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Overview Social democratic policies governed India's economy from 1947 to 1991. The economy was characterized by extensive regulation, protectionism, public ownership, pervasive corruption and slow growth. Since 1991, continuing economic liberalization has moved the country towards a marketbased economy. A revival of economic reforms and better economic policy in first decade of the 21st century accelerated India's economic growth rate. In recent years, Indian cities have continued to liberalize business regulations. By 2008, India had established itself as the world's secondfastest growing major economy. However, as a result of the financial crisis of 20072010, coupled with a poor monsoon, India's gross domestic product (GDP) growth rate significantly slowed to 6.7% in 200809, but subsequently recovered to 7.4% in 200910, while the fiscal deficit rose from 5.9% to a high 6.5% during the same period. Indias current account deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter. The unemployment rate for 20092010, according to the state Labour Bureau, was 9.4%

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nationwide, rising to 10.1% in rural areas, where two-thirds of the 1.2 billion populations live. India's large service industry accounts for 57.2% of the country's GDP while the industrial and agricultural sectors contribute 28.6% and 14.6% respectively. Agriculture is the predominant occupation in India, accounting for about 52% of employment. The service sector makes up a further 34%, and industrial sector around 14%. However, statistics from a 2009-10 government survey, which used a smaller sample size than earlier surveys, suggested that the share of agriculture in employment had dropped to 45.5%. Major industries include telecommunications, textiles, chemicals, food processing, steel, transportation equipment, cement, mining, petroleum, machinery, information technology-enabled services and pharmaceuticals. The labour force totals 500 million workers. Major agricultural products include rice, wheat, oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, sheep, goats, poultry and fish. In 2009-2010, India's top five trading partners are United Arab Emirates, China, United States, Saudi Arabia and Germany. Previously a closed economy, India's trade and business sector has grown fast. India currently accounts for 1.5% of world trade as of 2007 according to the World Trade Statistics of the WTO in 2006, which valued India's total merchandise trade (counting exports and imports) at $294 billion and India's services trade at $143 billion. Thus, India's global economic engagement in 2006 covering both merchandise and services trade
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was of the order of $437 billion, up by a record 72% from a level of $253 billion in 2004. India's total trade in goods and services has reached a share of 43% of GDP in 200506, up from 16% in 199091. India's total merchandise trade (counting exports and imports) stands at $ 606.7 billion and is currently the 11th largest in the world. The overall growth of Gross Domestic Product (GDP) at factor cost at constant prices, as per Advance Estimates, was 8.6 per cent in 201011 representing an increase from the revised growth of 8.0 per cent during 2009-10, according to the Advance Estimate (AE) of Central Statistics Office (CSO). Overall growth in the Index of Industrial Production (IIP) was 3.6 per cent during February 2011. During April-February 2010-11, IIP growth was 7.8 per cent. The six core industries (comprising crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel) grew by 6.8 per cent in February 2011 as compared to the growth of 4.2 per cent in February 2010. During April-February 2010-11, these sectors grew by 5.7 per cent as compared to 5.4 per cent during April-February 2009-10. In addition, exports, in US dollar terms increased by 49.7 per cent and imports increased by 21.2 per cent, during February 2011. Indian economy is now attracting the attention of the people from all over the world. The financial condition of the country has shown significant development in the last few months and has become much stable
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these days. The Indian economic outlook 2011 also indicates that the financial condition of the country has become more stable in the recent years, yet inflation has been a significant problem. As per the reports, policy makers of the country have given a significant boost to the financial state of the country. They have brought development in the countrys financial state in exchange of the risks related to macro stability which resulted in the inflation. Inflation Rate in India According to the financial experts, the economic condition of the country has become stable and the GDP has also improved in the last few quarters. However, the high inflation rate has overshadowed the growth of the economy and that is the reason why many are considering that the economic condition of India is still unstable. As per the reports of Indian inflation rate 2011, the non-food inflation has come down to 7 percent this year. It was around 11 percent previously. Reports indicate that inflation rate has become a major cause of concern these days among the common men of the country. It has also raised the eyebrows of investors, too. Rising Rate of Unemployment in India Financial experts have implemented different measures for bringing stability in the inflationary condition of the country. They have also designed programs for boosting the overall economy of the country. As per the reports, the Indian unemployment rate 2011 has also remained a cause of
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concern among the people. The latest reports indicate that the unemployment rate of the country is at 9.4 percent this year which is quite high. According to the reports, forty million people are still unemployed in the country and more employment opportunities are required for balancing the condition. Indias GDP growth Rate Reports state that several industries have been developed in the country in the past few years and many have been included in the five years development plan for stabilizing the condition. With more financial stabilization plans introduced in the recent years, the overall economy of the country has received a boost. The Indian GDP growth at present is 9.1 percent which is also quite appreciating. Even though the gross domestic product has made a significant growth in the past months, the country needs to maintain a strict growth for emerging as an advanced economy. Recent performance: Real GDP growth slowed to 8.2% y/y in Q4-10, bringing overall growth in 2010 to 8.6%. On a seasonally adjusted basis however, real GDP fell 2.1% an annualized rate from 15.5% in Q3.Despite a greater contribution from net trade, a decline in government spending and a sharp slowdown in investment took the momentum out of the Indian economy. Across sectors, the slowdown was widespread, with only agriculture and finance showing a pick-up in growth. Industrial activity stood at a near standstill in Q4, rising 0.2% q/q, as spending on capital goods and
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intermediate goods fell. Consumption spending rose slightly but remains well below potential, expanding 0.4% q/q. Fiscal policy: Plagued by various scandals, the government presented a budget for FY2011/2012 that is weak on reforms and consolidation. At the same time, the government has maintained or increased a number of populist measures, such as price subsidies on sensitive items as well as the rural workers guaranteed employment program. The forecasted improvements over the next 2 years rely on optimistic growth assumptions and improvements in tax collection, as well as the capacity to contain spending within the allocated budget. On the positive side, the budget reinforces the governments commitment to infrastructure and education development and highlights some progress in key changes in the tax systems (direct and consumer taxes), both of which are impediments to unlocking Indias growth potential. As a share of GDP, the Central government deficit is expected to reach 4.6% of GDP in FY2011/2012 (excluding off-budget food, fuel and fertilizer price subsidies and the deficits of state governments), from 5.1% in FY2010/2011. Monetary policy: After a lull in Q4, inflationary pressures picked up again early in 2011, pushing the Reserve Bank of India (RBI, the central bank) to return to a tightening stance, raising interest rates by 25 basis points for the repo and reverse repo early in 2011. The move was prompted not only by resilient inflation pressures, with inflation remaining stubbornly high at 8.2% for
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both the CPI and WPI in January, but also strong demand for credit, which accelerated to 22.5% y/y in December from 18.2% in November. While the increase in prices is partly driven by food shortages, the ramping up of M2 growth and non-food inflation since are also of concerns. As such, additional tightening is expected early in the year.

External sector: Despite strong export growth and remittances inflows, the current account balance continued to expand as a share of GDP in Q3, rising to 4.3%. In Q4 however, the trade surplus shrank to US$21.3 billion in Q4, after averaging over US$30 billion in the first 3 quarters of the year, driven by resurging exports, up 28.4% y/y, and a sharp slowdown in imports, up 1.8% y/y, a sign of the slowing economy. With rising oil prices and the capital account vulnerable to outflows, the balance of payment and rupee are expected to weaken in 2011. However, the level of foreign exchange reserves remains stable at US$274 billion, up from US$254 billion in May 2010, and sufficient to cover 7 months of current account debit. Outlook: The lagged impact of monetary tightening and the pullout of fiscal stimulus will slow real GDP growth to 8.2% in 2011 from 8.6% last year. While infrastructure spending will accelerate, tighter credit conditions will result in a slowdown of private sector activity. Of concern for the mediumlong term business environment are the current corruption scandals, such as those of the Commonwealth Games and the 2G licenses, that have engulfed
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the Indian Parliament, putting the reform agenda on the sideline for the moment.

Indian economic and policy highlights Domestic car sales in India declined 16% (y-o-y) in Jul11 the sharpest decline since Nov08 in the midst of the global financial crisis. The decline is attributed to higher interest rates and fuel prices. However, the industry body expects a revival from this month, driven by a flurry of new car launches and resumption of full production at Maruti Suzuki. Indias industrial output grew by 8.8% (y-o-y) in June11 primarily on account of a huge 37.7% (y-o-y) growth in capital goods production (which is known for its lumpiness). However, excluding this sector, the industrial growth has weakened to 4.0% (y-o-y) in June11 partly reflecting the impact of sustained monetary tightening on consumer goods growth that has slowed to 1.6% (y-o-y) this month. Indias gross direct tax collections were up by 26.63% (y-o-y), during April-July, 2011 to Rs 1,325.42 bln on account of healthy collections from both corporate and personal income taxes. Indias exports have registered a growth of 81.8% (y-o-y) during Jul11 to USD 29.3 bln, on account of good performance by sectors like petrochemical products, gems & jewelers and electronics. The FDI into India rose over four times in June11 to reach USD 5.65 bln versus USD 1.38 bln a year ago. The FDI into India is expected to
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cross USD 35 bln in FY12 as against USD 19.4 bln in the previous year on account of major deals between the Reliance group and British Petroleum. Indian Banking Industrys Non-Food Credit grew by Rs 571.14 bln over end- March11 until July 29th, reflecting a slight moderation in y-o-y growth to 18.2%..

Industry Profile

India is the largest consumer and second largest producer of sugar in the world. The Indian sugar is the second largest ago industry located in the rural area. The Indian sugar industry has turn over of Rs.400 billion per annum and 500 operating sugar mills in different parts of the country. About 50 million sugar cone fanners and large number of agricultures labour are involved in sugar cone cultivation and ancillary activities constituting 8% of the rural population. Most of the sugar in India is manufactured and sold as Plantation white Sugar which is produced by double sulphitation while norm in

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developed and emerging nations is refined sugar which is produced by the phospho flotation process.

Labours are the predominant factors for the sugar industry where different type like unskilled, skilled, semiskilled and highly skilled personnel are involved in the activities in the sugar industry.

All most all sugar industries are being installed in the rural area where the principal raw material is available in rural areas.

While considering the nature of employment, the basic elements of labours factors are to be seen; 1) Nature of labour 2) Standard of living 3) Financial condition 4) Family background 5) Inclination towards work 6) Educational background.

Satish sugars not only producing the sugar but also produce the electricity and its having a sub factories like disterlary, engineering & kojan factories.

Sugar production is found in state like Uttar Pradesh, Maharastra, Karnataka, Gujrath, Tamil Nadu, Andhra Pradesh, Haryana, Punjab, Uttranchal & Bihar. Overall turn over of states in the [2003-04] is 12% and 15% sugar availability occupies about 3% of the total cultivated area and it is one of the most important cash crops in the country. It is not only meant for Indian

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countries but also it global wide like Brazil, EU, U.S., Mexico, Australia, South Africa, Malaysia, Pakistan, Vietnam and Fiji.

Internationally Brazil and India are the largest producing countries followed by China, USA, Thailand, Australia, Mexico, Pakistan, France and Germany. National Scenario Of Sugar Industry: The first sugar mill in the country was set up in 1903 in the United Provinces. There are 566 installed sugar mills, of which 453 were in operation in the year 2002-03 and utilized 194.4 million ton of sugarcane (69% of total cane production) to produce 20.14 million tons of sugar. About 5 lakh workmen are directly employed in the sugar. About 5 lakh workmen are directly employed in the sugar industry besides many in industries, which utilize by-products of sugar industry as raw material. India is the largest consumer and second largest producer of sugar in the world. The Indian sugar industry is the second largest agro-industry located in the rural India. Indian sugar industry has been a focal point for socio-economic development in the rural areas. About 50 million sugarcane farmers and a large number of agricultural laborers are involved in sugarcane cultivation and ancillary activities, constituting 7.5% of the rural population. Besides, the industry provides employment to about 2 million skilled/semi skilled workers and others mostly from the rural areas. The industry not only generates power for its own requirement but surplus power for export to the grid based on by-productBagasse. It also produces ethyl
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alcohol, which is used for industrial and potable uses, and can be used to the manufacture Ethanol, an ecology friendly and renewable fuel for blending with petrol. The sugar industry in the country uses only sugarcane as input, hence sugar companies have been established in large sugarcane growing states like Uttar Pradesh, Maharashtra, Karnataka, Gujarat, Tamil Nadu, and Andhra Pradesh. In sugar year 2003-04,these six states contribute more than 85%of total sugar production in the country; Uttar Pradesh, Maharashtra, and Karnataka together contribute more than 65%of total production. The government of India licensed new units with an initial capacity of 1250 TCD up to the 1980s and with the revision in minimum economic size to 2500 TCD, the Government issued licenses for setting up of 2500 TCD plants thereafter. The government de-licensed sugar sector in the year of 11.September.1988. The entrepreneurs have been allowed to set up sugar factories of expand the existing sugar factories as per the techno-economic feasibility of the project. However, they are required to maintain a radial distance of 15 kms from the existing sugar factory. After de-licensing, a number of new sugar plants of varying capacities have been set up and the existing plants have substantially increased their capacity. There are 566 installed sugar mills in the country as on March 31st 2005 , with a production capacity of 180 lack MTs of sugar, of which only 453 are working. These mills are located in 18 states of the country.

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International Scenario of Sugar Industry: Sugar is produced in 110 countries. The leading sugarcane producing countries are Brazil, India, Australia, Thailand, China and Cuba. Sugar is extracted from two different raw materials, sugarcane and beet. Both produce identical refined sugar. Sugarcane is grown in semitropical regions, and accounts for around two-thirds of world accounts for the balance one third of world production. The Russian Federation, Ukraine and Europe account for around 80 per count of total beet sugar production. In addition to weather conditions, diseases, insects, and quality of soil, international trade agreements and domestic price support programmers affect production of sugarcane and beet.

International Sugar Industry: Demand- Supply: Brazil and India are the largest sugar producing countries followed by China, USA, Thailand, Australia, Mexico, Pakistan, France and Germany. Global sugar production increased from approximately 125.88 MMT in 1995-1996 to 149.4 MMT in 2002-2003 and then declined to 143.7 MMT in 2003-2004, whereas consumption increased steadily from 118.1 MMT in
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1995-1996 to 142.8 MMT in 2003-2004 as shown in below given chart. The word consumption is projected to grow to 160.7 MMT by 2010 and 176.1 MMT by 2015.

The worlds largest consumers of sugar are India, China, Brazil, USA, Russia, Mexico, Pakistan, Indonesia, Germany and Egypt. According to USDA Foreign Agriculture Service, the consumption of sugar in Asian countries has increased at a faster rate, as a direct result of increasing population, increasing per capita income and increased availability.

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Contribution of Sugar Industry to Indian Economy: Sugar industry contributes about Rs.1650 crores to the Central Exchequer as excise duty and other taxes annually. In addition, about Rs.600 crores is realized by the State Governments annually through purchase tax and cess on cane. At the prevailing sugarcane price, the total sugar cane produced in the country value at about Rs.24000 crores per year.

World Sugar Trade: Word trade in raw sugar is typically around 22 MMT and white sugar around 16 MMT. Brazil is the largest importer, followed by EU, Thailand,

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Australia and Cuba. The largest importers are Russia, Indonesia, UK, South Korea, Japan, Malaysia, the Middle East, and North Africa.

Sugar Prices: World sugar prices fell steadily from 1994-1995 till 1998-1999 and have been almost stable at those levels. The trend seems to have now reversed and refined sugar prices have increased by 30% in the last 5 quarters from 9.16 cents per pound in January, 2004 to 12.02 cents in March,2005 (Source: USDA Foreign Agriculture Services).

Sugarcane Availability: Table showing sugar cane availability in cultivated area:


Cultivated (%)

area MMT

1980-81 1990-91 2000-01 2002-03 2003-04 2004-05

2.7 4.3 3.9 3.7

154 241 296 300 236

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Sugarcane occupies about 2.7% of the total cultivated area and it is one of the most important cash crops in the country. The area under sugarcane gradually increased from 2.7 million hectares in 1980-81 to 4.3 million hectares in 2002-03, mainly because of much larger diversion of land from other crops to sugarcane by the farmers for economic reasons. The sugarcane area, however, declined in the year 2003-04 to 3.9 million hectares and to 3.7 million hectares in 2004-05, mainly due to drought and pest attacks. From a level of 154 MMT in 1980-1981, the sugarcane production increased to 241 MMT in 1990-1991 and further to 296 MMT in 2000-2001. Since then, it has been hovering around 300 MMT until last year. In the season 2003-2004, however, sugarcane production declined to 236 MMT mainly due to drought and pest attacks. Not only sugarcane acreage and sugarcane production has been increasing, even drawal of sugarcane by the sugar industry has also been increasing over the years. In India, sugarcane is utilized by sugar mills as well as by traditional sweeteners like guru and khandsari producers. However, the diversion of sugarcane to guru and khandsari is lower in states of Maharashtra and Karnataka, as compared to Northern states like UP.


% Sugarcane utilization for

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White Sugar

Guru and Seed, feed Khandsari and chewing

1980-1981 33.4 1990-1991 50.7 2000-2001 59.7 2001-2002 57.4 2002-2003 68.9 2003-2004 56.1

54.8 37.4 28.8 31.5 20.1 32.5

11.8 11.8 11.5 11.1 11.1 11.4

Sugar Production: Most of the sugar in India is manufactured and sold as White Crystal Sugar which is produced by Double Suspiration Process, while the norm in developed and emerging nations is refined sugar, which is produced by the Phosphoflotation Process. Most of the mills in India are not equipped to make refined sugar Mills which are designed to produce refined sugar can manufacture sugar not only from sugarcane but also from raw sugar which can be imported. Therefore, such mills can run their production all the year round, as opposed to single state mills, which are dependent upon the seasonal supply of sugarcane.

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Company analysis

Type of organization: Private sector Year of incorporation: The company was incorporated in 12th April, 2000 Satish Sugars Ltd. is located in Hunsyal (P.G), which is 15, Km. away from Gokak, Dist: Belgaum. The area of operation of this factory is spread 160 acres. The Satish Sugars Ltd. Is one of the sugar producers in the state of Karnataka. The Company was incorporated on 12th April, 2000 as Khandasari Sugar plant in the name of Gokak Power, Distilleries & Sugars (P) Ltd. and name was changed to Satish Sugars Ltd.

This company is producing not only the Sugar but also other products; such as rectified spirit, fertilizers and power generation. The crushing capacity of the company is 8000 per day.

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The overall management of S.S.L. is efficient. Hence a study was undertaken as Organizational Structure to find out the functions of different departments.

Vision To become the most efficient processor of sugar and the largest marketer of sugar and compete globally . Mission Satish Sugars Group has set the goal of becoming a vibrant dynamic and professionally managed group of companies having a turnover of over Rs.1000 crore with a net profit of 5% by 2015,25% of the net profit will be spent on a board-spectrum of community development activities such as Education, Healthcare, Culture, Sports and Social Welfare. This is in line with the groups motto of placing community before self and Social services before. Promoters of the Company: Mr. Satish.L.Jarkiholli Chairman & M.D

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Shareholding pattern: Holder's Name Promoters OtherCompanies GeneralPublic ForeignNRI Others ForeignInstitutions FinancialInstitutions NBanksMutualFunds
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No of Shares 6949733 1879252 1449269 401584 384086 250400 2300 100

% Share Holding 61.41% 16.61% 12.81% 3.55% 3.39% 2.21% 0.02% 0%

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Theoretical aspects of organisation structure: Organisation is the process of : Determine what task should be assigned to which employees. Grouping employees into employees. Allocating resources to accomplish organizational goals. Formal and Informal organizational structures Formal structures are : The positions and reporting structure of employees in the company. Shown on an organisation . Have a formal communication system and chain command.
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Informal structures are ; Relationship between any people in the organisation that developing based on common interests or activities. Manager should understand the effects of the informal structure. Possible positive effect from the informal

Help employees to communicate the co-operate Give support an encouragement to employees. Possible negative effect from the formal structure Can spread harm full an incorrect rumours . Can cause conflict among employees. Can create resistance to change and reduced management control Organisation chart show An organisation is a picture of the formal structure of an organizaton showing the relationship between positions within the formal organization. Centralization and Decentralization: Centralization

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Means that most important decision are made by top managers allowing them to kept tight control. Procedure are often standardized across all department. Decetralization Means that lower level employees are involved in decision making. Problems can be solved quickly by lower level employees who are empowered to make their own decision. Neither method is necessarily good or bad. Each can be useful in different situation, even in the same company.

NO of Employees: More than 400 eligible and hardworking employees are present in the company which is a major asset.

STAFF The SSL workers are good and hard working citizens, they play essential role in the development of company. Employee is the responsible person of the company. Every employee invold in success of the company. They may be responsible for the success or failure of the company. In this

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company employee following the work is worship. The company has totally 650 workers are working is the company. They are categorized as following. 1) Permanent workers 2) Seasonal workers 3) Probationary worker 4) Daily wage worker 280 10 10 100

400 Company is paying salary of Rs. 25 lakhs per month to its workers.

Classification of employees: Managers Accountants Support staff Laborers

Size of land and building The area of operation of this factory is spread 160 acres.
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PRODUCT PROFILE SUGAR The sugar produced in Satish Sugars Limited factory is both refined confirming to EC II grade with negligible sulphur content as well as plantation grade white sugar. The EC II grade sugar meets the European standards of refined sugar. Sugar is a sweet, white or brown, usually crystalline substance obtained mainly from sugar cane or sugar beets and used commonly in food products. Sugar means something sweet in form of taste.

BY- PRODUCTS OF SUGARCANE: The sugar mill produces many by-products along with sugar. A typical sugarcane complex of 3000 TCD capacity can produce 345 ton of sugar, 6000 liters alcohol, 3 ton of yeast, 15 ton of potash fertilizer, 25 ton of pulp, 15 ton of wax, 150 ton of press-mud fertilizer and 750KW of power from Bagasse.

MOLASSES Molasses is the final effluent obtained in the preparation of sugar by repeated crystallization. It is the product from a refining process carried out yield sugar. Sucrose and invert sugars constitute a major portion (40 to 60%)
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of molasses. The yield of molasses per ton of sugarcane varies in the range of 3.5% to 4.5%. . ii. BAGASSE Bagasse is a fibrous residue of cane stalk that is obtained after crushing and extraction of juice. It consists of water, fiber and relatively small quantities of soluble solids; the composition of Bagasse varies based on the variety of sugarcane, maturity of cane, method of harvesting and the efficiency of the

sugar mill.Bagasse is usually as a combustible in the furnaces to produce steam, which in turn used to generate power; it is also used as raw material for production of paper and as feedstock for cattle.

iii. ETHANOL The company produces alcohol from the molasses (Molasses is the brown colored residue after sugar has been extracted from the juice. Molasses still contains some quantity of sugar, but this sugar cannot be extracted by usual technology) left after the extraction of sugarcane juice, which can be used both for potable purpose as well as an Industrial chemical. Further, this alcohol can be purified to produce fuel grade ethanol that can be blended with petrol.

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iv. BIO-FERTILIZERS The residue product from distillery operations blended with chemicals is sold as bio-fertilizers Market share: SSl claims to have 19% of market share in Karnataka and 5 % in India.

Equity share data: Holder's Name No of Shares % Share Holding

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Promoters OtherCompanies GeneralPublic ForeignNRI Others ForeignInstitutions FinancialInstitutions NBanksMutualFunds

6949733 1879252 1449269 401584 384086 250400 2300 100

61.41% 16.61% 12.81% 3.55% 3.39% 2.21% 0.02% 0%

Sales and profit

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15000 10000 5000 0






Actual Sales







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Top management level: Board of Directors:

Mr. Satish.L.Jarkiholli Smt. S. S. Jarkiholli Mr. Pradeep.M.Indi Mr. Vittal.R.Parasannavar

Chairman & M.D Director Director Director

Auditors: Mr. B.B.Amanagi Chartered Accountants Belgaum Bankers: Indian Bank Corporation Bank

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COMPANY PROFILE: The Company was established with an all-encompassing view of around development of all communities. Satish Sugars Ltd. (SSL) established with the principal objective of serving the society through economic development, SSL has today grown to become a dynamic company that makes a fine case of youthful spirit and farsighted vision. The Company has covered the path of success adopting innovative approach and has left in its wake rays of hope for the people of Gokak and the surrounding region.

Mr. Satish.L.Jarkiholi, the man at the helm, set the path of the Company to widespread economic activities with an unwavering commitment and conviction. Employment generation and community development were the primary goals behind the initiation to the activities of the Company. Today, it provides employment to nearly 500 people and has transformed the lives of thousands of families in the region. Indirectly has helped farmer community to stand with pride & self-respect and lead to financial stability of their families.
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The journey of SSL spanning diverse activities such as sugar mill, agriculture research, organic farming and community development makes a impressive tale. For every major stride taken by the Company, the community has taken a corresponding progressive step. Inspired by its success so far, the SSL has charted out ambitious plans for the future. Its projects in the anvil include a power generation unit, distillery unit, Aircraft charter and Aviation Pilot training & maintenance center.

Most of these projects are community centric in nature and have the objective of creating a vibrant social atmosphere in Gokak. Its this vision of community-oriented business model is what sets Satish Sugars Ltd. Apart from the rest. It also spurs us to strive for people development even harder.

The Satish Sugars Ltd. Is one of the sugar producers in the state of Karnataka. The Company was incorporated on 12th April, 2000 as Khandasari Sugar plant in the name of Gokak Power, Distilleries & Sugars (P) Ltd. and name was changed to Satish Sugars Ltd.

In 2004-05, the unit adopted Vacuum Pan Technology keeping in view its economic viability, efficiency and higher return on investment. The initial capacity of the reformed unit was 1250 TCD and in the trial season,
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the unit processed 51,406 tones of sugarcane in 2004-05 and registered a profit of Rs. 1.76 crore on a turnover of around Rs. 9.2crore. SSL has set a target of two lakhs tones of cane crushing for the year 2005-06 with a turnover of Rs.20.00crore and a net profit of Rs.2.50crore.

SSL has distributed seeds and fertilizers to needy farmers on a credit at low rate interest. This way, it has developed more than 2,500acres of land in 2004-05 and is developing 5,000acres in 2005-06 under the Registered cane Area Program. The Company has set an ambitious target of achieving a processing capacity of 10lakhs tones in the next five years. The future plans of the Company include generation of 20MW power from by-products and setting up of 30KL distillery unit. SSL is arduously working for the

development of sugarcane cultivators. It regularly sponsors the visit of farmers to various states and National level agriculture fairs and organizes seminars and workshop on improved methods of sugarcane cultivation.

Free training on scientific farming to children and encouragement to students with special talent in areas of education, culture and sports are other prominent community development activities undertaken by the company.

In view of the above, Mr. Satish Jarkiholi has developed sufficient exposure to become a successful entrepreneur. His foresight in the sugar and allied industries enabled him to take the following steps well in advance,
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even while executing the Khandsari Sugar Unit and keeping in mind the Government of Indias incentive scheme of 1977 to Khandsari sugar units to adopt vacuum pan technology, Mr. Jarkiholi had envisaged changing the technology along with suitable expansion even while implementing the Sugar Unit. He had also forethought the advantages.


Name of the sector-private sector. Registration office-Anna Road,Hill garden. Production capacity-511952 Land coursed-160 acres. Name of the factory-Satish Sugar Ltd.

With address: Sangankeri / Yadawad Road, Hunashyal,P.G. Gokak-591307 Dist-Belgaum

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>Manufacture undertake-








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Functional departments

4.1 FINANCE & ACCOUNTS DEPARTMENT Structure of Finance Department

Manager Finance

Asst. Manager Account

Asst. Manager Commercial Assistant

A/C Officer

Assistant Office Boy

I/C Account cane Officer Assistant Office Boy

Office Boy

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The SSL Gokak Sugar Companys growth in terms of turnover and profitability besides investment in the block of assets and working capital has been satisfactory over a period of time. Unless proper accounting of the various transitions of the company taking place out systematically, the real control on the various functional areas of the company will be lost to the management. All the transactions of the company will be accounted on accrual basis only except where deviations are permitted by the management through its accounting policies.

MAIN FUNCTIONS ARE AS FOLLOWS Registration and scrutiny of sale orders pertaining to equipment and spare parts. Preparation and submission of invoice to customers for payment. Accounting of sales and sales realization. Receipt of cash, cheque and bank drafts etc and issue of official receipts for the same. Follow up or watch of transfer or receipt of funds to and from regions or district offices. Operation of bank accounts.

Maintains of journal, expense ledger and balance sheet.

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Preparation of trail balance, profit and loss account and balance sheet.

4.2 Production department CANE DEPARTMENT

In SSL cane department deals with registration of Sugar Cane with growers, good quality maintains, developing high yields and also term loans and subsides to the farmers who are growing sugar cane for this company and now giving seeds of sugar cane to grow variety sugar cane and this department has consultant to consult sugar cane and I/P. Structure of Cane Department Asst. general manager cane

Manager cane

Asst. manager cane

Cane inspector
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Senior cane supervisor

Cane supervisor



The unit is undertaking cane development programmers, which will be a part, will be a part of its activities they are. 1. Loans are provided to formers to take up new variety of

cane activities. 2. Subsides are provided to farmers. 3. Pressmud and by products is supplied to farmer on fertilizers free to work.

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PRODUCTION PROCESS Process department is given integral part of the organization. It looks Afterward of different process of sugarcane into the consumer sugar.

PROCESS OF CANE Cane will be crushed in five mills. Juice will be transferred to boiling Stations. In the boiling station for the purpose of purification Sulphur and lime powder Will be added proportionality.

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The following by products are obtained from the process. 1. Molasses: This is the mother licker obtained of the sugar mesquite

crystals. 2. 3. Pressmud: The product gains in the settlers. Begasse: BI product obtains after the crushing of cane in the mill without juice.

FLOW CHART OF SUGAR MANUFACTURING Weighted cane Hauled to crushing yard

Crushed in successive mills

Juice treated with lime and Surplus & heated as fuel Subsider

Dry chaff fed into boilers


Clear juice

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Filter cake used As manure

Clear juice

Concentrated Syrup Surplus syrup to vacuum pans Boiler to mane cite Centrifugal



Bagging Dispatching Power Alcohol Portable

4.3PURCHASE DEPARTMENT Purchasing procedure very considerably according to the needs of the organization and authority delegated to purchase managers the success of organization is based on effective inventory management system and UN interrupted production schedule. This is achieved with adequate purchasing function. OBJECTIVES 1) To receive purchase requisition from the stores department production centers or any other authorized sources. 2) To invite quotation from a number of suppliers.

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To make arrangements for the purchase of appropriate quantities at any given times.


To ensure the purchase of the correct quality under trade or brand name by sample, description.

5) 6)

To follow up the orders placed. To receive incoming suppliers, verity quantity tests and inspects them.


To arrange for the storage and issue of materials.


In this department all types of materials are stored. The purchase department purchases the materials and these materials are sending to stores department. Storekeepers send the sample of material to the lab for testing purpose. If the material satisfies all the tests specifications then the material will be stored and the transactions, which are related to this, are done in this department. Otherwise the goods will be rejected and sent back. The explanation should be given for the rejection of goods.

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The purpose officer receives the order slip from the marketing officer and this order slip will be sent to store department to check the raw material essential; to fulfill the order for a particular product of produce it. Further the stock statement is sent to the purpose department, which contents the quantity that is the raw material required for a particular product or produce it. From this the purpose officer will come to know that how much quantity is required. And whenever there is not much stock in stores department the store keeper will inform the purpose officer and inturn he will give instruction to purchase that particular material.

Structure of store department

Store keeper



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Totally there are 27 workers The members of filters are 12 The numbers of helpers are 13 There is only one welder

Maintenance department is a Mechanical department in which all the machines of this firm are repaired. If there are any major problems the machines are repaired by General-Shift-Workers. General-shift-workers are fixed for only one major problem, the general shift workers and other workers work in shift wise.

4.6 HUMAN RESOURCE DEPARTMENT: a)PERSONNEL DEPARTMENT: Objectives: 1. To look after the welfare of the employees. 2. It deals with appointments, job training to new employees. 3. They deal with safety health measures of the employees. 4. They provide necessary help or aid to the employees. 5. Control over the day to day activities.
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Workers get their week off but the staff gets holidays on Sunday. This department sanctions leave to the employees. The employees get leave on national festival and so on.

Different wages are paid to the different labors depending on their experience, skill, performance and work. Wages are paid promptly and the incentives are also paid during the festivals. This department has direct contact with labors and sometimes personnel department acts like a bridge between the labor and the management.


The Administration Department looks after the administration of the company.

This department consists of the top-level management.

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Administration Department has an aerial lockout over all the departments.


Progress of the entire department is sent to this department. So that the administration department prepares the progress sheet after the end of certain period.


Administration function includes training of administrative staff.

4. 5.

This department looks after the wages and slaries of the staff. This department has to answer for any Enquire done by the Govt.


This department controls over the flow of funds along with the accounts department.

Administration Department chart

Manager administration


Office boy
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Performance Of The Company From Last Five Years





CRUSHING PRODUCTION ( in tonnes ) 2009 2010 2011 2012 2013 180000 217000 600000 529000 460000 ( in quintal ) 185000 254000 685000 549000 500000 10.26 11.74 11.26 10.37 10.94


Structure of Human Resource Development

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Welfare Officer

Executive HRD

Asst. Security Officer

Assistant Assistant Office Boy Office Boy Time Keeper

The activities carried out are planning for human resources, requirements, welfare, and safety, training and legal matters. It even helps in providing necessary manpower and skills towards successful implementation of quality system. It also organizes the training activities of the employees.

Security and Administration is for overall security maintenance of school, hospital and village administration. SSL caters for education up to class X (10th) both State Syllabus and CBSE for the benefits of employees children. They have started the officers club, social club, and welfare center, playground and parks, gardens, open era theaters etc. and many more


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Recruitment and selection Placement, training and development Wage and salary administration Performance appraisal industrial relations Health and safety measures Employees state insurance benefits Disciplinary actions Promotions, demotion and dismissal

FUNCTIONS: 1. Selection and recruitment of workman, clerical staff and supervisory staff.
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2. Induction of clerical supervisor staff. 3. Issue and badli of workman. 4. Permanency of badli workman. 5. Issue of punching cards. 6. Attendance recording. 7. Leave Management.


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1. Introduction 2. Meaning 3. Welfare 4. Classification of welfare activities

1. Introduction: Labours are very important in every industry success or failure depends upon performance and efficiency of the workers. These performance & efficiencies likely to be depends upon welfare facilities of the concern. It means to increasing wealth maximization is possible only to way to encourage and motivate the employee by providing many facilities, benefits, fair remuneration etc Welfare vital important things in every concern at present all most all sucessful enterproses and those certified like ISO 900 1, FSO 2001 etc they have been provided plenty facilities to the workers and they protect in respect all like job security, education etc This discussion it is clear that all most successful are utimate depends welfare facilities, therefore this is quite necessary to evaluate about welfare measures. We taken many

information, data, suggetions, from various departments in respect how to access a welfare measures and finally given the conclusions regarding the Satish sugars.

2. Meaning: Welfare means providing amenities or facilities to the workers other than salary for the intention to motivating and encouraging efficiency of the workers.
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It ultimately helps to reach the management goals and wealth maximization. It is an extra emoluments, attached with salary to the workers for encouraging their performance.

3. Welfare measures in Satish Sugars It is a statute in the industry that, the employees according to their position & qualification, they shall be given adequate, equitable and fair remuneration to the employed. For welfare measures we studied all kinds of workers.

Generally in sugar industry there are 2 different work forces that is first, working out of the premises and not in production.

The welfare measure in the sugar industry varies from supplement workforce involved in the production activities.

In addition to the statutory payments, [salary] the management in order to keep their workforce in their clutches evolve the shcemes under the title welfare measures so called frings benefits, so as to motivate the employees morale and living standard.

The main row material under this concern is a sugar cone which will be cultivated by the farmers of different areas, out of these are morally in
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rural areas or remote areas, under these areas they need field assistant and other subordinate they are helped for transporting, cultivation activities like seeds, fertilizers etc These field workers who are suppose to stay in the remote areas which are for away from basic facilities provided with them. Generally the field force will be provided with different type of vehicle for smooth working and for easy communication. Apart from these they also got different insurance policies for the purpose to meet the social securities in case of unexpected events.

The incentives are being extended to provide good and quality education to their children who wish to study at faraway places form their head quarters. Medical insurance is covered to the field force to meet the exigency on account of accidents, snake biting and other eventualities during the course of employment likely to occur.

Further, these people are provided with the conveyance facilities, health care and even they can purchase groceries form the factory cooperative stores at an affordable price. The field force also will be provided with conveyance allowances for their tour they traveled from one area to another, in order to monitor the supply of raw material.

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The following are the fringe benefits available to all type of workers in the sugar industry for the interest of to increase standard of living and morality of the workers. These benefits are provided to both types of

workers that is inside and outside.

1. Housing facilities 2. Educational facilities to employees and children 3. Disablement benefit 4. Canteen facilities 5. Recreational facilities 6. Medical facilities 7. Credit facilities 8. Legal Clinic 9. Washing 10. Meals, restrooms, shelters 11. Water and toilets

In addition to the above fringe benefits, the company has extended social security under the following heads: 1. Workmens compensation to those workers [or their dependents] who involved in accidents. 2. Sickness benefits and medical benefits. 3. Disablement benefits.
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4. Retirement benefits like provident fund, pension, gratuity etc.,

Brief fringe benefits provided in Satish Sugars Ltd.

1. Housing Facility: At present cost of living in the nation is too high, it is very difficult to mange family expenditure and rented house in every area including rural. Means having facilities quite essential to the workers in rural as well as urban areas, so it is one of the major welfare facilities.

Among the basic amenities to be provided to the work force to keep up their integrity with the industry accommodation is one of the most fundamental basic facility to be provided to the employees.

Considering the importance of the accommodation problem, the management or Satish sugars Ltd., started to construct various type of house depending upon the need and category basic, in the beginning itself when the actions are being taken to erect the machinerys and building.

All the house are built and allotted to the employees are ensured with 24 hours potable water and uninterrupted power supply with good ventilation.

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To maintain good ecology, surrounding quarters, a green belt has been formed by planting aromatic samplings, with a environment for the children to take part in the different games.

The house being provided to the employees are free of rent.

2. Educational facilities to employee and children:

Another important fringe benefit is that educational facility to the workers children. Literacy power increases day by day in our nation due to this effect employees to desire to get good quality of education to the children. Which is provided by the employer. In the Satish Sugars Ltd. has taken many steps for providing this kind of facilities to the workers as well as their children.

Further the management has arranged the conveyance at free cost to bring the employees children form their respective places to the school premises and drop them back after the school hours.

The management in addition to the above has arranged free transport facility to the employees children who are willing to study in higher school away from the factory premise.

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In order to avoid drop out from attending schools the management is providing nutritious food during lunchtime at free cost in order to enhance the aptitude of the school going children various events are being conducted by offering sops to encourage the children to take part in the events being held from time to time the premise of the factory.

3. Disablement benefits : Disable benefits are provided when workers injurious or damages or any accidents take place under the premise. Satish Sugars Ltd., have taken and made many benefits to the employees in case of disable up to Rs.50.000 they are ready to provide in case any accidents if any excess shall liable workers when accident occurred as compensation even sometime death of workers they shall given up to Rs.1,50,000 as compensation and provide job facilities to the family members .

It is uncertain to say everyday the related cane crushing activities will go without any injuries or damages to the workmen involved in the industry.

The accidents could take place accidentally in a usual course or even are to gross negligence in carrying out normal work in the industry whether the accident take place due to negligence or in on unacceptable circumstances it is the bounded responsibility of the management to give almost care in
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providing medical aid to the employee involved in the accident depending upon the extent of injuries and the nature of treatment required in the process money is not the constraint in extending medical aid and see that the employee met with an accident got out of the danger and he could be a valuable asset to the organization, provides his morality is kept high by providing all necessary care.

If any employee has become partially disable or permanent disable, depending upon the loss of earning to come out of the mental agony being felt by him during the course of accident and a light work also will be provided depending upon his capability to discharge the work without effecting his normal benefits that he was enjoying before the accident took place. If the permanent disability is caused to any employee due to the accident while on work, besides giving sufficient compensation, the management so liberal in considering a employment to his near kith and kin subject to availability and suitability of the job. If on accident results in fatal, the management is so liberal to sanction the amount to meet the consequential expenses to be done towards performing the rituals as per the practice in vogue.

4. Canteen Facilities:

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Well equipped canteen facilities in Satish Sugars Ltd. they provide good quality refreshment, milk, tea, with minimum cost like, Rs.8 per meals and Rs.4 for tifin. They charged and excess any cost will bear by the company.

In the canteen also potable water is made available for the use of the employee further a system is prevailing to serve the foodstuff and beverages at their work spot.

In order to oversee the activity of the dormitory as well as canteen a monitoring committee has been formed comprising the representative from each section.

5. Recreational Facilities: Satish Sugars have many recreational facilities and they arranged once in a year there are well supported for motivating them and encourage performance of the workers we seen many recreational activities like sports dreams entertainment etc under the sports they conducted volley ball cricket table tennis etc under social activities like social drama mono acting etc and they celebrate rural festival in committee with workers.

Further the management has constructed a building after the name sports club spear heading different sports activities of indoor at free cost, so

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that the employees could assemble at one place and exchange their views and thereby they could feel afresh.

In addition to the above in all the auspicious days, the management is facilitating the get together occasions invoking the presence of employee and their family members where social activities like drams will be conducted to keep all cheerful.

6. Medical Facilitates:

Under Satish Sugars Ltd. Have well equipped hospital with qualified doctors and subordinates. These facilities provided not only employee but also their family members, those are dependent upon them. This hospital provided to all kinds of employees a common diseases and those major diseases they arranged substitute hospital hose in near by our concern and one more they provide 24 hours ambulance facilities without any charges.

In order to mitigate the financial problems and thereby to provide some sort of solace, the management of Satish Sugars Ltd. Is maintaining full fledged health centre appointed with a qualified doctor so as to attend the health problems of the employees including their dependants at free cost.

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To avail medical aid from the health centre, the employees need not pay any charges whether their sufferings are due to out of employment or during the course of employment.

The health centre is organizing the medical camps of different nature invoking the service of experts in specific field and thereby the awareness about maintenance of good health is being created in the premises of factory and colony.

7. Credit facilities: For encouraging and avoiding financial difficulties faced by the workers Satish Sugars Ltd., they arranged credit facilities to the workers, in kind loan provided to them with reasonable interest, fair installments and without any security.

8.Legal Clinic: As per law they maintaing legal clinic like ESI hospital and Government hospitals to the workers. Generally they give the treatment to common diseases those are unable to come in Satish Sugars Ltd., Means outside the premises for convenient purposes these kind of welfare all provided.
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9. Washing: I] In every factorya) adequate and suitable facilities for washing shall be rovided and maintained for the use of the workers therein; b) separate and adequately screened facilities shall be provided for the we of male and female workers. c) Such facilities shall be conveniently accessible and shall be kept clean.

II] The state Government may, in respect of any factory or class or description of factories or of any manufacturing process, prescribe standards of adequate and suitable facilities for washing.

10. Meals, restrooms and shelters:

Facilities should be provided to eat meals as work where meals are regularly eaten, though your desk can count as a suitable facility. Eating facilities should enable has drinks to be obtained or prepared. Restrooms

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and areas should protect non-smokers from discomfort caused by tobacco smoke.

In every factory suitable arrangements for sitting shall be provided and maintained for all workers obliged to work in a standing position, in order that they may take advantage of any opportunities for rest which may occur in the course of their work.

11. Water and toilets: Employers must provide wholesome drinking water and vessels from which to drink it. The water should normally be form the mains and if refillable containers are used the water should be changed daily. Drinking water taps should not be installed where contamination is likely. Drinking water or non-drinkable water should be clearly marked. Washing facilities should be provided for non-disposable cups.

I] in every factory a) Sufficient latrine and urinal accommodation of proscribed type shall be provided conveniently situated and accessible to workers at all time while they are at the factory. b) separate enclosed accommodation shall be provided for male and female workers. c) All such accommodation shall be maintained in a clean and sanitary condition as all times.
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II) in every factory wherein more then two hundred and fifty workers are ordinarily- the floors and internal walls, up to a height of ninety centimetres, of the latrines and the urinals and the sanitary blocks shall be laid in glazed tiles or otherwise finished to provide a smooth polished impervious surface.

4. Classification of welfare activities in Satish Sugars Ltd.

a) Voluntary Welfare Activities b) Statutory Welfare Activities c) Community Development Programs.

a) Voluntary Welfare Activities:

Voluntary welfare activities are those activities, which are provided by the concern voluntarily given to the workers. 1. Tent school facilities provided to cane cutters workers children 2. Brahat Uchit Arogya Tapasana Kendra 3. Sports and other facilities. b) Statutory Welfare Activities: These facilities should be provided in every factory as per Government Regulation. 1.OT sanction Cared about workers and health. [Accident Medical Care].
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Ambulance facility. Canteen facility: As per law if more than 500 workers they should maintain canteen facilities. Health camp conducts for workers. Sports are conducted games and entertainment Free quarters are provided Yearly Bonus given

C) Community Development Program Educational farmers tour facility Conduct animal health camp Satish Sugars Awards Satish Sahitya Sammelan Satish Classic Body Building Program Singapore tour for the highest showing performance P.E. teacher in Satish Sugars Awards. Yuva Jan Mela they conduct new program Drinking water facility to public Road repair works.

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4.8 Marketing department

Though there is no much need of marketing to such goods there are few employee working towards the increase of market share through promotion and other similar efforts

Marketing dept structure Manager


Sales personnel.
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These employees with the help of manager strive for attainment of brand awareness and increase in market share. Though there is no considerable promotion taken place by the company in these days there is a plan to come up with a new packed sugar brand carrying weight of 1kg which ma have to be advertised in major channels of nation.


STRENGTHS: Well established since long time. Strong network from all aspects-location, transport and infrastructure. Good financial supports whenever needed are provided by both State and Central Governments. Location in the heart of the city.
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Concept of Multi joint-products New power plant, which is constructing now, is needed for future growth.

WEAKNESS: Absent of motivating incentives. Lot of training required for all levels of employees. Company has been facing stress-related issues.

OPPORTUNITIES: Can implement change in technology. Frame proper policies and procedures. Restricting of manpower. Re-engineering.


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Other units Competition Decrease in Sugar growth. Diversified resources such as raw materials due to many sub unit initializations

efficiency of the employees. command, leadership etc

Apart from these, these can to assist

management principles and functions. Like espirit de crops, unity of

Findings 1. The company is making a good profit compare to past years and of the best organization in the sugar industries. 2. We found that here are given much concentrated mainly on medical facilities. 3. We found that, good maintaining canteen facilities and bachelors housing facilities. 4. We found that, under safety measures, by maintaining machinery guards, helmets, gum boots etc
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5. They maintaining various electronics device which are given siron, indicator lighting, wireless telecom, ear plug, provided sufficiently to the workers. 6. The organizational etiquette maintained in the company is standard and disciplined. 7. The company has provided a conducive atmosphere for the employees to work. 8. The company is very well known for its welfare activities which are increasingly personnel oriented and hence the employee turnover ratio in the company is too less

Suggestions: The company should concentrate more on branding and promotional activities to enhance its market share. The awareness of the existence of this company is very low in few southern areas of the state As it is an FMCG it will be safer for the firm to invest more in the same sector than to diversify. The units of safety helmets and jackets should be increased More ventilation and lighting should be provided in cane department.
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The companys short term goals have to be clear and concrete and should be communicated to the employees of the company Though the quality circles are held periodically there is no such considerable involvement of laborers and other production level employees in decision making. There should be a considerable check on the performance eventually.


I heart fully thank Mr. Satish Jarkiholli for permitting me to conduct this study in SATISH SUGARS LIMTED, GOKAK. I also wish to thank Mr. B. Nagraj for guiding me in conducting this study.

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Here by I wish to conclude by saying that the company is upward trend and has achieved many milestones in a shorter span. The performance of the company, employees and the functional departments are up to the mark and very much satisfactory. The organizational design is very work friendly and conducive to employees as well. The company is in a very good position

Chapter-7 Learning experience

It was an overwhelming and an educative experience at the Satish Sugars Limited. The staff and the guide were very co-operative in the course of
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study. Following were the major things which I was able to learn at the company during conducting this organizational study. Got to know the organizational etiquette needed for a professional life Was able to understand the direct relationship between employee morale and the productivity. The actual production process of sugar and its other byproducts were understood The flow of raw material to finished good chain was understood clearly Delegation of authority and individual responsibility handling in a firm was understood. Importance of financial allocations to productive units was also observed in the course . The hierarchy and the flow f information according to authority was observed. The importance of welfare measures in manufacturing industries was observed. The importance of systematic work force in an organization was understood

The ability to achieve anything with a human approach was learnt

from the passion of the entrepreneur.

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It was observed that every person working in the company share the
same enthusiasm to attain the objectives

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1. 2. 3. 4.

Factory act 1948 Small business management article from docstoc.com Principles of management. Company website. ( www.satishsugar.com )s

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