Sugar Mills, Erode, Kothari Sugar Mills, Ariyalur and Rajshree Sugars and Chemicals Ltd., Gingee have been accomplished and commissioned and it is estimated that the rest of the mills will start their crushing operations during the 2009-10 season. The State Government delimitated the Cane areas for establishment of nine new integrated Sugar complexes with different options of co-generation, distillery and ethanol production, tissue culture lab, soil testing lab and bio-composting.

MANUFACTURING PROCESS FOLLOWED IN SUGAR INDUSTRY

Several steps are usually followed to produce sugar. These steps can be mentioned as below:

Extracting juice by pressing sugarcane Boiling the juice to obtain crystals Creating raw sugar by spinning crystals in extractors Taking raw sugar to a refinery for the process of filtering and washing to discard remaining non-sugar elements and hue

Crystallizing and drying sugar Packaging the ready sugar

MACHINERY SUPPLIERS FOR SUGAR INDUSTRYIN INDIA:

Some of the suppliers that offer cutting-edge machines to the companies involved in sugar industry of India are:

Sakthi Sugars Ltd Sri Sujay Engineering Products Sri Vijayalakshmi Industries Murthy Industries Parveen Perforaters & Allied Industries
16

Aeromen Engg Co Kamla Foundry & Workshop Tinytech Plants Baba Vishwakarma Engineering Co. (P) Limited

TYPES OF SUGAR
White Sugar There are many different types of granulated sugar. Some of these are used only by the food industry and professional bakers and are not available in the supermarket. The types of granulated sugars differ in crystal size. Each crystal size provides unique functional characteristics that make the sugar appropriate for a specific foods special need. Bakers Special Sugar The crystal size of Bakers Special is even finer than that of fruit sugar. As its name suggests, it was developed specially for the baking industry. Bakers Special is used for sugaring doughnuts and cookies, as well as in some commercial cake recipes to create a fine crumb texture. Castor/caster sugar Spelled both "caster" and "castor." The spelling castor sugar used to be the prevailing one, but caster sugar seems to be more usual now, perhaps because it is used by some sugar manufacturers on their packaging. See superfine sugar. UK castor/caster sugar is very finely granulated sugar (finer than U.S. granulated sugar) which allows it to dissolve almost instantly. In the United States, superfine sugar or the new Baker's sugar may be substituted. It is called "berry sugar" in British Columbia. Confectioners or powdered sugar In Britain it is called icing sugar and in France sucre glace. This sugar is granulated sugar ground to a smooth powder and then sifted. It contains about 3% cornstarch to prevent caking. Powdered sugar is ground into three different degrees of fineness. The confectioners sugar available in supermarkets 10X is the finest of the three and is used in icings,

17

confections and whipping cream. The other two types of powdered sugar are used by industrial bakers. Coarse sugar Also known as pearl or decorating sugar. As its name implies, the crystal size of coarse sugar is larger than that of regular sugar. Coarse sugar is recovered when molasses-rich, sugar syrups high in sucrose are allowed to crystallize. The large crystal size of coarse sugar makes it highly resistant to color change or inversion (natural breakdown to fructose and glucose) at cooking and baking temperatures. These characteristics are important in making fondants, confections and liquors. Date sugar Date sugar is more a food than a sweetener. It is ground up from dehydrated dates, is high in fiber. Its use is limited by price and the fact it does not dissolve when added to liquids. Fruit Sugar Fruit sugar is slightly finer than regular sugar and is used in dry mixes such as gelatin and pudding desserts, and powdered drinks. Fruit sugar has a more uniform small crystal size than regular sugar. The uniformity of crystal size prevents separation or settling of larger crystals to the bottom of the box, an important quality in dry mixes. Granulated sugar Also called table sugar or white sugar. This is the sugar most known to consumers, is the sugar found in every homes sugar bowl, and most commonly used in home food preparation. It is the most common form of sugar and the type most frequently called for in recipes. Its main distinguishing characteristics are a paper-white color and fine crystals. Sugar cubes They are made from moist granulated sugar that is pressed into molds and then dried. Raw sugar It is essentially the product at the point before the molasses is removed (whats left after sugarcane has been processed and refined). Popular types of raw sugar include demerara sugar
18

from Guyana and Barbados sugar, a moist, fine textured sugar. Turbinado sugar is raw sugar that has been steam cleaned to remove contaminates., leaving a llight molasses flavored, tan colored sugar. Sanding sugar Also known as coarse sugar. A large crystal sugar that is used mainly in the baking and confectionery industries as a sprinkle on top of baked goods. The large crystals reflect light and give the product a sparkling appearance. Superfine, ultra fine, or bar sugar This sugars crystal size is the finest of all the types of granulated white sugar. It is ideal for delicately textured cakes and meringues, as well as for sweetening fruits and iced-drinks since it dissolves easily. In England, a sugar very similar to superfine sugar is known as caster or castor sugar, named after the type of shaker in which it is often packaged. Brown Sugar Brown sugar (light and dark) Brown sugar retains some of the surface molasses syrup, which imparts a characteristic pleasurable flavor. Dark brown sugar has a deeper color and stronger molasses flavor than light brown sugar. Lighter types are generally used in baking and making butterscotch, condiments and glazes. The rich, full flavor of dark brown sugar makes it good for gingerbread, mincemeat, baked beans, and other full flavored foods. Demerara sugar Popular in England, Demerara sugar is a light brown sugar with large golden crystals, which are slightly sticky from the adhering molasses. It is often used in tea, coffee, or on top of hot cereals. Muscovado or Barbados sugar Muscovado sugar, a British specialty brown sugar, is very dark brown and has a particularly strong molasses flavor. The crystals are slightly coarser and stickier in texture than regular brown sugar.
19

Free-flowing brown sugars These sugars are specialty products produced by a co-crystallization process. The process yields fine, powder-like brown sugar that is less moist than regular brown sugar. Since it is less moist, it does not clump and is free-flowing like white sugar. Turbinado sugar This sugar is raw sugar which has been partially processed, where only the surface molasses has been washed off. It has a blond color and mild brown sugar flavor, and is often used in tea and other beverages. Liquid sugars There are several types of liquid sugar. Liquid sugar (sucrose) is white granulated sugar that has been dissolved in water before it is used. Liquid sugar is ideal for products whose recipes first require sugar to be dissolved. Amber liquid sugar is darker in color and can be used in foods where brown color is desired. Invert sugar Sucrose can be split into its two component sugars (glucose and fructose). This process is called inversion, and the product is called invert sugar. Commercial invert sugar is a liquid product that contains equal amounts of glucose and fructose. Because fructose is sweeter than either glucose or sucrose, invert sugar is sweeter than white sugar. Commercial liquid invert sugars are prepared as different mixtures of sucrose and invert sugar. For example total invert sugar is half glucose and half fructose, while 50% invert sugar (half of the sucrose has been inverted) is one-half sucrose, one-quarter glucose and one-quarter fructose. Invert sugar is used mainly by food manufacturers to retard the crystallization of sugar and to retain moisture in the packaged food. Which particular invert sugar is used is determined by which function retarding crystallization or retaining moisture is required.

20

1.2 ORGANISATION PROFILE

The Tamilnadu sugar corporation limited, Chennai, is a registered company under the provision of company Act, 1956. The Arignar Anna sugar mills is one of the units of Tamilnadu sugar corporation limited .The Arignar Anna sugar mills is situated in Kurungulam melpathy village ,Thanjavur Taluk , about 16 kms away from Thanjavur on the Thanjavur-pudukkottai highways. The total area of land, in which the mill is situated, 155.48 Acres.

Crushing operations will be going on for about 6-7 months in between November-May. During June-November the work of overhauling of machineries will be undertaken. The factory had its maiden crushing during 1976-77 crushing season with an installed capacity 1250 Metric Tonnes of cane per day. The crushing capacity of the mills was expanded during 1989-90 from 1250 Metric Tonnes to2500 Metric Tonnes and crushing at the expanded capacity was started on 2.1.1990 under expansion and modernization scheme.

STATISTICAL

INFORMATION

ABOUT

THE

CANE

AREA

SUGARCANE

PRODUCTION PRODUCTION AND SUGAR RECOVERY The area demarcated by the commissioner of sugar and cane commissioner for registering and drawing cane for mills crushing is as follows.

NAME OF DISTRICT

NAME OF TALUK

NAME OF FIRKA

Thanjavur(P)

Thanjavur(F)

Thanjavur(F) Budalur (F) Sengipatti(F) Vallam(F) Nanjikottai(F) Kallaperambur(F)

Thiruvaiyaru(F)

Agarapettai(F) Thirukkattupalli(F)
21

Naducauvery(F) Kandiyur(F) Thiruvaiyaru(F)

Papanasam(P)

Ayyampettai(F) Saliamangalam(P) Melattur(F)

Orathanamu(P)

Kavalipatti(F) Silattur(F) Thodarampattu(F) T.M.kottai(F) Thekkur(F) Echankottai(F) Orathanadu(F) Ulur(F)

Pudukottai(P)

Pudukottai(P)

Varappur(F)

Alangudi(P)

Karambakudi(F)

Gandarvakottai(F)

G.V.Kottai(F) Pudunagar(F) Kallakkottai(F)

(F) Denotes: Full area

(P) Denotes: Part area

CANE DIVISION Cane department is functioning with NINE division at present. They are situated in TWO districts viz., Thanjavur and Pudukottai. Each division is managed by one Cane officer . Under them 45 Field staff are working(39 cane assistants and 6 Cane development Assistants)
22

Name of the divisions with number of sections

02 Millsite 03 Vallam 04 Thanjavur 05 Thiruvaiyaru 06 Ayyapettai 07 Orathanadu 08 Marungulam 09 Gandarvakottai 10Adankottai TOTAL:

7 sections 4 sections 4 sections 3 sections 4 sections 5 sections 8 sections 7 sections 3 sections 45 sections

DIVISIONAL OFFICERS & FERTILISER GODOWNS FUNCTIONING IN OWN BUILDINGS Out of 9 divisions, 3 divisions ,viz., Millsite, Thiruvaiyaru and Ayyampettai are running in own buildings. Rest is running in rented buildings.

FERTILISER GODOWNS We are having fertilizer godowns, one in each division except Marungulam where we are having two godowns to supply fertilizer and pesticides to the registered growers. The cost of fertilizers and pesticides so issued is recovered from their crop loan amount through nationalized/co-op. bank.

BIO-LAB A bio-lab is being run to the needs of the ryots.In the labwe are producing parasite cards which are distributed to the growers for controlling the internode borers and the cost of the card is recovered From the growers from their cane proceeds . We are also producing G.virus to control early shoot borer attack in cane.
23

CAPTIVE FARM We are having an extent of 11.40 acres on the whole as captive farm. Due to water scarcity and non-availability of sufficient bores to supply water to the cane farm, we have raised cane in an extent of 6.00 acres . Out of 6.00 acres of cane raised, cane out of 2.00 acres is utilized for nursery purpose and cane out of 4.00 acres is supplied for mills crushing. For carrying out cane farm activities ,we have on roll 32 farm NMRs .Since the cane farm activities are less now ,the farm NMRs are deployed in various sections in the factory besides bio-lab.

TOTAL AREA BROUGHT UNDER SUGERCANE CULTIVATION The total area brought under sugarcane cultivation in the operational area of the mills is 12,160 acres.

PRODUCTION OF SUGARCANE IN THE LAST 3 YEARS Season 2003-2004 2004-2005 2005-2006 2006-2007(for crushing season) Area(areas in acres) 10690 11328 17131 2007-2008 12160 Cane crushed (in M.Ts.) 3,23,019 2,91,319 6,32,146 5,00,000(estimation)

SUGAR RECOVERY PERCENTAGE Season 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008(projection) Average recovery % 10.21 10.32 9.42 9.19 9.50 Peak recovery % 10.28 10.55 9.74 9.19 9.57(up to feb.08)

24

CANE CRUSHING AND SUGAR PRODUCTION FOR 2006-07(actual) & 200708(estimation) SEASONS S.NO DETAILS SEASON 2006-07 SEASON 08(estimated) 1 2 3 Regd. Area(in acres) Cane crushed(M.Ts) Sugar bagged(qty. in qtls.) 17131 6,35,059.491 5,83,490 12,160 5,00,000 4,75,000 2007-

CANE REGISTRATION FOR 20008-09 CRUSHING SEASON The cane registration for the 2008-09 crushing season (as on 29/02/2008) is furnished as follows: (areas in acres) Plant Ratoon Total Seasons target: 5400 5350 10750 TARGET (UPTO 29-02-2008) PLANT 3890 RATOON 3350 TOTAL 7240 ACHIEVEMENT(UPTO 29-02-2008) PLANT 4667 RATOON 3066 TOTAL 7733

% of achievements 106.82%

STAISTICAL INFORMATION ABOUT THE PRODUCTION PRODUCTS AND SALES

OF SUGAR BY-

(1)SUGAR PRODUCTION ,SALES & REALISATION (ACCOUNTING YEAR BASIS) Accounting year Production Sales levy & free Cost realization(Rs. In lakhs.) 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008(upto 29.2.2008) 3,74,875 3,57,835 3,20,466 4,92,825 4,51,808 3,09,505 4,13,782 3,70,601 4,96,146 3,19,982 3754.73 6131.73 6009.59 7850.49 4020.45

25

(2)MOLASSES PRODUCTION ,SALES & REALISATION(ACCOUNTING YEAR BASIS) Accounting year Production Sales (in Metric Tons) Cost realization(Rs. In lakhs.) 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008(upto 29.2.2008) 15238.540 13015.090 12943.180 22166.606 20967.684 24480.365 10274.545 14071.825 17285.675 21278.455 188.66 136.60 208.06 104.96 71.28

(3)BAGASSE PRODUCTION, SALES & COST REALISATION (ACCOUNTING YEAR BASIS) Accounting year Production Own Sales (in Metric Cost realization(Rs. In lakhs.) 11205.570 12023.795 10783.350 17731.645 24836.361 84.04 90.02 80.88 92.84 130.06

consumption for Tons) boilers 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008(upto 29.2.2008) 100589.357 95276.554 92387.099 148426.372 150825.294 89127.292 93624.099 81220.924 130661.312 125467.694

(4)PRESSMUD Year(season basis) 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008(upto 29.2.2008) Production (in metric tons) 10.489.151 9484.439 14329.954 20190.051 7249.000

Pressmud is given to the sugarcane ryots at free of cost since 2004-05 crushing season.
26

SUGAR GODOWN AT MILLS-CAPACITY AND STOCKS HELD Godown wise stock position is as follows: (as on 29.02.2008) SEASON :2007-2008 Godown details A Godown B Godown C Godown Outside Godown Total 2,50,000(*) Capacity of Godowns 1,00,000 50,000 1,00,000 Qty. stored(Qty. in Qtls.) 83,986 64,530 1,48,160 14,140 3,10,816

(*) We have arranged T.N.W.H.C Godown at Nanjikkottai for the storage of about 1,20,000 Qtls., for the current season taking into account the storage facility available at Mills.We have produced bank guarantee for exercise duty for 1,20,000 Qualities.Construction of a new sugar godown, having a capacity to store around 50,000 qualities. WORK PROGRESS PRESENT STAGE 60% flooring work completed . Due to heavy rain during 2008, further progress was held up. Trusses and purlins fabrication work completed and the erection work will be taken up shortly.

PERFORMANCE

OF

THE

ENGINEERING

AND

MANUFACTURING

DEPARTMENTS-(IN THE LAST TWO CRUSHING SEASON) DETAILS CANE CRUSHED(in MTS) SUGAR Qtls) RECOVERY % TOTAL LOSSES CAPACITY UTILISATION % 9.42% 1.79% >109.68 9.19% 1,.83 >147 PRODUCTION 2005-2006 4,71,645.503 (in 4,44,600 2006-2007 6,35,059.491 5,83,490

27

NATIONAL AWARDS The mill has received the following National Awards for high technical performance. Productivity Award(2nd prize) Productivity Award(1st prize) Higher standard of technical efficiency(2nd prize) Prize and commendation certificate for higher standards of technical efficiency State level safety award (3rd prize) for Group B industries SVP memorial award for best sugar factory performance award

1985-86 1986-87 1987-88 1988-89 2001-02 2003-04

ISO 9001-2000 CERTIFIED INSTITUTION Mills has been assessed and awarded ISO 9001:2000 Certification for Quality Management system. The scope of certification is Procurement of Sugarcane and Manufacturing of White Crystal Sugar. The date of certification is 01.04.2005 which gets validity upto 31.08.2008 .Therefore mills was again assessed on 1.3.2008 and 8.3.2008 in person by the Lead Auditors of M/s.National Quality Assurance India operations, Bangalore for recertification and the same has been recommended by M/s.NQA for United Kingdom. The recertification shall reach us within a months time.

28

CHAPTER-2 ORGANISATION STRUCTURE

CHIEF EXECUTIVE

SENIOR CHIEF CANE CHIEF ENGINEER MANAGER OFFICER

CHIEFCHEMIST

CHIEF A/C

ADMINISTRATIVE OFFICER

LABOUR WELFARE OFFICER

MEDICAL OFFICER

29

3.1 ADMINSTRATION DEPARTMENT

The Administration of the unit mills is under the control of Tamilnadu Sugar Corporation limited. The rules framed by the Board of Tamilnadu Sugar Corporation limited are adopted in the mills. The district revenue officer who is known as Chief Executive is the overall authority for the mill and some of the officers who are the head of the departments specialized in the respective departments are working under the control of the Chief Executive. At present they are having 439 employees. In-order to fill up the vacancies by giving internal promotions. They have to get relaxation for 40 workers of the mills.

ADMINISTRATIVE OFFICER

ARBITRATION ASSISTANT/STENO IN-TENDENT ASSISTANT(DESPATCH) STENOGRAPHER TYPIST TELEPHONE OPERATOR GENERAL ATTENDOR DRIVERS CLEANER COOK PEON

SALESWING SALES SUPER IN-DENTANT

PURCHASEWING PURCHASE SUPER

SALES ASSISTANT

ASSISTANT

SUGAR GODOWN GODOWN KEEPER ASSISTANT GODOWN KEEPER GODOWN CLERK KAHALARIS

30

3.2PURCHASE DEPARTMENT
Purchase is an important function of every industry. This department is responsible for the purchase of raw-material i.e. cane. The purchase of sugar depends upon the production target fixing by organization management.

1.INDENTING Responsibility head of the department For any purchase to be done both under capital and revenue the department concerned should identify the item to be purchased before land prepare details specification . the HOD should ensure that no major deviation should be done from the existing design. The standard specification prepared by the mill should also be consulted. The intent comprising of purchase request with details specification should be handed over to stores for further actions, a tentative time schedule as at annexure should be prepared. While identify no brand or manufactures should be indicated.

Purchase for a financial year would fail in two broad categories. Items for which prior planning has been done. [i.e.] approved R& M capital firm. Emergency purchases Items under [a] the purchase have to be planned in such a manner that all items are available at the onset of the off-season. Hence a backward estimation of time should be done to ensure orders are placed for timely supplies. Items under [b] all purchases procedures should be followed with short end assigned duration. In case of every item to be purchased , the concerned department should specify whether a techno commercial bid is also to be obtained. If techno commercial bid is not being asked for HOD should assign specific reason for not doing so in writing. . 2. AVALIABILITY REPORT Responsible store in-charge/A/C Asst Store in-charge will be responsible for verifying available stocks and confirm that

31

the some item is not available in the stores. He shall also incorporate the five years average consumption of the item. The last purchase value and date should be provided.

The store in-charge will be totally responsible for the availability statement. He should also do and annual exercise of finding five years moving average for items in his store. So that information is available readily, this will help assess the actual requirement for the reason. For the average value of the materials, the stores can give data available with the accounts assistant who is looking after the inventory valuation.

3. BUDGET CONFIRMATIONS Responsible chief accountant Budget should be divided section wise and head-wise and an approval has to be taken for the budget before the start of the financial year from the commissioner of sugar. It is to be noted that budget allowed by COS is a consumption budget and not purchase budget.

Any expenditure over and above the approved budget should not be incurred till an order from the COS has been received.The chief accountants will be responsible to specify available budget provision on same format which contains indent on which the store has issued its certificate as mentioned. But actual variation statement should be prepared on a monthly basis.

The mill should keep for a reserve of 20% of total R&M budget. This reserve should be utilized only in Feb-Mar on R & M as per requirement after approval from COS . incase no budget provision is available ,a permission has to be taken from the COS before proceeding further.

In case of oral permission, the fact has to be recorded by the chief executives in writing and further process can be carried out. Written confirmation should be obtained within 15 days from commissioner of sugar and recorded.

32

4. APPROVAL OF INDENT Responsibility chief executives The format with the process with the process completed till now should be put up to the chief executives for approval. The chief executives should approval the same within 48 hrs time. He should also ensure that a duly filled time schedule as at annexure has been included by the concerned department.

5. TENDERING PROCEDURE Responsibility chief executives/ OM The purchase department department on receipts of the above document in complete shape should prepare the document. If technical bid as started in 1.5 is involved, two part tenter document should be prepared.

VENDORS LIST The mill should follow the vendors list approved by the COS. Some categories in the vendors list have very few vendors, except manufactures authority dealer no unapproved vendor should be approached. In case of hardware and other materials for which the registration , in vendors list published by TASCO ltd is not available. The mill should maintain a list of local suppliers vendors from the list should be selected on rotation basis, the purchase committee should confirm that the party is should confirm that the paty is a manufacturer or authority dealer bearings should be purchased only from the manufacturers.

6.FINANCIAL LIMITS Responsibility OM / purchase department The purchase committee of the sugar mill is empowered to take action for purchase up to a maximum of Rs.500 lakhs. Any purchase above this is to be decided only by the head office.

The following limits are prescribed for quotations/ tenders. a) The mill should address ten suppliers, asking for quotation in case the purchase is below Rs2000 lakhs. At least three quotations should be received or else, process should be repeated.
33

b) Tender procedure has to be adopted for all purchases above Rs.2 lakhs ,for purchase between Rs.2 to Rs.5 lakhs limited tender system should be adopted. For purchase above Rs.5 lakhs , tender notice should be published in two dailies. One daily in English of wide circulation and another in Tamil. In order to reduce the cost of publishing, mill should club all the purchasesfallin in this category and go for tender. c) Only in case of proprietary items, single quotation can be taken the fact a particular item is a proprietary item should be certified by the purchase committee. This certification will beopen to scrutiny by head office during inspections in respect of material( stores & spares) exclusively manufactured & supplied by the manufactures, quotation may be obtained directly from them and order could be finalized.

No splitting of the value of purchase should be done under any circumstances. After confirming to all the conditions specified above enquires should be floated along with all enquires or tender documents the mill should provideself addressed envelopes which will have the enquire number and due date written before hand. In case of a two part tender, two envelopes with relevant information on the cover should be given to the bidden.

7.RECEIVING OF BIDS Responsibility chief executive /OM A period of 14 days should be specified for submission of bids.Bids for local enquire and also those received by post should be placed in a specified box under loch available a a conspicuous place. The location of the box can be decided by the chief executive without giving room for any complains.

8. OPENING OF BIDS The opening of bids is to be done in the presence of the members of purchase committee. The date of opening of the bids should be the last date fixed for receiving the bids and all bidders should be informed to participate it they are willing in case on the last day all committees embers are not present , the next day should be the opening day, the membrane of the purchase committee will be.
34

3.3 CANE DEPARTMENT

Chief cane officers are head of the department. He is playing a vital role for

proper, registration of cane and proper supply of sugar cane as required and supplying high yield varieties cultivated areas of milk after consultation with sugar breeding institute, Coimbatore.

CRASHING SESSION There are 7,390 acres are in registration cane programmed to crash in this session is 2,60,000 metric tones as on 20.5.2007. 77,667 metric tones have crashed in 2,056

acres.Crushing capacity of the mill per day is 1250-2500 metric tone. At present crushing around 2500 metric ton per day. cane transportation through Lorries and tyre cards.

VARIETY OF SUGAR High sugar variety Medium sugar variety Low sugar variety There are four cane section

SECTION 1: In this section they deal with the cane section establishment. The details regarding cane registration are accumulated from divisional office and send to commissioner of sugar.

SECTION 2: LOAN FACILITY: They arrange loan facility for members, especially for cane growing members. Provide manure for agriculturists. They buy manure in bulk quality and then distribute them. They use by-product from the production as manure. To overcome water scarcity by providing trip irrigation facility to cane growing members.
35

 Providing subsidy to members.

SECTION 3: It deals with arbitration , whether they get regular supply of sugarcane from members. If members are not supplying cane at right time, they need to par fine based on yield per acre. If they not pay fine , then employees send notice to the concern members and at an extreme situation enquiry will be kept by co-operative sub-registrar.

SECTION 4: Main work regarding registration ,cutting order and supply of sugarcane. Details regarding the registration and supply are computerized. Registration form contains Cane grower name Village(area) No. of acres(members) Cane variety Distance between mill and cane production area Date of plantation Date of retooning

MILL SITE DIVISIONAL OFFICE

Divisional office is eight in number. One of the divisional offices was in sugar mill office. Normally there will be following employees in each of the divisional office. Cane office-appointment under government cadre Assistant Cane assistant

Based on the research and development activities All India council of institute research (ACIR)
36

Sugarcane breeding institute, Coimbatore Sugarcane research institute, Tamil nadu Kadalur Gudiyatham Cirugumani

Daily production of sugar send in fax to director of sugar (DMr, madras) Books that is maintained by divisional offices Weekly plantation report Weekly registration Agreement registration Field plant registration Movement register Tour dairy

CANE WEIGHTAGE Sugarcane, which is received from fields by cards, Lorries and tractors are weighed in the weighbridge.The weighbridge work loan and also saves time. The weightment slip or cards for clearing the cane bills. The loader lorries are emptied by cane unloaded into cane carrier by mechanical grab cranes carts are usually unloaded by direct tilting. Employees in cane weighment are Weigh bridge assistand Messenger Marshaling yard-token boy Entrance assistant- token clerk Weight mill clerk Transport division assistant

37

WEIGHT BRIDGE The capacity of weight bridge are 30 tones for Lorry and 20 tones for Bullock carts. It has interface connectivity, so the weight is measured . Then sugarcane is taken inside the factory using crane and used for processing.

The chart given below shows the functions of the Cane Department in the Sugar Mills: Activity 1.Cane registration 2.Supply of inputs 3.Cane Cutting order 4.Distribution of Sugar to the Cane Growers(per T-1/2 kg.) 5.Cane payment -do -doCane officer Cane Officer 7days Based on Planting date and priority list As per requirement of growers Place to contact Divisional Office Person to contact Cane Assistant/Cane Officer Time required 10 days

-do-

Cane officer

-do-

Accounts Department/Accounts officer Mill Site)

14 days

38

CHIEF CANE OFFICER CANE DEVELOPMANT OFFICER CANE OFFICER CANE DEVELOPMENT ASSISTANT CANE ASSISTANT CANE SECTION CLERK GRADE-1 CANE SECTION CLERK GRADE-2 DIVISIONAL OFFICER CLERK DIVISIONAL OFFICE PEONS NIGHT WATCHMEN PEONS CANE YARD SUPERVISORS WEIGHT BRIDGE CLERK CANE COOOLISE

39

3.4 PRODUCTION DEPARTMENT

PROCESS DESCRIPTION The cane brought to the factory is at first weighted in the electronic weight bridge.It is then unloaded by means of a crane and fed to the cane carrier. The cane first passes through a cane kicker, which will limit the cane entering into the cane cutter. Cane cutter cuts the canes into pieces are then conveyed to a fiberisser, where the cane is turn into fibers. Then this cane is conveyed to the milling section.

The prepared cane is taken to the milling section where the cane is crushed .There are five numbers of mills run by steam turbines. The juice obtained is pumped to the juice heating section. The bagasse from the mills is taken away by bagasse carriers.The bagasse is used as fuel for the boilers. The excess bagasse is taken away by means of return bagasse conveyor and stored. The bagasse at sometimes is sold to the paper industry. The boilers supply the necessary steam for the plant.

The juice from the milling section is collected and is also weighted from the collections tank the juice is pumped into the primary juice heater in which the temperature is raised to 70 C. It is then sent to the sulphiter tank in which sulphur oxide gas and milk of lime are added in order to decolorize and increase the pH of the juice.After the sulphiter tank juice comes to the secondary juice heater where its temperature is raised to 100*C .It is then sent to the clarifier where the sludge and clear juice are separated out. The sludge collected is called as muds is extracted and send back to the collection tank.

The clear juice from the clarifier is pumped to the evaporator section. The evaporator is quadruple type and hence the vapour from the previous effect is used to heat the subsequent effects. The concentrated syrup from the evaporator is taken to the pan section.The pans are calendria type evaporators. It is in the pans where the final product obtained is a massecuite. It is then sent crystallizer where crystal growth occurs. Then it is taken to the centrifugal section where the molasses and sugar crystals are separated. The numbers of pans available are three the molasses from the last pan is taken as output.
40

The three by-products obtained from sugar industry are mud, bagasse and molasses. The separated sugar crystals are taken to packing sections 250 tons of sugar crystals are produced per day. PROCESS FLOWCHART
Fibrizor steam Milling section dasrafsdgfsdgssss section Juice Primary juice heater(70 c) Turbine eT Ash

Baggasse

Boiler Clear juice(100 C) Evaporator

Lime solution So2

Sulphiter tank

Syrup Secondary juice heater(100 C) Pans Clarifier Mud Vaccum Filter A Masssecuite crvstalliser centrifuge Molasses Mud Filtrate juice A Heavy B Pan B Massecuite BH molasses C Pan C massecuite C Centrifuge Final molasses Sugar 41 A pan B Centrifuge Sugar Pan A Light A Pan sugar

VACUUM INTRODUCTION All processes and physical measurements carried out under conditions of belownormal.A process or physical measurement is generally performed in a vacuum one of the following reasons; for

(1)To remove the constituents of the atmosphere that could cause a physical or chemical Reaction during the process (e.g., vacuum melting of reactive metals such as titanium)

(2)To disturb an equilibrium condition that exists at normal room conditions, such as the Removal of occluded or dissolved gas or volatile liquid from the bulk of materials(e.g., degassing of oils, freeze-drying) or desorption of gas from surfaces (e.g., the cleanup of microwave tubes and linear accelerators during manufacture)

(3)To extend the distance that a particle must travel before it collides with another thereby helping the particles in a process to move without collision between source and target (examples of uses are in vacuum coating, particle accelerators, television picture tubes) (4)To reduce the number of molecular impacts per second, thus reducing chances of contamination of surfaces prepared in vacuum (useful in clean-surface studies studies) For any vacuum process a limiting parameter for the maximum pressure can be defined. It can be the number permissible

of molecules per unit volume

(reasons 1 and 2), the monolayer (reason 4).

mean free path (reason 3), or the time required to form a

At room temperature and normal atmospheric pressure, 1 cubic foot (0.03 cubicm) of air contains approximately 7*1023 molecules moving in random directions and at

speed of around 1,000 miles per hour (1,600 kilometers per hour). The momentum exchange imparted to the walls is equal to a force of 14.7 pounds for every square inch of wall area. This atmospheric pressure can be expressed in a number of units, but until relatively
42

recently it was commonly expressed in terms of weight of a column of mercury of unit cross section and 760 mm high. Thus, one standard atmosphere equals 760 mm Hg, but to avoid the anomaly of equating apparently different units, a term, torr, has been postulated; one standard atmosphere =760 Torr (1 Torr =1 mm Hg). This term was replaced in 1971 by an SI unit defined as the Newton per square meter (N/m2) and called the Pascal (one Pascal =7.5*10.3 Torr). The first major use of vacuum technology in industry occurred about 1900 in the manufacture of electric light bulbs. Other devices required a vacuum for their operations

followed, such as the various types of electron tube . furthermore, it was discovered that certain processes carried out in a vacuum achieved either superior results or ends actually unattained under normal atmospheric conditions. Such developments included the blooming of lens surface to increase the light transmission , the preparation of blood plasma for blood banks, and the production of reactive metals such as titanium. The advent of nuclear energy in the 1950s provided impetus for the development of vacuum equipment on a large scale. Increasing applications for vacuum processes were steadily discovered , as in space simulation and microelectronics. PANS Crystallization is the sine qua non of the sugar industry and has been practiced for centuries without being well understood. The goal is higher quality sugar by means of better control of crystallization conditions. Modeling is a valuable tool in the optimization of the crystallization operation and there are many reports on his subject. A model has been developed which can predict the color of sugars from various crystallization scheme and good agreement was achieved between the prediction and actual factory performance and it also predicted the impact of variations in operating conditions . Material, energy and color balances were used to predict the replacement of A- and B- crystallization by a back-boiling system would not increase sugar color and should improve exhaustion. Models for use in crystallization studies should be dynamic and include factors such as crystallization kinetics , inversion kinetics, color development rate , and the impacts of purity change in feed materials pan circulation rate , etc., The capacity of an old pan has been doubled

43

by using the top and bottom of an old pan and inserting an extended mid-section with an expended body. The consequence include fine grain and improved cycle times. Efficient vacuum pans using vapours from other pans are another means reduce steam utilization and lower color sugar due to the reduced temperature of crystallization of the highgrade products. Expansion of existing capacity for a continuous pan required additional cells and in one case the expansion of capacity was achieved by the addition of three modules in series at the nd of the original pan . Knowledge of the improvement in productivity of batch vacuum pans by improved circulation ; improved feed quality and instrumental control were used in the design of these modules.

Production of commercial sugars by cooling rather than evaporative crystallization has a long history but has been out of fashion since the development of the vacuum pan. Recent reevaluations of high temperature cooling crystallization show that it could offer major benefits for new construction. CFD has been applied to study of low-grade crystallization. The simulation indicates that flow and temperature distribution are non-uniform with significant shortcirculating of non-cooled massecuite.

The conclusion is that , for crystallization, increased productivity will be gained by application of modeling and simulation systems and improved process control. We can expect to see new designs of pans and crystallizers but these will be based on process manufacturing information technology.

DESCRIPTION Pan is those in which the crystallization actually starts. Crystallization is continued in crystallizers. Crystallization is initiated by seed and already formed grains.

Seed are prepared by grinding sugar in an insoluble alcoholic medium. Grains are prepared or developed in one pan and feed to other respective pans. This is followed by massecuite development in each pan.

44

There are totally seven pans, two for C type massecuite two for B type massecuite and three for A type massecuite. All are fixed of pan, with heating vapour in shell side and syrup in tube side. There is a hollow space in the centre and the syrup is subjected to natural agitation. The amount of heating vapour is varied according to the brixes and circulation required.

Each pan is maintained with a vacuum of around 600 to 700 mm Hg developed by the jet condensers, one connected to each pan. This ensures boiling of syrup/ massecuite at around 60 to 62 C, which is required.

Batch time various with the type of massecuite by 3 to 5 hours and crystallization rate. Batch is directly proportional to the rate of crystallization , which in turn varies in proportion to the circulation.

The outlet brixes sizes are around 102 for C massecuite and 95 to 96 for B massecuite and 92-93 for A massecuite. The massecuite are developed in the crystallizers. They are continuously cooled down by water circulation in the vertical crystallizers.

SERIOUS OF OPERATION:

Syrup and seed is initially fed into the pan 7A for A boiling. This splits into A-light , Aheavy and sugar in the centrifugals. A-heavy is once again send to the B type pan. A-light is send to A pan. B massecuite is separated to B-heavy, B-light and sugar. B-heavy is sent to C type pan and B-light is used for itself. Similarly from C type pan . C-light and C-heavy are got. C-heavy is send to molasses pump. C-light is fed to itself and to B type pan. This is shown in the schematic diagram.There are four pans with 40 tons capacity and three pans with 50 tons capacity.

45

PAN DETAILS

PAN

1-C

2-C 40 T 102/1200

3-B 40 T 102/1200

4-B 40 T 102/1200

5-A 40 T 102/1200

6-A 50 T 120/900

7-A 50 T 120/900

CAPACITY 50 T TUBESIZE mm NO. TUBES HEATING SURFACE m^2 255.5 OF 984 120/900

516

516

516

516

984

984

185

185

185

185

255.5

255.5

JET CONDENSERS

PRINCIPLE Jet condensers are based on the dynamic effect of jets of water which , penetrating into the body of water in the barometric column, entrain with them, by friction , the air contained in the condenser. If the cross-section of the barometric column is small enough to ensure a suitable velocity, the bubbles of air do not rise into the condenser and are evacuated to the well at the foot of the column.

It is thus possible to operate a condenser system without an air pump. This eliminates and expensive and cumbersome machine, with its operating maintenance costs.

The design of the condensers is similar in all points to that of an ordinary co-current condenser. It is even simpler, due to the elimination of baffles, which would impair the velocity of the jets.

Only the design of the nozzles and the direction of the jets require some care, in order to obtain clean and smooth jets of water, to ensure the correct direction of the jets, to achieve the necessary entrainment of the air and an effective penetration into the water in the column.
46

USE OF JET CONDENSERS Jet condensers require vessels well protected against air leakages, to which they are much sensitive than condensers fitted with an air pump. However, when this condition is fulfilled, they function very well, and elimination of the air pump constitutes an economy. They will not be employed for a central condensing system on account of the greater extent of air leakage in this case. However, they constitute a good solution with individual condensers.

They are flexible than condensers with air pumps, as regards the quality of injection water, which can vary only between appreciably narrower limits. The vacuum, which they gives, is similarly less uniform, and varies slightly with the temperature of the hot water, which in turn depends on the quality of vapour to be condensed. However, this drawback has no great importance in the case of individuals vacuum. They have high water consumption and require more powerful pumps with consequent high electric power demand.

POWER SAVING There is a definite reduction in power consumption by 40% at the injection station, due to high efficiency performances. The requirement by hydrostatic head of injection pup is just 18 meters there by saving additional power as compared to other condensers using high head pumps.

TAIL PIPE TEMPERATURE Under manual operation a T(difference between outlet temperature and inlet temperature) of 10 C is achieved. Under computerized automation the T of 15 C is achieved

INSTANT VACUUM GENERATION Due to high velocity jet nozzles the vacuum generation is instantaneous. At 100 full vacuum is attained almost within 1.5 minutes. C the

47

HIGH EFFICIENCY CENTRIFUGAL SPRAY ATOMIZERS The specially designed high efficiency centrifugal spray atomizers fitted on the jet box create micro fine atomized spray, resulting into wider surface contact with the incoming vapour. Due to this the injection water required for condensation reduces considerably. The micro fine atomized spray created by these centrifugal spray atomizers, allows instantaneously heat transfer from vapour to condensation water(injection water).

PERFORMANCE AT HIGH INJECTION WATER TEMPERATURE These condensers maintain a stable satisfactory vacuum condition in pans even 40 41 C to

C of injection water temperature, due to effective condensation of vapour carried out by the

micro fine atomized spray created by specially designed centrifugal spray atomizers.

INTEGRAL THROAT Design and construction is integral, with the throat and bottom cone of the condenser being integrated. This prevents leakages and it can be directly bolted with the tail pipe.

SAVES ON STEAM Due to stable vacuum condition in the pan, boiling time reduces. Therefore, substantial steam economy is achieved.

EASY ACCESS FOR ROUTINE INSPECTION For routine inspection of jet box, spray nozzles, jet nozzles, a sufficiently large, easy to operate manhole is provided at right angles to the inlet water connection which can be opened and closed easily within 5 minutes. A hand hole is provided on the jet box, exactly in front of the outside manhole for inspection.

STRAINER An online S.S.stainer prevents foreign material from getting inside the jet box and prevents clogging of jet nozzles and spray atomizers. Thus, downtime is practically zero.

48

CHIEF EXECUTIVE

WORKSHOP ENGINEER

ASSISTANT CIVIL ENGINEER ENGINEER

ELECTRICAL ENGINEER

INSTRUMENT SUPERVISOR

WORKSHOP FITTER-1 FITTER-2 TURNER-1 TURNER-2 WELDER MOULDER CARPENDER BLACKSMITH TINSMITH HAMMERMAN WORKSHOP COOLIES

MILL HOUSE FOREMAN FITTER-1 ENGINE DRIVER PUPMAN FITTERHELPER COOLIES POWER TURBINE OPERATOR

BOILER HOUSE FOREMAN BOILER ATTENDER INSTRUMNENT MECHANIC FIREMAN WATER ATTENDER FEED PUMPMAN R.B.C.ATTENDER MAZDOORS

49

BOILING HOUSE FOREMAN FITTER-1 FITTER-2 PUMPMAN FITTER HELPER OILMAN SWEEPERS

POWER HOUSE ELECTRIC SUPERVISOR WIREMAN-1 WIREMAN-2 SWITCH BOARD ATTENDER ELECTRICAL HELPER

ENGINEERING OFFICE DRAUGHTMAN STENO PEON

GENERAL WORKERS HEADKHALASI KHALASI

CIVIL SECTION CIVIL ENGINER TECHNICAL ASSITANT MASON

50

3.5 PERSONNEL DEPARTMENT

RECRUITMENT POLICY OF THE MILL Employment was done alone through employment exchange, send call letters to the candidate fixing the date for the interviewer. The Mill constitute a committee for conducting the interview and select the person after awarding the marks and then the person fixing training period minimum 1 year after completion of provision period confirm the appointment order. In this period he gets the wages of 20% of the original wages.

If the employees dies in the course of employment, his son/daughter/wife gets an opportunity according to their qualification subject to following conditions.

Any one of the legal heirs of declared employee should not be the government servant .the person should take care of the family based on the assurance given.

EMPLOYEES STRENGTH (As per revised staffing pattern)

S.NO 1. 2. 3. 4. 5. 6.

Department Administration Common pool(*) Accounts Cane Engineering Manufacturing Total

Regular 36 15 14 63 101 17 246

Seasonal 7 4 0 15 83 84 193

Total 43 19 14 78 184 101 439

51

EXISTING 01.03.2008)

EMPLOYEES

STRENGTH,

INCLUDING

OFFICERS:464

(As

on

Break up details Administration accounts dept. Cane Dept Engineering Dept Manufacturing Dept Total

Regular including 99

Seasonal 03

Total 102

75 116 33 323

34 45 51 133

109 161 84 456

Strength: Staff(including common grade officers) Workers Total

:228 :228 :456

TRADE UNIONS There are eight trade unions functioning (including the union held by N.M.Rs) in mills and they are:-

1. Arignar Anna sarkarai aalai anaithu paniyalargal mattrum thozhilalargal sangam. 2. Arignar Anna sarkarai aalai 3. Arignar Anna sarkarai aalai 4. Arignar Anna sarkarai aalai 5. Arignar Anna sarkarai aalai 6. Arignar Anna sarkarai aalai D.M.K Union A.I.A.D.M.K union - I.N.T.U.C union C.I.T union - Cane Assistants (Field staff) union

7. Thanjai Arignar Anna sarkarai aalai Employees union 8. Arignar Anna sarkarai aalai-N.M.R workers union

52

STAFFING PATTERN/ MANPOWER APPROVED BY TASCO BOARD The board of Tamilnadu Sugar Corporation Limited has formulated a revised staffing pattern reducing the employees strength for a total employees of 439 with a view to reduce the establishment cost since the company has referred to Bureau of industrial Finance and Reconstruction (BIFR) as a sick Company. The implementation of the revised staffing pattern is pending as no settlement was reached with the Trade unions and the revised staffing pattern is under dispute in the industrial tribunal .The dispute was raised by the following three trade unions;

1. Anaithu Thozhilalar Mattrum Paniyalalar Sangam 2. I.N.T.U.C 3. Field staff unions

53

3.6 ACCOUNTS DEPARTMENT

Chief accounts is head of the department. he overseas overall process of the companys inflow and outflow of money. The money transfer are noticed and maintained in the computer. FUNCTIONS OF FINANCE DEPARTMENT Fund utilization Loan, insurance an bank correspondence Statistical data Yearly budget preparation Auditing Income tax auditor returns Pay bill Cahier CAPITAL AND WORKING CAPITAL AMOUNT The company started by the capital amount of 7.5 crores in this government issued 5 crores and 2.5 crores by issuing shares to the public at the rate of Rs 10 per share. They have issued the dividend only once at the early stage when the company started. But after this dividend is not issued to the public. The working capital amount is around 35 to 45 crores and it can be changed according to the available cane present. LOANS FROM BANKS INDIAN OVERSEAS BANK- Kurunkulam INDIAN OVERSEAS BANK-Thanjavur Erode district corporations bank TAMILNADU STATE CORPORATION BANK PROCEDURE FOR GETTING A LOAN To get a loan amount Mill has to submit the cash flow statement of the finished year to any one of the above bank. The amount is sanchained by the bank manager after concerning their

54

higher official and also the government should issue the letter .the loan amount should be repaid within the specified period of time. INTEREST RATE Tamilnadu industrials and investment corporation gives at discount rate of 1%. Government gives loan at the rate of 14.5% interest rate. All banks issue at the rate of 15% interest rate. PRICE DECLARAASTION Price is given in two basicsas fair remuneration and state advised price.

PRICE

FAIR REMUNERATION PRICE(FRP)

STATE ADVISED PRICE

FPR has the former name STATUATORY MINIMUM PRICE(SMP) it is the amount fixed by the government according to the recovery rate of the particular state. STATE ADVISED PRICE IS THE AMOUNT is the amount given according to the demand happened to the particular period. PROFIT AND LOSSESS Last year the company has the profit of about 29 crores. By seeing the company profile it can be seen that the sugar Mills are growing at the decreasing rate .still the company in the atage of 35 crores as debt.

55

CHIEF ACCOUNTANT ACCOUNTANT OFFICER

GENERAL ACCOUNTANT A. ACCOUNTANT CASHIER ASSISTANT CASHIER TYPIST

CANE ACCOUNTANT ASSISTANT ACCOUNTANT CANE PAYMENT & SHARE ASSISTANT TYPIST

STORES STORE KEEPER A.STORE KEEPER STORE BOY STORE MAZDOORS

56

3.7 SALES DEPARTMENT

Tender issued to selected companies for the product after receiving the quotation from the organization and make analysis and purchase order sent to the organization which quoted low price. The Item which are received by the stores that are properly entered in the kardex, which was maintained by the stores account. In kardex the opening balance are properly recorded for all issue and receipts If the item received by the firm was recorded in stores request record entry, which is properly programmed in compute. If any item issued by the department which was received should be debited. SALE OF SUGAR BAGS According to the essential commodities act 1995, amen act 2003 the director of sugar new Delhi issued a release order for every month to the sugar mills according to their stocks

but the Tamilnadu cooperative sugar federation is only authority to issue sales order to sugar mills that are under the control of this federation. The sale is done through the tender basics ,that is of who has the low tender amount will get the chance to take the product. ARUMUGAM NADAR AND SONS civil corporation tooks the tender for many period. From the total production 10% is levy and 90% is free. For the levy sugar, the

government was fixed the price and for free sugar the marked price should be considered. Levy =government fixed amount +excise [52 per bag +educational cess 1%] Free sugar=market rate+duty Here duty =85 per bag as excise duty+2% educational cess.

57

3.8 HUMAN RESOURCE DEPARTMENT

HR POLICIES

PROMOTION Promotion channel are fixed for each category completion of qualified period, we

promote the person to the next category. As per the seniority and also under the educational qualifications prescribed for the post.

DEMOTION As and when necessity arises and also according to the disciplinary taken by the

management. If the individual disciplinary action is not satisfied to the management suddenly the management demotes the persons from higher post to lower post.

TRANSFER Mostly, transfer is depending upon the hands of the administration as and when

required by the management.

TRINING AND DEVELOPMENT Training an various aspects linked with computerization has been drawn, in a

systematic manner and given training to the needy person, in a selected field , such as computerization of cane registration, cane payment pay bill, etc. training for sugar production section can be given in vellore institute for sugarcane industries.

GRIEVANCE Grievance committee can be arranged to find the solution for the problem of the

individual.

RETIREMENT FUNCTION At the time of retirement of the worker the organization gives I gm gold coin each

and every worker and also the organization arrange retirement functions to the worker.

58

WELFARE MEASURE

FREE UNIFORMS Sugar mill issuing 3 sets of uniforms once in two years to all employees.

FREE SHOE Sugar mill issuing shoe to all employees once in a year.

FREE TEA Mill providing two free tea per day in morning and evening to all employees at subsidized cost of Rs.1.25.

CANTEEN Mill running a cooperative canteen for the welfare of the employees .mill providing meals and Tiffin to the employees who are working in shifts.

FREE ELECTRICITY Free electricity is given to the employees residing in the quarters as below.

FREE UNITS 1. Chief executive 2. C.A, CCO, C.Er, C.C, S.M 3. Deputy Officers and supervisory staff 4. Staff and workers 100 75 50 40

BUS Mill having two school bus for the welfare of school going childrens and the mill employees free of cost. Bus facility is also extended to the mill staff that is coming from Thanjavur to attend office. A nominal rate of Rs.10/- per head is collected from them.

59

FREE TEXT BOOKS Mill providing text books and notes (published by Tamil Nadu text books society only) to employees children are free of cost up to 12th STD.

FREE TOWELS: Once in three months free towel is given to all workers and once in a year towel is issued to the supervisory staff.

FREE SOAP Mill providing free soaps to all workers at the rate of one soap per month.

MAY DAY GIFT Mill providing may day gift/ articles to all employees.

MEDICAL FACILITIES A dispensary is being run by the mills for giving medical facilities to all employees and dependants employees for this purpose a medical officers and four MNAs ,one pharmacist and one FNA is employed in the dispensary and the dispensary renders service for 24hrs .

LOANS EDUCATION LOAN The following loans are availed by the employees of the mills as detailed below. As per the permission accorded to the employees for the purpose of education to their wards recoverable in ten installments from mill funds.

For education at 1. Polytechnic and other recognized Technical institution 2. Arts college 3. Professional college

Amount

Rs.1500/- p.a Rs.2000/- p.a Rs.3000/- p.a

The above said advance is restricted to maximum 2 childrens per

60

employees..

MARRIAGE IOANS Marriage loan paid to permanent employees daughter marriage as Rs.10,000 and sons marriage as Rs.5,000 for seasonal employees, Rs.6000 and Rs 3000 respectively. It is received in 60 dues with an interest at 12%.

FESTIVAL LOANS For permanent employees as Rs 2500 and seasonal employees as Rs.2000 and receives in 10 installment without interest

SCHOOL DETAILS A school up to high school level is being run by the management for the benefit of ryots and employees of our mills.650 no. of pupils are studying in the school. Total no. of teachers working High school Primary school Nursery school 5 2 3

Mill getting government aid for the following ten posts sanctioned by the government. 1. Head mistress 2. B.t.assistant 3. Tamil pandit 4. P.e.t 5. Sec.grade teacher 6. Clerk 7. Messenger 1 post 2post 1post 1post 3post 1post 1post 10 post

61

RECREATION VEDIO CLUB: Mill having the recreation video clubs for the welfare of the mill workers, staff and officers. A video club is being maintained by the mills for the welfare of quarters residents.

LAOUR WELFARE OFFICER

PERSONNELWING PERSONNEL ASSISTANT ASSISTANT STENOGRAPHER PEON TIME OFFICER HEAD TIME KEEPER ASSISTANT TOKENBOYS

WATCH & WARDWING SECURITY INSPECTOR SECURITY WATCHMAN SWEEPERS

62

3.9 CHEMISTRY DEPARTMENT

They assist 17 members in regular basis and in season time they have 84 persons in this department .they divide the work in the basis of four lab in-charge, pan section, clarification, centrifugal.Lab in-charge is to check the juice cane in every stage of its flow they have lab boy to take the juice of the cane.lab chemist check the taste and thickness of the juices and make it to flow to the next stages.

Pan section checks the granules of the sugar. And in this stage its starts the process to make a sugars.In clarification they check the sulphitation of the process. They separate the solid sulpher from the process and they pass it back for further more processing.The centrifugal is the computerized machine the person check the flow of the changing of liquid sugar to solid granular sugar. This is the end of the production process.

CHIEF CHEMIST

DEPUTY CHIEF CHEMIST

MANUFACTURING CEMIST

MANUFACTURING SUPERVISOR

STENO

MESSENGER

63

LAB IN CHARGE

PAN SECTIONS

LAB IN CHARGE

PAN IN CHARGE

LAB CHEMIST

PAN MAN

LAB ASSISTANT

ASSISTANT PAN MAN

LAB BOY

PAN ATTENDOR

PAN MAZDOORS

CLARIFICATION

CENTRIFUGAL

EVAPORATOR OPERATOR

CENTRIFUGAL MATE

CLARIFICATION ATTENDER

MAGMA MAZDOORS

SULPHITATION ATTENDER

CRYSTALLIZER MAZDOORS

VACUUM FILTERA ATTENDER

HOPPER MAZDOORS

JUICE HEATER ATTENDER

DRYER HALL MAZDOORS

CLARIFICATION MAZDOORS

64

CHAPTER-4 PROBLEMS IN SUGAR INDUSTRY

Sugar prices have doubled over the last 15 months. In 2008-09, particularly, a larger part of the sugar cane was used for making gur than in earlier years. This exacerbated the sugar shortage, even though cane production that year saw only a 20 per cent drop from the previous season, sugar production tanked 43 per cent. Indias current sugar consumption is between 20-22 million tonnes, and this level was exceeded in 2006-07 and 2007-08. Initially prices in the world market were higher than Indian prices and the exporters were a happy lot. India is expected to close the current sugar season with production at 16-16.5 million tonnes, whereas demand is at 22 million tonnes, leaving a gap of around 7 million tonnes.A recent FAO report predicts a sharp fall in sugar production in India in the year 2009. The country has contracted to import 3.8 million tonne of sugar so far this season, of which, 1.8 million tonne have arrived. India is the fourth lowest cost sugar producers in the world after Australia, Brazil and Thailand. Indias cost of sugar production is one-fourth of that in Europe. Indias sugar sector faces a fall in prices, rising raw material costs, limited export capacity and a lack of flexibility to produce ethanol for biofuel, analyst Licht said. Sugar is the second largest agro-based industry in India. The industry provides employment to about two million skilled and semi-skilled workers besides those who are employed in ancillary activities, mostly from rural areas. Though the industry contributes a lot to the socioeconomic development of the nation, it is plagued with a number of problems such as cyclical fluctuations, high support prices payable to farmers, lack of adequate working capital, partial decontrol and the uncertain export outlook. Global sugar prices have fallen sharply because of a huge glut of production driven by the worlds leading producers such as Brazil, India and Thailand.

65

Major challenges faced by sugar industry in India: The seasonal nature of the industry, Old and inefficient methods of production, Transport delay in reaching cane to factories The need to maximize the use of Baggasses Sugar Industry which has the potential of becoming a major exporter has been reduced to crises ridden industry because of neglect and absence of a coherent policy covering the interest of all the stakeholder the growers of sugarcane, the Mill owners and the ultimate the consumers. The conflict of interest mainly of the growers and the mill owners lead top a controversy almost every year when the crushing season starts. This year, however, the situation has become alarming specially in South where none of the 27 Sugar Mills have started crushing as a result lacs of acres of land with million of tonnes standing sugarcane crop is blocked delaying the sowing of Rabi crop which may adversely affect the production of wheat. Mill owner are delaying the crushing as they are already having an unsold surplus of about 5 lac tonnes of sugar from last year production (over 2 lac tonnes in alone) and they have neither the storage especially nor the financial resources to pay to the growers for fresh purchases. Even some who have resources are waiting to cash on the financial difficulties of the growers. Every month sugar industry had proposed a two-pronged policy to the government for survival. It included much awaited decision on export of 0.5 million tonnes surplus stocks. The millers upheld this proposal as their first option. The second option related to the outcome of the first one. The policy indicated that the millers will opt for 'limited production' in 2002-03, a new concept in Pakistan, to avoid further increase in stocks in case the government fails to facilitate export of surplus stocks. The millers floated these options during their meeting with Finance Minister and Commerce Minister two weeks back. The delegation had pointed out four sluggish areas during last meeting with and making it clear that survival of the industry is subjected to removal of these irritants.

66

These were unmanageable surplus stocks of around 0.5 million tonnes, low prices in the local market, low duty on import and imposition of 3 per cent additional tax on unregistered buyer of sugar industry. The millers had informed the ministers that the huge stocks are blocking their working capital and making it difficult to enter into new crushing. They argued that the export of at least 0.5 million tonnes of surplus sugar is an answer to their problems. The millers also want deferment of sale tax of the first half of the fiscal for six months without penalty. The withdrawal of 3 per cent additional sales tax is their other major demand. Later on November 12, an understanding was reached during a meeting between Finance Minister and a delegation of Sugar industrialists, headed by Chairman,. As a result of this understanding the government has allowed export of 100,000 tonnes of sugar after a detailed discussion with the millers. A sum of Rs. 0.22 per kg was to be collected from the millers to facilitate the exporters and bridge the gap between the international local and local prices. This money will go into an export development fund, which will be managed by the federal government. Food Minister, who was also present during the meeting, demanded of the millers to start crushing earlier to their schedule. The millers told the minister that lack of working capital was a big hurdle in starting the new crushing. The meeting was also told that at least 10 mills could not start crushing as they are under embargo due to default on sales tax. The Finance Minister directed the CBR authorities, who were also present in the meeting, to provide relief to the desired millers to enable them to enter into new crushing. Soon after the meeting, the representatives of zone held a separate meeting with the Chairman CBR and Member Customs to settle the issue of sales tax. The situation took an ugly turn when the Government issued show cause notices to the management of 27 mills on November 18 asking them to submit the cases of their failure in the start of cane crushing by November 15 the date fixed by the government for crushing season 2002-03. The notices threatened the management that if they failed to start crushing or submit cases for delay within one week, cases under section 21 of the sugar factories control act will be filed against them which provides for rigorous imprisonment of one year in case of condition. Cane Commissioner said in a press interview that the action had been taken in view of the
67

delaying tactics of the sugar mills causing unrest among the sugar cane growers. The sugar mills has requested the government either to allow them to export their surplus stock as agreed earlier or arrange a bridge financing of 500 million to enable them to buy sugar cane from the growers and start crushing. So the dead lock is continuing. The elected government should immediately intervene to end this dead lock and save the sugar industry from disaster. A long-term policy with necessary incentives is also needed to develop sugar industry on a sustained level and harvest its export potential. Only a few months back the former Commerce Minister boasted at a seminar that sugar industry was emerging as a major exporter in foreign trade and was expected to play a vital role in boosting country's export. This claim was not just rhetoric. In fact is capable of exporting about half a million tonnes of sugar annually. Even today we have a last year surplus of 5 million tones in our godowns when the 60 sugar mills in the country are expected to produce over 3.6 million tones of refined sugar during this crushing season against its expected demand of 3.3 million tonnes. Federal Finance Minister in his recent meeting with the representatives of Pakistan Sugar Mills Association stated that along with the welfare of sugar industry, the government would also like to safeguard the interests of the consumer. In this connection he revealed that instead of giving subsidy, a system of one month " Bridge Finance" would be introduced in the sugar export trade. Sugar mill owners, on the other hand, demanded to fix the minimum support price of sugar while doing the same in respect of sugarcane. And as soon as the open market price of sugar falls below its officially determined prices, the Trading Corporation of India should enter the market to make purchases of sugar as it does in the case of certain commodities.

68

CHAPTER 5 5.CONLUSION
The internship training was done for a period of 6 week at ARIGNAR ANNA SUGAR MILLS. The internship training has helped me in gaining more practical knowledge about the dayto-day administration of the affairs of the company . During this period I had visited the various departments in the organization to learn about the functions of those departments.

The internship training has thus provided me a basic understanding about the administration and management in each department, which is essential for contributing to the success of organization.

This training has shaped up my confidence level by giving me an exposure to how an organization functions. This internship training is undoubtedly a golden opportunity given to me and I hope that I have used opportunity fruitfully and to the best of my ability.

69