II PROFILE OF THE SELECTED SUGAR MILLS IN …shodhganga.inflibnet.ac.in/bitstream/10603/17186/8/08...Page | 40 CHAPTER – II PROFILE OF THE SELECTED SUGAR MILLS IN TAMILNADU n this

Page | 40

CHAPTER – II

PROFILE OF THE SELECTED SUGAR MILLS IN TAMILNADU

n this chapter, the profile of the eight cooperative sugar mills and eight private

sugar mills in Tamil Nadu under the study, is given.

2.1 COOPERATIVE SUGAR MILLS

2.1.1. AMARAVATHI COOPERATIVE SUGAR MILLS LIMITED

Amaravathi Cooperative Sugar Mills Ltd. is situated at Krishnapuram, Udumalpet

Taluk, Coimbatore district. It started its commencement during the year 1960. Its present

crushing capacity is 1250 M.T.

TABLE 2.1

CRUSHING CAPACITY, CANE CRUSHED, SUGAR PRODUCED AND

RECOVERY PARTICULARS FROM 2005-2006 TO 2009-2010

S.No. Particulars 2005-

2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010

1. Crushing Capacity

(TCD) 1400 1400 1400 1400 1250

2. Cane Crushed (MT) 27580 233824 236188 199140 143505

3. Sugar Produced (Qtls) 20699 232734 231690 189420 133505

4. Recovery % 8.59 9.92 9.71 9.51 9.30

Source: Annual Reports of TNCSF.

During the year 1997-1998, the mill got the award of State Level Best

Cooperative Society.

2.1.2. CHENGALRAYAN COOPERATIVE SUGAR MILLS LIMITED

Chengalrayan Cooperative Sugar Mills Ltd. is situated at Periasevalai, Ulundurpet

Taluk, Villupuram district. It started its maiden season during 1980. Its present crushing

capacity is 3000 M.T.

I

Page | 41

TABLE 2.2




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 3000 3000 3000 3000 3000

2. Cane Crushed (MT) 371912 602246 742656 544799 350203


4. Recovery % 8.38 7.87 8.82 9.30 8.67


TABLE 2.3

AWARDS AND PRIZES, ACHIEVED BY THE MILLS

S.No. Awards & Prizes Description / Remarks

1. 1984-85 and 1985-1986 - Tamil Nadu

Coop. Sugar Federation„s Award Best Coop. Sugar Mills in Tamil Nadu.

2. 1987-88 - Dr. Mahalingam Award Cane Development Achievement.

3. 1988-89 National Federation of Coop.

Sugar Factories‟ Award Efficiency Award.

4. 1991-92 -National Federation of Coop.

Sugar Factories -Third Prize Cane Development Achievement.

5. 1993-94 - National Federation of

Coop. Sugar Factories‟ Award Cane Development Award.

6. 1995 – Tamil Nadu Coop. Sugar

Federation „s Award Best Coop. Sugar Mills in Tamil Nadu.

7. 1997 - Tamil Nadu Coop. Sugar

Federation - Second Prize

Maximum Utilization of Bio inputs in

Sugar mills level.

8. 1999-2000 Tamil Nadu Coop. Sugar

Federation - Second Prize

Maximum Utilization of Bio inputs in

Sugar mill level.

9. 2000-2001 Tamil Nadu Coop. Sugar

Federation in - Third Prize Utilization of Bio inputs.

10. 2004-2005 N.F.C.S.F. New Delhi -

Second Prize

Cane Development and Other Recovery

Area.


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2.1.3. CHEYYAR COOPERATIVE SUGAR MILLS LIMITED

Cheyyar Cooperative Sugar Mills Ltd. is situated at Anakkavur, Thenthandalam,

Cheyyar taluk, Tiruvannamalai district. It started its crushing during 1991. Its present

crushing capacity is 2500 M.T.

TABLE 2.4




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 2500 2500 2500 2500 2500

2. Cane Crushed (MT) 283845 464806 612693 451886 218890


4. Recovery % 8.44 10.42 9.34 9.44 8.61


TABLE 2.5


S.No. Awards & Prizes Description/Remarks

1. ISO 9001:2000 Certificate obtained for Quality

Management system.

2. Safety Award-2004 Longest Accident free period.

3.

Merit Certificate for break through made

in recovery by popularising wonder cane

Coc 671 -1982- by TNCSF.

--

4. Dr. N. Mahalingam Award For Manufacturing section 1996-1997.

5. Dr. N. Mahalingam Award For Manufacturing section 2000-2001.

6.

Crushing season: a) Average recovery

10.01% is more than Peak season

recovery 10.0%. b) By supplying good

clean, green cane, have achieved more

than 10% recovery continuously for 135

days.

--


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2.1.4. THE DHARMAPURI DISTRICT COOPERATIVE SUGAR MILLS

LIMITED

The Dharmapuri District Cooperative Sugar Mills Ltd. is situated at Palacode

Taluk, Dharmapuri district. It started its first crushing, during 1972. Its present crushing

capacity is 2000 M.T.

TABLE 2.6




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 2000 2000 2000 2000 2000

2. Cane Crushed (MT) 314260 333908 453617 289900 219672


4. Recovery % 10.93 10.79 10.60 11.15 10.76


TABLE 2.7


S.No. Awards and Prizes Description/Remarks

1. Productivity efficiency for the year 1987-

1988 - I place in the state Government of Tamil Nadu.

2. Award for the better performance for the

year 1988-1989 National Productivity Council,

3. State Safety I prize awarded for the year

1996 Government of Tamil Nadu.

4. Shield given for Highest Bio-fertilizer

usage during 1999-2000 season

Tamil Nadu Coop. Sugar

Federation, Chennai

5.

State level I and II awards for the three

years i.e from 1999, 2000,2001 for the best

performance

Government of Tamil Nadu.

6. S.V.B Memorial Award for the Best Cane

Development during 2001-2002. SISMA

Page | 44

7. 2004-2005 Best Cane Development award. Director of Sugar, Chennai.

8.

National level II prize awarded by

Honourable Agricultural Minister for Cane

Development during 2005-2006 season.

Government of India.

9. National award for the best Cane

Development during 2005-2006 season.

National Coop. Sugar Federation,

New Delhi

10. Memento given for proper loan repayment

during 2005-2006 State Bank of India, Palacode,

11.

In the Central Excise Day Celebration

2010, "Revenue Performance Award 2010"

was given for being the higher Central

Excise duty paying unit for the year 2010.

Central Excise Department.

12.

In the 40th Annual Convention of South

India Sugarcane & Sugar Technologist

Association (SISSTA) the mill has received

"Highest Recovery Award" for the highest

sugar recovery among all sugar mills in

South India

South Indian Sugarcane and Sugar

Technologists Association.

13.

In the 50th Cooperative Week Celebration,

the Honourable Agricultural Minister of

Tamil Nadu presented „Best Cooperative

Organization‟ award to the mills.



2.1.5. THE KALLAKURICHI-I COOPERATIVE SUGAR MILLS LIMITED

The Kallakurichi-I Cooperative Sugar Mills Ltd. is situated at Moongilthuraipattu,

Sankarapuram Taluk, Villupuram District. It commenced its first crushing during 1966-

1967. Its present crushing capacity is 2500 M.T.

Page | 45

TABLE 2.8




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 2500 2500 2500 2500 2500

2. Cane Crushed (MT) 404179 491170 582139 471945 380682


4. Recovery % 9.04 9.19 8.88 9.47 8.75


TABLE 2.9


S.No. Details of Awards & Prizes Awards / Prizes issued by

1. National Award for Technical

Efficiency (Other Recovery Zone) –

First and Second Prize for the year

2001-2002 and 2004-2005.

National Federation of Cooperative

Sugar Factories, New Delhi.

2. State Award for Maximum Utilization

of Bio-inputs – First Prize for the year

2001-2002.

Tamil Nadu Cooperative Sugar

Federation, Chennai.

3. SVP Memorial Award for Factory

Performance – First Prize for the year

2001-2002


Technologists‟ Association.

4. State Award for Best Cooperative

Society – First Prize for the years 2002,

2004 and 2005.


5. State Award for Best Performance –

Second Prize for the year 2004-2005. Director of Sugar, Chennai.

6. Best Cane Development Award –

Tamil Nadu Region – First Prize for

the year 2009-2010


Technologists‟ Association.


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2.1.6. THE KALLAKURICHI-II COOPERATIVE SUGAR MILLS LIMITED

The Kallakurichi-II Cooperative Sugar Mills Ltd. is situated at Kachirayapalayam,

Kallakurichi Taluk, Villupuram district. It started its maiden season during 1997-1998. Its

present crushing capacity is 2500 M.T.

TABLE 2.10




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 2500 2500 2500 2500 2500

2. Cane Crushed (MT) 388353 473116 602461 467586 211900


4. Recovery % 9.62 9.19 9.30 10.02 9.01


TABLE 2.11


S.No. Year Details of Award Award issued by

1. 1997-

1998

National Federation of Coop. Sugar

Factories, Technical Efficiency

Award, First Prize.

National Federation of

Coop. Sugar Factories Ltd.,

New Delhi.

2. 1997-

1998

Dr.N.Mahalingam Award

(Productivity Leads to Prosperity,

Overall Productivity).

Dr. N. Mahalingam.

3. 2000

48th All India Coop. Weekly

Celebration Award for best Coop.

Society in State Level.

Tamil Nadu Coop. Union.

4.

2000-

2001

Dr.N.Mahalingam Award

(Productivity) Dr. N. Mahalingam.

5. 2000-

2001

State Level Best Performance Award

(Second Prize).


Federation Ltd.,

6. 2000-

2001

Maximum Utilization of Bio-Inputs

Award (Second Prize).


Federation Ltd.,

Page | 47


7. 2000-

2001


Factories Technical Efficiency

Award (First Prize), Other Recovery

Area.



New Delhi.

8. 2000-

2001

Second price, Best cane production

award

The South India Sugarcane

and Sugar Technologists‟

Association. (SISSTA)

9. 2002





10. 2004-

2005

State Level Best Performance Award

(First Prize).


Federation Ltd.,

11. 2005

52nd

All India Coop. Weekly




12. 2004-

2005


Factories Ltd., (VasantdadaPatil

Award) for Best Coop. Sugar Factory

in India.



New Delhi.

13. 2004-

2005

State Level Best Performance

Award.


Federation Ltd.,

14. 2005-

2006

Central Excise Commissionerate,

Pondicherry. (Top Assesses) Central Excise Pondicherry.

15. 2006

53rd

All India Coop. Weekly

Celebrations Award for best Coop.



16. 2006-

2007

Technical Efficiency Award other

Recovery Area (First Prize).



New Delhi.

17. 2007



Society in State Level (First Prize).


Page | 48


18. 2007-

2008

Financial Management First Prize

Other Recovery zone



New Delhi.

19. 2008



Society in State Level (Second

Prize).


20. 2007-

2008

Best Technical Efficiency Award

(Second Prize) for Tamil Nadu

Region.


& Sugar Technologists‟


21. 2008-

2009

Highest Recovery Award for Tamil

Nadu – Medium Recovery Zone.


& Sugar Technologists‟


22. 2008-

2009

First prize for Cane Development In

Other Recovery Area.



New Delhi.

23. 2008-

2009






2.1.7. THE SUBRAMANIA SIVA COOPERATIVE SUGAR MILLS LIMITED

The Subramania Siva Cooperative Sugar Mills Ltd., is situated at Gopalapuram,

Alapuram post, Pappireddipatty Taluk. It started its first crushing season during 1992. Its

present crushing capacity is 2500 M.T.

Page | 49

TABLE 2.12




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 2500 2500 2500 2500 2500

2. Cane Crushed (MT) 346495 470591 601876 475362 316640


4. Recovery % 10.32 10.60 10.42 10.90 10.76


TABLE 2.13


S.No. Awards and Prizes Description / Remarks

1

Dr.N.Mahalingam award for the outstanding

performance in Sugar Industry in the 2000-01

crushing season.

Outstanding performance

2

First prize for technical efficiency of other

zone area for the year 2002-2003 crushing

season.

Technical Efficiency

3 I.S.O 9001-2000 Certified

4

Award for the best performance of accounts

and completion of 2004-05 Audit by 1st

among Cooperative and Public Sector Sugar

Mills in Tamil Nadu State.

Best performance in completion of

audit.

5

Best factory performance 2005-2006 by

SISSTA. Second prize for Technical

Efficiency 2005-2006 by National Federation

of Cooperative Sugar Factories Ltd., New

Delhi.

Factory performance

6 Second price for Best Technical Efficiency

Award for 2009-2010, in Tamil Nadu Technical Efficiency.


Page | 50

2.1.8. THE SALEM COOPERATIVE SUGAR MILLS LIMITED

The Salem Cooperative Sugar Mills Ltd. is situated at Mohanur, Namakkal Taluk,

and district. It commenced its first crushing during 1964. Its present crushing capacity is

2500 M.T.

TABLE 2.14




2006

2006-

2007

2007-

2008

2008-

2009

2009-

2010


(TCD) 2500 2500 2500 2500 2500

2. Cane Crushed (MT) 418495 533363 597244 432473 390403


4. Recovery % 9.69 10.05 9.81 10.02 9.62


TABLE 2.15



1 Best Performance Award given by Nation Federation of

Coop. Sugar Factories, New Delhi 1986-1987

2 Best Engineering Performance – Dr.Mahalingam

Award 1986-1987

3 Best Engineering Performance – Dr.Mahalingam

Award 1987-1988

4 Best Cane Development Award given by National

Federation of Coop.Sugar Factories, New Delhi 1991-1992

5

Best Technical and Other Efficiency Award given by

National Federation of Coop.Sugar Factories, New

Delhi.

1999-2000

6 Best Coop.Society Award given by Tamil Nadu

Coop.Union,Tamil Nadu 1999-2000

7 Quality Efficiency Award for Export Sugar given by

N.F.C.S.F. New Delhi 2001-2002

Page | 51


8

Best Performance in South India, SVP Memorial

Award given by South Indian Sugar Cane and Sugar

Technologists Association.

2002-2003

9 Best Coop. Institution in Tamil Nadu, Award given by

Tamil Nadu Coop. Union. 2002-2003

10

Best Technical and other Efficiency Award given by

National Federation of Coop. Sugar Factories, New

Delhi.

2002-2003

11

Best Cane Development in other Recovery area, Award

given by National Federation of Coop. Sugar Factories,

New Delhi.

2002-2003

12 Best Cooperative Institution in the State, Award given

by State Cooperative Union. 2005-2006

13 Best Cooperative Institution in the State, Award given

by State Cooperative Union. 2006-2007

14 National Federation of Coop. Sugar factory,

Cane Development 2006-2007

15 National Federation of Coop. Sugar factory,

Cane Development 2007-2008

16 National Award, Technical Efficiency 2008-2009

17 Best cane development Award – SISSTA 2008-2009


2.2 PRIVATE SECTOR SUGAR MILLS

2.2.1. BANNARI AMMAN SUGARS

Bannari Amman Sugars is an India-based integrated sugar manufacturing

company. Bannari Amman Sugars is an offshoot of the legendary Bannari Amman Group. It

is one of the India‟s largest industrial conglomerates. Bannari Amman Sugars Limited

(BASL) was incorporated in December 1983. The company was promoted by

S.V.Balasubramanian and K.S.Thirumalaiswamy to manufacture sugar, in Southern India.

Page | 52

Sugar unit-I is near Sathyamangalam of Erode District, Tamil Nadu State, started

its commercial production in the year 1986, with an initial capacity of 1250 tonnes of Cane

crush per day, and expanded to 2500 tonnes in 1998. The crushing capacity is now

expanded to 4000 TCD. The unit has many credits and firsts, in the sugar industry of the

country. An EN/ISO 9002 unit accredited by RWTUV of Germany in 1997, for its good

system of quality management ensuring a better product. This has been upgraded to ISO

9001:2000 valid up to 20.7.2010. The unit's sugar is also marketed in consumer packs of

one kg in select cities of Tamil Nadu. The Sugar Unit-I has an imported facility to produce

300MT of Refined Sugar per Day and the same is mainly marketed to Pharmaceutical and

Food Industries. For manufacture and supply of refined sugar TUV of GERMANY in 2007

accredited HACCP certificate, for its management system as per Codex Aliemtarius

commission (Recommended international codex of practice - General principles of Food

Hygiene CAC/ RCP 1- 1969, rev.4 (2003). Bannari's ONE-UP Refined Sugar in one Kg.

consumer packs is available in the market. Bannari Amman Sugars Limited produces Bio

Products for Soil fertility, high yield and toxic free farming. High quality fertilizers

and pesticides for healthy crop and for better pest management are offered at low prices.

The Second Unit of Bannari Amman Sugars Limited, near Nanjangud in Mysore

District of Karnataka State, started the commercial production in the year 1992 with an

initial cane crushing capacity of 2500 tonnes per day and expanded to a capacity of 5000

tonnes in the year 2000. Another expansion to 7500 tonnes cane crush per Day was

completed in July 2006. A Sugar Refinery Plant with a capacity of 500 MT per day has

been installed. The Distillery at their Sugar Unit-2, to produce 60,000 litres of Industrial

Alcohol per day, has commenced its production from March 2005. An incineration plant to

burn spent wash with 2 MW power generations is in operation, in the Distillery. Alcohol

produced in this distillery in the year 2009-2010 is 116.44 lakh litres.

The third sugar unit has a cane crushing capacity of 2500 TCD in Kunthur Village

near Kollegal in Karnataka by way of amalgamation of M/s. Maheswara Sugars Ltd, with

the company. The Karnataka Government has approved the proposal to change the location

of this sugar plant and to establish a new Sugar Plant with 6000 Tonnes Cane per Day from

the existing capacity of 2500 TCD besides setting up of a 28.8 MW Co-generation Plant.

The fourth sugar unit is a new Integrated Sugar Complex comprising of 5000 TCD

sugar plant, 28MW co-generation plant, distillery ethanol plant and a bio composting unit at

http://www.bannari.com/Refinedsugar.html

Page | 53

Kolundampattu Village, Thandarampattu Taluk, Tiruvannamalai District. The sugar unit has

started its maiden cane crush from 27-01-2010.

Bannariamman Sugars‟s sugarcane crushing capacity in the four units is now more

than fifteen times at 19,000 tonnes of cane crush / day, from the initial capacity 1250 TCD

of its first sugar unit. The total cane crushed in the year 2009-2010 is 14.65 Lakh tonnes.

The Group‟s business activities include areas like manufacturing, trading,

distribution and financing. Bannari Amman Group manufacturing and trading business

includes production of sugar, alcohol, liquor, granite and cotton yarn. Further, its trading

activities include distribution of automobiles and related auto parts of renowned brands and

financing. Furthermore, the service sector includes business portfolios like wind power

energy, education, health care, and real estate.

2.2.2. DHARANI SUGARS AND CHEMICALS

Dharani Sugar and Chemicals was incorporated in the year 1987 in Tamil Nadu

and was promoted by Palani G.Periasamy and his associates. The company belongs to the

PGP group, which comprises of Dharani Finance, Dharani Cements, Pallava Hotels and

PGP International. The company‟s sugar plants are located at Dharani Nagar, Polur, Tamil

Nadu and its revenue is $133.098, its market capacity is 1145.0820546 (` in Millions), and

the total income is `5926.176 million (year ending March, 2010). The net Profit is `456.29

million (year ending March, 2010). The company‟s distillery plant is in Dharani Nagar and

co-generation power plant is in Polur. Its total installed capacity of sugar is 5,000 TCD,

distillery is 30 KLS per day and power co-generation 15 MW. Dharani Sugar is engaged in

the manufacture of sugar and its by-products like bagasse, molasses and industrial alcohol.

The power produced from co-generation exported to meet TNEB grids. It operates in three

segments: sugar, distillery and power.

2.2.3 E.I.D. PARRY (INDIA) LIMITED

E.I.D.Parry (India) Limited is one of the largest business groups in the country. The

company is engaged in the manufacture and marketing of a wide-range of products that

includes sugars, Bio-pesticides and Neutraccuticals. It is a diversified company. It has also

been a pioneer in many fields, including setting up of India's first chemical fertilizer plant

(in Ennore), sugar plant (in Nellikuppam) and sanitary-ware plant (in Ranipet). Over the last

Page | 54

few years, E.I.D. Parry has been sharpening its focus and narrowing its business spread. It

also exited the seeds business (now a joint venture with Monsanto), tiles business (in

Karaikal) and the electronics business. It is a pioneer in the manufacture of white sugar

from sugarcane. The British trader, Thomas Parry established the House of Parry in the year

1788. Parry set up the first sugar factory in 1842 at Nellikuppam in Tamil Nadu. In the year

1975, the company was converted into an Indian company. The company became the

member of the Murugappa Group in the year 1981.

Parry derives majority of its income from its sugar operations, viz., sugar, molasses,

alcohol and co-generation of power. All the four sugar factories of the Company are

located in Tamil Nadu, viz., at Nellikuppam, Pugalur, Pettavaittalai and Pudukottai with a

combined cane crushing capacity of 14000 tonnes/day and a factory at Pondicherry. The

Nellikuppam unit, an integrated sugar complex, comprises of a distillery unit (capacity 135

lakh lines), a 24.5 MW co-generation power plant and an organic manure plant. The

company's application for producing ethanol (capacity 90 lakh litres) is awaiting regulatory

clearances. The company is setting up a facility for producing high grade sugar. At Pugalur,

the company is having up a 22 MW co-generation power plant, which is partly funded by

the Tamil Nadu Newsprint Limited (TNPL). The company has R & D facility in all its units

with a central facility at Bangalore engaged in breeding, entomology, soil testing, tricho

production etc. The company's tissue culture lab, with a capacity to produce three million

plantlets, provides disease-free seedlings to cane growers. The R& D wing also develops

and propagates the best agricultural practices to cane growers, to maximize the per acre

yield and new varieties for improving cane yield.

Performance due to drought conditions prevalent in Tamil Nadu, cane crushing in all

the sugar factories was lower by 22 per cent a t 26 .8 lakh tonnes (L.T) with a

recovery of 9 .49 per cent. The company had taken various quality improvement

measures to produce quality sugar (low ICUMSA) and medium sized grains to improve its

sale in new markets. The company sold 2.67 L.T of sugar in the domestic market and

exported a small quantity (about 6000 T). The co-generation power plant at Nellikuppam

sold 884 lakh units to Tamil Nadu Electricity Board. In spite of constraints on availability of

biomass fuel, improved operational efficiencies helped to maintain the targeted power

output and sale. The Nellikuppam distillery produced 19.90 lakh litres of alcohol. The

operation of the distillery was suspended (shut down) for most of the year, due to non-

Page | 55

renewal of distillery license by the Tamil Nadu Government. Acetic Acid plant produced

3429 MT. The lower production was due to non-availability of captive alcohol and higher

prices in the open market. The company continues to focus on improving the operational

efficiency viz., steam & power consumption, of the units and also resorting to various cost

reduction measures to become the least cost producer of sugar. The Nellikuppam and

Pettavaithalai factories have been accredited with ISO 9001:2000 certification. The

Pudukottai factory has been accorded ISO 14001:1996 certification.

Operating Results

Sales 2003 - 04 2002 - 03 2001 - 02

Sugar ( VOL.MT) 273263 325889 353184

Chemicals (Volume MT) Acetic Acid &

Ethyl Acetate 3770 11591 9773

Value (Rs. Crore*) 415 468 529

Operating Profit (Rs. Crore) 34.58 21.83 52.91

Source :www.eidparry.com

* includes chemicals and value of export of power to grid.

The company manages the major risks associated with the sugar business with the

following approach:

i. The company makes considerable efforts, to make cane growing viable for the

farmers. This includes developing high yielding, pest-resistant and water-efficient

varieties, and extension service in the form of best agro practices, arranging inputs

like fertilizer and banking facility. The company's record of fair and transparent

dealing, prompt cane payment and regular communication are the keys to retain

supply continuity. The company can also make good the cane deficit to the extent

possible, by procuring cane from adjacent areas and raw sugar import for processing

to white sugar.

ii. Jointly with SISMA / ISMA and State/Central Govt., agencies, the Company

pursues the comprehensive implementation of the Mahajan Committee report, so

that the legitimate concerns of all stakeholders are addressed.

Page | 56

iii. The Company has diversified its product portfolio (like low ICUMSA sugar, refined

and medium grain sugar) and extended its marketing reach. These activities have

supported cost effective expansion of crushing capacity and improved realization.

The coming into effect of a proper commodity exchange will help manage price

volatility better.

The manufacture of ethanol for blending with petrol is a significant business

opportunity for the industry and their company is gearing up to manufacture ethanol at the

existing distillery facility at Nellikuppam. With the planned sugar refinery project for high

grade sugar and automation at the Nellikuppam unit for improved efficiencies along with a

cogeneration unit at Pugalur, the company is confident of maintaining its future

competitiveness.

2.2.4 KOTHARI SUGARS AND CHEMICALS LIMITED (KSCL)

Kothari Sugars And Chemicals Limited (KSCL) was incorporated on seventh

November, 1960 with a unit in Tamil Nadu. KSCL has come into the fields of sugar,

distillery, petrochemicals, drugs etc. It has three units namely, Kattur, Sathamangalam and

Pandavapura Unit. The Kattur unit is located in Kattur village of Trichy District, which is

about 30 km from Trichy and six km from Lalgudi railway station. In addition to sugar

production, this unit also has facilities for co-generation of power, distillery and bio-

compost. This unit was established in 1961 and is one of the earliest sugar factories to be set

up in the state of Tamil Nadu. The sugar factory was initially commissioned with a crushing

capacity of 1250 TCD. Subsequently the capacity was raised to1500 TCD during 1968-

1969. In 1974-1975 the capacity was increased to 2000 TCD and by 1985-1986 it achieved

2500 TCD. It was expanded to its current capacity of 2900 TCD during 1994-1995, which

demonstrates their commitment to continuous improvement.

To strengthen the business model and values, a co-generation unit with 11 MW was

commissioned in 1996 and a distillery plant with a production capacity of 45 KLPD

Rectified Spirit, which is inclusive of 10 KLPD Extra Neutral Alcohol was commissioned

in 1993. When the ethanol policy was implemented by the Government of India, an

Anhydrous Alcohol plant with a production capacity of 30 KLPD was installed in 2003.

The distillery plant capacity was increased from 45 KLPD to 60 KLPD in 2008.

Page | 57

Cane for this factory is being supplied from Lalgudi, Manachanallur and part of

Manapparai, Thuraiyur and Musiri taluks. This unit is also equipped with a unique facility

of producing white sugar by processing raw sugar along with cane.

In the distillery unit, as part of the effluent treatment system, Bio-Compost is

manufactured as a value added product with pressmud and distillery effluent. For this, there

is a bio-yard of 16.50 acres with specific machines (Aerotiller). The bio-compost is

manufactured scientifically in the bio-yard and is constructed with RCC underlined with

HDPE sheets.

As part of their commitment to “KissanVikas”, they are running a primary school in

their factory premises for imparting education to the rural children from the inception of the

factory. As a corporate social responsible citizen, they are conducting camps for blood

donation and polio plus along with the Rotary Club of Kattur.

The Kattur unit is certified with ISO 9001–2000 and ISO 14001–2004 which is an

endorsement for their commitment to “Quality” and “Care for the environment”. In addition

to ISO, they also have Quality Management Systems like formation of Quality Circles,

implementation, etc.

Sathamangalam unit is located in Sathamangalam village of Ariyalur district, which

is about 50 km from Trichy, and also near the road connecting Ariyalur and Thanjavur

national highway. Both the railway stations of Thanjavur and Ariyalur are in close

proximity. This unit was commissioned in 2007 with sugar and co-generation plants. The

crushing capacity of the sugar plant is 3000 TCD, which can be expandable to 5000 TCD

and the co-generation has a power generation capacity of 22MW. This project was

completed within a record time of ten months, and during the trial run itself, the mill and the

co-generation plants showed outstanding results. Cane is supplied to this factory from

Ariyalur, Thirumanur, Keelpalur, Nagamangalam and Elakurichy areas. This unit is also

engaged in lots of socio-economic activities like road development, conducting medical

camps, programs for upliftment of farmers, etc.

Pandavapura unit is a cooperative sector unit commissioned in 1959. From 2006

onwards, Kothari Sugars had taken this factory on lease from Pandavapura Sahakare

Sakkare Karkhane Ltd (PSSK Ltd). This unit is situated in a place called Pandavapura, a

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part of Mandya District, Karnataka. This unit is situated four kms from Srirangapatana, near

the Srirangapatna-Bidar highway and very close to Pandavapura Railway Station. Cane for

this factory is being supplied from Pandavapura, Srirangapatna and part of K.R. pet areas,

which are located around K.R.S. Dam with full of irrigation canals. This unit is also

engaged in social activities like conducting medical camps, etc.

2.2.5 PONNI SUGARS

Ponni Sugars is the brain child of late S.Viswanathan, affectionately referred to as

SV by his friends & associates, a renowned industrialist of the South.

The late S.Viswanathan entered the sugar industry rather late in his illustrious career. Sugar

was just incidental to his cherished goal. He despised the denudation of precious forest

wealth in producing paper. He realized long before that for the long term survival of paper

industry, a strategic shift to a sustainable, viable alternative source of raw material was

imperative. For this, he sought to create an interdependence, which he called a marriage,

between paper and sugar industries to resolve the raw material shortage for paper industry,

strengthen the viability of sugar industry and simultaneously preserve forest cover and

protect environment for public good. Late S. Viswanathan in this resolve, promoted Ponni

Sugars, which became the first sugar mill in the country to use alternative fuel in its boilers

and release its bagasse in entirely for paper making.

The company which had operated sugar mills both in Tamil Nadu and Orissa has

spinned off its Tamil Nadu mills into a separate company i.e. Ponni Sugars (Erode) Ltd.

with effect from April 1, 1990 as part of restructuring plan. This was necessitated by the

heavy loss incurred on the Orissa operations of the company. Subsequent to this demerger,

the name of the company is changed to the present one viz. Ponni Sugars and Chemicals

Limited. The company manufactures and sells sugar and the by-products of the

manufacturing process, namely, bagasse, molasses and pressmud. Bagasse is sold to its

group company, Sheshasayee Paper and Boards. The expansion of its Erode unit from 1250

TCD to 2500 TCD was completed and commissioned in November, 1994.

2.2.6 RAJSHREE SUGARS AND CHEMICALS LIMITED (RSCL)

Rajshree Sugars & Chemicals Limited (RSCL) is incorporated on 13th

December,

1985. It was promoted by the late G.Varadaraj of the Coimbatore based PSG family. The

company manufactures and markets white crystal sugar and industrial alcohol with installed

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capacities of 6000 TCD and 45 KL/day respectively. It is a public limited company listed on

National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The company has

interests across integrated fields such as Sugar, Distillery, Power and Biotechnology. RSCL

with its Corporate Office in Coimbatore has three modern sugarcane based integrated bio-

refinery complexes located at Varadaraj Nagar in Theni District, Mundiampakkam in

Villupuram District, Gingee in Thiruvannamalai District of Tamil Nadu and one unit at

Zaheerabad in Medak District of Andhra Pradesh with easy access to Tuticorin, Chennai

and Visakhapatnam ports. The company has also been exploring various options in the

sugar and allied industries in both areas within the country and overseas.

2.2.7 SAKTHI SUGARS

Thiru. P. Nachimuthu Gounder laid the foundation for Sakthi groups and his son

Thiru.N.Mahalingam brought with him fresh and new industries, adding more momentum

to the growth. It is one of the largest producers of white crystal sugar in the country,

accounting for a capacity of 19,500 tonnes of cane crush per day (TCD). In coherence with

Sakthi Sugars' continued effort to enhance the efficiency of production, many initiatives

have been put to practice time and again, to enrich the quality of production process to

unmatched standards. Some such initiatives are listed below,

Scientific farming.

Continuous R&D in sugar rich, pest resistant and high yielding sugarcane varieties.

Mechanization of cane harvesting.

Efficient Sugar manufacturing process to reduce sugar loss.

Ensuring cleanliness and hygiene at their best in factory sites.

Auto Setting Mill facilities.

Energy Saving Schemes like planetary gear boxes, Automated cooling and

condensing system, vertical continuous pan, etc.,

The Sakthi Nagar Unit, a pioneer that introduced Mechanical Cane Harvester in the

country, was established in the year 1964 at Sakthi Nagar in Erode District, Tamil Nadu

with an initial capacity of 1250 TCD, scaling higher in stages, today, the Unit has

consolidated its growth with an aggregate capacity of 9000 TCD. The Unit is strategically

placed in terms of its location. It is situated in the most favorable climatic zone of the

country that hosts more than 35,000 acres of sugarcane cultivation, well irrigated by Rivers

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and Canals. Nonetheless benchmarking its own records and operating all 365 days in a year,

the Sakthi Nagar unit has recorded the highest cane crush of 22.35 Lakh M.T during 2006–

2007 seasons. The plant achieved more than 1000 days of continuous cane crushing during

2004-2007.

The Unit has won the National Award for Exemplary Export Performance and has

also won National Efficiency Award for many years. The Unit also has the distinct capacity

of Raw Sugar Processing to produce high quality sugar using conventional equipments. The

Unit recorded its Lowest Total Losses achieved for three consecutive seasons 1987-1988,

1988-1989 and 1989-1990 and also achieved first position in reduced Mill Extraction – for

the seasons – 1987-1988 and 1988-1989.

The Sivaganga unit was established in the year 1988–1989 at Padamathur in

Sivaganga District, Tamil Nadu. It has an advanced infrastructure equipped with Auto

Setting Mills and the technical know-how to process raw sugar. The plant which was begun

with a capacity of 2500 TCD, has expanded to 4000 TCD. The plant recorded the highest

cane crush of 10 lakh MT in the 2007-2008 season.

In the year 1994 at Dhenkanal, Orissa, the unit was established with an initial

capacity of 2500 TCD. Its strategic proximity to the Paradeep Port gave the unit the much

sought after logistical advantage to the Unit, helping it to realize cost advantage in

transportation of shipments, during the Import & Export of raw sugar and white sugar. The

plant has the infrastructure and technology to produce high quality sugar by processing Raw

Sugar using conventional equipments. It is one of the very few sugar plants in Orissa state

operating for more than 120 days in a season. In the year 1994 it pioneered the processing

of raw sugar to produce high quality white sugar, using conventional equipments in India.

The plant with the capacity of 4000TCD was instituted in the year 2007 at

Poondurai Semur in Erode District, Tamil Nadu. In the Trial Season during 2007 the Unit

crushed 711609 MT of Cane with an average recovery of 9.11 per cent, which is a rare feat

and a remarkable achievement in the national level. Subsequently, it produced a laudable

quantum of 1.21 Lakh quintals of 45 ICUMSA sugar, which was exported. The Unit also

introduced Decanters for removing impurities from the juice as against Vacuum filters and

also installed energy saving equipments to minimize steam consumption and loss.

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2.2.8 THIRU AROORAN SUGARS

Thiru Arooran Sugars, the Tamil Nadu based sugar company is basically a sugar

company, is in the business of manufacturing of sugar, potable and industrial alcohol and

ethanol was founded in the year 1954. The sugarcane crushing capacity is 7500 MT per day.

A distillery unit with 60 KLPD was started on June 30, 2003. In January 1998, the company

has relocated the sugar plant from Vadapathimangalam to Kollumangudi and again in 2001-

2002, the company relocated the sugar plant at Kollumangudi to A-Chittoor village, in

Vridhachalam Taluk of Cuddalore district, due to non-availability of adequate quantity of

sugarcane in the command area.

Its revenue is $132.186 and its market capacity is `1781.8181938 (` in Millions), its

total income is `6052.623689, and its net profit is `415.426947 million (year ending

December, 2009). Shree Ambika Sugars is an associate company while Terra Energy is a

subsidiary of Thiru Arooran.

Documents

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