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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
mann.amandeepsingh@gmail.com+9199156-03600
BATCH-2009-11
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L h r h t P I L P 2
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
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1986-
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1988-
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95
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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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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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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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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
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