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An organization study of Shree. DKSSK.N. Chikodi CH APTER I 1.1. INTRODUCTION Organizational study was undertaken for 30 days at DKSSKN. Chikodi (Dist-Belgaum) is a co-operative society registered under Karnataka co-operative society’s Act in 1969. This project refers to study of functional department of an organization. It is also meant to study the activities of various departments such as General administration, Purchase, Finance, Agriculture, Marketing, Production, Human Resource and store etc. In industrial profile, under company profile, history, vision, mission and objectives is collected. The MC KINSEYS 7s frame work model company information is collected with the organizational structure. It present a SWOT analysis of the company in the next step strength and weaknesses are internal factor, opportunities and threats are external factors to the company. Organizational study is the field that investigate impact that individual, group and structure have on behavior within organization for the purpose of applying such knowledge towards improving organizations effectiveness. In the industry, There are Institute of Management Studies and Research, Kuvempu University, Shankarghatta 1

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An organization study of Shree. DKSSK.N. Chikodi

CHAPTER I

1.1. INTRODUCTION

Organizational study was undertaken for 30 days at DKSSKN. Chikodi (Dist-Belgaum) is a co-

operative society registered under Karnataka co-operative society’s Act in 1969. This project

refers to study of functional department of an organization. It is also meant to study the activities

of various departments such as General administration, Purchase, Finance, Agriculture,

Marketing, Production, Human Resource and store etc. In industrial profile, under company

profile, history, vision, mission and objectives is collected. The MC KINSEYS 7s frame work

model company information is collected with the organizational structure.

It present a SWOT analysis of the company in the next step strength and weaknesses are internal

factor, opportunities and threats are external factors to the company.

Organizational study is the field that investigate impact that individual, group and structure have

on behavior within organization for the purpose of applying such knowledge towards improving

organizations effectiveness. In the industry, There are 3 type of sugar M (higher quality), S-1

(medium), S-2 (low quality). Sugar utilizes by-products effectively by establishing facilities to

produce power, alcohol, ethanol etc.

1.2. Objectives of the study

To learn & understand the working of various functional departments like General

administration , Purchase, Finance, Agriculture, Marketing, Production, Human Resource

and store etc.

Outline and study the growth and working of the company from its inception.

To do SWOT analysis to identify the major strengths & weaknesses of the company.

To study the organization structure and its working style.

To study the organization from MC KINSEYS 7s frame works perspective.

Institute of Management Studies and Research, Kuvempu University, Shankarghatta 1

An organization study of Shree. DKSSK.N. Chikodi

1.3. Scope of the study

The scope of the study was Shree. DKSSK. Chikodi. The study was mainly on organization

structure and activities of various departments such as General administration, Purchase,

Finance, Agriculture, Marketing, Production, Human Resource and store etc. The information is

being collected through various sources.

Data collection: The data for the study was obtained through primary source and secondary

source.

Primary Data: The primary source of data was obtained by personally meeting the

employees of the industry, through interactions by interviewing and also by getting

various indicators pertaining to sugar production.

Secondary Data: The secondary source of data includes the Background papers prepared

by the department for Meetings etc.,

o Departmental notes.

o Reviews and Reports.

o Circulars and Periodicals.

o Annual reports and Internet.

1.4. Limitations of the study

The various limitations of the mini project are as follows:

Most of the information with respect to General administration , Purchase, Finance,

Agriculture, Marketing, Production, Human Resource and Store department was

confidential, so all the information required could not be obtained to the fullest extent.

The officials of the DKSSK factory, even though co-operative, could not spare much of

their time due to their busy work schedules.

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An organization study of Shree. DKSSK.N. Chikodi

CHAPTER II

INDUSTRY PROFILE

2.1. Introduction

India has become largest producer of sugar cane or sugar producing 280 MnT of cane and 16.5

MnT of sugar in 1995-96, making it the largest producer of sugar in the world, representing

about 20% of cane sugar production. India also produces another 10 MnT of traditional

sweeteners . India also has a large consumer base, thus makes it quite vulnerable to international

sugar market, in the event of surplus or deficit situation. At the same time it has good potential

and prospects.

Sugar production commenced in 1920's but it got industry status in late 20's/early 30's when

India had 29 sugar mills producing just 100,000 tons of sugar. The industry, facing competition

from imported sugar, sought tariff protection. Sugar production picked up under the Sugar

Industry Protection Act passed in 1932 and country became self sufficient in 1935. Also cane

pricing act was enforced to provide good cane price to farmer. This was followed by land

reforms putting ceiling on land holdings to protect small farmers, formation of cane grower co-

operatives and setting up of sugar mills jointly with farmers called as cooperative mills on

ownership and sharing basis. Today this sector produces 60% of country's production.

Under the structured Industrial Development Policy, sugar industry was part of the Five-Year

Plans introduced in 1951 and has been under the direct control of the Government ever since.

Sugar industry is highly politicized and so closely controlled by the Government which has no

parallel in the industry. Govt. control, covers all aspects of sugar business i.e.

licensing/capacity/cane area, procurement/pricing/sugar pricing/distribution and Imports and

exports. Sugar scene in India has been that of protectionism. The mills, the farmers and the

consumers all have been protected one way or another. Whereas the protection to farmer and

consumer has been consistent, it has not been so consistent for the mill owners.

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Overall government policy has given impressive results. The production has gone up to 16.5

MnT. per capita consumption up from 5 to 13 kg over a period of 3 decades. There is a potential

- what is needed, is some changes in policy to make it world class player. Winds of liberalization

have touched sugar also. Licensing is liberalized. The imports freely allowed. Exports

deregulated. Many lessons learnt. Competition became intense. Customer more demanding on

quality and service. The document gives an overview of agricultural background development in

cane. Sugar production, consumption, policy/regulations. The paper ends up dealing with

important issues, aspects of deregulation, decimalization of exports, the potential and the

comparative advantage of Indian sugar.

2.1.1. Historical background

The sugar industry is proud to be an industry, which spreads the taste of sweetness to the

mankind. The history of origin of this industry is as old as the history of main himself. Sugar is

generally made from sugarcane and beet. In India, sugar is produced mainly from sugarcane.

India had introduced sugarcane all over the worlds and is a leading country in the making sugar

from sugarcane.

‘Saint Vishwamitra’ is known as the research person of the sugarcane in religious literature. We

can find the example of sugarcane in Vedic literature also as well as sugarcane. We can also find

the reference of sugar and the sugarcane in Patanjali’s Mahabashya and the treaty on the

grammar of ‘Panini’. Greek traveler ‘Niyarchus’ and Chinese traveler ‘Tai-Sung’ have

mentioned in their travelogue that the people of India used to know the methods of making sugar

and juice from sugarcane the great Emperor Alexander also carried sugarcane with him while

returning to his country.

Thus from different historical references and from some ‘Puranas’ we can concluded that method

of making sugar from sugarcane was known to the people of Bihar. The historical evidences of

sugar industry prospering in ancient India concrete and this has helped to develop and prosper

the co-operative sugar movement in India.

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An organization study of Shree. DKSSK.N. Chikodi

History of sugar and sugar cane in India goes back to several thousand years BC. Indian

mythology vouches for this since it contains some legends depicting origin of sugar cane. It was

sometimes in 4/6th century art of sugar making was discovered. Method was crude beyond

imagination. Cane was cut in pieces - crushed under heavy weight - juice thus obtained was

boiled and stirred, till it turned solids. Solids of uneven shape and size were called sarkaran, a

Sanskrit term of 'gravel'. Modern word 'sugar' is derived from the word Sarkara.Thus it could be

rightly said that India has been the original home for sugarcane as well as sugar manufacture.

However, for all practical purposes, scientific sugar processing by vaccum pan method may have

started sometimes in 20s. The development process was slow. Country met its sugar requirement

through imports. In mid 20s number of sugar mills sprang up in UP and Bihar. By 1930-31, there

were 29 sugar factories producing just 100000 MT of sugar and they found adverse competition

from Japanese sugar.

2.2. Global scenario of sugar industry

Sugar is produced in 110 countries. The leading sugarcane producing countries are Brazil, India,

Australia, Thailand, China and Cuba. Sugar is extracted from two different raw materials,

sugarcane and best. Both produce identical refined sugar. Sugarcane is grown in semi-tropical

regions, and accounts for around two-thirds of world accounts for the balance one third of world

production. The Russian Federation, Ukraine and Europe account for around 80 per count of

total beet sugar production. In addition to weather conditions, diseases, insects, and quality of

soil, production of sugarcane and beet are affected by international trade agreements and

domestic price support programmes.

2.2.1. The Crushing season for different sugarcane producing countries

Country/ Area Season

Europe March-September

Cuba, Mexico November – July

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USA October-June

Mainland

Hawaii

January- December

Brazil June-July

Africa April-November

China January-December

Pakistan November-May

Thailand October- April

Australia May- December

India October- June

2.2.2. World sugar trade:

World trade in raw sugar is typically around 22 MMT and white sugar around 16 MMT. Brazil

is the largest importer, followed by EU, Thailand, Australia and Cuba. The largest importers are

Russia, Indonesia, UK, South Korea, Japan, Malaysia, the Middle East, and North Africa.

2.2.3. Sugar Pricing:

Government of India fixes Statutory Minimum Price (SMP) for sugarcane according to Clause 3

of the Sugarcane Order. This statutory Minimum Price is designed through the consent of

Commission for Agricultural Coast and Prices (CACP) and respective state Governments. For

the year 2004-05, the rate was fixed at Rs. 74.50 per quintal with basic recovery of 8.5%

2.3. Indian scenario of sugar industry

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2.3.1. Towards independence

It is as from 1937 with the requests of the workers and the establishment of the Labor Party that

regrouped the colored people and certain intellectuals from Indian origin as well as the

recognition of the workers unions that progress started to be done. There was also a new

constitution after the elections of 1943 during which two forth of the population could vote. The

elections of 1953 made democracy move ahead when the Labor party obtained more seats. It was

in 1957, the year when the ministerial system started in Mauritius that Dr Ramgoolam took the

leadership of the Labor party.

2.3.2. Sugar industry in India:

Mostly sugar industries are located in U.P, Bihar Maharashtra, A.P. Karnataka and T.N. The

sugar industry is one of the largest organized industries with total capital investment of more

than 500 crores. It employees more than 2.5 lakhs of workers besides creating extensive indirect

employment over 25 to 30 million cultivators of sugar cane, dealers in sugar and confectioneries.

When sugar industry was granted tariff protection the history of sugar industry started again

before 1932 which gave limpet us (driving force) to growth of industry. Again the government

in 1951 provided incentives by fixing minimum prices of cane and maximum prices of sugar.

This incentive scheme increased the production of sugar but discouraged the cane production.

We will see later on how contradictory government. Policies have adversely affected the

growth of sugar industry. Unfortunately, government policy has been that of control and re-

control from time to time creating an environment inimical (hostility, untrendly) to the growth of

sugar industry. Up to 1957-58 both consumption and production of sugar rose to; 20 lakhs tones

each. During 1969’s production of sugar rose to 35lakshs tones and during 1970’s it was in

between 40 to 50 lakh tones. And during 2000-01 it was in-between 80 to 90 lakhs tonnes.

The first sugar mill in the country was set up in 1903 in the United Provinces. There are 566

installed sugar mills, of which 453 were in operation in the year 2002-03 and utilized 194.4

million ton of sugarcane (69% of total cane production) to produce 20.14 million tons of sugar.

About 5 lakhs workmen are directly employed in the sugar. About 5 lakh workmen are directly

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An organization study of Shree. DKSSK.N. Chikodi

employed in the sugar industry besides many in industries, which utilize by-products of sugar

industry as raw material.

India is the largest consumer and second largest producer of sugar in the world. The Indian

sugar industry is the second largest agro-industry located in the rural India. The Indian sugar

industry has a turnover of Rs. 500 billion per annum and it contributes almost Rs. 22.5 billion to

the central and state exchequer as tax, cess, and excise duty every year. It is the second largest

agro-processing industry in the country after cotton textiles. Indian sugar industry has been a

focal point for socio-economic development in the rural areas. About 50 million sugarcane

farmers and a large number of agricultural laborers are involved in sugarcane cultivation and

ancillary activities, constituting 7.5% of the rural population. Besides, the industry provides

employment to about 2 million skilled/semi skilled workers and others mostly from the rural

areas. The industry not only generates power for its own requirement but surplus power for

export to the grid based on by-product –Bagasse. It also produces ethyl alcohol, which is used for

industrial and potable uses, and can be used to the manufacture Ethanol, an ecology friendly and

renewable fuel for blending with petrol

The sugar industry in the country uses only sugarcane as input; hence sugar companies have

been established in large sugarcane growing states like Uttar Pradesh, Maharashtra, Karnataka,

Gujarat, Tamil Nadu, and Andhra Pradesh. In sugar year 2003-04, these six states contribute

more than 85%of total sugar production in the country; Uttar Pradesh, Maharashtra, and

Karnataka together contribute more than 65%of total production.

2.3.3. Sugar production in Indian states:

The following table shows level of sugar production (In Lakh Tonnes) in Indian States:

State 2002-03 2003-04 2004-05 Estimated

Uttar Pradesh 58.74 46.08 50.32

Maharashtra 61.64 31.99 22.29

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Karnataka 17.98 11.57 13

Tamil Nadu 17.04 11.9 9.84

Andhra Pradesh 11.88 8.81 9.75

Gujarat 12.38 10.77 8.32

Haryana 5.99 5.86 4.03

Uttaranchal 4.59 3.93 3.82

Punjab 5.11 3.88 3.37

Bihar 4.21 2.77 2.77

Madhya Pradesh 0.85 0.94 0.85

Other 0.91 1.09 1.58

The government of India licensed new units with an initial capacity of 1250 TCD up to the 1980s

and with the revision in minimum economic size to 2500 TCD, the Government issued licenses

for setting up of 2500 TCD plants thereafter. The government de-licensed sugar sector w.e.f.

11.9.1988. The entrepreneurs have been allowed to set up sugar factories of expand the existing

sugar factories as per the techno-economic feasibility of the project. However, they are required

to maintain a radial distance of 15 kms from the existing sugar factory. After de-licensing, a

number of new sugar plants of varying capacities have been set up and the existing plants have

substantially increased their capacity.

The average per capita consumption of sugar is estimated at 18.3 kg/year in the year 2002-03.

Based on the existing trend, this is estimated to increase to 23-24 kg/year by year 2010. At an

annual population growth rate of 1.6% annum, the population of India is expected to be Crores

by the year 2010 and therefore the corresponding estimated requirement of sugar will be 24.3

million tons. To achieve this, the sugar cane needs to be cultivated on an area of about 5.5

million ha with an average yield of 65 T/ha. As the increase in area of the sugarcane from the

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present 4.36 million hectare to 5.5 million hectare, may not be possible due to other competing

crops, it becomes necessary to improve the productivity and yield of sugarcane and sugar

recovery. The State wise scenario in respect of sugarcane production, cane consumption by sugar

industry, sugar produced, season duration, number of units etc.

There are 566 installed sugar mills in the country as on March 31st 2005, with a production

capacity of 180 lack MTs of sugar, of which only 453 are working. These mills are located in 18

states of the country.

2.3.4. The sector wise break up’s as follows:

2.3.5. Contribution of sugar industry to Indian economy:

Sugar industry contributes about Rs.1650 crores to the Central Exchequer as excise duty and

other taxes annually. In addition, about Rs.600 crores is realized by the State Governments

annually through purchase tax and cess on cane. At the prevailing sugarcane price, the total sugar

cane produced in the country value at about Rs.24000 crores per year.

2.3.6. Sugar Pricing:

Government of India fixes Statutory Minimum Price (SMP) for sugarcane according to Clause 3

of the Sugarcane Order. This statutory Minimum Price is designed through the consent of

Commission for Agricultural Coast and Prices (CACP) and respective state Governments. For

the year 2004-05, the rate was fixed at Rs. 74.50 per quintal with basic recovery of 8.5%

Institute of Management Studies and Research, Kuvempu University, Shankarghatta 10

Sector No of Factories

Private 189

Public 62

Co-operative 315

Total 566

An organization study of Shree. DKSSK.N. Chikodi

2.3.7. Government Policy

The present policy of partial decontrol 10% of production by each unit is supplied for public

distribution system i.e. as levy sugar at Govt. notified prices admittedly below 20% of the actual

cost of production. The levy sugar is I to the public irrespective of their economic status. The

balance 90% is sold in the free market against monthly\issued by the Government. This policy

has been continuing since 1967-68 except for brief periods of de-control me during the years of

surplus production and accumulated sugar stocks. Government announces the Statutory

Minimum Price (SMP) for sugarcane every year based on recommendations of the Commission

for Agricultural Costs and Prices (CACP).

2.3.8. Main problems of sugar industry:

Sugar industries in India suffering from inadequate supply of sugar cane.

Sugar industry was initially unevenly distributed in the country.

If has the high cost of production.

The crushing season is very short .If runs for nearly 100 to 110 days in a year.

By product of sugar industry like bagassese, molasses, filter cake etc are not properly

utilized.

2.3.9. Indian Govt. on Sugar Industry:

.The following policy initiatives are taken to boost the Sugar industry:

Government declared the new policy on August 20, 1998 with regards to licenses for

new factories, which shows that there will be no sugar factory in a radius of 15 km.

Setting up of Indian Institute of Sugar Technology at Kanpur is meant for improving

efficiency in the industry.

In the year 1982, the sugar development fund was set up with a view to avail loans for

modernization of the industry.

2.4. SWOT analysis of the industry

2.4.1. Strengths

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An organization study of Shree. DKSSK.N. Chikodi

Indian sugar industry is the second largest producer of sugar in the world after Brazil.

It has the potential to make the country self reliant in this highly sensitive essential

Commodity of mass consumption.

Provides direct employment including ancillary activities to near about 50 million

Workers, thus becoming a focal point of socioeconomic development of the rural India.

Supports the downstream industries by providing the raw material for forward

Integration.

Strong government policies as it come under essential commodity of mass

consumption.

2.4.2. Weakness

Lower installed capacities leading to higher production cost.

Outdated technologies.

Less professionalism.

Preponderance on vagaries of the weather.

2.4.3. Opportunities

High value of by-products for downstream industries.

Huge potential to increase the productivity of cane and sugar recovery rate.

Technology up gradation available for the byproduct utilization thus de risking the

business.

Increasing focus of Government towards ethanol utilization, beneficial for ethanol

producing sugar companies.

2.4.4. Threats

The sector is highly vulnerable to political interest and interferences.

Deterioration in the quality of soil due to overuse of fertilizer and pesticides to increase

sugarcane yield.

Any adverse government policy.

High sugarcane price.

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An organization study of Shree. DKSSK.N. Chikodi

CHAPTER III

COMPANY PROFILE

3.1. Name and nature of the company

3.1. a. Name of the society

The name of the Society shall be SHREE DOODHAGANGA KRISHNA SAHAKARI

SAKKARE KARKHANE NIYAMIT, CHIKODI-591247. The Society originally registered as a

co-operative Society under Karnataka Co-operative Societies Act 1959, vide registration number

RCS / 1427 / 68-69 Dated 05/03/1969 and subsequently converted as a Multi-State Co-operative

Society’s Act 2002 and rules made there under.

3.1. b . Nature of Business

Sugar sector is one of the large scale industries in manufacturing sector. Now a day the

competition in sugar sector is very high. SHREE DOODHAGANGA KRISHNA SAHAKARI

SAKKARE KARKHANE NIYAMIT, CHIKODI is a co-operative society registered under

Karnataka co-operative society’s Act in 1969. The object of business is to encourage proper

development of agricultural industrial amongst members on co-operative lives by promotions of

co-operative and joint forming methods so as to secure best merits of modern large scale

agriculture production to the owners of the lands. The nature of business is to encourage self

help, thrift and co-operate amongst member

3.2. Founders & present management profile

The founder Shree Chidanand B. Kore and chief promoter Shree Shantappa Y. Mirji felt it

necessary to start the factory in this area and the factory was registered by the support of

shareholders on 5th March 1969.

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An organization study of Shree. DKSSK.N. Chikodi

3.2.1. PRESENT PROFILE

SHREE D.K.S.S.K.N.-CHIKODI,

Taluka – chikodi, dist.- Belgaum

Name of the Organization : Shree D.K.S.S.K.N.-Chikodi.

Location : Nanadi Village.

Tal.-Chikodi, Dist. - Belgaum

Karnataka

Resi .office : Chikodi.

Ph. No. : 08338-276931 To 35

Fax : 08338 – 276105

E-Mail : [email protected]

Construction : Building Layout, Garden & Light

Facilities.

Capacity : 5500 tones sugar cane crashing / day.

20.7 M. W. Power Generation.

30 K.L.P.D. Rectified Spirit.

Turnover : 450 to 500 Crores / Annuam.

Employees : 775.

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An organization study of Shree. DKSSK.N. Chikodi

Work Shifts : 3 Shifts / 8 hours per shift (no Holiday)

Major Customers : All registered sugar traders. K.P.T.C.L. All registered

exise contractors.

Competitors : Shree Datta S.S.K.N. (Pvt Ltd.)

Ugar Sugar Workers.

Shree Guru Datta, Takali (Kolhapur).

Products : Sugar is the main product. There are 3 type of sugar

M (higher quality)

S-1 (medium)

S-2 (low quality)

By product : there are 3 types of byproducts

power

molasses

baggases

3.2.2. Board of directors

The following composition of directors on the board of Shree Doodhaganga Krishna Sahakari

Sakkare Karkhane Niyamit, Chikodi

Name Designation

1. Sri Mahantesh M Kavatagimath Chairman

2. Sri Ajit S Desai Vice Chairman

3. Sri S B Umarane The Managing Director

4. Sri Annasaheb S Jolle Director

5. Sri Ashok A Patil Director

6. Sri Prakash J Patil Director

7. Sri Tatyasaheb D Kate Director

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An organization study of Shree. DKSSK.N. Chikodi

8. Sri Mallikarjun G Kore Director

9. sSri Amit P Kore Director

10. Sri Satappa N Saptasagar Director

11. Sri Parasagouda I Patil Director

3.3. Historical background

Considering the call of administration of independent India to go for Industrialisation and to

develop agro based Industry in Rural India particularly, to sugar Industry has emerged as a

source of livelihood for the Rural farming community. Observing the greater changes with

Industrial policy and to provide financial support to the farmers of this backward and border

area, our veteran Co-operator and Agriculturist late Shri Chidanand B. Kore and his

contemparies had resorted to go for a Sugar Industry in this area after putting a enormous efforts

in getting Licences, clearances, collection of equities and technical support, Shree Doodhaganga

Krishna S.S.K. Niyamit, Chikodi had come into existence with a crushing capacity at 1250 TCD

from 1974-75. With the assistance of Cane Grower members and higher term lending Institutions

the factory was crushing at the rated capacity by fulfilling its objects till 1984-85. The then

management had taken a pertinent decision to enhance the crushing capacity from 1250 TCD to

2000 TCD from 1984-85 onwards.

Meanwhile a lot of changes were taking place in the field of sugar technology and financial

management, and it was proved that the stand alone sugar industry would not be viable and to

achieve the financial stability of Sugar Factory should go with expansion of crushing capacity

and install the by-products units. A time had come to crush more cane in a shorter period and to

run the byproducts units for a longer time. Then came a great change in the Management. Under

the ablest leadership of the then M.P. Shri Prabhakar B. Kore, MLC, Chairman K.L.E. Society,

Belgaum, the Management had taken major decisions to go for expanded capacity in crushing to

install Co-generation Power Project & Distillery Units. The Annual General Body Meeting had

supported wholehearted and contributed more shares for taking up sum useful units. The State

had rarely seen such a Cooperator, Educationalist, Social reformer and visionary like Shri

Prabhakar B. Kore who had dedicated his life totally for all-round development of farming

community. Under the stewardship since 1991-92 the factory had started its changes and had

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An organization study of Shree. DKSSK.N. Chikodi

taken a shape to fit itself to go a sound finance support directly to farmers and workers and

indirectly to the people involved I such activities.

Looking to the then circumstances and technical changes in the Sugar scenario the following

projects have been implemented through years upto 1990-2004.

1) Crushing capacity enhancement from 2000 TCD to 5500 TCD. With

modernization of Plant & Machinery at project cost of Rs.12.24 crores.

2) 20.7 MW Cogen Power Project: Most aviated & ambitious project of 20.7 M.W.

Power Project was commissioned from March 2004. With the project cost of Rs.

55.60 crores. Veteran Members and HUDCO Delhi have extended their financial

support. This factory as under ambit of government of India as well as

government of Karnataka in availing the benefit of subsidies being given for

establishment of Co-gen power project.

3) 30 KLPD Distillery: As per State Government policy the factory Management

realize their dream of installing 30 K.L.P.D. Distillery Unit with continuation

fermentation technology at project cost of Rs. 748.00 lakhs which was

commissioned from August 2002. A good quality of spirit is produced and

marketed through Government Agencies.

4) KLPD Ethanol: Considering Government of India Policy, 30 K.L.P.D. Ethopal

Plant at Project cost of Rs. 181.00 lakhs was installed & presently the plant is at

the verge of completion.

5) Arrack Sachetting unit: At the same time with the State Government License

Arrack Sachetting unit is commissioned. Thus cane processing with its varied

complex has achieved with commissioning of all bye products units.

6) Research & Development in the field of Sugarcane & other Agriculture crops.

Hon’ble Minister for Agriculture Government of Karnataka has inaugurated

factory Research & Development Unit at our Ankali farm where in our

Agricultural Scientists have developed 16 varieties of High Yielding & rich in

sugarcane crops. Besides there is a provision for testing of soil, water, fertilizer &

other Agriculture inputs in Micro/Macro Lab in the Center.

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3.3.1. Cost of the Project

The factory spent Rs. 337.00 lakhs as its original project.

For the first phase of expansion the factory incurred cost of Rs. 349.00 lakhs.

For the second phase of expansion the factory spent of Rs. 2700.00 lakhs.

3.3.2. Infrastructural facilities

Nearer to raw materials.

Good transportation facilities.

Nearer to rivers place. (Krishna River)

Good networking.

Proper accommodation for its employees.

3.3.3 Vision, mission and quality policy

Vision

“Total customer satisfaction”

Mission

Encourage agro-based co-operative industry.

To develop co-operative movement in rural sector.

To encourage the farmers to grow sugar cane for production of sugar and its by-products.

Quality policy

The Quality policy of the company is producing the sugar in better quality which

helps to compete with private sector.

3.3.4. Aims & objective of the company

The object of the society is to encourage proper development of Agricultural Industrial amongst

members on Co-operative lives by promotions of principal and methods of Co-operative and

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joint forming methods so as to secure best merits of modern large scale agriculture production to

the owners of lands and for this purpose.

To encourage self-help, thrift and co-operate amongst members.

To acquire lands either by way of purchase or otherwise for cultivation of sugar cane and

other cost and for erection of building. Godawns staff quarters etc and for installations of

machineries.

To manufacture sugar jogger and their by products out of sugar-cane grown and supplied

by members of the society and other and to sell the same to the best advantage.

To under take such other activities as are identical and conductive to the development of

the society etc.

To acquire and install machinery for the utilization of the product and buy raw material and

sell finished product is the course of utilizing and marketing the by products.

3.3.5. Achievements and awards

The STAI, SISSTA & DSTA in their 8th annual convention held at Hydarabad on 13-08-

2005 have honoured us with the most prestigious award as the “THE BEST

EFFICIENCY & PEFORMANCE SUGAR FACTORY” in the Country for the year

2004-2005. The award was given by Hon’ble Union Minister for Agricultural, Food &

Civil Supplies, in presence of Hon’ble Chief Minister of Andra Pradesh.

The Karnataka State Co.op. Federation Ltd., had adjudged us as “The Best Co-Operative

Sugar Factory In The State” and AWARD has been given to us on 14/11/2004 by

Deputy Chief Minister of Karnataka.

The Energy Department of Government of Karnataka & KREDL awarded “Excellance

Award” for having developed 20.7 MW Cogen Power Project on the occasion of Rajiv

Gandhi Akshaya Urja Diwas on 20.8.2004, by Hon’ble Chief Minister of Karnataka.

The Karnataka State Co-Operative Sugar Factories Federation Ltd, Bangalore had

honored us for the highest recovery of Sugar in South India during the year 2001-2002.

The Karkhane has obtained ISO 9001-2000 Certificate from AQSR India Pvt. Ltd., New

Delhi (India) for manufacture of White crystal sugar.

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The Karnataka State Co-Operative Sugar Factories Federation Ltd., New Delhi have

Awarded “The Cane Development Award” for higher recovery in the Country during

the year 1994-95.

The Karnataka State Pollution Control Board has declared Shree Doodhaganga Krishna

Sahakari Sakkare Karkhane Niyamit, Chikodi (Dist:Belgaum) as complied industry, as

per the “Air & Water Acts” for the year 2005-06.

3.3.6. Awards

The Karnataka State Cooperative Sugar Factories Federation Ltd., Bangalore had honored the

company with the following awards for the:-

Highest sugar recovery in South India during 2001-02.

The “Best Administration Award” to the Managing Director with a cash prize of

Rs .10.000/- and a certificate.

The Best chief Chemist Award” with Rs.5000/- Cash prize and a Certificate.

Best chief engineer with award worth of Rs.5,000/- cash prize and certificate.

Best Boiler award for the year 2009-10 by Karnataka State Governmant.

3.3.7. Area of operation

The area of operation of the society shall be confined to the following villages of chikodi,

Athani, Raibag Talukas of Belgaum District and Jamakhandi Taluka of Bagalkot District of

Karnataka State and villages of shirol, kagal Talukas of Kolhapur District Maharastra State only.

3.4. PRODUCT PROFILE

Procurement

The factory obtains the sugarcane, which is required from more than 1000 farmers and by the

company farms and others raw materials which are required for the operation is taken from the

vendor there vendors will be evaluated on the basis of price and quality and then the required

raw materials will be taken for the efficient vendors.

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The transport of sugar cane from farmers to the factory will be engaged throng Lorries which

will be taken through bidding at the time of harvesting and also farmers themselves supply by

their own bullock carts or by tractors.

Cane weightment

There are 12 outlaying weigh bridges situated round about Chikodi for delivering the sugarcane

from the farmers. Double check has been provided over the weightment of cane transported from

out stations.

Operations

The sugarcane, which is carried by Lorries or other, will be directly fed to the machine where the

initial process starts. At the starting point these are knives which cuts sugar cane bunches into

individual sugar care.

After this in the next step there are sharp cutter which cuts the sugarcane bunches into very small

pieces. Then it will go to trade marbs (a series of rollers used for crushing purpose) for crushing.

Then the juice produced will go for further processing and the Bagasse will be lift out their itself.

Then they add flocculent [used for mud setting] milk sanitation etc and then after it will go

through pans and Masscuite for this Masscuite they will add sodium Hydro Sulphite (to bleach

the masscuite) and it will be separated out and the molasses will be send to distillery and they

white sugar will be bagged.

3.4.1. Byproducts of sugar cane

The chief by products of sugar manufacturing are -

Bagasse

Bagasse is the by product of sugar left behind after crushing of sugar cane. It is used as a fuel in

the sugar factory boiler. Excess Bagasse finds use as raw materials in paper manufacturing

industry.

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Molasses

Molasses is a by product of Sugar refining chiefly used for alcohol production. The entire

molasses output is routed to the distillers unit which is maintained by the organization.

Pressmud

Pressmud is the by product generated by cane juice filtration during sugar manufacture, currently

Pressmud is used as a fertilizer in sugarcane cultivation.

Power generation plant

Power plant uses the fiber of the processed sugar cane (Bagasse) as fuel to generate electricity in

an environmentally responsible manner. An integrated 20.7 M.W. power generates and supplies

electricity to the state grid produced from sugar cane waste used to rotate turbines 7 M.W. power

is utilized in the plant remaining power is supplied to KPTCL.

Distillery

Distillery plant uses by-product of sugar mill viz; Molasses as raw material for production of

spirits and alcohol namely rectified spirit, ethanol and extra neutral alcohol.

3.4.2. WORK EXPERIENCE OF MANAGERS AND STAFF

S. No. Name Departments Post Experience

1 Shri. D. S. Girigoudar Suger M.D. 24

2 Shri. Murughesh Hattikal Electricity M.D. 22

3 Shri. A. K. Memane Chemical M.D. 26

4 Shri. I. A. Golabhavi Account M.D. 24

5 Shri. R. D. Nigave DistilleryM.D.(In

charge)16

6 Shri. V. S. Dhamal Cane Devt. Officer 19

7 Shri. R. C. Pattanashetti Environment Officer 20

8 Shri. A. B. Devareddi Sale Officer 21

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9 Shri. S. L. Hakare Labor Welfare Officer 23

10 Shri. S. B. Chinnannavar Time Keeping Officer 22

11 Shri. V. B. Patil Store Dept.M.D.(In

charge)26

12 Shri. B. A. Patil Purchase Officer 18

13 Shri. B. S. Rendale Cane Yard Supervisor 16

14 Shri. D. S. Hunachyale Security Officer 15

CHAPTER IV

FUNCTIONAL AREAS

4.1. Administration department

The most of the work of the department is future planning as a standardization of time and work

and dealing with other companies. The work of administration department is conceptual decision

taking with the permission of Chairman, Director, M.D, and Senior Manager.

4.2. Finance and accounts department

Finance plays a vital role in the functioning of all industrial units. Finance is the life blood of

the organization. In sugar Industry Finance and accounts Department has very vital roles. The

financial plan basically deals with raising and proper utilization of funds. The funds can be

raised by issue of shares as well as by raising loans various sources.

The finance manager supported with accountant manager and an accountant assistant looks

finance department

Functions:

They look after the overall financial requirements of the company.

They see that a proper inflow and outflow of income and expenditure is maintained.

Costing and accounting is framed and maintained.

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Yearly budget is framed so that each department can meet their cash requirements.

Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting,

purchase forecasting etc. which submitted by respective departments.

Finance Department consists of following sub branches:

General Accounts Section

Cane Accounts Section

Sales Section

Cash Section

Accounts offices are the head of this department. Accountant sales manager, and head

cashier assist him.

Finance controlling repayment of term loans. Taking loans excepting and payment call

deposits maintains all Accounts. Payment of all bills statutory and normal bills.

As functioning of each section is summarized follows –

General accounts section:

General Accounts are looking after the passing of bills and payments. Management is also done

by General account section and preparation of financial statements i.e., Balance sheet, profit and

loss account is attended by general accounts section.

Cane accounts section:

The Bills and payment concerned to procurement of sugar cane, is attended by cane accounts

section. Payments like cane bills, transport and harvesting bills etc., are prepared and passed in

cane accounts section.

Sales section:

It is looking after sales of sugar and by products molasses, Rectified spirit and other scrap

materials. It is keeping records of the concerned to all sales section.

Cash section:

It is looking after the payments of all general bills and salary bills apart from cane payment and it

is also looking after receipt of cash and check payment.

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All accounts are maintained in usual manner,Various records and books kept are:

General ledger

Sub ledger

Subsidiary

Cash book

Bank book

Vouchers.

Each branch prepares trading profits and loss account and Balance as on 31st March every

year. And the government Auditors audits the accounts.

4.3. Purchase department

Purchase Department is headed by purchase officer is responsible for purchasing the spare parts

required for the industry. The storekeeper is responsible for stacking quality maintaining and

issuing to the concerned section.

The important functions of the department are:

Purchasing materials

Calling quotations

Preparing C.S.Q (comparative statement quotation)

Placing before meeting for decision

Placing orders for supply of materials.

Passing bills to Accounts section for payment.

Purchase department hierarchy

Procedure of purchasing

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PURCHASE MANAGER

GODOWN SUPERVISORS

An organization study of Shree. DKSSK.N. Chikodi

Determination of purchase budget:

In the beginning of the year the purchase manager, with the help of production planning

department, prepare a purchase budget. This budget quads him in knowing what when he has to

buy and also quality, Size and quantity of purchase.

Determination of quantity:

The stock availability in each location is determined and compared with the actual requirements.

After receiving the sales order raw materials needed are scheduled according to these order level.

The stock availability in each location is determined and compared with actual requirements

these quantities to be purchased are determined.

Purchase order:

After satisfy with the quantity of materials and reputation of the supplier, purchase order is send

to the supplier. Purchase order contain includes the date of order, description of materials to be

supplied made of supply. The companies of this send to the Head office, another to accounts

departments and one copy send to the storekeeper.

Receiving and issuing raw materials:

The department heads and the storekeeper check the quality and quantity of raw materials

received respectively. The storekeeper enters the details of purchased materials in the store

receipt book store receipt after the details are entered in the stared receipt book, the materials

from the part of inventory. Then the general manager passes the amount for payment.

4.4. Production department

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STORE KEEPERS

ASSISTANTS

An organization study of Shree. DKSSK.N. Chikodi

Production management refers to the application of management principles to the production

function in a factory. In other words production management involves application of planning,

organizing, directing and controlling the production process.A well-organized production

function can offer competitive advantage to a firm in the following areas.

Higher quality

More inventory turns

Shorter new product lead time

Greater flexibility

Shorter manufacturing lead time

Better customer satisfaction

Reduced wastage

FLOW CHART OF SUGAR MANAFACTURING

Weighed cane-hauled to crushing yard

Cane unloaded on to the carrier

Cane cut into pieces

Crushed in successive mills

Juice treated with line and surplus Dry chaff fed into boilers

& Heated as fuel

Subsider

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Sucm Clear juice

Filter cake used Clear Evaporates

As manure juice

Concentrated syrup

Surplus syrup to vacuum pans

Boiler to mane cite

Centrifugal

Centrifugal

Sugar Molasses

Bagging

Dispatching Power alcohol Portable alcohol

Production process

The main raw material in the production of sugar is.

Sugar cane.

The raw materials has to go through following stages before it become finished product.

The process in each stage is as under:

Stage:1 sugar cane supply.

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The harvested and transported sugar can received is weighed on the weigh Bridge. It is unloaded

and kept on the feeder tables. It is fed to the cane carrier as per the requirement.

Stage:-2 milling of cane/ extraction of juice.

This cane is passed through leveler and furzier by making the fine making the fine chips. It is

crushed through series of mills. Imbibitions hot water is added prior to the last mill to extract

more possible sugar. The bagasse from the last will is carried through bagasse conveyor and

required quantity of bagasse is fed to the boilers and excess quality is sent for storage.

Stage:-3 clarification and evaporations.

The juice from all the mills is pumped to juice weighting scale. It is heated to about 70-77’o c in

the juice heaters. It is taken to continuous juice sulphitor in which milk of lime and sulphur

dioxide gas are adjusted to maintain ph 7.0. it is again heated in juice heaters to about 100 to

105’oc and sent to continuous clarifier. Clear juice is taken to multiple effect evaporators to

concentrate up to 60oc Brix.

The settled mud from the bottom of the clarifier is taken to mud mixer to mix with beguile and

taken to continuous vacuum filer. The filtrate is transferred to raw juice receiving tank for

treatment. The adhered mud on the screens is scraped and sent out as filter cake, which will be

used for composting the manure.

Stage:-4 crystallization purging and sugar Manufacture

The concentrated syrup from evaporator is taken to syrup sulpthitor to adjust Ph 4.8 to 5.2. This

is stored in the supply tanks and fed to “A” masscult boiling by taking B-seed as a footing. It is

concentrated to 92o Brix and dropped to the crystallizes. This masscult is purged in the

centrifugal machines. The adhered crystals are scraped to hopper and treated with hot air and

cold air blower. It is sent to grader the size for gradation. This graded sugar is stared in SILOS.

Weighed and bagged sugar bags are transferred to respective go down’s for stacking.

Stage 5:- further process

While purging A- massecuite the A-light molasses received is sent to supply tanks and fed to

‘A’- molasses is sent to supply tanks and fed to ‘B’- masscult boiling with b-grain as footing.

This is purged in the centrifugals. This sugar is used as B- seed and excess is melted and fed to

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‘A’- masscult’s. White purging low purity B- Heavy molasses obtained is used for boiling C-

masscult with C- grain as footing.

This C- massecruite is taken for purging in C.F.W. centrifugal machines. The final molasses is

separated, weighed and sent to storage tanks. C.F.Magma is sent to melt supply tanks and fed to

‘A’ massecuite boiling . C-light molasses obtained is tired in supply tanks and used for C-

massecuite boiling and C- graining also.

Production of electricity

Generation of electricity is the ultimate production of VPP Ltd. Bagasse is used as the raw

material for the production of energy. Bagasse helps in heating the boiler through which steam is

produced.

Here steam is used for rotating the turbines. As the turbines rotate faster electricity takes birth.

The total production of electricity in is 15MW out of which 6MW electricity is used for home

industry and the remaining is sold to KPTCL of sadalaga.

Process of Power Generation:

4.5. Marketing and sales department

“Marketing” is a social process by which individuals and groups obtain what they need and want

through creating, offering and freely exchanging products and services of value with others.

American marketing association defines, “Marketing Management” as the process of planning

and executing the conception, pricing, promotion and distribution of ideas, goods and services to

create exchanges that satisfy individual and organizational goals.

Role of marketing manager:

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Bagasse

Co-generation Boiler

Steam

Generation

Turbine

Power Generation

An organization study of Shree. DKSSK.N. Chikodi

To collect information for sale forecasting.

Pricing the products as per the demand.

To appoint new dealers and distributors.

To have full and perfect knowledge of marketing conditions and policies.

Marketing department also looks after dispatching goods to the their vendors.

Functions of sales department :

Sales officer is responsible for selling the products.

To look after dispatch of the ordered products.

Secondary sales are taken properly.

Suggestion, ideas, complaints, feedback from the market to the company.

Stocking planning in advance, godown maintenance in advance S & R.

Sales procedure:

Procedure followed in sale of sugar, molasses, bagasse, rectified spirit and arrack

Sugar:

Domestic sale of sugar:

The sugar is sold in the domestic market through tender system sugar tenders will be called

periodically from the various sugar traders. The leaders are intimated will in advance about

the grade and quality being offered in tender. The sugar tender will be conducted at

Karnataka Sugar Institute, Belgaum. The representative of KSI will be present at the time of

tenders. The rates will be collected from the various parties along with grade and quantity of

sugar required by them. The parties who have offered higher price will be allotted the sugar

and they will be interacted to take the sugar delivery within the stipulated period. The sugar

will be sold against 100% payment. The rate of domestic price of sugar in the state and the

rate of neighboring sugar factories will be selling the sugar tenders.

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Export of sugar:

When the international price of sugar is encourage compared to domestic price of sugar, we

export some of the stock of sugar. The sugar export is mainly undertaken through the

mercantile exports or through EXIM Corporation New Delhi. The price and the price being

offered by various sugar factories for export of sugar once the rates are finalized, we will

enter into agreement with the party. Then the party will obtain a release orders from chief

Director of sugar, New Delhi and necessary excise bond from the concerned authority. After

completing all the necessary formalities sugar will be delivered to the party for export against

full payment of the consignment. After the export shipment is completed necessary

documents in programme of export of consignment will be collected from the parties the

same will be submitted to the excise department.

Sale of rectified spirit:

The Rectified spirit is sold to various parties through the Karnataka State Braveries

Corporation Limited Bangalore. The price of the rectified spirit will be declared to the

KSBCL every fortnight. The prices of Rectified spirit of various Distilleries in the state will

be compared while finalizing the rates of spirit. Once the rate and quantity is finalized party

has to obtain necessary allotment order from commissioner of state excise for issue of

Rectified spirit and we will enter into forward agreement with the party as per the procedure

laid down by the KSBCL. Before taking delivery of Rectified spirit, the party has to make

payment to the KSBCL, in turn KSBCL will advice us to give delivery of Rectified spirit by

issuing “orders for suppliers’ then the spirit will be delivered to the party KSBCL will

transfer us the entire payment once in a week for the transactions occurred during the

previous week.

Sale of arrack:

Company is also producing arrack by using Rectified spirit from its distilleries units. The

arrack as being sold to the arrack contractors sold to excise. Contracts all over the state. Thus

arrack contracts interim will sell the same arrack to the ultimate consumers through sub dealers.

ARRACK

Molasses

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Distillery

Treated with yeast

Rectified spirit Pressmud

Treated with water Treated with nature

Arrack Compost

Export of power to the kptcl grid :

In addition to the above company is also receiving its revenue from its power plant. Company is

having a power plant of 20.7 MW capacity. It is using about 7.7MW for its own/captive

consumption, the excess power of about

13MW is being exported to the KPTCL

Molasses Bagasses:

For sale of Molasses and Bagasses we use to make a vide publicity in the various news papers in

Karnataka and Maharashtra and also floating the enquiries to the prospective purchasers in order

to get competitive offers and better price realization.

4.6. Mechanical department

This department is headed by General Manager and Chief Engineer. Maintenance of the sugar

machinery and plant over having of the some in off season and to run all the sugar machinery

and their devices properly and smoothly in the season and to extract cane juice for the cane in

respect of less losses of sugar content in fazes that is more extraction.

Function

Maintenances of the machineries in the plants.

Taking care of machineries while working.

Undertaking expansion & modification in the off season.

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Preparing plant ready for the seasonal operation.

4.7. Manufacture department

This department is headed by Chief Chemist. To manufacture the maximum quality the sugar

from the cane juice of superior ISI. grade minimize the sugar losses in bye-products to maintain

the register and calculations of sugar entering in the house and production submit day to day

report of production and recoverable sugar and excise matters in the season. In the off season

maintenance of the boiling house plant.

4.8. Watch and ward

This department is headed by security officer. Security of factory and control on gates and

supervision day and night all over the factory area from security point of view.

4.9. Stores department

This department is headed by store keeper. To keep the sores and required materials for the

factory section wise in a proper way and to maintain their registers and big cards of indents

(order goods)

Functions:

Receiving the materials

Unfolding the packing.

Takes entry in store receipt Book (SRB)

Preparing bills after receiving quality memo back.

Stacking the materials.

Issue of materials to concerned sections as per their indents.

4.10. Time office department

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This department is headed by head time keeper. To maintain the register of attendance of the

factory staff to prepare the pay sheets and leave records and personal services register of the

staff.

The office time is from 10.30 to 5.30pm

The lunch break is from 1.30 to 2.00 pm

Factory Premises

Inside: from 8:30am to 5:30pm

The lunch break is from 12:30 to 1:30 pm

4.11. Agricultural department

This department is headed by Cane development officer. Cane procurement, harvesting (to reap)

and development of cane. To make the provision of proper seed of cane to the cultivators, soil

testing and proper guideline for measuring etc.

Agriculture department hierarchy

Agriculture Department

Cane Development Officer

Chief Cane Inspector

Field Assistance

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Slip boy

Staff

Function-

Cane procurement activities:

Cane surveying.

Cane maturity survey.

Harvesting & transport arrangement for cane supply to the factory.

Issue of cane cutting orders.

Cane quality control.

4.12. Civil department

This department is headed by civil engineer. Construction of the roads for proper transport of

cane in the area, civil works of the factory, maintenance of the factory building etc.

Functions-

Pipeline Maintenance – Factory requires 06 lakhs ltrs water per day.

Building Maintenance.

Plant expansion.

Civil Foundation & Buildings – The main work of this section is constructing the

buildings & roads. Here they build the quarters for factory workers & officers & also

construct the Internal & External roads.

4.13. Labor welfare department

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This department is headed by labor welfare officer. To look into the welfare activities of the

worker and solve the labor problems. The factory provides all the necessary facilities. The

purpose of providing welfare amenities is to facilitate the development of total personality of

working class for physical, mental, psychological, cultural, social, moral and intellectual

development the factory provides well planned residential accommodation, medical facilities,

educational facilities, drinking and washing water, canteen, cycle stand, library etc. In addition,

the factory has following non-statutory schemes for workers welfare. Consumers society,

uniforms to watchman production and engineering workers etc.

Objectives

To secure for the worker fair wage.

To improve the working condition and express share in the increased profitability.

To ensure the workers security of employment and protect larger interest of the society.

To establish relationship between management and employees.

Function:

To promote harmonious relation between the factory management and workers.

To bring to the notice of board of directors grievances of workers and to act as a liaison

officer between management and labor.

To study and understand the point of view of labor in order to help the management to

shape and formulate labor welfare policies.

To advice and assist the management in fulfillment of statutory and other obligations.

To encourage the formation of work joint production councils, co operative societies and

welfare committee and supervise their work.

To secure the provision of amentias such as canteen, washing, first aid, shelter, rest

rooms, launch rooms etc.

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To suggest the measure which will serve to rise the standard of living of workers and in

general to promote their well being.

CHAPTER V

APPLICATION OF MC KINSEY 7 S MODEL

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The first three element are strategy, structure and system are considered as hardware of success,

the meet four elements are style, staff, skills and shared values / super ordinate goals are the

software of any company.

5.1. Structure

The general admission of the company is carried out by the following departments and there is

only downward communication in the DKSSK company i.e The information flows from the top

level of management to the lower levels.

ORGANISATION CHART

BOARD OF MANAGEMENT

MANAGING DIRECTOR

SECRETARY

GENERAL CIVIL STORE MEDICAL HEAD TIME CHIEF CHIEF A\C OFFICE L.W.O. WATCH

&

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MANAGER ENG. KEEPER OFFICER KEEPER C.D.O. OFFICER SPDT

WARD

TOOLROOM&DIESEL

PUMP

CHIEF CHIEF DIST. CO-GEN CANE AGRIL

ENG. CHEMIST CHEMIST YARD DEVPT.

GODOWN SECTION

GENERAL CANE SALES CASH

A\C. A\C.

COMPUTER

GAD EST MEETING INWARD & SHARE TYPING GUEST LEGAL

PURC.

SECTION SECTION SECTION OUTWARD SECTION SECTION HOUSE SECTION

SECTION

5.2. System

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System refers to how the production system, distribution, information system and security

system is maintained in its company.

a. Production System

The process of production consisting of input of sugar come and output of the sugar in DKSSK.

b. Distribution System

The distribution system of the precuts produced is in the following way:

Direct sales are made with in the state and outside the state.

Indirect sales are made outside the country and the depot sales are also made.

The producers are also sold directly to the consumers or sold to the wholesales.

c. Information System

Structure of information system

Chairman

Managing Director

Senior General

Head of the Department

Section

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d. Security System

The DKSSK has strict security system.

In the maintenance of accounts after the record have been closed, the records are kept in the

room and closed the room is opened only with permission of higher authority.

If the visitors went to inter they have to take prior permission with the authority and after

entering they are not suppose to go any dept other then the department from whom they took the

permission.

5.3. Strategy

The way in which a business aims to improve its position in relation to its competition is

embodies in its strategy or the way of doing something in an organization.

In DKSSK, introduce new technologies and products strategies importance in time with national

objective to improve quality reliability of products there by attaining the international standards.

5.4. Skills

Skills here refer to how the training will be given to the employees and employees. The training

will be given in 2 months they are

On the job

This is one of the oldest method, under this method, the individual place is on the regular

job and taught the skill necessary to perform that job on the job training has the

advantage of giving first hand knowledge and experience under the actual working

conditions. This training is given to employees.

Off the job

In this methods trainee is separated from the job situations and his attention is focused

upon learning the material related to his future job performance. There is an opportunity

for freedom of expression for the trainees.

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5.5. Style

The style which is portrayed to outside world is derived from the style and behaviors exhibits

inside organization. The internal style of the organization effects new staff feels thinks and does

their jobs. Therefore an organization is reflection of its structure.

Top down / Bottom up

At the time of policy framing, the style flows from top to bottom. If the policy has to be framed

then the policy has to be taken by upper level & it flows towards lower level.

But when the opinion of the policy is to known, at that time the style flows from bottom to up.

This is to know the attitudes of the employees about the policy which is framed by the upper

level.

Authoritarian / Participative

Only the upper level is having the authority to make the decisions in the factory.

Regarding policy matter

Board of management will take the decision in case of policy making.

Financial matter

If the financial matter is within the amount of Rs 20,000/-, Managing Director will take the

decision. And if financial matter is more than Rs 20,000/-, then the board will take the decision.

5.6. Staff

Good hard working citizen play essential role in the development of nation. The employees are

responsible for the success or failure of company. The company has totally 775 workers are

working in the company. They are divided as follows

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No. of Workers

1) Permanent worker 361

2) Seasonal workers 240

3) Consolidated worker 74

4) Daily wage worker 100

775

Company is paying salary of Rs. 55, 00, 000 per month to its workers.

5.7. Shared values

Shared values are refers to company policies. In DKSSK the following policies

are maintained.

Quality policies

Environment policies

T.P.M. policies (Total productivity management)

Quality policy

Total customer satisfaction is our company goal. To achieve this we at S.D.K.S.S.K.N.

committed to produce quality white crystal sugar as per the Indian sugar standard through

continual Improvement in company process, people & stake holders.

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Environment policy

The DKSSK is committed to comply with the requirement of relevant environment regulation

and standers by implementing environment management system and the continually improve its

effectiveness.

Total productive management

The DKSSK is committed in maximizing limited is committed in maximizing overall plants

effectiveness to make Mysore sugar company a world class company through total productive

manufactured by

Promoting automates maintenance culture.

Involving all employees and building culture.

Minimizing the losses and reduced the cost.

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CHAPTER VI

SWOT ANALYSIS

6.1. Strengths:

Strong network -location, transport, and infrastructure synergized and producing better

results in an integrated atmosphere.

Good financial support provided by both State and Central Government.

Concept of Multi joint-product.

It is producing own electricity which has reduced the cost of electric bills.

It also sells electricity to the KPTCL.

They have foreign customers too.

Factory has a very good, properly working organization structure.

Superior product quality

6.2. Weakness:

High cost of production

Lack of incentives.

Training required for employees.

Lack of skills, ability and knowledge in employees

6.3. Opportunities:

Proper frame work of policies and procedures.

Non-establishment of the programs to motivate and develop effective manpower.

Restricted market opportunities shirked a better price for finished products.

To provide comfort and convince to employees for doing the work.

To facilitate the smooth running of the manufacturing process.

It is located in the best area. Here all the resources are available in less cost.

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6.4. Threats:

High competition in procurement of raw material.

Due to uncertain rainfall procurement of raw material is being affected

Decrease in Sugarcane growth.

Diversified resources such as raw materials due to many sub unit initialization.

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CHAPTER VII

FINDINGS, SUGGESTIONS AND CONCLUSION

7.1. Findings

The prime aim of the company is to produce its quality products, which meets the

industry standards.

One of the important things is that after each stages of the production process quality

check is done which increase the quality of final product.

Good quality product.

More promotional efforts.

Better welfare facility to the workers.

The relation between Management and Workers is good.

Better facilities provide to the share members.

Better Education facilities provide to the childrens of the share holders & workers.

7.2. Suggestions

It is observed that canteen facility unsatisfied, utensils used to serve tea, snakes are not

clean ( especially tea, snakes). So management should look into this problem.

drinking water facility with acquagard water filters are not in working condition

therefore immedeatly company has to take the initiative to provide acquagard filters for

each department.

There is no separate lunch room for workers, so management should try to provide

comfortable & relaxed room for lunch.

Company should provide meditation class for each workers for 15 minutes daily. Which

helps to there case the concentration level among the employee during working hours.

Factory should conduct entertainment program based competitions like annual gathering

can get there families monthly refreshment etc. to improve employees morale.

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Suggestion Scheme : Workers participate in decision making process is very less, it is

essential to motivate workers participation in management. So management should invite

suggestions from worker to improve production & Suggestion Box system should be

implement.

Safety measures, latest technologies education, training should provide to each worker to

develop safety consciousness.

In certain jobs workers necessitate personal preventive equipments like goggles, masks,

helmets which is not yet provided to worker in some area. But workers in some area

require these equipments, which protect worker during work time.

To improve the productivity: To meet global challenges Indian sugar industry should

adopt & install improve plant & machinaries to reduce cost of production. Similarly it

has to invest in R & D activities to produce good quality & high yielding cane.

Greater emphasis has to be laid on productivity techical guidance & services to cane

growers.

The company should take expansion project to enhance its crashing capacity as early as

possible to take advantage of large – scale production .

7.3. Conclusion

Doodhaganga sugar is one of the co-operative companies in the field of sugar cane production.

I got the opportunity to visit D.K.S.S.K.N. Factory. I got very good co-operate from all the

employees at DKSSK company during my organization study. Every organization makes sure

that its employees are satisfied and are happy working in the organization. Shree D.K.S.S.K.N. is

a company were more than 775 employees are working. The company is taking much of the care

about the employees. Most of the employees feel themselves proud of working in such a big

organization. Inplant training helped to know how different employees/ workers have different

skills, talents, abilities, attitudes etc., and how they are being co-ordinated and upto maximum

extent in achieving the organizational goals. All together it was good learning experience.

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LEARNING EXPERIENCE

The inplant training has created a sence of practical exposure and enlightenment in my mind as

to what actually an organization is and how theoretical concepts are practiced in with only

theoretical knowledge, several management concepts were slightly difficult to analyse. However,

after in-plant training, I have felt empowered with confidence to understand different

management concepts in a pragmatic manner. The inplant training helped me a lot in recalling

the theoretical concepts, which I learn in my 1st year MBA.

I have gone through in plant training of for 30 days from 10 th Aug 2011 to 10th Sep 2011 helped

me in gaining more knowledge about the actual working of the organization. I got great support

from employees of all levels. The in plant training at DKSSK was a value-based experience. It is

largest sugar production company. In this factory the administration department give more

important to safety. It is well equipped and advanced technology is used in production process.

They used advanced technology in preventing the accident inside the factory, and in production

unit. The executive director who is appointed by the administrator of the company. All the major

decisions effecting the growth and profitability of the company are taken by him in line with the

approval of the board of directors every department is headed by it is respective managers.

As my 1st day experience met to the general manager of the organization and got permission to

do the project work than they set me to external guide and HR manager also Mr S. L. Hakare and

I introduced myself them.

My 2nd day experience was studying about the company history, origin, type of authority I

studied in general administration office.

My 3rd day experience I strate to study about the department wise manager gave me a

introduction about all department, firstly I done the information about the HR Department. The

HR department play an important role in any of the organization. The HRD at DKSSK acts as

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one of the pillars of the organization. It is visited with the responsibility of activities such as

determining the man power requirements, recruitment, selection, training and development,

promotion wages and compensation of all the employees of DKSSK. The auditing of the entire

department is carried on by the HR on a continual basis for the smooth running of the

organization. This dept has took four day time.

Than 7th day experience was production department in this department I got clear information

that how they converting row material to finished goods with practical experience.

My 8th day experience was purchase department in this department I learned that they are

purchasing sugarcane recovery, purchasing the spare parts required for the industry.

Than 9th day I visited to finance department as we, all know that finance is lifeblood of every

organization, I personally had a look at the finance department, I came to know the importance

of finance department, and I came to know the different tools they use to have a control over the

liquidity position of the company.

Then 10th day experience Agriculture department I came to know this department where they

have their operation areas, and their work in this department.

Then 11th day experience cane department In this department to know the types of sugarcane. I

came to know in all information about cane.

My 12th day civil and engineering department in this department having main role for smooth

running production because all most all workers are belongs to Engineering, ITI, Diploma

qualification.

Then 13th experience, I came to know the marketing department in this department manager very

experience person to marketing their production some time hold their selling while price is

decrease.

Then 14th day I came to know the security department in this department is giving protection to

organization it has divisional work furs like security officers, security inspectors, head guards

and watchmen for this purpose company having safe.

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Then 15th day I came to know the Time office department, work time of the factory workers and

officers.

Then 16th day I came to know the store department how to store sugar, and their storekeeper

work.

Then 17th day I came to know the importance of Managerial Knowledge such as planning,

organizing, staffing, directing, controlling, and decision making. I came to know about the rules,

regulations, policies, and procedures of the company, and to what extent employees are

following the rules and regulation laid down by the management. I came to know the punitive

actions taken by the management against the individuals who breaks the rules and regulation of

the company. It takes time taken 8 days.

Then 25th day I came to know how communication acts as an important tool for the smooth

functioning of the organization and how we should communicate on different channels and with

different grades of peoples.

Then 26th day Infrastructure facilities canteen, Hospital, education, library facility, transportation

facilities, it takes time 2 days.

Apart from these I came to know about the leadership traits such as ability to motivate, counsel

and train sub-ordinate in a humane approach to their problem, develop personnel support and

team spirit.

In plant training also helped to me in knowing the importance of group effort when compared to

individual effort in organization. Importance of human relations was known, which helps the this

management getting the things done through its employees.

Personally. I gained many valuable insights in DKSSK which help in my career. It is about the

working environment, about deal with the employees, about the attitude required to sustain in an

organization and so on.

In total, I am very much benefited with this in plant training. Once again, I thank the authority of

DKSSK of giving me this opportunity to carry out the in plant training and expose myself to

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corporate field and I thank DKSSK all employers and as well as who are helping and for giving

me continuous guidance to make this project work successful.

MINI RESEARCH

I CHAPTER

1.1. Introduction:

A labour problem has arisen with the beginning of the small scale to the large scale industrial

production. In many country of the world capitalism may be considered to be a very important

sours of labor problems in this economic system out at all the factors at production land labor

capital organization and enter prenew capital is regarded as the most important factor at

production the capitalist collects all those factors at production puts them into the process at

production the total production is undertaking by all factors and distributed among them by the

capitalist and he test the output and the shares held by himself as the profit under this system

labor which plays a key role in modern production is replaced by a worker doing job on wages.

In the primitive society when the agriculture was the primary employment the people as a means

of livelihood there was no conflict between employer and employee production was undertaken

on a very small scale by the member of the family for their fulfillment of their own stat stance

needs, bread, cloth and shelter or house the labor problem started with the change at the scale of

the production the requirement of the society increased with the expansion of education and

setting up new modern society consequently the scale of production gradually changed and it has

began to be undertaken on the large scale . In this new economic system. The labor stared selling

its labor power to the capitalist for wages new worker was the double edged weapon certain

pushing factors in the rural areas or villages, forced them to find out some jobs in the cities or

new industrial estates with the result that millions of worker there this tendency of worker

overcrowded the cities. The labor was compelled to work on very low wages under the

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unfavorable condition of work terms and condition of their services were very poor, in the first

phase of industrialization labor was unorganized and there fore was forced to be the victim of the

employee who was very powerful controlling the entire means of productions.

1.2. Meaning of labour

The term labor has different meaning in economics by labor we mean any work whether manual

or mental which undertaken for a monetary consideration the terms like worker work man labor

and employee are practically the synonyms of labor which are generally used in the discussion

on the labor problem do by labor we mean wage labor that may be different as workers who do

not have any other proper source of their livelihood except the sale of their labor in return for

wages or salary thus labor today includes worker both physical or mental who work for other for

given payment is cash or kind.

1.3. Main features of labours

It is here very important to not that labor is absolutely different from other means of production

since labor is a living thing that causes all the difference main features of labors are discussed

below which distinguish it from other means of production

labor is inseparable from the labor him self to Marshall “the worker sells his work but the

himself remains his own property”

A labor has to go himself to sell his labor therefore the environment in which labor has to

work carries at most importance in the supply of the labor.

Labor is a perishable commodity it a worker does not work for a particular period he will

never recover has lot hours labor cannot be stored up like other goods.

Labor has a very weak bargaining power worker are almost poor and have no reserve

funds they cannot easily with hold their labor from the market Fritch roll rightly remarks

“The worker has no remark price”

The supply of labor is limited in the short period it cannot be increased in its demand on

the other hand its supply cannot be curtailed immediately even its wages falls.

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Labor is no so mobile as capital it is because of the different language, customs etc

that the worker face difficulties in their movement from one place to another.

While taking labor any other policy into consideration we have to keep in mind that labor

is not any factor of production but it is also an end of the production.

Labor is only the factor of production which is active and a human and social

consideration should also be taken into account in the discussion of problem connected

with labor.

1.4. Significance of labour

As a factor of production labor is the most significant factor the utilization of other factors

largely depends on the time and efficiency of labor as a matter of fact workers are human being

capable of holding the entire responsibilities of production and achieving higher objectives

workers have their own aspiration of life and hence it handled properly they may lead to the

success of industrial out put or industrial growth of economy since

Labor is now organized and comprises conscious worker they cannot be ready to obey the

arbitrary and discretionary dictates of their employers or managements today they deal with the

management not only as individual persons but also as the members of trade unions which have

infect increased their strength and professional consciousness.

1.5. Rise of labor problem in India:

Labor problem in India has also arisen very recently with induction of industrialization and its

progress in the country before the beginning of large scale production in the industrial sector the

cottage industries were managed by the head of the family in cooperation with other family

members there was no conflict between workers, carrying their job such are unit because the

belonged ultimately to a Family but the beginning of industrialization helped develop a modern

society in the country which was divided into two section.

Capitalist or employers and workers on various issues whether is capitalist society or socialist

pattern of society every agent attempts to get the largest share in the profit and that gives rise to

labor problems in any country of the world, thus the growth of labor problems in India can be

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seen or studies in the context of industrial development and decline at cottage industries in the

country

1.6. Factors Responsible For The Growth Of Labor Problems In India :

Modern industrialization in most of the developing nations which has led to increase in the

conflict between Industrialist and the labor all economic powers are centralized in the hands of a

few capitalist while masses of have to depend for subsistence upon their low wages in such

condition labor problems begin to appear these problems have different dimensions following are

game of the factors responsible for the growth of labor problems in an economy in India.

1.7. India’s industrial policy in the post:

The British govt never thought at laying down a heal the industrial policy of laisser faire and

material Darwinism destroyed our cottage industries. The Indian industries set up in the second

phase of industrialization having sound economic position could services.

1.8. Disintegration and Decline of rural industries:

During the 17th and 18th centuries India used to export its various commodities silk, goods etc to

other countries such as Japan, Indonesia and several countries of Europe, west Africa, middle

east and central Asia towards the end of 18th century cottage industry started to be replaced by

modern industries the heavy industries , rural industries could not stand in competition and hence

they gradually decline million of jobless persons who used to work in rural industries had find

out employment in the cities. In the modern industrial sector more over the surplus labor class

had to emigrate from India to other British countries.

1.9. Decline of Rural economy:

Before British rule majority of Indian population lived in the village were independent having

self sustaining economy, the agriculture output was sufficient to fulfill the needs were fulfilled

by local artisans who were fed by peasants the increased population and action of cities and later

on British economic policy impaired the agro based rural economy in India.

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The British rulers introduced zamindar system in India zamindars were the mediators between

the state and farmers, they helped the Government, in collecting land revenue and gave a

permanent land support to British. British rulers at the grass roots level. In the absence of tax

payment in time zamindar used to deprive the farmers of the right of

cultivation of land one the land at peasant was confiscated He was forces to work for his

zamindar as a bonded labor the mallrats of zamindar against the marginal formers led to an

increase in the number at landless worker decided this the poverty of masses and problem at

indebtedness of mass of formers forced them to become landless labor.

Similarly the pressure of population and sub division and frequentation of holding also force the

surplus labor force to work as a labor either upon the land at big land owners or in the industries

being established in the urban areas or big cities.

Land Reforms:

Land reforms such as abolition of zamindar system redistribution of land mechanism of

agriculture have aggravated the problem rural labors Dr.R.K.Mukharji rightly comets

“Every circumstance which has wreaked the economic position of the small holders has

increased the supply at agricultural labors. The labors loss at common rights in the rural

economy. The subdivision of holdings the misuses at collective enterprise multiplication at rent

receivers free mortgaging and transfers at land the decline of the cottage industries.

Socio economic structure:

Indian society has a special socio economic structure in the country side it is based on caste and

joint family system and several other traditional social costumes these specialties of Indian

society restrict occupation mobility and force people not to leave their own hereditary occupation

or village where they work or live.

Myers here states despite the which average villages faced the socio economic structure

frequently held him and even today attract him back from the cities the typical Indian villages

family is a joint family each thus presents a social system particularly for incompetent and

employed youth.

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But in recent year a large member of worker has been concentrated in the industrial areas

situated mostly in big cities and they have been ultimately forced to be settled their lands.

1.10. Meaning of industrial labor:

Literally the term industrial labor to all those workers are employed in large, small and cottage

industries but in India this terms is used in a restricted sense it refers to only those workers who

are employed in organized industries, industries converted by the factories act it does not include

the worker employed in cottage are house hold industries.

1.11. Characteristics or Features of industrial labor:

Industrial labor in India has several distinct features the main features are,

Illiteracy:

A good proportion of our industrial worker are illiterate and uneducated so they are not able to

understand the problem effecting their interest and the interest at the industry in which they are

employed and how is their work heavy and what to get payment for their work they took low

payment for heavy work due to illiteracy.

Disunity:

The industrial worker at our country are not united on the basis of trade or occupation they are

divided and subdivided on the basis of caste, language, religion etc. In short there is lack of unity

among our industrial worker.

Lack of discipline:

There is no discipline among the industrial workers absenteeism without any reason, indiscipline,

moving from one job to another job etc are very common with our factory worker.

Lack of organization:

The industrial workers are unable to organization themselves that is the reason why most of the

trade unions in the country are controlled not by worker at the factories but by out sider

especially politicians and the industrial labors have the problem of lack of organization.

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Low efficiency:

The efficiency of industrial labor is relatively low for instance an American worker can attend to

1,120spindless in a cotton mill a British worker 600 spindles, a Japanese worker 240 spindles

but an Indian worker can manage only 180 spindles.

1.12. Problem of Industrial labor

It is regrettable fact that their have not been sufficient and improvement in the condition of

Indian labor. The Indian labor is not properly organized and does not have its own leadership

but depends upon out side guidance the non labor leader are politically motivates and are not

really not interested in the labor welfare as a matter of fact they more often then not use the labor

unrest as a means to grind their own instead of helping the labors genially the government no

paid enough attention to the real problem and needs of labor and though there is labor legislation

intended to help the labor but in actual practice there is little improvement in the condition of

labor following are chief problem of Indian labor.

Problem of migration:

One of the main problem of Indian labor is the problem of migration the increasing pressure on

land due to population explosion the ever growing army of landless tillers the social stigma on

Harijan increase in indebtedness break down of joint families fast means of communication

ravaging of cottage industries and city oriented communication are some of the causes

responsible for the exodus of villager and their influx into industrial labor two while by joining

the army of industrial labor there is same improvement in the economic condition and relating of

pressure on land the family and social life of these new recruits gets upset this creates problem of

social adjustment decrease efficiency and comes in the way of the development of healthy

employer employee relationship.

Problem of recruitment:

The second main problem of the industrial labor is that of recruitment as yet there is little direct

recruitment most of is done through intermediaries, the services of the employment exchange are

available to very few as most of the worker are depended upon intermediaries and as

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intermediaries have special type of relationship with the employers they can afford to be have

arbitral with the worker they receive cut back and have also to be propitiated by other gift.

Problem of absenteeism:

The labor force habiting from villages is usually unable to cope with the alien environment of

light is not available in cities besides slums in which the worker live are extremely unhygienic

and great breeders of diseases accordingly the worker are usually unwell they consume liger and

visit prostitute all these factors combined result in large absenteeism from factories.

The chief causes to absenteeism in India are illness, night shift alcoholism, migrating instruct

industrials accidents, prostitution, laziness frequency of festivals and litigation the absenteeism

produces adverse economic effects industrial production and the earring of labor besides it

causes rift and tension between employer and employee the various measures presently taken to

meet this problem are grossly inadequate a committee set by the Bombay textile mills to

investigate the causes of absenteeism. And make suitable recommendation for Remedying the

problem come the following conclusion proper conclusion for work in the factory adequate wage

protection from accident sickness and facilities for obtaining leave rest and recreation constitute

the moat effective means of reducing absenteeism.

Problem of trade union:

In India the trade union movement is not as yet well organized and developed the lack of

education, susceptibility to religion influence generally fatalistic out look deep indebtedness and

opposition by employers and intermediaries are same at the factors responsible for slow and

uneven growth of trade union movement the labor does not have its own leadership and has to

depend upon politician who have furtherance at their own interest rather than labor welfare at

heart.

Problem of industrial disputes:

The capitalist economic and social structure the policy of creating dissention among workers by

intermediaries of worker labor legislation and paying of compensation are the problems which

lead to frequent strikes lock outs at times these disputes then violent and labors suffers heavily.

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Problem of wages:

The chief problem of worker is that they are poorly paid in same cases these are below

subsistence level due to lack of adequate wages the labor is unable to give proper education to

his children he cannot maintain his health this leads to decline in his efficiency and in the

ultimate analyses the productively falls.

Problem of indebtedness:

On account of low wages bribes to intermediaries regent drinking and prostitution most of the

worker are permanently and deeply under dept it has been estimated that more than 2/3 worker of

big industrial towns are under dept exceeds their 3 months salary due to heavy indebtedness the

worker cannot think progressively and

Consider whole of his life unrelieved drudged the causes of indebtedness are many usually the

worker is born in dept and due to drudgery becomes desensitized this farther complicates his

problems and desires him to die a pauper in dept.

Problem of low living standard:

Due to low wages and rising spiral of prices the living of standard of an Indian worker has been

drooping constantly a comparison of wages in India with other countries will bring into relief

the pathetic plight at the Indian, Indian labor the labor worker in India are underrated and more

than 39% suffer from serious malnutrition in U.S.A75 year cloth is used per head where as in

India it is only 16yard there are many causes of caw living standard the main among them.

low wages

illiteracy

population

exploitation

intoxication

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lack of fatalism

Problem of health:

Due to low wages and low standard the worker are unable to eat whole same balance diet

addicted to smoking, tobacco chewing, drinking and visiting cinemas and bawdy house all these

reason coupled with unhygienic living condition in adequate clothing inclement weather heavily

dispose workers to disease and infection according to Prof.B.P.Adarker a worker loses 14.6 days

a year due to ill health.

Problem of efficiency:

According to the report of tariff board a worker in India can handle 180 spindle where as his

counterpart in Japan, England and America can handle 240,250 to 600,1220 spindles

respectively as a rule the efficiency of Indian worker is 1/2 or even 1/3 of the worker in

progressive countries ill health lack of education, lack of will to learn and progress eradication

to bad habits are some of the factors responsible for the low efficiency of the Indian worker.

Problem of working condition:

The condition of the work of the majority of labor are extremely bad and deplorable and leave

much to be desired most of the factories are ill ventilated and illumination is improper the living

and working condition are making worker toilet etc, do not exists in extreme a weather there is

no provision to minimize its effect due to lack of amenities and hazardous working condition the

efficiency of worker drops and they are expensed to accident and infection.

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II CHAPTER

Research Design of the Study

2.1. Title of the study:

The title of the study is “Empirical Study On Labor Problems In Sugar Factory”

2.2. Statement of the problem:

The researcher selected the topic problems faced by the labors in sugar factory, because labor

face lot of problems by their employers and due to other reason here the researcher wants to find

out this problem through research at a factory.

2.3. Objectives of the research:

To study about the labor problem in sugar factory.

To know socio economic problems of labor.

To study the problems faced by the labors due to lack of facilities.

To know the problems faced by the labors from their officers.

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To understand the problem of the worker while working in sugar factory.

2.4. Scope of the study:

The study is based labor problems in sugar factory only.

The   research is covered labor problem in sugar factory rural area.

2.5. Research Methodology

Methodology refers to the method used to collect the required data for research work. The

respondents were selected on randomly. The survey was conducted for a period of one month.

The data was collected with the help of the structured questionnaire.

Sample size

The sample size was 25 employees. And all of them responded well.

Sources of the Data collection

For the purpose of the study data has been collected from two different sources.

Primary data :

The primary data are those which are collected a fresh and for the first time and these happen to

be original is character. Information which we have been gathered for the first time, called

primary data, I have selected the Survey method or Questionnaire method for collecting the

primary data from the laborers.

Secondary data :

The secondary data are those which have already been use by someone else and which have

already been passed through the real process. Secondary data is the information that already

exists. Secondary data was collected through various sources such as, Internet, books.

2.6. Limitations of research:

This research have limited time.

This research conducted study purpose only.

The researcher may not get respondent on time.

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The researcher may find difficulty to build rapport and collect data.

III CHAPTER

ANALYSIS AND INTERPRETATION OF THE DATA

Table 1

Age of the respondents

Sl No Particulars Respondents Percentage

1 18-25 4 16

2 26-35 3 12

3 36-45 7 28

4 46-55 7 28

5 Above 55 4 16

Total 25 100

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Interpretation : It is clear from the above table that about out of the 25 respondents 16% of the

respondents are in the age group of 18-25 years, and 12% are in the age group of 26-35, 28% of

the respondents are in the age group of 36-45, 28% respondents are in the age group of 46-55,

and 16% respondents are in the age above 55.

Table 2:

Education qualification of the respondents

Sl No Particulars Respondents Percentage

1 Primary 4 16

2 SSLC 9 36

3 PUC 5 20

4 Illetarate 0 0

5 Degree 4 16

6 Others 3 12

Total 25 100

Interpretation : out of the 25 respondents 16% are complited primary education, 36% are

SSLC, 20% are PUC, none of the respondents are illetarate, 16% are complited degree, and 12%

are complited other.

Table 3:

Marital status of the respondents

Sl No Particulars Respondents Percentage

1 Married 22 88

2 Unmarried 3 12

Total 25 100

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An organization study of Shree. DKSSK.N. Chikodi

Interpretation : Out of the 25 respondents 88% respondents are married, and 12% are

unmarried.

Table 4:

Literacy rate of the family members

Sl No Particulars Respondents Percentage

1 Below primary 4 16

2 Below higher primary 3 12

3 Below matriculation 5 20

4 Above matriculation 13 52

Total 25 100

Interpretation : Out of 25 respondents 16% are having literacy rate of the family member below

primary, 12% are below higher primary, 20% are having below matriculation, and 52% are

above matriculation.

Table 5:

Number of family members

Sl No Particulars Respondents Percentage

1 One 0 0

2 Two 1 4

3 Three 3 12

4 Four 8 32

5 Five 13 52

Total 25 100

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Interpretation : out of the 25 respondents none of the respondents don’t have family members

in below one, 4% are having two number of family members, 12% are having three, 32% are

having four, and 52 % are having five family members.

Table 6:

Annual income of the respondents

Sl No Particulars Respondents Percentage

1 Below 10000 11 44

2 10000 to 20000 6 24

3 20000 to 30000 5 20

4 30000 above 3 12

Total 25 100

Interpretation : Out of 25% respondents 44% of the respondents are having below 10000

annual income, 24% are 10000 to 20000, 20% are having 20000 to 30000, and 12 % are having

30000 above.

Table 7:

Housing facility to respondents from factory

Sl No Particulars Respondents Percentage

1 Yes 15 60

2 No 10 40

Total 25 100

Interpretation : Out of 25 respondents 60% are having housing facility from factory, 40% are

not having.

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Table 8:

Facilities providend to the respondent by the factory

Sl No Particulars Respondents Percentage

1 Housing 7 28

2 Safety 4 16

3 Recreational 0 0

4 Drinking water 4 16

5 All above 7 28

6 No any 3 12

Total 25 100

Interpretation : Out of the 25 respondents 28% are housing facility provided to the respondent

by the factory, 16% are having safety, none of the respondents in recreational facility, 16% are

having drinking water facility, 28% are having all above, and 12% are not having any facility.

Table 9:

Respondents satisfied from safety measures

Sl No Particulars Respondents Percentage

1 Yes 10 40

2 No 15 60

Total 25 100

Interpretation : Out of the 25 respondents 40% are satisfied from safety measures, and 60% are

not satisfied.

Table 10:

Classification on the basis os Respondents have a opportunity to rest

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Sl No Particulars Respondents Percentage

1 Yes 20 80

2 No 5 20

Total 25 100

Interpretation : Out of the 25 respondents 80% are having opportunity to rest, and 20% are

having not having opportunity to rest.

Table 11:

Respondents face problem during work on old machine

Sl No Particulars Respondents Percentage

1 Yes 2 8

2 No 23 92

Total 25 100

Interpretation : Out of the 25 respondents 8% are facing problem during work on old machine,

and 92% are not facing this problem.

Table 12:

Respondents have a extra payment for overtime work

Sl No Particulars Respondents Percentage

1 Yes 21 84

2 No 4 16

Total 25 100

Interpretation : Out of the 25 respondents 84% are having extra payment for overtime work,

and 16% are the not having extra payment for overtime work.

Table 13:

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An organization study of Shree. DKSSK.N. Chikodi

Classification on the Respondents have a insurance

Sl No Particulars Respondents Percentage

1 Yes 23 92

2 No 2 8

Total 25 100

Interpretation : Out of 25 respondents 92% are have a insurance, and 8% are not have the

insurance.

Table 14:

Classification on the basis of colleagues co-operate you in work

Sl No Particulars Respondents Percentage

1 Yes 25 100

2 No 0 0

Total 25 100

Interpretation : Out of the 25 respondents 100% respondents co-operate with colleagues in

work.

Table 15 :

Addicted any habits of respondents

Sl No Particulars Respondents Percentage

1 Yes 15 60

2 No 10 40

Total 25 100

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An organization study of Shree. DKSSK.N. Chikodi

Interpretation : Out of the 25 respondents 60% are addicted habits, and 40% are not having.

Table 16:

Problem from officer during the work

Sl No Particulars Respondents Percentage

1 Yes 1 4

2 No 24 96

Total 25 100

Interpretation : Out of the 25 respondents 4% are having problem from officer during the work,

and 96% are not having problem from officer during the work.

Table 17:

Factory rules is established properly for respondents development

Sl No Particulars Respondents Percentage

1 Yes 21 84

2 No 4 16

Total 25 100

Interpretation : Out of the 25 respondents 84% are said the factory rules is established properly

for respondents development, and 16% are said no.

Table 18:

Quality of LIFE issues at this or organization. Rate the effectiveness of the following

benefits on the given scale

Facilities’  offered

Strongly satisfied

Satisfied Undecided dissatisfied Strongly dissatisfied

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Medical Benefits

60% 40% 00 00 00

Recreation facilities

00 00 56% 40% 4%

Leave facilities and Regulations

00 76% 24% 00 00

mentally pressure

00 4% 12% 40% 44%

Assistance in Local area development

00 44% 56% 00 00

Training facility 44% 56% 00 00 00

Employee participation

00 68% 32% 00 00

Restroom facilities

24% 68% 8% 00 00

canteen facility 24% 64% 12% 00 00

Educational Institutions and sponsorships

80% 20% 00 00 00

Interpretation : out of 25 respondents 60% are strongly satisfied to have a medical facility, and

40% are satisfied.

Out of 25 respondents 56% respondents are undecided about recreation facility, 40% are

dissatisfied, 45 are strongly dissatisfied.

In the leave facility and regulations 76% are satisfied, 24% are undecided.

In that 4% respondents satisfied are having mentally pressure, 12% are undecided, 40% are

dissatisfied, 44% are strongly dissatisfied.

Out of 25 respondents 44% are satisfied to have assistance in local development, 56% are

undecided.

44% respondents are strongly satisfied to have a training facility, 56% are satisfied.

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Out of 25 respondents 24% are strongly satisfied to have rest room, 68% are satisfied, 8% are

undecided to have rest room.

24% respondents are strongly satisfied to have canteen facility, 64% are satisfied, 12% are

undecided to have canteen facility.

Out of 25 respondents 80% are strongly satisfied to have education facility, 20% are satisfied.

IV CHAPTER

Findings, suggestions and conclusion

4.1. Findings

Most of the respondents and there family members are educated.

Most of the respondents have medical facility.

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Out of the respondents 60% are having housing facility from factory.

out of respondents 40% of the respondents satisfied from safety measures.

96% respondents are not facing the problem during work from office.

Most of the respondents are having extra payment for overtime work.

92% respondents are have insurance facility.

60% of respondents addicted to bad habits.

All respondents are co-operative with collegues in work.

80% respondents have gained education facility from factory.

4.2. Suggestions

The factory should provide the authority to labor welfare officer for solving the labor

problem and providing facilities.

It is good to celebrate all cultural activities in order to provide recreation to labor.

Select the eligible and low age person to work at the time of night shift.

The labor welfare officer must take special care about the night shift workers.

4.3. Conclusion

From my in plant training in DKSSK, It gave me practical exposure to understand the problem

facing the employees. The employees were facing lot of problems which was found through well

structured questionnaires by taking the 25 respondents. The employees facing the problems such

as wages, problems relating to health, industrial dispute.etc.,

QUESTIONNAIRE

1. Name of the respondent :

2. Age of the respondent

1) 18-25  ( )   2) 26-35 ( ) 

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3) 36-45  ( ) 4) 46-55 ( ) 5) 55above ( )  

3. Education qualification of the respondent

1) Primary  ( ) 2) SSLC  ( ) 3) PUC ( )

4) Illiterate ( ) 5) Degree  ( )    6) Other ( )

4. Marital status

1) Married  ( ) 2) Unmarried ( )

5. Literacy rate of family members

1) Below Primary ( ) 2) Below higher primary ( ) 

3) Below matriculation ( )

4) Above matriculation __________if yes please do specify

6. Number of family members

1) One ( )   2) Two ( ) 3) Three ( )

4) Four ( )  5) Above ( )

7. Annual income of the respondent

1) below 10,000 ( )  2) 10,000 to 20,000 ( ) 

3) 20,000 to 30,000 ( ) 4) 30,000 Above ( )

8. Housing facility to respondent from factory

1) yes  ( )    2) No ( )

9. What are the facilities provided to the respondent by   the factory?

1) Housing   ( )   2) Safety  ( )  3) Recreational  ( )

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4) Drinking water ( )  5) All above  ( ) 6) No any ( )

10. Have you satisfied from safety measures?

1) Yes   ( )     2) No ( )

11. Do you have any problem during work?

1) Yes  ( )    2) No ( ) 

12. If yes which problem?

                1) Low time to lunch  ( ) 2) Work without rest ( )

3) Uncleanness ( ) 4) Worker conflicts ( )   5) All above ( )

13. Do you have opportunity to rest?

1) Yes  ( )     2) No ( )

14. Do you face problem during work on old machine?

1) Yes ( )     2) No ( )

15. If yes which problem?

1) Communication distance  ( ) 2) Crowd ( )

3) Other ( )

16. Do you get extra payment for overtime work?

1) Yes  ( )    2) No ( )

17. Do you have opportunity to do over time work?

1) Yes  ( )    2) No ( )

18. Do you have insurance?

1) Yes ( )     2) No ( )

19. Do other colleagues co-operate you in work?

1) Yes  ( )     2) No ( )

20. Is there any discrimination in the factory?

1) Yes   ( )     2) No ( )

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if yes discrimination is done based on (multiple tick)

1. Caste ( )

2. Colour of skin ( )

3. Designation/Position held in the organization ( )

4. Gender ( )

21. Have you addicted any habits?

1) Yes ( )      2) No ( )

22. If yes which problem?

1) Smoking ( ) 2) Drinking alcohol ( ) 3) Other ( )

23. Do you have problem from officer during work?

1) Yes ( )       2) No ( )

24. If yes which problem

1) work on other machine  ( )   2) More time work ( )

3) Other ( )

25. Do you have crowd in working place?

1) Yes ( )      2) No ( )

26. Are factory rules is established properly for your development?

1) Yes ( )      2) No ( )

27. Quality of LIFE issues at your organization. Rate the effectiveness of the fallowing

benefits on the given scale

Facilities’  offered

Strongly satisfied

satisfied undecided dissatisfied Strongly dissatisfied

Medical Benefits

         

Recreation facilities

         

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Leave facilities and Regulations

         

mentally pressure

         

Assistance in Local area development

         

Training facility          

Employee participation

         

Restroom facilities

         

canteen facility          

Educational Institutions and sponsorships

         

29. Suggestions to factory adminstration..?

 ……………………………………………………………………………………

………………………………………………………………………………………

……………………………………………………………

 

Date: Thank you

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An organization study of Shree. DKSSK.N. Chikodi

Bibliographys

Books:

Financial Management - M.Y. Khan and P.K. Jain

Human Resource Management - K. Aswathappa

Modern Marketing Management - Philip Kotler

Organizational Behavior - K. Aswathappa

Research Methodology - C. R. Kothari

Websites:

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An organization study of Shree. DKSSK.N. Chikodi

www.dksugar.com

www.sugarindia.com

www.economywatch.com/busineess-and .../ sugar-industry

Company annual reports

Institute of Management Studies and Research, Kuvempu University, Shankarghatta 81