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    L M Thapar School Of Management, PATIALA Page 1

    SUMMER INTERNSHIP REPORT

    ON

    ADDITION OF ONE MILL AHEAD TO EXISTING FOURTH MILL

    WITH G.R.P.F UNDER FEED ROLLER AND DRIVE

    SUBMITTED UNDER PARTIAL FULFILLMENT OF

    SUMMER INTERNSHIP AT SIMBHAOLI SUGERS LTD

    SUBMITTED BY:SUBMITTED TO:

    AMANDEEP SINGH HARJOT SINGH

    MBA (OPERATIONS) FATHEBIR SINGH

    LM Thapar School of Management

    Thapar University

    [email protected]+9199156-03600

    BATCH-2009-11

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    TABLE OF CONTENTS

    Introduction 7-20

    y About Sugar Industry

    y About the company

    y History

    y Employees/Facilities

    y Key Products

    y Financial facts

    y Market presence

    y Businesses at a glance

    y Brands

    y Core values

    y Plants in India

    y Innovation at AD

    y Avery Dennison, Gurgaon

    Production lines 21-29

    y Thermal

    y Offset

    y PFL

    y Digital

    Value Stream Mapping 30-32

    Project work 33-37

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    y Objective

    y Process map of thermal

    y VSM of thermal

    y

    Ishikawa Diagram

    Facts & Figure 38-54

    Recommendations & Solutions 55-57

    Conclusion 58

    Reference 59

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    L h r h t P I L P 4

    SUGAR INDUSTRY IN INDIA

    Sugar Industry in India is well developed with a consumer base of more than billions of

    people. It is also the second largest producer of sugarin the world.

    There is around 45 millions of sugar cane growers in India and a larger portion of rural

    labourers in the country largely rely upon this industry. Sugar Industry is one of the

    agricultural based industries. In India it is the second largest agriculturalindustry after textile

    industry.

    INDIA SUGAR STATISTIC (STATE WISE

    India is the second largest producer of sugar in the world afterBrazil and is indulged in the

    production of cane sugar and not beet sugar. It produces approximately 22 million tons of

    sugar annually. The major states that are producing sugarcane in India are: -

    Maharashtra

    Uttar Pradesh

    Karnataka

    Tamil Nadu

    Andhra Pradesh

    Gujarat

    These states contribute around 85% sugarcane production of the country. The otherimportant

    producers of sugarin the country are Assam, Bihar, Gujarat, Haryana, Kerala, Madhya

    Pradesh, Orissa, Punjab, Rajasthan and West Bengal. The production of sugarin the country

    highly depends upon the availability of sugarcane. The leading producer of sugar is

    Maharashtra producing about 6 million tons of sugar followed by Uttar Pradesh and

    Karnataka. Uttar Pradesh constitutes the maximum area covered and the sugarcane

    production in the country.T

    wo grades of sugar namely S-30 and M-30 are produced in India;grade S-30 dominating the share in total production.

    The production of sugarcane in India has increased during the last ten years and is still on an

    increasing trend. The productivity of sugarcane in the northern areas of the country is lower

    than the productivity in southern areas. In India, sugar is grown over 4 million hectares of

    land

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    As history foretells, India had been connected to sugar for a long time. In fact, it isknown as the place of origin of sugar. India maintains this reputation of sugar connection by

    producing the second largest quantity of sugar in the world and also being the largest

    consumer of sugar. Indian sugar industry is the largest processing industry for agricultural

    products constituting of both organized and unorganized sectors.

    India had been the largest producer of sugar in the world for 7 out of 10

    years but now Brazil has taken a lead from India. Indian production from both the sectors

    sums up to 22 million tons. Indian share in the worlds total production has shown an

    increasing trend in the past few years and currently India is contributing to around 16%. The

    country has been indulged in the production of cane sugar ratherthan beet sugar as Indias

    tropical weather conditions support sugarcane production. Maharashtra holds the lead in the

    production of cane and sugar in the country. The consumption level of sugar in India reaches

    up to 18.5 million tons annually making India the largest consumer of sugar in the world.

    This demand and consumption level is still showing a rising trend. The government largely

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    controls the demand and supply of sugar in India and the prices fluctuate according to the

    government releases of sugar.

    India had been an exporter of sugar butthe export import policy depends

    on the production-demand mismatch in the country. The crushing period difference between

    India and other countries gives an advantageous edge to Indian exports. Exports from India

    show a rising trend as a result ofthe upcoming policies of free international trade. The trade

    figures of India correspond to the mark of 1.5 million tons. The Indian sugar industry has

    successfully satisfied the domestic demand till now. That is why India no imports of sugar

    were done during the past few years.

    STATISTICS ON SUGAR PRODUCTION

    As to the statistics there were a total number of 571 sugar factories in India as on March 31,

    2010 compared to 138 during1950-51. These 571 sugar mills produce a total quantity of 19.2

    million tonnes (MT).

    Trends in Indian sweetener/sugar production and consumption

    In addition to the economic cycle, outline above, natural cycles, such as climate

    variation, water availability and pest attacks, also affect sugar cane production. In

    the current sugar cycle, production of sugarcane was affected on account of higher

    realizations from other food crops such as wheat, paddy and oil. With two years of

    5

    10

    15

    20

    25

    30

    35

    40

    1980-

    81

    1982-

    83

    1984-

    85

    1986-

    87

    1988-

    89

    1990-

    91

    1992-

    93

    1994-

    95

    1996-

    97

    1998-

    99

    2000-

    01

    2002-

    03

    2004-

    05

    2006-

    07

    2008-

    09

    2010-

    11

    Sugar Consumpti on Sugarp roducti on SweetenerConsumption Total Sweetener p roducti on

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    excessive sugarcane/sugar production, the cycle is turning into lower production in

    the sugar year 2008-09. With rising consumption and linkages with world sugar

    markets, these cycles are becoming shorter and more volatile.WORLD STATISTICS

    WORLD SUGAR BALANCE

    2009/10 2008/09 Change

    (mln tonne, raw value) in min t in %

    Production 157.160 152.482 4.678 3.07

    Consumption 166.585 164.153 2.432 1.48

    Surplus / Deficit -9.425 -11.671

    Import demand 54.281 50.068 4.213 8.41

    Export availability 52.156 50.070 2.086 4.17

    End Stocks 53.068 60.368 -7.300 -12.09

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    Country Production(Tonnes)

    Brazil 648,921,280

    India 348,187,900

    People's Republic ofChina 124,917,502

    Thailand 73,501,610

    Pakistan 63,920,000

    Mexico 51,106,900

    Colombia 38,500,000

    Australia 33,973,000

    Argentina 29,950,600

    United States 27,603,000

    World 1,743,092,995

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    MARKET INFLUENCING FACT RS

    Factors pertaining to the climatic conditions and rainfall

    Production of sugarcane in the country

    Sales of sweets including candies and confectioneries

    Political factors

    Technological changes resulting in development of new uses of sugar

    Income of the consumer

    SUGAR INDUSTRY IN UP

    Uttar Pradesh Sugar Industry is one of the largest sugarindustries in the Indian economy. The

    lavish measures in form of new promotional policies for the Uttar Pradesh sugarindustry by

    the state government of Uttar Pradesh was introduced at a time when it was much needed to

    further boost the growth of the Uttar Pradesh sugar industry. The improvements in the plant

    capacity and the introduction of new techni ues which enables the optimization of the

    existing plant capacities has the further made the growth definite.

    With the new promotional policies of the Uttar Pradesh sugar industry, the investors have

    already starting eying the future prospects.T

    here are 20 more sugar processing units arecoming up as a part of Uttar Pradesh sugarindustry. The existing companies under the Uttar

    Pradesh sugarindustry are planning an investment pertaining to expansion of about Rs 4,000

    crore. At present the major companies in the Uttar Pradesh sugar industry are

    BalrampurChini, Simbhaoli Sugars Ltd., Bajaj Hindustan Ltd., etc. A batch of Brownfield

    and Greenfield expansion projects has already started their activities of crushing cane. The

    increase in the capacity would hel p the Uttar Pradesh sugarindustry to churn out an extra

    140,000 tons of crushed cane everyday to the existing 2.5 million tons of sugar produced

    within a few years time. The total sugar production under the Uttar Pradesh sugar industrywould lead to 7.5 million tons, making Uttar Pradesh the biggest manufacturer of sugar in

    India.

    The Uttar Pradesh sugar industry has a bright future as one of the prospective players in the

    global sugar market. The demand for sugar across the world has been growing exponentially.

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    L h r h t P I L P 0

    The Uttar Pradesh sugarindustry with its capacity can cater to this international demand. The

    advantages of the Uttar Pradesh sugarindustry are that the cost of production is quite low and

    the climatic conditions and the conditions of the soil are favorable to the sugarcane

    production. The region of India where the state of Uttar Pradesh lies is one of the most fertile

    lands in India called the 'doab'. This is an extremely fertile belt oflands between the rivers

    Ganges and Yamuna. To boost the production of the Uttar Pradesh sugar industry, the

    government of Uttar Pradesh is likely to set up a research and development unit which would

    develop better quality sugarcane plants to have better yield and diseases-resistant crops to

    ensure that the industry has a sustainable growth. The geographical position of the state of

    Uttar Pradesh is one of the key advantages as it is very easy to access. With all these

    developments the Uttar Pradesh sugarindustry can meet the increasing domestic demands in

    India, which due to the improvements in the economic conditions and the rise in the general

    income level. The present consumption of sugaris nearly 19 mt annually and it may go up to

    24 MT on a yearly basis.

    COMPANY PROFILE

    Simbhaoli Sugars Limited (SSL) is one of Indias leading sugar, power and alcohol business

    company. In the 75 years ofits existence SSL has emerged from single sugar unit into multi-

    location sugar units and distilleries group. SSL has three large sugar complexes in Northern

    India producing broad spectrum of all products possible from sugarcane. Simbhaoli and

    Brijnathpur Sugar Units combined is the largest sugar refinery in the Country producing raw

    sugar and 45 i.e. refined sugar, pharma grade sugar and number of specialty sugars. SSLs

    distilleries produce Rectified Sprit, ENA, etc. SSL is one of the largest producers of ethanol

    in Northern India catering to the requirements of ethanol doping in petrol by Oil marketing

    companies like Indian Oil, Bharat Petroleum and Hindustan Petroleum. SSL is also one of the

    largest players in Co-generation of bio-electricity from sugarcane bagasse and exporting the

    power to U P PowerCorporation. SSL also produces huge quantity of organic manure

    branded as SOM.

    SSL has a presence in the market for its products of sugar and IMFL. SSLs sugar brand

    TRUST is one of the most popular brands for specialty sugar in retail, F&B and

    institutional buyers. SSLs IMFL products are preferred brands in many States across the

    country.

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    HISTORY:

    Simbhaoli Sugars Limited (SSL), formerly known as The Simbhaoli SugarMills Limited

    (SSML), a 75 years old company is reinventing itself as a growth oriented, innovative and

    customer facing enterprise. A culmination of a process that started at the turn of the century,

    SSL has transformed itselfinto a leaner, fitter and stronger corporation. The Company has

    evolved a de- risked growth model that mitigates the volatility of the commodity market by

    investing in the diversified revenue streams, stringent quality and branding, in a cost effective

    manner.

    Origin

    Simbhaoli Sugars Limited (SSL) was established as a partnership firm in 1933 with a 400TCD (tones of sugarcane crushed per day) sugar unit at Simbhaoliin Western Uttar Pradesh

    region of India. It was incorporated in 1936 as a private limited company. The company went

    public in 1989 and has followed a stable growth strategy in its business. In the year 1992 it

    acquired a distillery and converted its Simbhaoli sugar plant into a sugar complex.

    As we celebrate the 75th birthday of our Simbhaoli Sugar plant, it'sa matter of great pride to

    look back on the defining milestones in our seven decades plus existence. Established by

    SardarRaghbir Singh Sandhanwalia in the village that goes by its name, Simbhaoli was oneof the earliest sugar plants to be set up in western Uttar Pradesh. Over the years, SSL set

    industry trends for technology, professional management, product quality, research and

    innovation efforts, covenant with farmers, corporate social responsibility initiatives and

    welfare schemes for employees.

    VISION

    To be an environment friendly, stake holder centric, innovative, professionally managed,

    Integrated sugar refining company with low Cost global technologies producing range of

    value added products.

    T e 75th Year of Simbhaoli Sugar Plant..

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    Simbhaoli Sugar plant is celebrating its 75th year of commercial operations during the year

    2007-08. The plant was started on January 25, 1933 with a moderate capacity of 400 TCD.

    Today, it is one of Indias leading producers of high quality refined sugar,alcohol, ethanol,

    co-generated power and bio manure.

    Operating Units/capacities:

    CHANGE OF NAME

    Keeping in view ofthe diversified growth model being pursued, the name ofthe Company is

    changed from The Simbhaoli Sugar Mills Limited to Simbhaoli Sugars Limited.

    Consequentto change in name, the Corporate Logo is also changed. There is no change in the

    general character or nature of business ofthe Company.

    CORPORATE INFORMATION

    Since 2006-07 crushing season, Simbhaoli Sugars operates three technologically advanced

    sugar manufacturing facilities at Simbhaoli, Brijnathpur and Chilwaria, all located in the

    sugarcane-rich state of Uttar Pradesh. The Companys sugar facilities have a total installed

    sugarcane crushing capacity of 20,100tons of cane crushed per day (TCD) and are capable of

    manufacturing up to 300,000 metric tons per annum (MTPA) of sugar. Atthe Simbhaoli and

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    Bri jnathpur facilities, the Company has adopted a new sugar refining process called DRPIE

    (DefecoRemeltPhosphotation and Ion Exchange), that is known internationally as one of the

    best sul phur-free purification processes for producing refined sugar. The sugar produced

    conforms to European Union standards. The sugar facilities are highly efficient, with a sugar

    recovery rate (the amount of sugar produced to sugarcane consumed) of around 10%

    (averaged over the last five sugar seasons), which the Company believes is amongst the

    highest in the region. The Chilwaria facility is an energy efficient sugar plant and saves a part

    of the bagase produced during sugar production for use in co-generating power.

    E PERIENCED MANAGEMENTTEAM

    The Company is led by an experienced management team under the guidance of its

    Chairman, Mr. Gurmit Singh Mann, who has over 30 years experience in the Indian sugar

    industry. Mr. Gurmit Singh Mann, Chairman and Managing Director, is ably supported by his

    talented executive team.

    BOARD OF DIRECTORS

    Name of Director Directorship

    Mr. Gurmit Singh Mann Chairman and Managing Director/ Promoter

    Mr. Gurpal Singh Executive/ Promoter

    Dr. G.S.C. Rao Executive, ChiefOperating Officer

    Mr. Sanjay Tapriya Executive, Chief FinancialOfficer

    Mr. S. K. Ganguli Independent

    Mr. S. C. Kumar Independent/ Non-Executive

    Mr. Naveen Atrishi Independent (Nominee ICICI)

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    KEY MANAGERIALPERSONNEL

    The Board of Directors is responsible for overall management, control and supervision. The

    Chairman and Managing director is assisted by the Deputy Managing director, Executive

    Director and Director Finance for carrying out day-to-day management under the supervision,

    direction and control of the Board. The Company has employed a number of professionals in

    various areas of management:

    Name Designation

    Dr. G. S. C. Rao ChiefOperating Officer

    Mr. Sanjay Tapriya Chief FinancialOfficer

    Mr. Indip Singh Bhatia Unit head Simbhaoli Plant

    Mr. Naveen Tyagi Unit head Brijnathpur Plant

    Mr. Ajay Verma Unit head Chilwaria Plant

    Mr. R. K. Singh Unit head Simbhaoli Distillery

    Mr. A. K. Srivastava Corporate head, Technical

    Mr. S. C. Reddy Corporate head, Agriculture and sugar cane

    Mr. SunilK. Gupta CorporateHead Accounts and Finance

    Mr. A. P. Singh Corporate head, Cogeneration

    Mr. Shiv Sinha Head Marketing (Premium Spirits)

    Mr. Rajiv Bhatia Head Marketing (Sugar)

    Mr. Dilip Jain Head Project Development

    Ms. GursimranKaur

    Mann

    Head Business Promotion

    Mr. Kamal Samtani Company Secretary

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    Customers/Clients:

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    COMPANYS PHILOSOPHY

    Simbhaoli Sugars has been implementing its growth plan involving capital expenditure in the

    expansion of sugar, alcohol, bio- fuel and bio power capacities. As part of the future growth

    strategy, it has developed the practices to fulfill its corporate and social responsibilities to

    various stakeholders and believes in adopting good governance, which is founded upon the

    principles of transparency, monitoring, accountability, growth-oriented approach, trusteeship,

    corporate citizenship and environmental consciousness. At the core of the governance is the

    Board of directors, who acknowledges responsibilities for servicing and protection of the

    long-term interest of all the stakeholders. The process consists of various business practices,

    which not only results in working towards sustainable and least risk earning model and

    enhancing shareholders wealth but also enables the Company to fulfillits obligations towards

    its suppliers, customers, employees, lenders and to the society in general.

    The Companys corporate governance norms fulfill business ethics as an enabling and

    facilitating process encompassing all its functions at different levels. The management

    follows the policies of compliance, protection of the rights and interests, equality in dealing

    with all the shareholders, act as a trustee of shareholders capital, transparency in business

    dealings, timely disclosures, effective internal and external communication, strategic

    guidance and monitoring and the accountability to the Company and its shareholders. The

    Board has the necessary authority and practices in place to review and evaluate the operations

    conducted by the Company. It allows the Board to take decisions that add value to the

    stakeholders.

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    MARKETING INITIATIVES: SPECIALTY AND REFINED SUGAR

    Simbhaoli Sugars has transformed from a manufacturing company to a manufacturing plus

    retailing organization. During the last five years it has created a number of brands/ products

    in its sugar and alcohol segments. Achieving the highest levels of quality and to meet the

    customers expectations have been major driving forces ofits brand initiatives.

    Simbhaoli Sugars continue to promote and develop new brands under its specialty sugar

    segment during the year. The Trust brand of premium white sugar (refined) has been re-

    launched under the new consumer friendly pack. In addition, the Trust brand has been

    extended for brown sugar, sugar cubes (white and brown), icing sugar, table sugar, breakfast

    sugar, sugar sachets and tubes, institutional, retail, and economy packs etc. The Company has

    commenced manufacture of pharma sugar, which is supplied to the pharmaceutical

    companies. During the year, it has launched candy sugar (Mishri) for bulk as well as retail

    market. Further large bulk buyers viz. Coca Cola, Pepsi, Haldirams and GlaxoSmithkline

    continued to purchase white refined sugar of the Company on regular basis. In the retail

    segment departmental stores, Indian Railways, Airlines, luxury hotels, restaurants, vending

    companies, Government agencies, coffee houses, foreign embassies etc continued to remain

    the regular buyers of the specialty sugar products.

    BUSINESS STRATEGY

    Simbhaoli Sugars aspires to be one of Indias largest sugar and sugar by-products companies,

    while at the same time pursuing a strategy of least business risk. In order to achieve these

    objectives, the Company has the following business strategies:

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    a) Diversify Revenue Base: de- risking of traditional business model:

    To benefit from the expected growth of markets, improve operational efficiency and

    economies of scale, Simbhaoli Sugars has expanded its co-generation and distillation

    capacities in its Simbhaoli facility, and developed its Chilwaria facility into a fullyintegrated

    sugar complex through the addition of an ethanol distillery and is expanding its current co-

    generation power plant units (refer capacity expansion table).

    b) Expand Sugar Manufacturing Capacity:

    The Company has expanded its Simbhaoli and Chilwaria sugar facilities and has successfully

    commissioned a Greenfield sugar manufacturing facility in Brijnathpur. The Companys

    sugarcane crushing capacity has been increased from 11000 TCD to a total capacity of

    20,100 TCD.

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    c) Di ersify Sugar Product Range:

    The Company plans to supply a more diversified sugar product range to meet the specific

    needs of a broader customer base. Additional sugar products include rock, flavored and

    breakfast sugar, which are brought to market in fiscal 2008.

    d) Pursue Strategic Acquisitions and Minority Investments:

    Simbhaoli Sugars may pursue selective strategic acquisitions and minority investments to

    augment its capabilities, broaden its product offering, or achieve greater raw material

    security.

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    CORE COMPETENCIES

    Aim of being not only a manufacturer but a large trader of sugar and allied:

    Production being at 27 MMT, Last years closing stock of around 10 MMT, takes the total

    output to about 37 MMT for the year. Assuming a consumption of 21 MMT, export of 3

    MMT and buffer stock of 5 MMT, there would still be a comfortable 8 MMT as the closing

    stock. Thus, with high production and stock, Simbhaoli is aiming of continuing not only a

    miller but a trader as well. In adverse conditions like monsoon it can look at various options

    of moving the cargo from Ports like Mumbai, Kandla, and Tuticorin etc.

    Government is encouraging industry by giving export subsidies which can make Indian sugar

    much more competitive in the world market. Thus, with all this production and the subsidies

    available, the Company is in a cost benefit situation and can export much more than what it is

    expecting will be traded.

    Better infrastructure support:

    During the harvest season, sugar mills operate round the clock processing raw cane into sugar

    and other products. A high level of cooperation is required between farmers, harvest

    contractors, transport contractors and mill managers to make sure the mill receives a steady

    stream of fresh cane. Simbhaoli Sugars uses an integrated supply chain model to improve its

    efficiency and cost-effectiveness.

    Risk mitigation and hedging:

    The company has a futures desk active in the market and processing information through the

    plants. This helps in taking the right decision and steps on time so that we are able to hedge

    our positions and avoid many market risks. It hedges all the trading operations and takes

    proper care of the insurance both transit and warehouse. It follows Standard Operating

    Procedures to ensure the smooth execution of the contracts.

    In order to maximize returns SSL is making constant efforts to increase the accessibility to

    the available markets. It stays updated in the forex markets through the forex desk. It has also

    commenced trading operations on the International sugar exchanges.

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    Manpower support:

    The trading and exports division of the company works as an independent business section of

    the Company. It has a dedicated team of people experienced and trained in the fields of

    Accounts and Finance

    Futures Trading

    Indian Sugar Industry

    Global Sugar Industry

    Logistics and Documentation

    Contract Management

    RiskManagement

    Domestic Trading

    Sugar Production and Quality Supervision details

    The division publishes a weekly market report detailing the information and analysis from the

    Local and International markets that week.

    Certificates Granted (HACCP, ISO,HALAL, Star E port House):

    The Company is ISO 9000, 14001 and HACCP certified which helps in selling the sugar

    better in the International market where there is continuous demand for premium and

    hygienic products. The Company has also been granted status of Star export house vide

    certificate of recognition issued by Government of India, Ministry of Commerce and

    Industry. Some Muslim countries require certificates like Halal and we are certified for the

    same e.g. Indonesia one of the largest importers of refined sugar requires imported sugar to

    be Halal certified.

    Domestic Trading:

    SSL is always on the lookout for the domestic rake movements mainly, between the major

    trading areas like MH Kolkata, UP etc through a well established network with millers,

    traders and buyers that enables it to navigate the domestic market efficiently.

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    ORGANIC MANURE

    SOM (Simbhaoli Organic Manure) is high quality organic manure produced by aerobic

    composting process under windrow system that uses sugarcane press mud & distillery bi-

    products treated with distinctive micro-organisms. SOMs ingredients are derived from

    environmentally safe naturalingredients and no Genetically Modifiedsubstance is used in our

    Bio- Composting. SOM is certified organic by IMO (Institute forMarket logy) Switzerland

    under NPOP program as perEuropean standards (EC-2092/91). It has also got certified for

    NationalOrganic Standards by Agricultural & Processed Food Product Export Development

    Authority (APEDA), Ministry of commerce, Government of India.

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    INTERNATIONALE CHANGEROAD AHEAD

    The New York Board of Trade is the designated futures market and exclusive global

    marketplace for Sugar No. 11sm futures and options on futures contracts, and Sugar No.14sm

    futures. The world comes to NYBOT everyday to price this critical commodity, and market

    users can access real time sugar prices direct from the NYBOT trading floor through NYBOT

    Live.com. Since the Company is trading internationally and operating on the NCDEX as

    well, it has become vital forit to trade on these exchanges.

    ENTERING INTO INTERNATIONAL RETAIL MARKET

    Till now SSL was exporting bulk sugar but now it is entering into retail trade also. It has

    started exporting its own specialty sugarinto the international markets.

    SOCIAL RESPONSIBILITIES

    The Company is a responsible corporate citizen and has worked out a number of programmes

    for the social development in the area ofits operations. It has set up a school, farmer service

    centers, fair price shop and carrying out a number of programmes forlocal area development

    including roads maintenance, drinking water, medical and family planning camps etc. On

    account of these reasons one can see the better development and prosperity in and around the

    areas in the vicinity of the Simbhaoli Sugar complex.

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    PRODUCT PROFILE

    SUGAR:

    Simbhaoli Sugars has built strong relationship with over

    120,000 sugarcane farmers, which are critical to any sugar

    companys success. The Companys impetus on sugarcane R&D has been a key driver of its

    sugar divisions operational performance and relationship with farmers. Research farms at

    each facility conduct extensive sugarcane crop analysis, and monitor disease and pests. The

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    results, which are fed back to farmers, Simbhaoli Sugars has successfully developed a bio-

    pesticide that enhances the quality and yield of the sugarcane crop and is distri buted to

    farmers free of charge. Additionally, the research laboratory have also led to the development

    and manufacture of pharmaceutical-grade and specialty sugar products, such as sugar cubes,

    brown sugar, icing sugar, table sugar and sugar sachets, targeting the hospitality and tourism

    industries.

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    L M Thapar School Of Management, PATIALA Page 7

    CO-GENERATED POWER:

    Bagasse, the fibrous portion of sugarcane, is

    burned in power plants onsite to co-

    generate heat and electricity which can be utilized for captive consumption by the sugar

    manufacturing facility as well as for sale to state electricity boards and other companies.

    Currently, the Companys facilities at Simbhaoli and Chilwaria have co-generation plants

    producing 50.00 MW/hr of bio-electricity, of which 27 MW/hr is exported to U P Power

    Corporation Ltd. This surplus will go up to 36 MW/ hr by the beginning of 2008-09 seasons.

    SSL adopted Clean Development Mechanism (CDM) in its Sugar Unit at Simbhaoli. It is

    one ofthe few sugar units in the country to get registered as CDM project in United Nations

    Frame Work ofConvention forClimate Change and generating Carbon Emission Reduction

    (CER) and getting verified yearly to earn revenue.

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    L M Thapar School Of Management, PATIALA Page 8

    DISTILLERY:

    Molasses, a liquid by- product of sugar production,

    can be used for the production of alcohol and

    ethanol. The Simbhaoli facility houses a distillery with a capacity of 90 kilo-liters per day

    (KLD), which is capable of producing up 60 KLD of ethanol, 25 KLD of potable liquor and

    20 KLD of extra neutral alcohol (ENA). In addition, 30 MT per day of carbon dioxide is also

    recovered and sold, providing additional revenues. The technologically advanced ethanol

    plant is fully automated and employs the new generation molecular de-hydration sieve

    technology. ENA is a raw material used for manufacturing high quality potable liquor,

    including whisky, rum, and gin. This potable liquor is sold in northern India under the

    Hunters/Simbhaoli XXX (rum), Seven Knights (Whisky), Seven Knights Lemon flavor dry

    Gin, Gorki (Premium Vodka) and Ice Blue Tango. These brands have been developed after

    extensive research (product and packaging) and as per the choice and taste of consumers.

    Under the country liquor category the Company is creating brand awareness and promotion

    plan for its brands forthe firsttime in the state of Uttar Pradesh. The Chilwaria distillery has

    a capacity to produce 60 KLPD of Fuel Ethanol with an optionally to produce ENA/ RS of

    same quality.

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    BIO-MANURE:

    Press-mud, another by-product of sugar

    production, when combined with treated

    effluent (a waste product ofthe distillation process) is used to manufacture bio-manure. The

    Simbhaoli and Chilwaria facilities house bio-manure plants with production capacity of

    34,000 MTPA. Marketed underthe SOM (Simbhaoli Organic Manure) brand name, the bio-

    manure is sold both to farmers and domestic consumers across northern India. The

    Companys research has shown that the use of SOM increases crop yields. Further, the

    Company has diversified into organic manure products such as bio-enzymes, which are an

    additional potential revenue source.

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    ETHANOL:

    The SSL has two Fuel ethanol plants having an

    aggregate capacity of 120 KLD. This will further go

    up to 180 KLD by March 2008 with the commencement of Brijnathpur Distillery. The

    technologically advanced ethanol plants are fully automated and employ the new generation

    molecular de-hydration sieve process. These plants have the option to produce ENA with

    minor modifications, if desired, meeting the international standards. SSL is one ofthe largest

    suppliers of anhydrous Ethanol to Oil Marketing Companies like Indian Oil Corporation,

    Bharat Petroleum and Hindustan Petroleum.

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    L h r h t P I L P 32

    MAJOR DIFFICULTIES IN BRANDING TRUST

    BIG sugar companies find branding bitter. Bajaj Hindustan Ltd, the country's leading

    producer, believes that a strong future in sugar is linked to efficient commodity play. Notbranded sugar sales.

    Failure in marketing strategies of branded sugar like TRUST is attri buted to several

    factors:

    First, sugar per se is considered bad for health, so a health proposition is difficult

    to convey to the target customers. Even where the companies have tries to offer innovative

    products like low calorie sugar, the price poses a problem. For, they then have to compete

    directly with artificial sweeteners, which offer zero calories at similar prices.

    Second, sugar brands like TRUST have not been able to add a product offering, which could

    stand out and tempt customers to pay a premium. While clean sugaris a good proposition, it

    cannot take the brand forward.

    Third, though varieties of consumable sugar like brown sugar, sugar cubes, quick dissolvesugar, and breakfast sugar are available, public in general doesnt know about them or dont

    buy due to high prices.

    Fourth,limited advertising has hampered the brand building efforts of the company.

    Fifth, Sugar consumption is linked t bad health. So playing upon the health platform is very

    challenging forTRUST. Then, most supermarkets and retail outlets display branded sugar

    besides artificial sweeteners such as Sugar Free, Equal and Zero. So a health conscious

    customers choices go either way.

    RE- LAUNCH OF TRUSTBRAND

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    SSL launched its new range of sugars, namely Trust Sunehra and Trust Classic range.The

    Trust Sunehra is complete natural golden mineral sugar. The Trust classic white sugar is

    available in multiple variants namely Sulphur less white crystal sugar, Superfine, Cubes and

    Pure Mishri.

    The Trust Sunehra sugar is a totally natural golden sugar made for the first time in India

    which retains all the goodness of sugarcane. It is the purest form of mineral sugar, which

    preserves all the natural value and taste of sugarcane. Sunehra is made from sugarcane juice

    without addition of sulphur or any harmful chemicals whilst retaining all its nutrients such as

    minerals like calcium, iron, potassium and other natural pigments like chlorophylls,

    xanthophylls, and flavanoids. Trust classic sugar is in white crystal, superfine, cubes and

    candy form. It is made through the DRPIE technology, in which color is removed by a

    sophisticated filtration process supported by natural crystallization without using sulphur in

    the process.

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    New launches:

    True to the Simbhaoli tradition of product innovation and goal to evolve into a FMCG

    company, we are in process of launching a new, instant fruit- drink mix powder- Trust Sipp.

    Trust Sipp will be available in four fun-filled flavours- TenderCoconut, Orange Delight,

    Tangy Lemon and Alphonso Mango. Presentation includes an attractive 500g family pack

    and 12g/ 19g single-serve sachets.

    The mango, lemon and orange flavours (500g) will be priced at Rs. 80 and the coconut flavor

    (500g) at Rs. 90. The single-serve mango, lemon and orange sachet (19 g) will be priced at

    Rs. 4 and the coconut sachet (12 g) Rs. 5.

    Trust Sipp is a natural thirst quencher with the goodness o vitamin C, A, E and B. Just add

    water, stir and top up with ice for pure, wholesome refreshment, glass after glass. It does not

    contain any preservatives or artificial colors and flavors.

    Launch Plan: In phase 1, Sipp will be launched in April in the Delhi/ NCR and majortowns

    within the radius of 5 km. Phase 2 will kick off in July, when the efforts will be to seed the

    virgin markets. Finally, therell be a pan- India roll out by Octoberthis year.

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    L M Thapar School Of Management, PATIALA Page 6

    PROJECT WORK

    Objective:

    Addition of one mill ahead to existing fourth mill with G.R.P.F underfeed roller and drive.

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    L h r h t P I L P 3

    Reduc

    agasse ol f om 2 0 to 1.6 esulting to eduction in bagasse

    loss by0.08 on cane .

    Increase in crush rate from 320 TCH to 340 TCH.

    Decrease in imbibitions from 300 on fibre to 270 on fibre there by saving

    in bagasse by0.4 on cane.

    Overall sugarrecovery will increase by0.10% from e isting ol% cane

    Survey at various other sugar mill:-

    y MAWANASUGARMILL (45 KM )

    PARTICULARS 2007-08 2008-09 2009-10

    CANE

    CRUSHED(QTLS)

    1,46,87,478 1,09,35,365.02 1,13,33,935.87

    MILL EXTRACTION(%)

    95.44 95.27 95.58

    BAGASSE POLL (%) 1.84 1.78 1.71

    MOISTURE (%) 52.77 52.68 53.43

    RECOVERY (%) 9.89 9.12 9.41

    y h L F y ( M ) h ( KM)

    PARTICULARS 2007-08 2008-09 2009-10

    CANECRUSHED(QTLS)

    95,20,810 70,18,461.40 81,42,390.76

    MILL EXTRACTION(%)

    94.71 94.47 94.50

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    L h r h t P I L P 39

    BAGASSE POLL (%) 1.91 1.85 1.90

    MOISTURE (%) 51.04 50.83 50.21

    RECOVERY (%) 9.60 8.95 9.03

    y BRIGNATHPURSUGARMILL (30 KM)

    PARTICULARS 2007-08 2008-09 2009-10

    CANECRUSHED(QTLS)

    33,33,536.98 35,01,144.64 39,55,592.86

    MILL EXTRACTION(%)

    94 93.84 94.77

    BAGASSE POLL (%) 2.21 2.08 1.90

    MOISTURE (%) 51.41 51.45 50.75

    RECOVERY (%) 9.50 8.51 9.20

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    SchematicDiagramofAutomaticCaneFeedingSystemwithMillSpeedControl

    DetailedDiagramofCompleteMillTandemControl

    FINANCIAL GAIN:- Based on Assumption made

    Average crush rate 8000 TCD

    Season duration 180 days

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    Bagasse selling rate Rs.2000 per tonne

    Sugar selling rate Rs.3000 per QTLS

    Savings :-

    Due to extra saving in bagasse @ (.077+0.4)% 0n cane=8000*180*1.17*2000=336 lacs(approx)

    Due to reduce loss in bagasse @0.1%0n cane =8000*180*0.1*30000 =432lacs (approx)

    Total saving (336+432) 768 lacs or say 770 lacs

    PAY BACKPERIOD: - ABOUTONE SEASON