Done at

 
E.I.D Parry (India)
Limited

Pugalur Sugar Factory Post,

Karur District,
639113
Tamilnadu.

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 OBJECTIVES OF THE TRAINING

The general objective of training program is to gain practical knowledge on the

overall functioning of the various departments of the organization.

The following are the specific objective of the training program.

 To study about the organizational structure

 To study about the functions of production department, personal department,

accounts department, research department and development department and

store department.

 To study about the present technology applied in sugar factory

 To study about the sugar and ancillary division in EID PARRY (India) Ltd.

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 INTRODUCTION

Sugar factory plays an important role in social and economic uplift of people day and
night and plays a significant role in essential items like sugar, Molasses, Bagasse, Alcohol,
and Bio-Fertilizer.

Sugarcane is a long duration commercial crop and is grown in about 25 lakhs

Hectares in tamilnadu. There are 36 sugar factories in tamilnadu each managing not less than
800 ha of sugarcane.

Sugarcane is cultivated in more than 110 countries and india stands first in sugar
production with around 450 established sugar factories and over 35 million farmers and
agricultural labours involved in sugarcane cultivation and harvesting. Every year about Rs.
10000 crores is paid as sugarcane price to farmers and 1600 crores as taxes to central and
state Governments.

Tamilnadu has a rich tradition of sugarcane cultivation. It occupies 2.56 lakhs hectors
representing 65% of cane, a major portion being crushed by 36 sugar factories in tamilnadu
and Pondicherry.

Benefits of these items are intently related to regular activities of the common people
in rural areas. In addition other by- products from sugar factories play a principal role in
foreign exchange in an indirect way.

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DECONTROL OF SUGAR

The committee has recommended complete decontrol of sugar in a phased manner

over a period of two years. The present dual pricing of sugar is encouraging the establishment
of sugar mills in high cost areas whereby the industry is warranting huge working capital
causing poor financial health. The mills are not coming forward without any special
incentives. The farmers are reacting very much as they have to bear burden of subsidy unlike
other commodities where the subsidy is completely borne by the government.

CONTINUATION OF CONTROL ON THE RELEASE OF SUGAR

If the government could not have control over sugar is made free, it may lead to black
market. The committee has seen consumer interest most objectively and recommended to
continue the release of sugar to be monitored by the government for maintaining price
stability of sugar.

PUBLIC DISTRIBUTION SYSTEM (PDS)

At present 40 % of production is sold at controlled price through public distribution

system. There are large scale leakages of sugar into open market, and the subsidy benefit is
not reaching the poor. As said above the release of sugar may be monitored by a different
mechanism but the committee is strongly feeling to lift PDS.

STATUTORY MINIMUM PRICE (SMP)

As per agricultural price commission the SMP for sugarcane is based on the recovery
sugar @ 8.5% from sugarcane. The farmers are ensured premium for high recovery. The high
recovery largely depends upon the operational efficiency of the factory. The committee has
depends upon the operational efficiency of the factory. The committee has recommended to
link SMP sugar content of the cane supplied to mills.

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FIXED PERCENTAGE OF SALES TO GROWERS

The committee felt and suggested to pass on a fixed share of sales revenue (excluding
taxes/duties) revised by the sugar factories in the last 10 years. This would ensure higher
returns to farmers in zones of high sugar recovery.

SUGARCANE PRICING BOARD

The committee has advised to constitute a high – powered board to decide cane price
against the agricultural price commission. The board according to Mahajan committee will
decide the price for cane, on the basis of predicted prices of sugar in the ensuing reason. This
proposal of constituting a body to fix price for sugarcane is laudable in views of its
constituent members, reputed economist as chairman of the board, senior officers from the
department of sugar, Civil supplies and agriculture and Finance ministries along with
nominees from Indian Sugar Mills Association And National Federation of Co-Operative
Sugar Factories and representatives of cane growers from tropical and sub tropical zones
nominated by the government.

INGREDIENTS OF SUGARCANE

Water 74.6%
Fiber 10.04%
Nitrogenous bodies 0.58%
Sugar 13.04%
Ash 0.53%
Wax and fat 0.38%
others 2.11%

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ADVANCE PAYMENTS TO FARMERS

The sugar mills are required to pay 80% of the price fixed by the board as advance
within 15 days of cane supply. The rest 20% will be paid as and when season ends. This will
solace the growers as now days they are not paid arrears for 2 to 3 years. The committee has
recommended that the rest 20% will be collected with interest if delayed by more than 15
days as arrears revenue.

EXPANSION

The committee has recommended freeing the sugar mills from applying for license to
expand their existing capacity even though additional cane area has to be allotted. The
Government of india has accepted on 20.08.1998 to delicense the industry and to ensure
competition. The measure has gone to liberalize the existing licensing system.

EXPORT QUOTA

The committee felt that the sugar industry aim at export of one million tons of sugar
regularly. The export orientation will make the mills to produce export quality and the
committee pointed out that exports should be initiated at the end of the sugar season which
could not disturb the local market.

The committee has also recommended existing system at cane area reservation
maintenance of buffer stock ban on Khanda Sari units within 25 Kms away of the mills to
prevent cane diversion, promotion of R & D effort in sugarcane cultivation and sugar
industry, rehabilitation of sick sugar mills and several other measures among other things.
These policy options would yield better results in the long term.

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 COMPANY PROFILE

EID PARRY (India) limited is one of the Murugappa group companies with its
headquarters in Chennai and one of its companies sugar plant is located at pugalur in karur
district of tamilnadu.

EID PARRY (India) limited is an integrated sugar company manufacturing quality

white crystal sugar.

INDUSTRY PROFILE

The sugar industry is the largest agro-based industry and India is the largest producer
of sugar in the world. Sugar is a natural and essential part of human diet and is a very cost-
effective source of energy. Sugar consumption tends to rise with growth in per capita income.
India's per capita consumption of sugar is 17.5 kgs, against Sri Lanka's 29 kgs and Malaysia's
42 kgs. Retail sugar price in India is noticeably lower than in south east Asian countries.

Consequently, the scope of business growth is significant from the current

consumption level of 185 lakh tonnes.

The sugar industry is cyclical in nature. It is dependent upon monsoons for both
production and price realisation. Of the country's 450 sugar factories, the majority is located
at Maharashtra, Uttar Pradesh, Andhra Pradesh, Karnataka and Tamil Nadu. The sugar
industry with an annual turnover in excess of Rs.30,000 cr, contributes almost 10% of it to
the exchequer.  There are substantial government interventions in sugar because it is a part of
the common consumption basket and is important to the sugarcane growers. Sugarcane not
only yields sugar but also provides valuable by products like bagasse, molasses and press
mud. The availability of these by-products has led to the setting up of integrated sugar
complexes producing not only sugar, but also alcohol/ethanol/extra neutral alcohol/co-
generation of power and organic manure.  Tamil Nadu, accounting for about 10% of the
country's production, offers natural advantages like longer harvesting season (over 240 days)
and proximity to ports for import of raw sugar and export of white sugar. Tamil Nadu is one
of the state(s) approved for ethanol production.

India's sugar production is likely to fall from 201 lakh tonnes (2002-03) to 150 lakh
tonnes (2003-04), due to inadequate rains and pest attacks in some major cane growing areas
in South and West. In Tamil Nadu, the sugar production is likely to drop from 16.7 lakh
tonnes to 10 lakh tonnes and is expected to be low in 2004-05 also.

With rising consumption levels and stagnant/falling production, the excess inventory is
getting depleted, resulting in recovery of sugar price. It is likely that, from being an exporter
a year back, the country can now become a net importer. 

 India's per capita consumption of sugar is set to grow

Around 20% of the sugar production in Tamil Nadu is from E.I.D.'s stable

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 OTHER CONCERNS UNDER MURUGAPPA GROUP

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 COMPANYS VISION

To be India’s No. 1 integrated sugar complex company with an increasing

presence in Asia And other export markets and be a world class organization

FACILITIES IN EID PARRY

E.I.D. 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.  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 setting up a 22 MW co-generation power plant, which will be

partly funded by Tamil Nadu Newsprint Limited (TNPL). The power plant is expected to be
commissioned in the third quarter of next year.
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 3 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
maximise the per acre yield.

 All 4 sugar factories are strategically located in Tamil Nadu

 Cane crushing capacity of almost 14000 TCD, one of the largest capacities in the
industry
 Nellikuppam integrated sugar complex; first of its kind in this part of the country
 A dedicated R&D centre for the sugar division

 New varieties for improving cane yield

PERFORMANCE

Due to drought conditions prevalent in Tamil Nadu, cane crushing in all the four
sugar factories was lower by 22% at 26.8 lakh tonnes (L.T). With a recovery of 9.49 %, sugar
production was 2.61L.T (previous year 3.22 L.T).  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 lac units to Tamil Nadu
Electricity Board. In spite of constraints on availability of biomass fuel, improved operational

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efficiencies helped to maintain the targeted power output and sale.  The Nellikuppam
distillery produced 19.90 lac litres of alcohol.
The operation of the distillery was suspended (shut down) for most of the year due to non-
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.

 Nellikuppam & Pettavaithalai factories accredited with ISO 9001:2000

 Pudukottai factory accorded ISO 14001 : 1996

Operating Profit at Rs. 34.5 crore

OPERATING RESULTS

Sales 2003 - 04 2002 - 03 2001 - 02

Sugar ( VOL.MT) 273263 325889 353184

Chemicals (Volume MT)

Acetic Acid & 

3770 11591 9773
Ethyl Acetate

Value (Rs. Crore*) 415 468 529

Operating Profit (Rs. Crore) 34.58 21.83 52.91

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

PRODUCTS

 Sugar
 Molasses

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 COMPANY QUALITY POLICY

1. To meet customers expectations through product quality

2. Use appropriate technology and process to achieve demand

3. To improve productivity without interruption by adopting, preventing and

maintenance of plant and machinery

4. To strive for continuous improvements in all areas of operations by team work

5. To develop employees at all levels by motivation and involvement

6. To attain higher quality production

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 HISTORY OF THE COMPANY

Established by south india sugar company which was managed by Mr.

1939 MURUGAPPA CHETTIAR

Deccan sugar and Abkhart company Ltd., (D.S&A.CO. Ltd) which had a
1994 unit at samalkot bought pugalur sugar factory. Parry was the managing
agencies for D.S&A.CO. Ltd., till 1970

1970 Consequent to the abolition of managing agency system under companies

act. Parry became secretaries and treasurers of D.S&A.CO. Ltd

1974 Parry cased to be secretaries and treasures D.S&A.CO. Ltd. Had its own
MD and started operating independently as an associate of parry.

1980 NABEAL took over the D.S&A.CO. Ltd and D.S&A.CO ceased to be
associate of parry

1981 D.S&A.CO. was amalgamated with NABEAL and became a unit of

NABEAL

1992 E.I.D bought pugalur sugar factory from M/s. NABEAL and pugalur sugar
factory became a unit of EID

2000 E.I.D bought Pugalur sugar factory from M/s. NABEAL and pugalur sugar
factory became a unit of Mr. Murugappa Chettiar

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 GENERAL INFORMATION

OUTPUT OF THE COMPANY

The company is producing white crystal sugar. There are various types of
white sugar.

S – 30 Bold

M – 30 Bold

L – 30 Bold

Export of raw sugar

They also produce Molasses. It is used to produce same sugar outside the plant

The bagasse payable in TNPL and receive coal for use in boilers

The most moving sugar is S-30 its export is 45%

The Molasses are sold in local. It is also used in producing Animal feeds, Medicines
and Sweets.

DISTRIBUTION AND STRENGTH OF LABOUR FORCE

PERSONAL DEPARTMENT 6

CANE DEPARTMENT 34

ACCOUNTS DEPARTMENT 4

MANUFACTURING DEPARTMENT 69

ENGINEERING DEPARTMENT 112

TOTAL 225

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 Total officers - 42
Supervisors - 23
Contract Labour - 250

SHIFT TIMINGS SESSON

I 6.00 AM to 2.00 PM MORNING
II 2.00 PM to 10.00 PM AFTERNOOM
III 10.00 PM to 6.00 PM NIGHT

General Shift – 8.00 AM to 5.00 PM

Lunch Time – 12.00 PM to 1.00 PM

SHIFT – I

Company Workers : 50 Members

Contract Labours : 60 Members

SHIFT – II

Company Workers : 50 Members

Contract Labours : 60 Members

SHIFT – III

Company Workers : 50 Members

Contract Labours : 60 Members

GENERAL SHIFT

Company Workers : 50 Members

Contract Labours : 70 Members

Management Staff : 43 Members

Non-Management Staff : 235 Members
Managing Authority : 2 Members
Women Staff : 2 Members
Women Workers : 2 Members

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 DEPARTMENTS

 Human Resource department

 Purchase department

 Cane department

 Production department

 Engineering department

 Finance department

 Research & Development department

ORGANIZATION CHART

Organization plays a vital role in the management. It is a process or a managerial

function. It is an open system as it influences and is also influenced by its environment

continuously. It receives inputs from the society in the form of raw materials, labour, capital

and information. These resources are combined and transformed by the management of the

business organization into desirable outputs, goods and services required by the consumers.

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 HUMAN RESOURCE DEPARTMENT

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 Aims of Human Resource department:

1. To utilize the human resources in an effective manner to achieve the organization‘s

objectives of maximum output and services.
2. To maintain good relationship with an organization i.e, between employers and
employees.
3. To maintain a high morale by motivating and sustaining and improving conditions so
that employees may stay on in the organization.

Details about administration

Board of directors : M. V. Ssubbiah

(Executive Chairman)

A .Vellayan

(Vice Chairman)

S. M. Datta

Dr. S. S. Balaji

L. N. Jayaraman

R. S. Nanda

(Director)

R. Seshasayee

S. Viswanathan

Secratary : M. S. G. Jalaja

Registered Office : Dare house

Parrys corner

Chennai – 600 001

India

Auditors : Lovelock & Lewer

Charted Accountants - Chennai

Bankers : State Bank of India

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Selection procedures

 Receive applications
 Conduct tests and interviews select on merit basis
 Conduct physical examination

Training methods

The following are the training offered by the company to its employees

 Safety training – Fire and electrical training

 T P M training- Total productivity and maintenance

 T Q M training – Total quality management

 General training – Self development

 Health training

 Total quality training

 Skill development training – Technical

 Computer training

 Other training

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Human Relations

The company has employee’s human relationship committee meetings and canvas
meetings.

Leave

The following are the leaves which can be taken by the employees

1. Casual leave – Regular 5 days, Seasonal one day.

2. Medical leaves and sick leave - Regular 7 days, Seasonal one day.
3. Earn leave – 20 days working to give one day (minimum 15 days).

Leave awards – 10 days – Rs. 900

Retirement – 58 years
Punishment – Irregular

Bonus points

1. Total cane crushed

2. Recovery percent
3. Can crushed per man/day
4. Safety

Dearness Allowances

In the reference to fixed dearness allowances permanent workers shall get Rs.2530/-

Once when workers become permanent they are entitled to the allowances.

Allowances Rupees
Medical 165
House rent 150
Washing 45
fixed 9
Personal allowance grade 50.50

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Incentive Scheme

S.NO PARAMETER NORMS ACHIEVED AMOUNT

1 Crushing rate 3830 157.50
2 Imbibitions 243.73 93.19
3 R.M.E 95.66 108.00
4 R.B.H.R 9159 109.00
5 Molasis purity 30.72 0.00
6 Steam % Cane 48.7 46.00
7 Down time % 3.58 90.00

Total 603.00

Description

1. Down time

2. Added water (Imbibitions) Percentage Ribose

3. Reduced Boiling House extraction (RBHE)

4. Steam Consumption

5. Crushing rate (Crushing rate average)

6. Reduced Mill Extraction (RME)

7. Final Molasis Purity

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Time office maintenance register

1. Adult register – 18 years complete

2. Attendance register

3. Leave register

4. Over time register

5. Wages register

6. Labour welfare fund register

7. National festival holidays register

8. Fines and damages register

9. Dangerous occurrence register

10. Accident register

11. Contractors register

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 PURCHAE DEPARTMENT

Store department

Every enterprise needs spares for smooth running of production activity. There is a
separate department, which aims at smooth flow of production activity. Store department
have been certified under ISO 9002, its functions are

 Receiving spare materials

 Issuing spare materials

Purchase requisition

When ever the department needs the spare materials it has to raise purchase
requisition. Which consist of material name, quantity of materials, when it is required
(urgent/ordinary), details about the department, section, machine code, item code, purpose,
etc...

Purchase order

It is prepared by head office and also stores department to purchase various materials
required by the particular department and issued to the suppliers.

Materials inward note

Materials inward note deals with the materials receipts from the various suppliers.
MIN is prepared based on the bill for the purchased materials.

In EID Parry Ltd. The MIN is prepared on daily basis based on the purchase
regulation of various departments.

Total Materials : 4500

One year purchase: 3.5 Crores

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 CANE DEPARTMENT

In EID Parry Ltd. The cane department plays a vital role for procuring sugarcane from
6 divisions. It also facilitate the farmers by providing seeds, fertilizers, loan from bank and
also brings the sugarcane to mill on schedule basis.

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Cane Registration

Identification of the potential ryot is done based on his irrigation resources and road
approach to his field.

Inputs like seed, fertilizer, seed treatment chemical and medicines are given to all
farmers during cane planting and the cane is registered.

Cane supply

Periodically cane yielding esteemed at the crop age of 10 months. Though visually
cane yield of later harvest. It is a continuous process and by this total quantum of cane
available for crushing is accessed.

At the commencement of crushing maturity survey will be conducted under field

conditions with the HR brix meter at 10th, 11th, 12th months of age. Based on the crop and HR
brix reading cutting order is being issued.

Cane harvest would be permitted for those plots which have recorded more than 20
HR brix in the earlier months and subsequently on details of reckoning date of panting basis
cutting order will be given accordingly.

Based on the crushing rate of the mill and matured cane availability in each division,
if there is any shortage in cane supply question in any division they ascertain the possibilities
and increase the cane load from other divisions.

Cane transport

Based on the crushing rate, number of vehicle required for cane transport would be
finalized and transport pass would be given for the vehicles.

Prior commencement of crushing, based on the supply quota for each division cane
harvest labours would be arranged.

The lorries reported at divisional office are directed in the order of seniority for lifting
the harvested cane loads instructed shift wise.

Cane department functions

1. Identifications of growers

2. Canvassing for cane plantation

3. Feasibility survey of the field

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 4. Inspection of the field preparation

5. Document checking

6. Sets arrangement

7. Planting and rationing field inspection

8. Arrangement of financial assistance

9. Maintaining proper input supply

10. Technical advice

11. Periodical field inspection

12. Yield estimation

13. Assessment of crop materials

14. Cane harvest programs

15. Issuing of cutting orders to cane growers

16. Harvest labour management

17. Cane transport lorry dispatch

18. Cane harvest charge payments

Divisions in cane department

S.NO DIVISION HEAD OFFICE SUB OFFICE

1 East Mettupalayam vangal
2 West Velayuthampalayam Noyyal
3 Karur Karur Arachalur (Puliur)
4 Kodumudi Thamaraipalayam Nadupalayam

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 5 Muthur Muthur Sivagiri
6 Molapalayam Molapalayam Arachalur

Cane Department Procedures

1. Cane registration
2. Cane supply
3. Cane transport
4. Preventive maintenance of break down
5. Cane weighting

Duties of The Cane Officer

1. Registration of sugar cane

2. Issue of fertilizer seeds
3. Overseeing the crop maintenance
4. Better control
5. To arrange for good harvest

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