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Allah
- Beginning with the name of
The Most Gracious, the Most Merciful

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CERTIFICATE
This is to certify that Mr. Zubair Ahmed S/o Abdul Khalique
Memon, student of MBA (Final), has done the internship work on
Bawany Sugar Mills (Pvt) Ltd. Talhar Under my supervision and
guidance which is a partial fulfillment of masters degree program.

The task Carried out by Zubair Ahmed is original and

has been found satisfactory and compliant with requirement and
standards.

Khalid Hussain Abbasi

Muhammad Hayat Keerio
Research Guide

Principal

University of Sindh Laar Campus @ Badin

@ Badin

University of Sindh Laar Campus

DEDICATED TO:

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My parents whose encouragement, guidance and

presence are assets of my life
My teachers who illumined the dark corners of my
mind and heart .And I want to say

Thanks to all of them.

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Acknowledgement

First of all, I want to express all and thanks to ALMIGHTY ALLAH whose
blessings are above each and every thing which make me able to present my
tiny effort.
acknowledging with sincere gratitude for the valuable guidance I have
received from Sir Khalid Hussain Abbasi. They have been a constant source of
enthusiastic encouragement throughout the internship program. Due to their
guidance I have become able to complete internship as well as this report. Their
advice, criticism and remarks were of the most value to me.
I am very thankful to all my Superiors i.e. My Teachers, Specially Sir.
Khalid Hussain Abbasi. I completed this report under his supervision.
I am also grateful to all employees of the Mill who guided me during the
course of internship. The behavior of all the department supervisors was very
good.
Specially, bundle of thanks to the management of Bawany Sugar Mills Ltd
who accepted my request to do internship in the Mill.

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CONTENT
Sr.#

Description

Executive Summary
Chapter 1
Brief History of Sugar

Sugar Manufacturing Process

Manufacturing of Sugar in Pakistan
Sugar Mills in Pakistan
Research Methodology
Limitations
Chapter 2
Omni Group of Companies

Introduction
Objective
Business Profile
Business Activities
Vision
Mission
Business Activities
Chapter 3
Bawany Sugar Mills Ltd
Brief History
Business Profile
Products
Organizational Structure
Chapter 4
Departments of mill

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Administration Department
Operations
Civil Section
Estate Section
Security Section

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Chemical Department
Equipment Handling
Process House
Bagging House
Functioning
Mechanical Department
Operations
Mill House
Boiler house
Process House
Workshop
Electrical Work
Cane Department
Operating Area
Factors Affecting Cane Procurement
Location
Tuff Competition
Middle Man
Artificial Shortage
Shortage of Water
Finance and Accounts Department
Activities
Cane Section
Store Section
Finance Section
Accounts
Sales
Budgeting
Cost Calculation
Cost Center
Raw Material
Conversion Cost
Operating Expenses
Finance Expenses
Selling Expenses
Production of By Products
Audit

Chapter 5
Store Facilities

Sugar Storage
Tools and instrumental store

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Chapter 7
Financial Statement

Financial Position
Share holding
Dividend
Income Statement for June 2012
Balance Sheet for June 2009
Income Statement for June 2009
Cash flow Statement for June 2009
Chapter 6
Industry Review

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SWOT Analysis
Strength
Weaknesses
Opportunities
Threats

Chapter 8
Conclusion

Recommendation
Bibliography

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Executive Summary:
Bawany Sugar Mills Ltd is one of the pioneers of the sugar industry in
Sindh. Infect, it is the second oldest sugar industry of Sindh. It is a part of Omni
Group of Industries. Omni Group of Companies purchased this Mill in November
of 2010.
Main product of company is white refined sugar which is being imported
to other countries and also locally sold. The capacity of Bawany Sugar Mills is
6000 Tons crushing of cane per day.
The organization believes in strict adherence to commitment, discipline
and fair business principles. The operational activities of the mill revolve on its
department i.e. Cane Deptt., Mechanical Deptt., Finance Deptt., Administration
and Chemical Deptt.,
There are different types of employees which are hired at need basis.
Some employees are permanent who work for whole year and some are
temporary (seasonal) and Permanent employees. Bawany Sugar employs poor
people who have no land or employment facilities. Bawany Sugar is giving
different incentives or benefits to employees to improve the production.
The management is quite successful in providing a congenital and co
operative atmosphere to its employees. The organization provides all the basic
facilities to the employees.

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CHAPTER 1:

INTRODUCTION
1) Brief History of Sugar:
The word sugar originates from the Sanskrit word Sharkara which means
sugar. It may also be traced through different languages, as Schaker in Persian,
Sukkar in Arabic, Sincer in Assyrian, Zucchero in Italian, Sucre in French, Zucher
in German, Saccharum in Latin and Ozucarin in Spanish. But its origin is traced
from Sharkara.
Sugar is one of the essential commodities of life and plays important role
in the dietary of human beings. Sugar is a major form of carbohydrates and is
found probably in all green plants. It occurs in significant amounts in most fruits
and vegetables. There are three main simple sugars Sucrose, Fructose and
Glucose. Sucrose is in fact a combination of fructose and glucose and the body
quickly breaks down into these separate substances.

2) Sugar Manufacturing Process:

The sugar can be produced by many of the sources like Sugarcane, Sugar
Beet, Maple, Palm, Coconut and Apple, but these sources are costly and their
production is in negligible quantities except sugarcane and sugar beet. The
main crop which is being used for production of Sugar all over the world is
Sugarcane.
In a nut shell, the process for sugarcane refining is carried out in
following steps:
Pressing of sugarcane to extract the juice.
Boiling the juice until it begins to thicken and sugar begins to
crystallize.
Spinning the crystals in a centrifuge to remove the syrup, producing
raw sugar.
Refining the raw sugar by washing and filtering to remove remaining
non-sugar ingredients and color.
Crystallizing, drying and packaging the refined sugar

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3) Manufacturing of Sugar in Pakistan:

In Pakistan, the sugar industry possesses the organized and unorganized
players. The unorganized players mainly produce Molasses and Sugar, the less
refined forms of sugar and the organized players are Sugar Mills owners. In the
world, the Brazil is a country that is largest producer of sugarcane as well as
Refined Sugar.

4) Sugar Mills In Pakistan

Pakistan Sugar Mills Association (PSMA) has listed the names of sugar
mills of Pakistan province-vise. There are 87 names of Sugar Mills listed on their
website among which 45 are located in Punjab, 33 in Sindh and 9 in KPK.

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CHAPTER 2:

OMNI GROUP OF INDUSTRIES

1) Introduction:
Omni group is a large privately owned company based in Pakistan. It
owns several factories such as rice, sugar, distilleries, polythene bags, and are
also involved in media and aviation. It has emerged as one of the fastest
growing industrial groups in the country. Bawany Sugar Mills limited is one of its
Business units.

2) Objective of Omni Group:

The objective of Omni Group of Companies is to expend industrial
activities to provide job opportunities and economic growth in the country.

3) Vision:
To be one of the leading business houses employing best business
practices

4) Mission:
Undertake safe and profitable commercial activities in a manner that
portrays Omni Group Of Companies images as a respected market leader

5) Business Profile:
Industry Focus

Grain, Sugar & Sweeteners

Business Type

Manufacturer

Products/Services

Rice, sugar

Markets

Africa

No. of Employees

Above 1000 People

Annual Sales Range(USD)

US$5 Million - US$10 Million

Legal Representative

CEO (Recent CEO is Mr. Anwer Majeed)

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Company Address

2nd Floor Hockey Stadium Road, Karachi, Sindh, Pakistan

Postal Code

75350

Telephone Number

+92 -21 -35220845

6) Business Activities:
Apart from many other business units, the main business units in sugar
production of Omni Group of Companies are:

Khoski Sugar Mills

Bawany Sugar Mills
Ansari Sugar Mills
Naudero Sugar Mills
New Dadu Sugar Mills
Tando Allah Yar Sugar Mills
Chambar sugar Mills

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CHAPTER 3:

BAWANY SUGAR MILLS

LIMITED
1) Brief History:
Bawany Sugar mills Limited was established by Bawany Group of
Industries Pakistan. It was installed in 1964/65. This is the second oldest Sugar
mill of Province located at Talhar City District Badin, Sindh. It is the first sugar
industry established in Badin. Mr. Mohammad Amin Bawany, Owner and Chief
Executive of Bawany Group led this Mill to be established.
Later on, this mill was purchased by Deewan Group of Industries. From
2004 to 2010, this Mill remained under the supervision of Deewan Muhammad
Yousuf Farooqui, CEO of Deewan Group. Then it was owned in November 2010
by Omni Group.
The Machinery of this Mill Was Imported from BMA and Bakau Wolf and
Germany and (Heavy tax machinery) HMC Taxila. The present capacity of cane
crushing is 6000 tons per 24 hours.
Besides, Bawany Sugar Mills provides agricultural loans to the growers of
sugar cane through Sindh bank.

2) VISION:
To be the leading company in sugar industry and make more customers.

3) MISSION:
To deliver the quality sugar in our country in the most cost effective way.

4) Business Profile:
Crushing Capacity
Employees

6000 TCD
582

Mill Area

155 acres

Location

Tando Bago Road Talhar City

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Head of Dept

General Manager

Head Office

2nd Floor Hockey Stadium

Karachi, Sindh, Pakistan

Road,

5) Products:
Bawany Sugar Mills Ltd produces refined sugar and molasses. They sell
sugar first and molasses after the end of sugar manufacturing season
The mill produces three types of sugar one is high quality sugar which is
exported. Second is middle quality sugar which is sold nationwide where as
third normal or low quality sugar which is sold locally.

6) Facilities:
The mill provides these facilities to its employees:

A residential colony.
Mosque
School
Provision of Electricity & Sui Gas in Mills colony.
Hospital.

Moreover, medical allowances, travel allowances and bonus are also

given them.

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7) Organizational Structure:

CEO

Board of Director

General Manager

Mechanical Dept (AGM)

Chemical Dept (AGM)
Admin Dept (AGM)
Fin Dept (AGM)Cane Dept (AGM)

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CHAPTER 4:

DEPARTMENTS OF MILL
There are several departments in every
Technology, Human Resource, Accounting and
Chemical, Audit Production and Quality Control.
Main four departments which perform all
departments.

Company including Information

Finance, Electrical, Mechanical,
But Bawany Sugar Mills Ltd has
the functions of mentioned

Each department is headed by Assistant General Managers. These AGMs

work under General Manager of company. Muhammad Ramzan Arain is present
GM of Bawany Sugar Mills Ltd.

Administration Department
Finance Department
Cane Department
Mechanical Department
Chemical Department

1) Administration Department:
Admin department is main department which is handling all the matters
of company. It is responsible for rules and regulations, security attendance of
employees and other facilities to workers. This department also encircles quality
control, production, security and I.T departments.

Operation:
The department further divided into these sections as under:

Civil Section
Estate Section
Security section

Civil Section:
Bawany Sugar Mill has a number of buildings in the shape of factory
building, offices, workers family colony, workers hostels, officers colony,
Mosque, school, fair price shop etc.
For proper maintenance and upkeep of these buildings a civil section
having experienced workforce also exist at Bawany Sugar Mill.

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Estate Section:
Estate section includes sweepers, gardeners and other workforce for
upkeep and cleanliness of the area.

Security Section:
For protection of the mill the colony and officers, there is one security
section. Security inspector is the head of the section.

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2) Chemical Department:
Chemical department is responsible for processing of sugar cane juice to
manufacture white refined sugar. The department has to maintain a quality
standard. Quality of sugarcane, sugar is being tested here. Different labs are
working under this department.

Equipment Handling:
Chemical department handles the equipment in process house and
Bagging house manufacture sugar.

Process house:
Process house is the section where the juice is processed to produce
sugar.

Bagging house:
Bagging house section is responsible to pack the sugar in bags of desired
quantity.
This section contains the following equipment:

Wet sugar elevator

Sugar dryer
Sugar dust catcher
Sugar bin
Auto net weigher
Bag sewing machine

Functioning:
Sugar is made in the field by nature and extracted in sugar factories.
Main function of chemical department is to extract maximum quality of good
quality sugar of sugar cane. This is called sugar recovery and indicated in
percentage. Sugar recovery depends upon two factories:
a. Sugar contents available in the sugarcane, which is generally
termed as POL percentage.
b. Efficient processing of juice to control losses during the process.
The losses incurred during process are of following four types.
Bagasse Pol, Mud losses, losses in final Molasses, Other losses.

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3) Mechanical Department:
Mechanical Department has Mechanical workshop that provides all the
equipments for smooth running of mill during season. In case of failure of
machine or any part this department is responsible for the repair.

Operations:
The operation activities of Mechanical department can be divided into:

Mill House
Boiler House
Process House
Workshop

Mill House:
These activities are performed in mill house:

Cane carrier
Cane cutters mill rollers
Hydraulic head
Steam turbines reduction gears
Intermediate carriers
Juice pumps
Crush hoppers
Raw juice receiver tank bag gasses elevator

Boiler House:

Juice scale
Centrifugal pump
Juice heaters
Carbonation tanks filter press lime kiln
Sulphitation
Evaporating stations
Crystallizes
Bagging house

Process House:

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Process house is the section where the juice is processed to produce

sugar. All the boiling of juice is done with the heat produced by the steam which
is generated at boiler house by Mechanical Department.

Workshop
The work shop consists of following section

Machine shop
Carpeting shop
Welding shop smithy shop
Molding shop
Transport shop

Electrical Work:
Electrical department is also merged in Mechanical Department. It is
responsible for electricity. In this age of modernization, every machine is being
operated with computers and without electricity no machine can run. Electricity
problems in mill area are fixed by this department.
The mill has its personal power house for producing electricity. During the
crushing season, mill needs a lot of power for running its machines. The Govt
could not fulfill their power requirements so they produce their own electricity.
During off season, mill uses the electricity supplied by HESCO.

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4) Cane Department:
Cane is the most important department of mill. Sugar mill is totally
dependent upon this department. Function of this department is to conduct
surveys and held meetings with cane growers for purchase of sugarcane. Only
the effective working of the department can ensure full capacity operation of
the mill throughout the crushing season and thus reduce the fixed costs. After
survey grower are issued a pass book. By pass book they can carry their
sugarcane to mill cane yard. In cane yard weightment, indent and a receipt are
given to grower. This receipt is used for payment. After this, cane accountant
makes arrangements for payments through bank. For this purpose bank have
been deposited a lump sum amount.

Operating Area:
The area, in which cane department operates for the purpose of cane
procurement, is divided into 8 broad areas called circles. Each circle is then
divided into smaller areas called sectors.
1.
2.
3.
4.
5.
6.
7.
8.

Talhar
Dando
Rajokhanani
Karyo Ganwher
Peru Lashari
Haji Sawan
Mataaro
Gularchi

Factors affecting Cane procurement:

Location:
Bawany Sugar Mill is not located in good area. Sugar cane of surrounding
is also taken by Pangrio, Khoski, Mirza, Army and Ansari Sugar Mills.

Tuff Competition:
Competition between surrounding mills for more and more cane
procurement result into substantial increase in the cane procurement cost.

Middleman:
Purchasing of standing crop by middleman before season plays another
important role to make the cane procurement difficult for the sugar mills.
Although cane procurement by the middleman is prohibited under Act 1950.

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Artificial Shortage:
Artificial shortage of sugar cane is often created by the growers to fetch
better price.

Shortage of Water:
Shortage of water, particularly, in lower Sindh is affecting the interest of
growers in sowing sugar cane.

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5) Finance Department:
Finance department is the most important department of company. It is
responsible for sale, sale tax, payments, receipts, provident fund, salaries and
store sections. It keeps and provides sufficient funds at the time of production.
My internship also related to finance and admin department and information
about that is written in detail in report. At last of repot problems of sugar
industry has been discussed and few recommendations are suggested to
management of Bawany Sugar Mills.

Activities:
The activities of Finance and accounting department are divided into
several sections:

Cane Account Section:

It supervises and checks the cane price bills, sugar bills. Recovery bills of
seeds and fertilizers loan from the cane grower and make arrangements for
funds to the concern banks for payment.

Store Account Section:

The purpose of store accounts section is to maintain the record of stores
and spares purchased. Detailed functioning of the section is as under:

Purchase of stores:
Stores spares are purchased after approval of GM/R.D/C.O.O. On receipt
of store spares in main stores, receiving report is prepared.

Finance Section:
The finance section of this department prepares the monthly and annual
budget and financial statement bills. The cheques are also prepared in this
section. Moreover the following books of account are maintained in this section.

Main Cash Book

Vouchers / Cheques
General Register
Record of Sugar and Molasses
Bank reconciliations
Monthly, Quarterly, and Annual financial statements.

Accounts:

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The Mill has several bank accounts among different banks.

Their detail is as follow:

1
1
1
1
1

Account
Account
Account
Account
Account

in
in
in
in
in

HBL Talhar Branch.

Sindh Bank Talhar Branch.
MCB Badin Branch.
National Bank Badin Branch.
National Bank Talhar Branch.

Mills main account is at MCB Badin.

Sales:
Sugar and Molasses are sold by Head Office. Delivery orders are issued to
Parties as per term of sale. Sale is booked on the basis of delivery of goods.

Budgeting:
For the preparation of budget, estimates and requirement from all the
departments are obtained. It is prepared in the month of August before the start
of new financial year. These estimates, after summarizing in accounts
department, are discussed with the COO for finalizing. After finalizing at the
project level it is taken to Head Office for presentation and final approval by
Board of Directors.

Cost Calculation:
During the crushing season the production activity is monitored closely
by working out cost of production and contribution margin etc on daily basis.

Cost Centers:
Following is the description of cost centers and allocation of cost for the
purpose of cost of production on daily basis:

Raw Material.
Sugarcane is the only raw material used in sugar production. Cost of raw
material per unit of production depends upon the price of sugar cane and the
sucrose recovery of the day.

Conversion cost:

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Conversion cost includes direct labor and factory overheads including

chemicals, oil and lubricants, power and fuel, packing material, repair &
Maintenance of plant and depreciation of plant etc.

Operating Expenses:
Operating expenses includes admin expenses, depreciation, pay and
allowances of admin and Accounts department and storage charges.

Financial Expenses:
Financial expenses comprises the markup to be given on working capital
taken from HO or any amount borrowed from financial institutions for running
day to day affairs.

Selling Expenses:
Sales tax is the only selling expenses. Per ton cost is charged to
production of the day as per rates of taxes levied by Govt.

6) Production of By Products:
The mill produces molasses from the used material i.e. used crushed
sugar cane. It stores this molasses in steel tanks. There are 4 steel tanks for its
storage.

7) Audit:
There is another department i.e. Audit which audits the financial data of
company provided by finance dept. the Auditor is directly concerned with GM of
Mill.

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CHAPTER 5:

STORE FACILITIES
As sugar is produced for three to four months of crushing season and its
sale is spread over a period of twelve months. This situation wants the
availability of a reasonable storage capacity. Therefore Bawany Sugar Mills
(Pvt).Ltd. has four sugar go downs having total capacity of 8, 00,000 bags 50 Kg
each. Go down wise storage capacity is as under:

Go downs
(50 Kg)

Capacity in Tons

Capacity in Bags

1.

10,000

2, 00,000

2.

10,000

2, 00,000

3.

10,000

2, 00,000

4.

10,000

2, 00,000

Total
00,000

40,000

8,

Tools and Instrumental Store:

There is another store in the mill which is used for keeping tool and instruments. This store
is controlled by mechanical department. These tools and instruments are used for repairing
emergency faults of machinery.

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CHAPTER 6:

FINANCIAL STATEMENT
Bawany Sugar Mills Ltds financial position is not well. The firm is
continuously facing loss. The reasons of loss are:

Lesser production of sugar

Low production of sugar cane
Low rates of sugar announced by government
Increased expenses due to inflation

It is noticed that flood disasters have affected Badin district a lot. About
70% of crop was destroyed in flood. Moreover, the flood water remained in
lands for more than 6 months. So, land did not grow quality crop this year.
For three to four years, rates of sugar are decreased below 50 rupees and
the rate of sugar cane is about 140 rupees. The Bawany Sugar Mill purchases
sugar cane at higher rate and sells sugar at lower rate. This price of sugar is not
reaching the cost of sugar and the company faces loss.

Financial Position
The Company is suffering losses of over Rs. 1,110.41 Million and is not in
a position to earn profit in its business operations to meet its obligations. As per
annual, audited financial statements for the year ended on Sep 30, 2011. The
accumulated losses of Rs, 1,110.41 Millions as against paid up capital of Rs.87,
245,910 i.e. the shareholders equity has fully eroded and has become negative
by Rs. (1,020.66) Million.

Share Holding
The sponsors hold about 69.35% shares of the company the General
public holds about 30.35% of total paid up of the capital of the company.

Dividend
Due to accumulated losses and deteriorate financial position, the
company is not in a. position in any dividend to its shares holders now or in near
future.

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BAWANY SUGAR MILLS INCOME STATEMENT FOR NINE MONTHS

PERIOD ENDED JUNE 2012
Nine-months Period Ended

Quarter Ended

30 June

30 June

30 June

30 June

2012

2011

2012

2011

(Rupees)
Sales -Net
Cost of Sales

828,165,562

(Rupees)

949,178,259

335,242,043

283,120,429

(883,361,465) (823,270,214) (308,833,731) (200,587,023)

(55,195,603)

125,908,045

26,408,312

82,533,406

1,532,592

3,949,231

1,224,815

343,846

49,301,081

19,921,894

15,280,302

10,297,145

50,833,673

23,871,125

16,505,617

10,640,991

Operating
(106,029,275)
(loss)/Profit
Other operating
1,399,336
income
(104,629,939)

102,036,920

9,902,695

71,892,415

9,558,371

108,334

100,682

111,595,291

10,011,029

71,993,097

(198,183,054) (130,424,992) (104,995,343)

(65,202,885)

Cross
(loss)/Profit
Operating
Expenses
Distribution
cost
Administrative
expenses

Finance cost
Other charges
(Loss)/Profit
before taxation
Provision for
taxationCurrent
(Loss)/ profit
after taxation

(1,026,290)

(155,650)

(303,839,284)

(18,829,701)

(95,139,964)

6,290,212

(9,491,783)

(3,872,420)

(2,831,204)

(303,839,284)

(28,321,484)

(99,012,385)

3,959,007

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(Loss)/Earnin
g per share

(34.83)

(3.25)

(11.25)

0.45

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CONDENSED INTERIM INCOME STATEMENT
AS AT JUNE 2009

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CONDENSED INTERIM CASH FLOW STATEMENT (UN-AUDITED)

FOR THE NINE MONTHS ENDED JUNE 30/2009

CONDENSED INTERIM BALANCE SHEET (UN-AUDITED)

35 | P a g e
FOR THE NINE MONTHS ENDED JUNE 30/2009

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CHAPTER 7:
INDUSTRY REVIEW
As compared to last year, sugar price has increased by government up to
25%. Crop of sugar cane was in bulk quantity in Pakistan last year. But here in
Badin, heavy rains and flood destroyed most of the crops. This destruction
cause a huge loss in production of sugar in Badin District and sugar mills of
Badin faced this loss as a result.
Sugar, in Pakistan, was produced in excess quantity. So, the rates of
sugar remained very low. The government announced sugar cane rate 154 per
40kg which is quite high as compared to sugar rate. Due to lower sugar rate
and higher cane rates, mills cannot achieve their cost of production.
Sugar industry is demanding government to export the excessive
production, in the way somehow industry can stand on.

SWOT Analysis:
Strength:
Cane crushing capacity:
Bawany Sugar Mills has higher capacity of sugar cane crushing per day. It
is 6000 TCD which is highest among the mills of district.

Good quality sugar:

The Bawany sugar mill is providing very good quality of sugar, which is
used by a large number of people all over the country.

Good plant location:

The plant of Bawany sugar mill is located near the growing area. It does
not have to bear any extra transportation charges.

Good relationships :
It has developed very good relationships with the growers of the area.
The growers considered the Bawany sugar mill as their home mill. Sincerity of
the growers with the mill is due the better policies of the management. This
producer-grower relationship is considered as strength of the mill.

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Weaknesses:
Un hygienic atmosphere :
The unhygienic atmosphere badly affects the workers.

Laboratory
This is totally modernized era where every task is performed with latest
methods and techniques.
The mill has modern laboratory but there is unavailability of the modern
instruments in the laboratory.

Canteen Is Not Sufficient

There is only one canteen present in the mill which is not sufficient at all,
Moreover, no air conditioner and TV. Facilities are available in the canteen and it
has no modern system.

Scarce Liability Of Cane

The scarce liability of cane is one of the main problems of the mill due to
this problem the project is running on loss.

Training:
No proper training system is available for the employee of the mill.

Poor Communication
The communication is very poor. In other words the communication
process is not good which is affecting the smooth running of the project.

Opportunities:
Good location
The Bawany sugar mill has great opportunities to grow because its
location is quite good and the nearby area is suitable for sugar cane production.

No direct competitor inside the city

The Bawany sugar mill does not have any competitor inside the city, so it
can manipulate its strategies without any big hurdle.

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Great investment
The financial position of the Bawany sugar mill is excellent and it is
attracting the investors to invest more and more money. More investing
obviously means more opportunities to grow.

Good reputation
The solvency position of the mill owners is also very good. The good
reputation of the owners will also help the company to grow.

Threats:
Competitors
The major threat of Bawany sugar mill is its competitors. The Army sugar
mill and the Pangrio sugar mill are very tuff competitors of Bawany sugar mill.
They are providing direct competition by attracting the growers through there
attracting policies.

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CHAPTER 8:

CONCLUSION
Bawany Sugar Mills Ltd is a well known organization of Sindh. For some years it is not
performing well. In the earlier days of its downfall, the reason for its loss was mismanagement. Later
on, Its management was made better and then, economic instability and inflation again brought the
profit of company to negative. The company is still suffering the severe conditions of loss.
The business activities of Bawany Sugar Mills are under sound and trustworthy systems. Its
operational performance compared to its neighbors mills has always been excellent. It acts as the
sole source of healthy and positive competition within the sugar industry of the region the ultimate
benefit of which goes to sugarcane growers.

In a nutshell, these are the reasons of Bawany Sugar Mills crisis:

The Mill has faced political instability, energy crisis and economic recessions.

The Managerial level employees are mostly given the task that they have to do
independently but on ground they have to work in their teams. So lack of practices
towards team work causes the failure.

At time in mill the new employees are not given the proper training.

Sugar Mills mostly employees are bore of their jobs and they feel that they have
been become frustrated by doing the same old tasks again and again.

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RECOMMENDATIONS:

Bawany Sugar Mills Ltd needs these activities to act upon for improving its performance.

For assuring safety and security of workers, there should be a separate department.

There should be a training program after three months or six month to provide the
employees required skill and to remove the gap from their performance.

To make employees punctual, there should be a card system.

There should be family quarters for all married workers.

All the employees especially those associated with production should be encouraged,
and should be involved in decision making and empowered to make innovative
decisions. In this way employees can add to the organization, a lot. E.g. a new cost
effective production technique can result in comparatively huge profits.

Work should be divided in team and reward should be on team based rather than on
individual basis.

The shortage of water and fertilizers is remaining constant and government is not taking
any satisfactory action to reduce the shortage. Due to this shortage, sugar cane crop is
decreasing.

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Bibliography:
www.psmacentre.com
www.bizearch.com
www.omnigroup.com.pk
www.wikipedia.org
www.corporateinformation.com
www.ppinewsagency.com
Interviews with employees