Escolar Documentos
Profissional Documentos
Cultura Documentos
AN ORGANIZATION STUDY
at
SHRI RENUKA SUGARS LTD, HAVALGA.
Internship submitted in partial fulfillment of the requirements for the award of the degree
of
STUDENT’S DECLARATION
I hereby declare that this Internship titled “An Organization Study at Shri Renuka Sugars
Ltd, Havalga, Afzalpur, Gulbarga” submitted by me to the Department of Management,
Bangalore University in partial fulfillment of requirement of MBA Programme is a bonafide
work carried by me under the guidance of Prof. Farheen Khan, Lecturer, Department of
Management Program, CMRIMS(AUTONOMOUS). This has not been submitted earlier
to any other University or Institution for the award of any degree/diploma/certificate or
published any time before.
Date: (09201017)
ACKNOWLEDGEMENT
I extend my sincere thanks to S A. Patil, Manager (cane), for giving support and
guidance in the placement period.
My special thanks to Laxman L. gouroujai, Time Keeper, for providing all support
to me.
I extend my sincere thanks to internal guide Mrs Farheen Khan for her
encouragement, appreciation and positive criticism that has helped me in successful
completion of this project.
Mahesh Patil
(Reg No-09201017)
EXECUTIVE SUMMARY
Shree Renuka Sugars Pvt. Ltd is one of the major sugars producers. The company has
been operating in the financial markets for the past two years and has made a significant head
way in capturing market share from other information providers in the country.
The company is the second largest exporter of sugar from India with a
presence in the Middle East , South East Asia and East Africa, among others. The company
scaled capacity by acquiring co-operative mills and leased production assets. The company
has turned around every single one of its sick leased units , creating viability out of liability.
Shree Renuka Sugars has become one of the first companies in India to seriously
consider raw sugar refining as an intrinsic part of its business portfolio. Shree Renuka Sugars
reported a Total Shareholder Return of 36.86% in 2007-2008. Total Shareholders Return
reflected the gain earned by the Shareholders – directly and indirectly (directly in the form of
dividend received by them , indirectly in the form of capital appreciation registered by the
stock during the financial review)
CHAPTER-1
INDUSTRY PROFILE
INTRODUCTION
In today’s competition world, no business is spared from the competition even the
basic need industries like sugar industry are facing the same problem, so the companies
should look at the consumer’s attitude towards their products and if anything goes wrong
they should suddenly rectify it.
The main objective of the companies is to be in the field of business and recap profits
by providing the necessary products at a reasonable cost with good quality.
Shree Renuka Sugars Ltd is one of the major sugars producers. The company has
been operating in the financial markets for the past two years and has made a significant head
way in capturing market share from other information providers in the country.
Renuka Sugars Limited is three companies in one Sugar company, Bio -Fuels
Company and Power generating company. Operating in one Business but catering to three
industries. It possesses the largest respective capacities per tonne of cane crushed. With a
blue print of making these capacities one of the largest in India within the shortest possible
time.
The company is the second largest exporter of sugar from India with a presence in the
Middle East, South East Asia and East Africa, among others. The company scaled capacity
by acquiring co-operative mills and leased production assets. The company has turned
around every single one of its sick leased units, creating viability out of liability.
Shree Renuka Sugars has become one of the first companies in India to seriously
consider raw sugar refining as an intrinsic part of its business portfolio. Shree Renuka Sugars
reported a Total Shareholder Return of 36.86% in 2007-2008. Total Shareholders Return
reflected the gain earned by the Shareholders – directly and indirectly (directly in the form of
dividend received by them, indirectly in the form of capital appreciation registered by the
stock during the financial review)
The Company has a market capitalization of Rs 28400 million. Shree Renuka Sugars
plays an important role in the industry’s consolidation, working with the existing
management for mutual benefit. Shree Renuka Sugars believes in superior performance
linked to a spirit of prosperity – sharing with stakeholders – underlining its approach to
corporate social responsibility.
India is the original home of sugarcane and she had a flourishing sugar industry in the
ancient time. But the modern sugar manufacturing industry dates back from 1903 when
some modern sugar mills were established in Bihar. But the real development; of the industry
took place only after 1932.
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. The
Indian sugar industry has a turnover of Rs. 500 billion per annum and it contributes almost
Rs.22.5 billion to the central and state exchequer as tax, cess, and excise duty every year.
With 453 operating sugar mills in different parts of the country, 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.
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 Andra Pradesh, These six states contribute
more than 85% of total sugar production in the country; Uttar Pradesh and Maharashtra
together contribute more than 57% of total production.
Despite being use of the largest producers of cane in the world and hailing over 400
sugar mills working in the country. And sugar cane industries in India are facing lot of
problems. Those are,
Inefficient management.
Cogeneration sugar industry also raises a futuristic source in the way of India self-
reliance in the power sector particularly in the rural areas.
There are 504 sugar mills in the country, of which of which 436 mills are in
operation. There are 281 sugar mills in co-operative sector, of which 259 mills are in
operation and 156 mills are working with losses and having negative net worth. Sugar
industry in India is seasonal in its nature with the crushing of sugar cane undertaken during
the period from mid- October to mid- April Average period of cane crushing during the last
decade is 146 days, while the average rate of sugar recovery being 9.94% of the cane
crushed. Sugar production normally undergoes a 5 year cycle with the production being
maximum.
Sugar is produced in 121 countries and global production now exceeds 120 million
tons a year. Approximately 70% is produced from sugarcane a very tall grass with big stem.
The remaining 30% produced from beet. A root crop. Historically sugar was only produced
from sugar cane and only in relatively small quantities this resulted in it being considered a
great luxury particular in Europe. Where cane couldn’t be grown. In the second or third year
of each cycle. Sugar cane procurement alone constitutes about 70% of the production cost.
Release of sugar stocks is related by the ministry of consumer affairs, food and public
distribution department, directorate of sugar, Government if India, in accordance with the
sugar control orders 1964 on the basis of mill wise stock position. As per the sugar control
order, 10 % of the sugar produced is to be sold as levy sugar for public distribution system
etc., and the remaining 90% sold as free sale sugar at market price.
Source: Indian sugar magazine December 2005, published by Isma. The government
de-licensed the sugar sector in august 1998, thereby removing the restrictions on expansion
of existing capacity as well as on establishment of new units, with the only stipulation that a
minimum distance of kms . Would continue to be observed between an existing sugar mill &
a new mill.
There are 566 installed sugar mills in the country with a production capacity of 180 lack mts
of sugar, of which only 453workinG.These mills are located in 18 states of the country.
Around 315 of the total installed mills are co-operative sector, 189 in the private sector & 62
in public sector.
SUGARCANE AVAILABILITY
Sugarcane occupies about 2.7% of the total cultivated area & it is one of the most
important cash crops in the country. The area under sugarcane gradually increased from 2.7
million hectors in 1980-81 to 4.3 million hector in 2003-04, mainly because of much larger
diversion of land from other crops to sugarcane by the farmer for economic reason. The
sugarcane area however declined in the year 2005-06 to 3.9 million hector & to 3.7 million
hector in 2004-05, mainly due to drought & pest attacks. From a level of 154 MMT in 1980-
81, the sugar production increased to 241 MMT IN 1990-91 & further to 296 MMT in 2000-
01. Since then it has been hovering around 300 MMT until last year. In the season 2004-05,
however, sugarcane production decline to 236 MMT mainly due to drought & pest attacks.
Not only sugarcane acreage & sugarcane production has been increasing, ever drawl of
sugarcane by the sugar industry has also been increased over the period. In India, sugarcane
is utilized by sugar mills as well as by traditional sweeteners like jiggery & khadisakhar
producers.
The chart given below gives data on sugarcane utilization for different purposes:
SUGAR PRODUCTION
Most of the sugar in India is manufacture & sold as “plantation white sugar” which is
produced by double sulphitation process, while the norms in developed & emerging nations
is refined sugar which is produced by the phosphitation 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.
Brazil & India are the largest sugar producing countries followed by china, USA,
Thailand, Austria, Mexico, Pakistan, and France & German. Global sugar production inched
from approximately 125.88 MMT in 1995-96 to 149.4 MMT in 2002-03 & then declined to
143.7 MMT in 2003-04, whereas consumption increased steadily from 118.1 MMT in 1995-
96 to142.8 MMT in 2003-04 as shown in below given chart. The word consumption is
projected to grow to 160.7 MMT by 2010 & 176.1 MMT by 2015.
The world’s largest consumers of sugars are India, china, Brazil, USA, Russia,
Mexico, Pakistan, Indonesia, Germany & 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 & increased availability.
In Karnataka the sugar industry is also one of the major industries. Karnataka is the fifth
largest state in the production of sugar in India. In Karnataka at present there are more than
30 sugar industries giving a major share to the countries sugar production
CHAPTER-2
COMPANY PROFILE
COMPANY PROFILE
Shree Renuka Sugars ltd Havalga, Afzalpur, Dist: Gulbarga (SRSL) is the largest
sugar and ethanol producer in coastal India with main operations in the states of Maharashtra
and Karnataka Shree Renuka Sugars is an integrated manufacturing company with a strategic
focus on sugar bio- fields and its allied products of renewable energy.
SRSL is the largest sugar and ethanol producer in coastal India with main operations
in the states of Maharashtra and Karnataka. SRSL is currently the leader in the fuel ethanol in
India with a 20% market share and is making a strong strategic move to consolidate its
leadership positions in the bio-fuel space via the organic and inorganic route.
Shree Renuka Sugars limited aims to become the most efficient and market driven
integrated processor of sugarcane in the world while enabling the team to grow in a learning
and motivating atmosphere participating in the all round development of the community and
delivering consistently on return to all our shareholders.
Founded in October 1995 SRSL manufactures sugar energy ethanol and bio-fertilizers
in an integrated plant in north Karnataka India with an able management and robust vision
Shree Renuka Sugars today is one of the fastest sugar manufacturers in the country.
Shree Renuka sugars are an integrated manufacturing company with strategic focus
on sugar and its allied products in power and ethanol. The company registered office in
Belgaum, Karnataka and co-operate office is at Mumbai our key manufacturing facility is in
Munoli, Athani and Havalga Karnataka and we also operate three least at Ajara and Arag in
Maharashtra and at Aland in Karnataka. The company of SRSL is as per the table below.
Karnataka
Ajara, 2,500 - - -
Maharastra
Arag, 4,000 15 - -
Maharastra
Aland, 1,250 - - -
Karnataka
SRSL has the largest sugar refining capacity in India of 4,000 tons per day (TPD), to
1,000 TPD each refiners integrated with its plants at Munoli and Athani and 2,000 TPD port
based refinery coming up Haldia SRSL has acquired a majority stake in KBK, and
engineering company primarily engaged in providing turnkey solutions in the field of
distilleries, ethanol plants and bio-fuels. SRSL has also acquired a standalone distillery of
100 KLPD from Dhanuka petrochem located Khopali, Maharashtra.
The SRSL has setup a wholly owned subsidiary viz. Shree Renuka Bio-fuels holdings
FZE in Sharjah International Free Zone ( SAIF Zone) for its overseas investments.
Karnataka Sugar Industry ranks 3rd in terms of its contribution of sugar in the total
sugar production in the country. The Sugar Industry in Karnataka is able to manufacture
sugar in such huge quantities due to the fact that sugarcane is abundantly available in the
state. In fact, Karnataka stands 4th in the country in the cultivation of sugarcane.
The Sugar Industry in Karnataka has around 41 sugar factories which are distributed
all over the state. The various locations of the sugar factories of Karnataka Sugar Industry are
Konnur, Varuna, Koppa, Madapura, Dandeli, Jambagi, Hosur, Margur, Yelgur, Siddapur, and
Arsanghatta. The major benefits of Karnataka Sugar Industry are that it has generated many
facilities in the state such as communication, employment, and transport. It has also benefited
the state by helping in the development of the rural areas of the state by mobilizing the
various resources of the villages. The major sugar factories of Karnataka Sugar Industry are:
Bannari Amman Sugar Ltd. with the sugarcane crushing capacity of 5000 TCD
Davangere Sugar Company Ltd. with the sugarcane crushing capacity of 2500 TCD
Sri Chamundeswari Sugars Ltd. with the sugarcane crushing capacity of 4000 TCD
Godavari Sugar Mills Ltd. with the sugarcane crushing capacity of 7500 TCD
Mysore Sugar Company Ltd. with the sugarcane crushing capacity of 5000 TCD
Athani Farmers Sugar Factory Ltd. with the sugarcane crushing capacity of 2500
TCD The Sugar Industry in Karnataka can be divided into 2 groups that are the
unorganized sector which comprises of the producers of the traditional sweeteners such as
gur and khandsari and the organized sector which consists of the sugar mills. The
manufacture of khandsari and gur is considered to be rural industry and are produced in
huge quantities. The gur and khandsari are consumed mostly by the rural people as
sources of nutrition and also as sweeteners. The total sugar production of Karnataka Sugar
Industry came to 17.98 lakh tons in 2002-2003, in 2003-2004 the figure came to 11.57
lakh tons, and in 2004-2005 the figure stood at 13 lakh tons.
The Sugar Industry in Karnataka contributes around Rs. 36 crore per year to the state
exchequer in central excise duty. It also contributes more than Rs. 900 crore in the form of
turnover tax and sales tax to the state exchequer. The state government in an attempt to
boost Karnataka Sugar Industry has set up the Karnataka Sugar Institute (KSI) which has
emerged as a center for education and training for sugar technology. The Karnataka Sugar
Institute also provides important support to the Sugar Industry in Karnataka by doing
R&D in the various aspects of sugarcane processing and production.
Karnataka Sugar Industry has contributed a great deal to India's total level of sugar
production and thus has helped the country to meet its demand for sugar. The Karnataka
state government must make more efforts in order to boost the sugar industry in karnataka.
HISTORY
Shree Renuka sugars was incorporated in 1995. Initially it acquired a 1,250 TCD sick
unit from the Andra Pradesh Govt in 1998. This unit’s asset base was moved to its own
location in Munoli and expanded its capacity to 2,500 TDC with 11.2 MW cogeneration
plant. The commissioning and trial production took place in November 1999. A distillery
plant of 60 kl per day capacity was added in 2002. The sugar refinery was setup to process
raw sugar to produce refined sugar meeting European specification.
The company plays a significant role in exports/ imports due to its coastal position.
SRSL is the single largest exporter out of India in 2006-07 in its current export campaign and
was the largest importer of raw sugars during campaign of 2002-03.
The main purpose of the factory is to produce sugar along with bye product i.e.
distillery, Co-generation power, ethanol etc. The business carried is seasonal one. Production
of sugar takes place normally in the month of October to May. As that is the maturation
period of the sugarcane.
This business is controlled by the central government of India. Only in the distillery
section is under Govt. of Karnataka.
Vision
Our corporate vision is to be the most efficient processor of sugarcane and largest
marketer of the sugar and ethanol in the country.
Mission
The mission of the company is to pay the better returns for its shareholder in terms of
higher cane rate & to the stakeholders in terms reasonable salary & wages.
Quality policy:
The Quality policy of the company is producing the sugar in better quality which
helps to compete with private sector.
Ensure an uninterrupted flow of fair required quality materials for the purchase of
production and rendering of services.
Procurement of required materials at fair and reasonable price keeping in view the
price trends and market conditions.
Maintaining and minimum level of investment in inventory when inventories are low
in reputation to sales less capital is tied up in inventory when inventories are low in
reputation to sales less capital is tied up in inventories. This in turn increases the
efficiency with which, the company’s capital is utilized.
Promoting and developing indigenous sources of supplies whenever possible and also
minimizing reliance on imports In order to manage materials better forecasting of the
future prices, costs to general business activity.
Producing efficiently best quality sugar for satisfying both domestic and international
norms.
ACHIEVEMENT AWARD
Acquisition of Gokak Sugars Ltd in Karnataka. The company has acquired 87%
shareholding in Gokak Sugar Ltd for a consideration of Rs 639 million which
includes assumption of pre-existing debit or Rs 650million.
The Govt. of Karnataka has awarded Shree Renuka Sugars Ltd 30years lease of
Ralbag Sahakari sakkar Karkhana Niyamit.
PRODUCT PROFILE:
Sugar
The company’s ten manufacturing units enjoy a cumulative capacity of 37,500 TCD.
Most of these units were situated near ports-the closest was port-based, while the most
distant was only 150 kms away-their flexibility to address domestic and export markets. The
Munoli and Athani raw sugar units (1,000 TPD each) enhanced off-season asset utilization,
while the Company commissioned a 2,000-TPD sugar refinery, strategically located in the
port-town of Haldia to facilitate imports and enhance exports.
Ethanol
Ethanol will enjoy growing demand, following an enhanced demand for ‘green’
energy and expanding need for increased oil security amid depleting reserves. The
Company’s distilleries (600 KLPD going to 900 KLPD) convert molasses and/or juice into
ethanol for fuel and potable purposes.
Co-generation (Power)
In power intensive business like sugar manufacture, the saving grace is the
Company’s ability to generate power from sugar by-product bagasse. The Company enjoys a
129 MW co-generation capacity, leaving an adequate exportable surplus of 70 MW. The
bagasse-based co-generation units qualify as a clean development mechanism project,
helping the Company earn carbon credits.
BIO-FERTILIZERS
This reduce product from distillery operations blended with chemicals is
being sold as bio-fertilizers.
Area of operation:
In a business with diverse manufacturing, there is a premium on production, process
and capacity selection leading to competitiveness.
fertilizers. Of its five factories, three possess integrated facilities, while the rest are in the
process of integration.
Competitors’ information:
The Competitors for this industry is other located near by sugar industry named
INFRASTRUCTURAL FACILITIES
1) Self contained residential quarters are constructed for officers & worker.
2) The workers & their dependents are provided with free medical facilities.
7) Issued identity cards incorporating name of the blood group of each employees,
computerized punching cards to ensure discipline in & out, beside providing uniform to
all the employees.
10) For the entertainment of the colony residents, the factory has provided with TV
antenna.
The company has entered into an agreement with the promoters of Ratnaprabha
Sugars ltd acquired in a bid granted by the Government of Maharashtra. The plant has
excellent Sugar potential which can be used for further expansion.
The Company intends to launch a proprietary brand of refined sugar in the retail market.
CHAPTER-3
ORGANIZATION STRUCTURE
ORGANISATION STRUCTURE
Chairperson
Managing
Director
Cane Process
procureme and
nt Quality
Power
Plant
Taxation
Planning
and
Budgeting HR
Departme
nt
BOARD OF DIRECTORS
The main promoters of the company are Mrs. Vidya M. Murkumbi (executive chair
person). Mr. Narendra Murkumbi (managing director) and associates. Mr. Narendra
Murkumbi is an engineer and has a post graduate diploma in Management from Indian
Institute of Management, Ahmadabad.
The Board comprises eminent personalities of rich corporate and industry experience,
They are;
Eminent industrialist from Karnataka, former president of the South Indian Sugar
Mills Association.
Varied experience in setting up of a new plant and plant operation in polymer and
chemical industries.
CHAPTER-4
FUNCTION OF DEPARTMENTS
FINANCE
For the nine-month period ended June 30, the company's sales grew by 144.94 per
cent to Rs 518.43 crore (Rs 211.65 crore) and profit after tax grew by 224.31 per cent to Rs
32.05 crore (Rs 9.88 crore).Forthcoming Projects
The company has embarked on expansion projects at an outlay of Rs 128.50 crore to be
funded by the IPO proceeds and internal accruals.
At the Havalga plant, cane crushing capacity will be expanded from 2,500 tonnes a day to
7,500 tones a day at a cost of Rs 63.50 crore and the doubling of distillery capacity to 120
kilo liters a day at an investment of Rs 15 crore.
The company is also setting up a 15-MW co-generation power plant at a cost of Rs 20 crore
and a 120 kilo litre a day distillery in Maharashtra at a cost of Rs 30 crore. Also, the
Cane Cutter
Cane Fibeoses
Cane Milling
Bomb Flame
MARKETING DEPARTMENT
Managing
Director
Director (Mrkt)
Reg. Mgr.
Sr. Asst.
A
Jr. Asst.
A
The distribution is the key link between the production and marketing function, the
distribution system helps the manufacture to reach the customers in earliest possible time,
and this system begins with manufacturing of the product and ends in the hands of customer,
giving him satisfaction. Effective distribution helps every organization to achieve maximum
efficiency with achievable targets, it enhances profit maximization goals.
Marketing:
Basically, if a product has to move in a market, the manufacturer must use the four
P’s marketing mix, that is product, price, promotion and physical distribution.
1. Product :
Company produces only sugar in varying types like s-30 M- 30 & L-30 sugars.
Although recently it has started producing and co-generation of power, they are not of
commercial interest.
2. Price :
The government accordingly got its monthly release orders specifies the
quantity to be set aside as Levy sugar for which the price is determine by the
government itself and this sugar is used for public distribution system for below
poverty line (BPL) families. For free sugar the company can sell it on the basis of
market rate.
3. Promotions :
It is known fact that sugar industry does not enjoy any brand loyalty to there is no
need
Place (Distribution)
Distribution network is the last and final stage in any company. Finished product
what we get is not final, they must be packed, labeled, stored and should be sent to
the market.
Marketing Department is responsible for achieving a set of Target, Sales & Collection
annually. The overall target will be distributed among Branches & Departments.
Targets will be allocated on the basis of each Branch Performance in the preceding 3
years of its turnover. It is the responsibility of each Branch Head to achieve the set of
Sales & Collection target fixed.
PRODUCTION DEPARTMENT
1) Purchase Department
2) Cane Department
3) Process Department
4) Store Department
5) Sales Department
6) Engineering Department
7) Administrative Department
9) HR Department
1. Purchase Department
1) Purchase of material.
2) It enquires material requirements in the store.
3) Maintaining the purchase account.
2. Cane Department
The cane department manages cane procurement through dedicated cane procurement
teams. Cane managers issue cutting orders or harvesting permits, based on data –wise cum
pre harvesting maturity surveys. The Cane Department acts as a mediator between the
Company and the farmers where the Company purchases sugarcane directly from farmers
through Cane Department .
3. Process Department:
The process department is responsible for looking after all the production activities.
The process department consists of major technicians who are responsible for carrying out
the various activities required to manage the process of conversion of raw material available
as sugarcane to the conversion of sugar.
4. Store Department
1) To make the material requisitions for the purpose of knowing the quantity material.
2) To make purchase order or in simple terms the tender.
3) To make approval memo for verification of materials.
4) The store department issued material with reference with store requisition.
5) To make classification & codification of materials.
6) Receipt of material.
7) Inspect it with ordered quantity, quality & if any other specifications.
8) Some of the material like chemical is to be sent to laboratory for incapacitation &
testing.
9) Getting indents from departmental head & issuing it.
10) To make purchase return if the material are rejected.
11) To maintain minimum level of materials.
12) Informing purchase department when material required.
5. Sales Department:
In the sugar industry sugar is sold according to central govt. guidance & release.
6. Engineering Department:
7. Administrative Department
An account section is also including in the finance dept. it helps in achieving the
objectives of the company. Proper management of the fund is necessary for effective
management.
9. HR Department:
Skills
Skills refer to the fact that employees have the skills needed to carry out the
company’s strategy. Training & development ensuring people know how to do their job &
stay up to date with the latest techniques. The team “skill” includes those characteristics,
which most people use to describe a company. Hindustan lever or Procter & gamble are
known for their marketing skills. Tata engineering & locomotive companies (TELCO) are
known for their engineering skills. IBM is known for its customer service. These are
developed over a period of time.
Shree Renuka sugars is also one among them SRSL is known for its production skills,
mechanical skills, research & technical skills, SRSL have owned facilities at Havalga. At
Havalga the factories is well equipped & manufacture raw sugar with 4,000 TCD capacities.
Style
Style is one of the seven levers which top managers can use to bring about company
change. Companies differ from each other in their style of working. The style of a company
becomes evident through the pattern of action taken by members of the management team
over a period. The aspect of business more attention by the people down in the company.
Reporting relationship may also convey the style of company. Within the same company
reporting relationship may change as a part of the evolutionary process thus conveying
changes in the style of management.
Style is more than the style of top management. It is also the culture. Culture provides
a way to bring in the people dimension in macro company analysis without using psychology
models of humans behavior. Culture can be defined as, the pattern of basic assumption that a
given group has invented, discovered I learning to cope with its problem of external adapted
& integration & that have worked well enough to be considered valid, & feel in relation to
these problems.
Renuka sugar :- the style of working is also not different from other co-operative
companies the company is required to hold annual general meeting at the end of each year
inviting all the shareholders of the company by sending notice of the AGM ( Annual General
Meeting) at least 15 days prior to the meeting. The notice all the relevant information of the
company &the agenda of the meeting. The notice also contains the audited balance sheet &
the profit & loss account of the company..
Strategy
The integrated vision & direction of the company, as well as the manner in which it
derives, articulates, communicates & implements that vision & directors.
Its strategy is to expand its installation capacity, achieve end-to-end integration for all
its plants to improve margins & reduce cycling of business, achieving greater raw material
security, increasing its focus of corporation & high value costumer, to expand market for
ethanol. The broad level strategy of the company is to focus towards corporate & industrial
buyers. Unlike the traditional mode, dealing with cooperate & industrial buyers has benefits
of committed & timely off-takes, reduced price risk, reduced working capital & reduce
dependence on brokers.
System
The decision-making system within the organization can range from management
institution to structured computer systems to complex expert system & artificial intelligence.
System refers to all the rules, regulation & procedure both formal & informal that
complements the company structures. It includes production planning & control systems,
cost accounting procedures, planning, budgeting system, capital budgeting systems etc.
Staff
Staff means that the company has hired able people, trained them well & assigned
them to the right job. Selection, training reward, recognition, retention, motivation &
assignment to appropriate work are all the key issues.
Staffing is a process of acquiring human resource for the company & ensuring that
they have the potential to contribute to the achievements of company’s goal. It is selecting
people for specific company positions & developing in these & subsequent abilities & skills
that they would need to be effective in these & subsequent assignment.
The staffing function applies to the whole company. Good performing companies paid
attention to the development of managers. On the Indian since there are some example of
firms, which are relatively more, concerned about the processes of management
development.
Shared values
Shared values means that the employees share the same guiding values. Values are
things that you would strive for even if they were demonstrably not profitable.
1) Customer satisfaction
They are dedicated to building a relationship with our customers where they become
partners in fulfilling their mission.
They strive to understand our customer’s needs & to deliver products & services that
fulfill & exceed all their requirements.
2) Responsibilities
They accept that our actions must accord with the interest of the society. About all
else, they place our products & services in the interest of the safety of people, the economic
use of resources, & environmental suitability.
ENVIRONMENT POLICY
Renuka Sugars Ltd. Engaged in producing White Crystal Sugar, Industrial and
Potable Alcohol, Ethanol and power from non – conventional sources of energy from
Bagasse and convert effluent into value added products.
SAFETY POLICY
SRSL believe that accidents are preventable and training and re-training of employees
can minimize health hazards.
SRSL will comply all the legislation and rules regarding safety and health.
SRSL are committed to provide safe machinery, methods, equipments, tools, etc., and
to continual improvements in health, Safety and Environmental performance.
SRSL employees are more valuable than anything and company expects the
employees to follow Health, Safety and Environmental norms.
In SRSL Ltd to look into the welfare of the employees and their problems there is
separate department called ‘PERSONNEL DEPARTMENT’ The Personnel department is
concerned with recruitment, selection and training of the employees. It takes with the needs
and necessities of the workers. The main function of this department is to recruit the helps
the management in securing, using and developing appropriate manpower to achieve the
objectives of the organization.
It gives more importance to salary, economic rewards, job simplification and job
specialization.
The HOD holds the responsibility of arranging, organizing and training programmes
for all the employees of the organization.
Time of their entry and the time they leave the organization
Number of absenteeism
MEDICAL FACILITIES
The company has provided various medical facilities to the employees in order to
keep them healthy. Workers are required to undergo medical examinations after every month
especially the workers working in the Bagasse section, sulphur section and sugarhouse.
Other employees will also undergo medical examination regularly. There are first – air
facilities within the factory premises to help the situations of accidents. In case of major
accidents, the company compensates the medical expenses and holidays with pay are
provided up to the recovery. The factory has established its own hospital from which the
employees will get services in case of need. Hospital is well equipped with modern
technology; modern operation theater, X-ray and can accommodate 30 patients.
HOUSING FACILITIES
The SRSL Ltd. Has provided good working facilities to the workers usually on the
basis of seniority. The HRA (Housing Rent Allowance) is also applicable for some
employees having the company grades along with good housing facilities, recreational,
medical, sports and educational facilities also provided. Company has 4 modern quarters for
employees by name ‘Vinayaka Smruthi’ each building consist of 50 family quarters Again
company has quarters by name X and Y.
EDUCATION FACILITIES
The company has provided the educational facilities to the employee and also for
their children. Company have been arranging basic computer course to the employee in its
own ITI. Primary and Secondary schools, PU college, Arts & commerce Degree college, ITI
an nursing courses have been started to benefit employee’s children and the whole society.
The company has provided good working condition with perfect light and proper
ventilation throughout the plant. The working hours are flexible. As per the emerging trend
of HRM worker safety is gaining more importance. Company has provided all employees
with shoes with steel toe, safety belts, hand gloves, oxygen cylinders, earplugs etc. special
protection have been provided to the employee working in boiler section by providing them
masks, hand gloves and cotton uniform etc.
TRANSPORTATION FACILITIES
There are transportation facilities provided for the workers, who are coming from far
distance from the factory. A Van is provided for this purpose. Company arranges vehicles
for all villages at the time of flood, for the convenience of employee and villagers. In
addition to this, cycle allowance is also given on some condition. For all these purpose
Company is having separate section called Motor department.
HOLIDAYS
The company provides 28 days of holiday along with one day holiday in week. There
will be 10 Casual leaves and 12 sick leaves for those workers who actually present on the
work more than 24 days in year.
TRADE UNION
ACCIDENTS
There are some works, which are prone to accidents e.g., electric jobs, Boiler section
jobs, Chemical section, work on automatic machines, and work by inexperience
workers. These works are risky and therefore there is always a possibility of
accidents despite off all precautions.
Defects in machines and plants cause accidents. Majority of accidents are due to
transmission machinery such as gears, belts and metal working machines, etc.
Sometimes work environment causes for accidents e.g., darkness excessive noise, etc.
SAFETY
Safety is very essential to reduce accidents. To look over the above causes of
accidents, there is a Safety Officer. He plans each and every employee protection measures to
avoid the accidents and safeguard nature of the jobs.
He has to inspect all plants and parts in the factory frequently and make the safety
rules.
In addition to the above duties the safety officer, the company also undertakes some
measures to reduce the chance of accidents. There is training and Development Officer to
train the employees so that they can become capable of handling some dangerous machinery
comes in process line. There are safety rules set in the Organization.
CHAPTER-5
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTH
2) Strong global presence: The Company is the second largest exporter of Sugar from India
with a presence in the Middle East, South East Asia and East Africa. This export revenue
provides the company with an enhanced trade flow larger than its production.
3) Preferred supplier status. The company is a sugar “supplier of choice” across brand
enhancing multinational companies that produce carbonated soft drinks, fruit juice and
others. Its clients are Coca-Cola, Pepsi, ITC and others.
4) Increasing capacity. The Company has relentlessly enhanced its capacity. Since its IPO in
October 2005, Its sugar capacity grew seven fold, ethanol capacity grew 15 fold and power
capacity grew by 8 fold
6) Successful acquisition. The company acquired co-operative mills and stand-alone ethanol
plant of 100 KL and leased production assets. The company also acquired a strategic 54% in
KBK Chem- Engineering Pvt ltd.
9) Technical expertise.
WEAKNESS
OPPORTUNITIES
2) Company has prepared detailed project report to produce ethanol production as by-
product of sugar; this can help to increase the company profit.
3) The company has acquired 54% stake in KBK Chem. - Engineering Pvt. Ltd, this
acquisition provides the company with robust platform for
leading innovation in flexi- production, new feedstock’s and cellulosic process.
THREATS
CHAPTER-6
SPECIAL TASK
INTRODUCTION
The title of the project that we have undertaken is “the study of organization structure”.
The task here is to study and analyze the organizational structure of Renuka Sugar Industries.
It includes management policies, human resource policies, financial structure and details
about finance, marketing strategies etc.
Statement of Problem
Objective of the study
Scope of the study
Limitation
Here is the study of different aspects of an organization and to know the where how
of a corporate world practically the study is an attempt to study sincerely the different
departments of an organization and help them to improve themselves by providing them with
valuable suggestions based on the study of an organization as a whole and the different
departments in turn.
The study is an attempt to study the organization as a whole and to study the different
departments in details so that the student can get a detailed knowledge about an organization
from different aspects and to study the function of the different departments which
constitutes an organization so as to suggest effective changes such that the organization
achieves its objectives and the different departments contribute effectively towards the
achievements of this organizational goal.
The study focuses on the different departments there , functioning and the methods to
improve these departments in an organization as a whole.
So this study provides a wide scope to gain an insight into the practical aspects of
working of an organization and thus increases the managerial skills.
LIMITATIONS
Any study undertaken entails a number of limitations because it involves a lot of work.
First of all, the time factor the time duration prescribed by the University for the Study is
45days but deeply studying an organization in 45 days is rather impossible.
Secondly regarding the data provided by the company mostly secondary. i.e. it may have
been audited by the organization so it may not be 100% correct.
Thirdly, the firm does not always accept the suggestions given by the project trainees, since it
has its own experts on these issues.
Fourthly it was very difficult to collect more information about production. The period of
preparing the project report was off season.
To make a decision in any business situation one needs data facts expressed in
quantitative form can be termed as data. Success of any statistical investigation depends on
the availability of accurate reliable data. This depends on appropriateness of the method
chosen for data collection. Therefore data collection is a very basic activity in decision
making. Data may be classified into primary and secondary data.
PRIMARY DATA
When the data used in a statistical study is collected under the control and supervision
of the investigation, such type of data is referred to as primary data. The primary data can be
collected through observation method or through questionnaire method.
SECONDARY DATA
When the data is not collected by the investigator but is derived from the other
sources then the data is called secondary data. The secondary data is collected from the
company profile, text books and annual reports of the company, broachers and website.
METHOD OF SAMPLING
The sample is a part or small section selected from the population and the process of
such selection is known as sampling. The process of sampling involves selecting a sample
collecting all the relevant information and finally drawing conclusion about the population
from which the sample has been selected.
SAMPLE SELECTION
As we see that there are about 1876 workers including staff working in this factory.
In such situation each person’s opinion cannot be sought. So the respondents were chased
randomly from different departments.
Research Methodology:
• Description of research
• Types of research method
• Types and sources of Data
RESEARCH METHODOLOGY
Marketing research design specifies the procedure for conducting a research project.
The survey is conducted with the objective to know the consumer awareness and attitude
towards Renuka Sugars.
1. Exploratory method
2. Descriptive method.
Descriptive research is used to collect various information from customer and hotels to study
the user’s attitude their opinion and their experiences with this milk.
Primary Data:
Primary data is data collected for the first time for the purpose of to solve the problem
at hand. In this study the primary data is collected by survey research i.e., collection of
information directly from the respondents by personal interview a questionnaire method is
used to collect the information from the respondents.
Secondary Data: Secondary data is already data for another purpose so the major sources of
secondary data is in the study is-
1. Reports
2. Manuals
CHAPTER-7
FINDINGS
SUGGESTION
If the Government take control over 40% of stock (sugar) remaining 60% of the
sugar should be sold in the open market.
Therefore the profit of the company is reduced thus the Government has to give
permission to sell more percentage of sugar in the open market it helps to increase
the profit of the industry.
SUGGESTIONS
The factory must control the plantation of sugarcane. The plantation must be
controlled in such a manner that the sugarcane must supplied throughout the year.
CONCLUSION
Sugar industry in India plays a dominant role in improving the economic condition of
the country. SRSL Ltd is set up in Gulbarga district to meet the growing needs of the cane
growing farmers of the district. The main aim & objective of the SRSL Ltd is said to be
encouraging proper development of agricultural industries among members on co-operative
lines.
SRSL Ltd provides employment for hundreds of people in Gulbarga district. The
main power of planning is utilized in a very good manner for factory. It made several social
contributions to society directly or indirectly.
It is very much essential to increase the crushing capacity of SRSL Ltd. For that it
must introduce scientific production, which lead to corn high profit and also increase the
permit given for.
The SRSL Ltd is a public sector the company is following all the managerial
such as planning, controlling, staffing, organizing etc. the company is following various
strategies to attract the customers and retain them. The company’s profit and EPS are
growing at a rate of retain of 20%.
To conclude, the study on SRSL Ltd., the experience I got from my internship study
has been really fruitful to explore new product line, people, strategies work place,
organizational culture, policies and more distinctively the style of managing the company
profile.
I believe that the experience I had in my internship training at SRSL Ltd. will surely
enrich my knowledge on industrial practicalities on my MBA career with a place virtual
learning experience.
CHAPTER-8
BIBLOGRAPHY
BIBLIOGRAPHY
Company
manuals
And magazines
Management Edition
C.R. Kothari Research Second New Age
Operations Publishing
management
House 2003
Stephens Robins Organization Eight
Behavior Edition
Fred Luthans Organization Nineth
Behavior Edition
Web site:
www.renukasugars.com
CHAPTER-9
ANNEXTURE
SOURCES OF FUNDS
Shareholder’s funds
Loan Funds
APPLICATION OF FUNDS
Fixed assets 6
Miscellaneous Expenditure 15 - - -
Schedule
No.
INCOME
EXPENDITURE
The net profit ratio is also known as net margin. This measures a relationship between
net profits and sales of the firm. Depending on the concept of the net profit employed, the
following ratio is computed:
Net profit is obtained by net sales by total expenditure that is it includes materials
consumed, cost of trading items sold, manufacturing expenses, and emolument to employees,
administrative expenses, marketing & selling expenses, financial charges and depreciation.
Profit margins vary by industry, but all else being equal, the higher a company’s profit
margin compared to its competitors, the better. In some cases, lower profit margins represent a
pricing strategy. Some businesses, especially retailers, may be known for their low-cost, high-
volume approach.
A high net profit margin would ensure adequate return to the owners as well as enable a
firm to withstand adverse economic conditions when selling price is declining, coat of
production is rising and demand for the product is falling. A low net profit margin has opposite
implications. The profit margin should, therefore be evaluated in relation to the turnover ratios.
Analysis: The Net profit ratios for the year 2006, 2007, and 2008 are 6.93, 7.43, 4.5
Inference: Net profit margin is been decreasing. It has been decreased from 7.43% to 4.5% in
2007-08, because of increase in net profit. Net profit has been increased to 745.57 in 2008
from 544.33 in 2007.