Prof. (Dr.

) KISHOR BARAD
PROGRAM CHAIR PGDM SHANTI BUSINESS SCHOOL AHMEDABAD Email: kishor@shantibschool.edu.in

Firms Performance What is an Industry? What is Industry Structure? Uses of Industry Structure. S-C-M Model Indian Sugar Industry-Facts Govt. regulations on Indian Sugar Industry Industry Statistics Management of Indian Sugar Industry
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MACRO ENVIRONMENT (ECONOMY, TECHNOLOGY, SOCIETY, POLITICAL REGULATION etc)

MICRO ENVIRONMENT (COMPETITION, RIVALARY, BUYERS, SUPPLIERS etc)

FIRMS RESOURCES, CAPABILITIES & ACTIONS OF ITS DECISION MAKERS

An industry is a collection of firms offering goods or services that are close substitutes of each other. OR Alternatively, an industry consists of firms that directly compete with each other.
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The term industry structure refers to the number and size distribution of firms in an industry. Industry could be fragmented or Consolidated.
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1. 2.

Business Policy Public Policy Business Policy:Used to gauge competition, rivalry, entry barriers, and other aspects of competitive dynamics in an industry.

Public Policy:Govt. use for granting mergers or acquisitions permission.

Model indicates that industry structure

impacts an industrys economic performance

& profitability of companies in that industry.

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Agro based industry 2nd largest producer of sugar in the world 5 million hectares & 50 million cane farmers and dependants. Rs.80,000 crore industry. Cane payment of Rs.55,000 crore are directly paid to farmers without middlemen. Ownership-public sector, private sector & cooperative 65% of sugar consumed by bulk consumers Located in rural heartland, directly contributes to rural economic development & employment
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 Total Sugar Mills during 2009-10 was 651. Out of this 269 were in corporate, 62 in public sector and 320 were in cooperative sector. Annual Installed Production Capacity during 2009-10 was 236.25 lakh tonnes. Sugar Production in 2010-11 was 24.50 million tonnes. Sugarcane production in 2010-11 was 346 million tonnes Area under sugarcane cultivation was 4.98 million hectares of land Molasses production in 2010-11 was 8.4 million tonnes.

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Indian Sugar Industry is highly regulated Central & State Govt. regulates & control this industry. Regulation in terms of Set Up of Sugar Mills Plantation of Sugarcane Pricing of Sugarcane Packing of Sugar Selling & Distribution of Sugar Selling of By-products
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MAIN PRODUCT CRYSTAL WHITE SUGAR

BY-PRODUCT BAGASSE
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BY-PRODUCT MOLASSES

BY PRODUCT PRESS MUD

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MACRO LEVEL MANAGEMENT CENTRAL & STATE GOVERNMENT

MICRO MANAGEMENT AS FOLLOWS:PRIVATE SECTOR SUGAR MILLS - AS PER INDIAN COMPANY ACT 1956 COOPERATIVE SECTOR MILLS - STATE COOPERATIVE

SOCIETIES ACT
PUBLIC SECTOR MILLS - STATE GOVERNMENT
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FIELD
MILL
OFFICE

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COPERATIVE-NFCSF

PRIVATE-ISMA
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SUGAR MILL UNIT

DISTILLERY UNIT
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