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Internship Project is an activity where a job taken by a student in order to learn
Profession or Trade in their Academics. It gives an exposure to the real work environment and
helps to develop Technical, Social and Communication skills.
This report is brief of about The Pandavapura Sahakara Sakkare kharkane,
Pandavapura Railway Station, Manday Dist-571434, their working environment, organization
culture, policies, a brief study about the Company profile and Product profile. It also contains a
summary about each department, their functions, their policies and operations.


The main objective of the study is as follows:

To study the functioning of an organization.

To understand the real time operational situations in the organization.

To study the organization hierarchy.

To study and understand the working of the PSSK LTD.,

To study the functional aspects of various departments.

To study the environment of the organization.

Page No. 1


The information is collected through..
1. Primary Source
2. Secondary Source.
1. Primary Source: Where I had directly interacted with the factory workmens, department
heads regarding the routine functions and process of different departments in the factory.
2. Secondary source: With the help of researcher collected data like published materials such
as organization profile and with the help of internet had got the competitors information ,
Introduction and History of the Indian sugar companies etc.,

Data Collection Tools:

Primary data is collected from the employees and heads of the departments. Secondary
data is collected by observation of the information collected.

Data Analysis and Interpretation:

The collected data is analysed to draw meaningful inference. The project report focuses
on overall Organizational structure of The Pandavapura Sahakara Sakkare kharkane, which is
one of the most familiar sugar manufacturing factory in Karnataka.

Page No. 2

India is the largest sugar consumer and 2nd largest producer of sugar in the world. Indian
Sugar Company has total turnover of Rs. 500 billion per annum and contribution almost Rs. 22.5
Billion to Central Tax Duty every year.
The sugar company is second after the textile industry in India. Indian Sugar Company
has always focused for Socio-Economic Development. Indian Sugar Industry generates power
for its own requirement and get surplus power for export. The sugar companies have been
established in large sugarcane growing states like Uttar Pradesh, Maharashtra, Karnataka,
Gujarat, Tamil Nadu and Andhra Pradesh.
The India Sugar company can be classified into two types.

Organized Sector

Unorganized sector
The sugar factory usually belongs to the organized sector. The manufacturing process

followed by the sugar company they are:

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.

Crystallizing and drying sugar.

Page No. 3

Packing or packaging the sugar

History of the Indian Sugar Company:

Sugar is made from sugarcane, and was discovered thousands of years ago in New
Guinea. Then it was traced to India and Asia. India was the first to begin with the production of
sugar. The government of India in 1950-51 made serious industrial development plans. And has
set many target for production and consumption of sugar. These plans by the government for the
sugar company are its five year plans.
1930 The Modern Sugar Processing Industry in India was started with protection to the Sugar
1930-31 The Number of sugar mills increased from 30 to 135.
1935-36 The production was increased from 1.20 lakh tones to 9.34 lakh tones.
1950-51 The planning for industrial development began and government targets of sugar
production and consumption.
The Sugar industry covers around 7.5% of total rural population and provides
employment to 5 lakh rural people. About 4.5 crore farmers are engaged in sugarcane cultivation
in India. Sugar mills have been instrumental in initiating a number of entrepreneurial activities in
rural India.
Indian sugar industry can be a global leader provided it comes out of the vicious of
shortage and surplus of sugarcane, lower sugarcane yield, lower sugarcane recovery, ever
increasing production cost. It needs quality management at all levels of activity to enhance
productivity and production.

Page No. 4

Current Position of the Indian Sugar Company:

Indian sugar production for the 2012-13 Sugar season was 18.9 million tones which was
higher by 30% over the previous year. The production in Maharastra and Karnataka recorded
significant increase of over 50%. While Uttar Pradesh recorded an increase of 27%. Other sugar
producing states including Tamilnadu and Andhra Pradesh recorded a decline in production by
almost 20%. The overall increase in production has been primarily on account of favorable
climate conditions and lower diversion of cane in Uttar Pradesh for alternate sweeteners in the
2nd half of the crushing cycle.
India is the largest sugar consuming country in the world. The initial estimates of lower
production in India for 2012-13 and physical sugar imported by it resulted in rising global sugar
The sugar prices internationally, after showing a steep decline from the peak in Jan 2010.
Started going up from July 2010 onwards on account of lower estimates of global sugar
On account of the above factors, sugar prices further moved up globally in October and
November 2010.
The Top leading Indian Sugar Companies are:

Balrampur Chini Mills Ltd.

Bajaj Hindustan Ltd.

Andhra Sugars Ltd.

Thiru Arooran Sugar Ltd.

Dhampur Sugar Ltd.

Page No. 5


Introduction of PSSK limited:

PSSK Limited is one of the oldest co-operative Sugar Factories in Karnataka established
in 1958 by late Mr. B.Y Neele Gowdaru. B.A, L.L.B.,
The Factory commenced its first crushing season in 1959-60 with an initial crushing
capacity of 800 TCD. The plant and machinery has been supplied by M/s. Buckau Wolf Ltd,
West Germany.
In view of abundant availability of cane, the factory expended its capacity in the year
1968-69 to 1500 TCD.
The highest crushing during any season has been in 1969-70 where a quantity of 409513
The supply of cane to the factory is by Carts and Lorries in the ratio of 60.40 Most of the
cane is available within a radius of 15kms from the factory and is received within 12 to 15 hours
from time of cutting. The average recovery % has been varying between 10% and 11% and a
maximum recovery of 11.84% has been recorded during the season 1969-64.
In view of the abundant cane potential is the area the factory took up the expansion of the
plant from 1500 TCD to 3500 TCD in 1997-98 and completed in 1998-99. The plant could not
crush to its rated capacity of 3500 TCD due to various constraints.

Page No. 6


PSSK Limited


Sri Neela Gowdaru


Pandavapura Railway Station,

Mandya District-571434.


08236-255122, 255026.






Apex Bank n MDCC Bank.

Date of Incorporation


Managing Director

Sri P.L. Jothindra

Chief Engineer

Mr. K.M Boregowda

CEO and Chief Finance Officer

Mr. M Ramalingam

Legal and EST department

Mr. Chidanandha

Shares Agent department

Mr. Mahadev Gowda

Chief chemical Engineer

Mr. Somashekar

Chief Boiler Engineer

Mr. Jayakumar

Purchase Department Officer

Mr. B.C Hanumanthu

Sales Department Officer

Mr. Krishne Gowda

General Manager and

Page No. 7

Union President

Mr. Shivarame Gowda

Nature of Business:
PSSK Limited is a co-operative sector based sugar manufacturing company, which is
established at outskirts of Pandavapura Town. The company produced consumer product like
sugar which is has been established in oligopolistic market. Sugar is a consumer product, which
is used for sweetness like bakery sweets and all other homemade sweets. It will directly consume
by the ultimate consumers.

Business Activities:
The PSSK Limited business activities include areas like manufacturing trading,
distribution and financing. PSSK Limited manufacturing and trading business includes
production of Sugar, co-generation, Molasses and Education institutions.
Vision of the Company System:
Wish to become the leading sugar manufacturing industry
PSSK Limited has dedicated to deliver overall value to their customers delivery high
quality products, exceptional financial performance to company shareholders and complete
satisfaction to cane growers, employees and stakeholders.

PSSK Limited strive hard to retain its place as one of Indias premier sugar companies
through sustained research and development and expansion of its operations of core compliance
at global efficiencies of cost, quality and standards of customer servicing to achieve

Quality policy:

Page No. 8

As per the companys act 1956, the government of the India, sugar contains prescribed
levels that is S30 (S30 in satisfaction and M30 is having good quality of sugar) satisfying the
customers by giving social economical, and physiological needs through suitable welfare
The PSSK Ltd. is the only major Industry established in the Pandavapura and
Srirangapatna Taluk, which are under the area of operation.
On account of establishing of this Karkhane, the social economic developments taken
place in the two taluks are briefly summarised as below:

15000 members of the karkhane as well as sugarcane suppliers were benefited by

remunerative price for their supply of sugarcane.


The karkhane has provided direct employment to about 750 peoples. The majority of
the employees are coming from forming community.


The establishment of this karkhane has provided indirect employment to the extent of
15,000 to 20,000 people in the form of utilisation of bullock carts, lorry drivers, cleaners,
truck drivers and agricultural labourers:


The karkhane has contributed funds to the tune of Rs.6.10 lakhs for construction of
accquiduct to Lokapavani River to provide regular water for Irrigation in Chikkadevaraya
canal to cultivate sugarcane.


Karkhane is responsible for establishing a Nursery, Higher Primary School, High

School besides one Junior College and D.Ed. College to cater to the needs of childrens of
farming community.


On account of establishment of this factory there is a normal turnover of Rs.60-100

crores per year, which is the main sources for the economic development of these two Taluks,
besides it is the only sugar factory in the District which is established and running under cooperative principles.

Page No. 9


When the factory runs in full capacity the kharkhane will contributing to State/
Central exchequer by way of Purchase Tax Sales Tax and Central Excise duty. If the factory
does not work, then the farmers have to face lot of problems, as they have to take their
produce to near by sugar factory and incur lot on transportation expenses. Besides the
families which are depended upon this factory will be deprived of their livelihood and also
the economic activity will suffer in the two Taluks.

About Employess:
The company has several employees who are working under different department who
are skilled and has got special training under their respective department. The company after
privatization is automatized and it is a capital intensive whereas before privatization it was labor
intensive. All the employees are educated according to their respective fields as these employees
have to supervise and work with machine.
The company also has unskilled labor that is daily wage paid workers. These kinds of
workers are not permanent, they are called as seasonal workers and the strength is 287.
The company also has permanent workers who are known as helpers in the company. The
strength of permanent labor is 347. These type of permanent labor are semi-skilled and ae also
called as HELPERS, they are divided in different departments of the organization according their
skill of work and experience.

Employment opportunities
Jobs in Indian Sugar Industry has created ample employment opportunities in rural India.
Today the Indian Sugar Industry has absorbed about 5 lakh rural people. The cultivation of
sugarcane employs about 4.5 core farmers which is the first phase of the sugar production. Indian
Sugar mills may be cooperatives, public or private enterprises.
The industry today provides employment to about 2 million skilled/semi skilled workers
and others mostly from the rural areas.

Page No. 10

People interested for Jobs in Sugar Industry should be a diploma holder in Mechanical or
electrical engineering along with the diploma in the sugar technology. At the entry level one can
expect a remuneration of Rs 6000-7000 per month and as with experience increases the pay may
go up to Rs 6-15 lakh per annum. Sugar technologists are usually employed in sugar factories,
alcoholic or non- alcoholic production plants or sugar research labs. The major recruiters in the
sugar Industry are IFFCO and National Federation of Co-Operative Sugar Factories.

Benefits provided by the organization to the employees

1. Medical reimbursement scheme
The purpose of this scheme is to reimburse expenses incurred by the workers for medical
treatment and purchase of medicine, hospitalization expenses for the alignment.
2. Provident fund
This is a kind of fund which is a forced saving intended to provide a large funds sum
amount at the time of retirement.
3. Group insurance scheme
All the employees together contribute towards the group insurance scheme. The premium
is less when compared to the individual life insurance premium.
4. Workmen compensation
It is providing compensation depending upon the injury caused to the worker and later
compensation is calculated and it given to the workers.
5. Loans and advances
Employees are also provided with loans and advances facilities, such as motorcar loans,
cycle loan and loans also provided for construction of house through LIC and banks of other
Page No. 11

6. Bonus
It is provided to the employees once in a year that is during Ugadi festival period.

Initial share capital of the factory at time of establishment

State Government

512.00 lakh

Cane Growers

281.55 lakh


12.10 lakh

Total capital

805.65 lakh

Accessibility of Sugarcane around the factory:


Nos of villages



113 villages



61 villages


K.R Pet

142 villages



316 villages


From the 316 villages there is approximate of 26020 acres of canes are grown and which
is one of the advantages where the factory easily gets the availability of cane about 7 to 8 lakhs
tons for crushing.

Page No. 12

The purchase department monitors the need for crushing and availability of canes in other

Cogen Operation
Cogen Boiler generates 60 Ton/Hr steam at 110 Kg/Sq.Cm pressure using Bagasse as fuel
and the steam generated is injected in the turbine. The flow of steam rotates the turbine and in
turn rotates the generator and generates electricity. The generated power is utilized in sugar plant
and cogen plant and the balance is exported to Office Administration.
The low pressure steam coming out of the turbine is used for sugar Processing.

Individual test booths : no mutual influence between participants and no insight on how
much one is behind no unnecessary hurry.

Tabletops individually and homogeneously illuminated with day light.

Red and green colour filter to mash small colour differences between products if relevant.

Controlled room temperature: 200C +/- 20C

Individual service: by an optical call and a serving hatch: only who is waiting gets

Factory Location :
The factory is located in pandavapura Railway Station, Pandavapura, Mandya District
571434. This is 21km away from Mysore.
Land and Building :

Page No. 13

The factory having the area of 152.25 acres of land on its assets.
In that 133 acres for factory administrative office, PSSK Education Trust, Labour and
Employees Housing facilities etc,.
The remaining 44.25 acres of land are in Dodda Byadrahalli and Chikka Byadrahalli
Villiage is as remain empty.

Location Beneficial:
The factory is located where most of the cane is available within the radius of 15-20km
from the factory and which is received within 12-15 hours from the time of cane cutting.
It is one of the advantage to the factory where the canes are available sooner and fresher,
which helps to perpetual crushing of canes in the factory.

PSSK Limited is an independent and an organized structure in itself. The lower level and
functional level managers are consulted and consultations are analyzed the top management
takes any decision. Tasks to be performed are assigned to separate functional heads. The
organization chart accompanying baggage that shows who reports to whom and how tasks are
both divided and integrated.
There is a clear cut line of authority, but it is never rigid, and the staff has enough
freedom to be free and open with their superiors. Moreover, the senior managed and higher
officials are also very easily, accessible.

Page No. 14


Page No. 15

Work flow model of sugar

Page No. 16

Page No. 17

Page No. 18

Cane feeding:
The cane from lorries and tractors are unloaded into the carriers with the help or
mechanical cane unloads and it travels through the cane preparatory devices.

Cane preparatory devices:

For maximum extraction of juices and increased handling capacity at the milling station
the cane is prepared is such a way the squeezing is made easier with less power consumption.
The cane is passed through the cane preparatory devices called KICKER LEVELER and

Cane milling:
There are 5mills in the factory, each mill has there rollers to extract the juice and two
rollers to feed the cane.

The first mill is driven by DC motor with gearbox switch.

The third and fifth mills are driven by latest hydraulics drives.

The second and fourth mills are driven by DC motor with convention system.

The first mill has the DC motor of 200HP and rest of the mills has 150HP motor drives.

Through the 5th mill of crushing of the cane, its just leaves the 3% of vapors in its cane
and 3% of vapors which helps to burning of bagasse in the boiler.

Page No. 19

Mill Components

Sugar roller pinions

Low speed gearing construction

Mill static flanges

Scraper teeth with white iron inserts

Return plate teeth with white iron inserts

Spikey tooth wear blocks

Pressure feed chute side plates

Mill roller flange bolts

Mill tailbar supply and repair

Mill coupling supply and repair

Return plate repair and construction

Pump shafts

Fugal shafts

Mill full & empty yard pushers

Bucket chain for sugar elevators

Duaplate screw flygts

Mill yard light poles

Small to medium sized holding tanks

Wear overlay plate Duaplate and Vidaplate

Wear blocks of all shapes and sizes

Page No. 20

Additions Mix to cane syrup by Chemical Department

Senior chemical engineer Mr. Somashekar and Assistant chemical Engineer Mr.
After primary heating of Juice they add up the lime stone, sulpher di-oxide through the
gas pipe, and which used to bring down the PH to 7.
The juice is again heated to 102 C to 115 C the effect of heat and precipitation of caso3
result in settling of most of impurities.
The juice is drawn out from the tank and mud is filtered in the continuous rotary filters.
The consumption of lime, TSP and sulpher on cane juice is 0.11 to 0.20%, 0.001 to
0.01% and 0.04 to 0.10% respectively.

Crystallization :
The syrup from the evaporator is crystallized in the process called vacuum pan boiling.
Generally three masscult boiling is followed which are termed as A,B and C masscults. The
sugar coming out of a masscult is the finished product and bagged after drying.

There are 16 Nos. crystallizes each of 55.M.T holding capacity to store and cool the
messecuites for maximum exhaustion or molasses.

Centrifugation :
The messecuites with sugar crystals and mother liquor are cured in centrifugal machines
to separate the sugar crystals and molasses. The A-messecuites is cured using 3 Number of fully
automatic batch machines having 1250kg per charge. The B and C messecuites are cured using
continues machines.

Sugar Drying and Storage:

The sugar 3 numbers of auto weighing scale attached to sugar bins, which are present to
get 100/50kg net sugar bags are stitched and are conveyed to godown for stacking.
Page No. 21









Page No. 22

The Finance department is headed by Sri M Ramalingam of the Company and who
is also the Chief Executive Officer, who is in charge of whole finance department.
The department is sub divided into:
1. Finance
2. Accounts
3. Costing
4. Commercial accounts
5. Secretarial Department
6. Purchase ( Capacity Availability Utilization)
The key functions of Finance department are:

Arrangement of Finance


Maintenance of Accounts


Cost Analysis


Cost cutting Methods


Receipts and Payments

Preparation of P&L Account, Balance sheet
Internal Auditing
Verification of C&F Agent activities

Page No. 23


It acts as liaison for banks.

Personal Department:
Human Resource department controls over 3 main areas:
1. Human Resource
2. Public Relation
3. Personnel Department
The major functions of personnel department are:
Training and Development
Manpower planning
Welfare Measures (Canteen and Fringe Benefits, Ambulance)

Page No. 24


The Human Resource Department has the following policies. Employees are given
Bonus, attendance award, production incentive (on target achievement), special pay (Salesmen),
medical checkups, etc. The staff in the PSSK Limited will come under human resource
department under the senior general manager. The department is looking after three sub
departments, they are

Human Resource Department

Personnel and Industrial Relations Department

Safety and Security Department

Managerial Functions:
Planning: It is a pre- determined course of action. Planning

pertains to formulating

strategies of programmers and changes in advance that will contribute to the

organizational goal.
Organizing: it is essential to carry out the determined course of action.
Directing: The next logical function after completing planning and organization is the
execution of the plan. The basic function of personnel management at any level is
motivating, commanding, leading and activating people.
Controlling: After the three various activities of personnel management, the performance
is to be verified in order to know that the personnel functions are performed inconformity
with the plans and direction of the organization.

Page No. 25

Operative Functions
Employment: it includes job analysis, human resource planning, recruitment, selection,
placement and induction and orientation
Human resources development: it is a process of improving, molding, and changing the
skills, knowledge, creative ability, aptitude, attitude etc.
Compensation: it is a process of providing adequate, equitable and fair remuneration to
the employee. It includes job evaluation, wage and salary administration, bonus,
incentives etc.
Human Relations: it includes motivating the employee, boosting employee morale,
developing the employee communication skills, developing the leadership quality etc.
Industrial Relations: it includes Indian labor market, trade union, collective bargaining,
industrial conflicts etc.
Recent Trends in HRM: HRM has been advancing at a fast rate. It includes Quality of work
life, total quality in HR etc.
EMPLOYMENT / RECRUITMENT: Recruitment is a process to discover the sources of
manpower to meet the requirements of the staffing schedule and to employee effective
measures for attracting that manpower for adequate numbers, to effective selection of
our efficient workings

Page No. 26

To create customer satisfaction for profitability by building value based relationship with
Customer Orders, schedules, order amendments
Review and acceptance of Orders/Schedules in consultation with works Manager and
Review new enquiry with MD, Checking daily sales as per the respective dealer, Finding new
areas where there is demand for product, Issue tenders and receiving new orders, Dispatching
the product as per the indent, Attending complaints from the customers,
Meeting dealers to solve their problems, Maintaining up date records of sale.
Functions of Marketing Department
Collect information regarding current market conditions
Providing proper information to the customers
To understand customer requirements
Advertising and Promotional Planning
Sales Forecasting
Sales Budget
Page No. 27

Marketing Audit




Wage and Salary administration.

Welfare Measures.


Sanction of Increments.

Disciplinary action against misbehavior of employees.

Termination and retirement.

Employees Attendance


It is estimated to crush 30 lakhs ton of sugarcane in aggregate with the perpetual
succession of cane crushing in regards to cane availability in locality. The working result of the
company is expected to be satisfactory.

Page No. 28

In PSSK Limited, the major production is sugar.

The company has to produce two types of sugars.

They are
1) Brown Sugar
2) Raw sugar.

1.Brown Sugar:
In the form of dry, brown sugar crystals ( the colour being due to the presence of
impurities) obtained form is the evaporation of clarified sugar cane juices imported for
processing into refined sugar, this product is not sold to customers because it does not meet
Canadian standards for health and hygiene.

2. Raw sugar
The residue left after sugarcane has been processed to remove the molasses and refine the
sugar crystals. The flavor is similar to that of brown sugar.

By Products by the sugar factory :

The chief Byproducts of sugar manufacturing are ;
1. Bagasses
2. Molasses

Page No. 29

3. Press Mud

Bagasse is the byproduct left behind after crushing of sugar cane. It is used as a fuel in
the sugar boilers. Excess Bagasse finds use as a raw material in paper manufacture.

Molasses is a byproduct of sugar refining chiefly used for alcohol production the entire
molasses output is routed to the distillery unit and acetic acid plant.

Press Mud:
Press mud is the byproduct generated by cane juice filtration during sugar manufacture
currently press mud is used as fertilizer in sugarcane cultivation. Distillery effluents are mixed
with press mud that comes from sugar factory to make bio-fertilizers a substitute for chemical
Full exploitation of these potentials would besides would besides significantly
contributing to the energy of the country and there by immensely benefiting sugar cane formers.
Hence central government shows keen interest in setting up many more sugar units as it uplifts
the rural masses and helps to generate eco-friendly renewable energy.

Operating Localities :
PSSK Limited is interested in area of operation in the districts of MANDYA, MYSORE,
CHAMARAJANAGAR etc. has brought considerable prosperity to the formers. For the purpose
of maintain the phase of maintain the phase of economic growth the promoters have setup a plant
for manufacturing white sugar at Mandya. The plant will also meet the demands from the
agricultural community for establishing a sugar factory in the region. The company as
accordingly with the active support of the state government. KSIIDC and KAIC THE
CENTRAL Government to issue a license to setup the sugar factory at Mandya.
Page No. 30

The PSSK Limited white sugars are exported to various states and the other countries.

Competitors Information
The international scenario of sugar is highly favorable for another 4 to 5 years. This is an
account of the following reasons.
The W.T.O has banned the dumping of D grade sugar to the world Market.
The perroleum industries are in need of ethanol for blending with the petrol hence the
sugar factories are diverting to ethanol manufacturing gradually.
On amount of the above reason the availability of the sugar in the international market
has been reduced substantially.
Demand in more at international market, but supply is deficit hence the price has sugar an
international level is soaring up.
This trend is giving to be contined for another 4 to 5 years. As short term expectation.

The major competitors in Karnataka.

The Mysore Sugar Company Ltd
Bannari Amman Sugars Ltd.,
Sri Chamundeswari Sugars Ltd.,
Gangavathi Sugars Ltd.,
The Godavari Sugar Mills Ltd.,
Davangere Sugar Company Ltd.,
Coromandel Sugars Ltd.,

Page No. 31

Though we heavily rely on historical performance. The figures reported in this report are
not historical.
Projections for the coming fiscal year. The forecasts are updated quarterly. This
particulars report was quarter. In order to maintain comparability over time and across companies
and countries. We use on case of firms assets. We treat the total assets as equaling 100.
Irrespective of the value of the local assets are then calculated as a percent from total assets.
In this way the structure of the firms assets interpreted and compared with international
benchmark. For liabilities total liabilities and equity are 100. For the income statement.
Total revenue is indexed to equal 100 and all other figures are calculating these figures
ratios. Ratios are projected using raw financial statistics and as ratios are therefore comparative.
The various raw statistics include public filings corporate releases and various other data
sources given a companys financial, marketing and human resources structure. The resulting
figures are benchmarked across leading competitors icon group chooses only those firms with
sound financial statement situations or those not restructuring or where random volatility
mergers or bankruptcy affects performance.
Since the searching of competitors and calculation of competitors benchmarks proceeds
in a similar fashion. But are aggregated a crore one can directly conduct a gap analysis here icon
group graphically reports for each parts of statement the larger gaps that the firms has vis--vis
the leading competitors.
A gap need not to be a simply a substantial difference that might merit further attention or
signal a firms relative strength or coming fiscal year.

Page No. 32

The raw material cost plays a very vital role in determining the financial performance of
sugar companies. Any unreasonable increase in sugarcane price adversely affects the profitability
and in the long run it would have impact on the payments to be made to the cane growers.


High quality products

State of the art infrastructure

Strong distribution network

Competent human resource


Certification of ISO 9001 quality policy.


Power supply interruption


High logistics costs

Exposure to FOREX rate variation

Pollution control board vigilance

High costs of plant maintenance

Page No. 33

The sugar production in India is expected to be at 250 lakh tonnes in 2011 - 2012 season
compared to 189.12 lakh tonnes in 2010 - 2011 season. Sugar plants are expected to function at
optimum levels in 2011 - 2012 season also The Central Electricity Regulatory Commission
(CERC) is currently undertaking several positive measures for co-generation. These measures
include generic tariff norms for co-generation projects; norms and pricing framework for
Renewable Energy Certificates (RECs) and amendment of the provisions of the grid code to
ensure smoother off take and transmission of power by utilities.
Further State Electricity Regulatory Commissions (SERCs) in some key sugar producing
states have also taken proactive measures such as increasing co-generation tariffs, permitting
third-party sales, allowing usage of coal in off-season and power off take at preferential rates
Integrated sugar plants are expected to perform satisfactorily The increased quantity wise
consumption of ethanol in petroleum products would benefit the industry immensely depending
upon the Government policy with regard to price and implementation.

Competitors are major threats to PSSK Limited.

Competition from big companies which manufacture branded sugar and refined sugar.

Subsidy burden faced by sugar mills.

Unstable Government policy.

The Government's policy towards controlling the prices of sugar artificially through
export regulations and release mechanism result in financial chocking of the sugar
Page No. 34

companies. The continued increase of price of sugarcane without correlation to the sugar
prices also has adverse impact on the results. With regard to co-generation there are
inconsistencies in tariff norms, incentives and regulatory policies of different states.
There is no fixed long-term policy In respect of ethanol revised price fixing and blending
policies are yet to be finalized leaving uncertainties for planning Internal Control Systems
and their Adequacy.

In plant visiting of PSSK Limited has given a clear picture of work Flow of the complex
organization. During our learning process I learnt about the companys manufacturing process of
white Sugar.
All employees in PSSK Limited are friendly, co-operative and helped to collect the
required information.
We understood the behavior, culture of the organization and came to know about the
various policies of the organization and its performance and its future strategies.
Company provides us special training and an overview of its products and also made us a
aware of market situation.
Company taught us how to lead the way and communicate with customers. In a short
period of time, company made us to think about our future growth and career to choose.
Here we learnt the importance of punctuality professionalism and discipline, which in
turn imparted the sense of responsibility.
The atmosphere was so friendly and did not feel any tinge of difficulty during visiting
period, which in fact gave a great deal information and knowledge as how an organization really

Page No. 35

The information that provided an opportunity to relate classroom learning with reality of
management. Our constant interaction with a people including the executive, the supervisors had
indeed widened our horizons of knowledge. Overall the visiting period in the company is a
wonderful experience and a great exposure.

The factory should adopt some more employees to keep factory premises clean and
As the factory having the co-generation plant and it can generate more electricity and
supply to the Pandavapura town.

The company should recruit experienced mangers which will helps in adopting new
managerial techniques.

Organization should try to adopt more and more new technology and methods of
production to survive in this competitive market.
Medical allowances should be increased because they will not get proper treatment from
that amount.
Special incentives should be given to encourage employees.
Offers performance awards annually to encourage employees, agents and dealers.

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There is a scope for improvement of quality and brand image as there is a huge
competition in the market.

It was an exciting experience to work at PSSK Limited. From this project I explored to
the organization operations.
PSSK Limited is a reputed organization which has developed its good will in the market
to compete with other factories. It has to adapt modern technology in its production
process and can do more export of sugar and molasses to the market.
PSSK Limited is functioning well for the social as well as economical up- liftman of the
rural population.
To survive in the market the company needs to adapt an aggressive marketing policy as
of competitors.
Last but not least I would like to conclude PSSK Limited as a good organization to work
as well as good interactions with the people. All the labors, shift workmens and other
members of the factory have given straight and proper information with the warm

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