sugar industry project

NIRANI SUGARS LTD. MUDHOL

EXECUTIVE SUMMARY

KIMS,KUD,DHARWAD.


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. Indian sugar industry has been a

focal point for socio-economic development in the rural areas. The industry not only generates power for

its own requirements but surplus power for export to the grid based on by-product-Bagasses. It also

produces ethyl alcohol, which is used for industrial and potable uses, and can be used to the manufacture

of ethanol, an ecology friendly and renewable fuel for blending with petrol.

The unit was originally established in the year 1997-98 as a modern Khandasari

Sugar unit with a crushing capacity of 500 tones of cane per day and later converted into white crystal

sugar unit. This is one amongst the earliest Khandasari unit in the country, which started with a new

technology like:(a) High pressure boiler (32.0 ATA) (b) Multiple effect pressure evaporator system with

falling –film evaporator and also with captive power generation.

M/s.Nirani Sugar Litd. Now proposes to expand the sugar factory from the present capacity of 7500

TCD to 15000 TCD by adding a new plant of 7500 TCD, retaining the existing plant also. Also 62 MW

Cogen Power Plant is part of the expansion. The project appraisal was done by Mitcon Consultancy

Services Limited, Pune.

The study has been conducted on “Measuring effectiveness of distribution channel of

Nirani sugars limited”, It is a Descriptive Research.

PROJECT TITLE:

“Measuring effectiveness of distribution channel of NIRANI SUGARS LIMITED”

OBJECTIVES:

To study the distribution channel of Nirani sugars limited,Mudhol.

“To find out the feasibility of establishing new depots by the company.”

“To understand factors influencing buying decision”.

“To find out the packaging method adopted by sugar factories”.

METHODOLOGY:

SELECTION OF DATA COLLECTION METHODS:

Primary and Secondary Data will be collected to carry out the research work

KIMS,KUD,DHARWAD.

NIRANI SUGARS LTD. MUDHOLResearch Design

It is a Descriptive Research. The study was based on both Primary and Secondary Data.

Primary data (Survey data):

Questionnaire, face-to-face interview with the wholesaler and retailers of Bagalkot District.

Secondary data

In this study, Secondary Data is used for exploratory research and secondary data

includes data collection from interaction with the company guide and with the officials and with the,

organizations Data, Brochures/newsletters, Reviews and Internet information websites.

MEASUREMENT TECHNIQUE :

Questionnaire:

Questionnaire is a formalized instrument for asking information directly from the

wholesaler.During this research questionnaire will be used as measurement technique for getting

information from the wholesaler’s and retailer’s of Bagalkot district.

Sampling Plan

Sampling unit : WHOLESALER & RETAILER.

Sampling Method : Convenience Sampling

Sampling Size : 70 Retailers Respondents,20 Wholesaler.

Sample Area : Bagalkot,Kerur, Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti

Analysis: Using MS-Excel, and SPSS software

FINDINGS

Price is the main factor considered by the most wholesalers and the retailers, while placing

orders.

S1 is the most selling sugar grade in the local market by the wholesaler and retailers irrespective

of price and quality .

97% retailers are aware about the different grades of sugar.

KIMS,KUD,DHARWAD.

NIRANI SUGARS LTD. MUDHOL 86% of retailers are ready to buy the sugar , if Nirani sugars limited setup new depot in their

respective area.

85% of retailers are not facing any stock problem, indicating the present distribution channel is

working fine.

Recommendation

The company itself develop a cost effective eco packaging materials and distributing them

to retailers and wholesalers, this mechanism not only helps Nirani sugars to build its brand

and creates awareness about its brand.

The Nirani sugar should go ahead with its proposed area to service up to new depots

nearing delivery location as the majority of retailers have shown acceptability towards to

buy sugar from Nirani sugar industry.

The Nirani sugar should focus expanding its market, even on export market as it is facing

stiff competition in local market.

Conclusion:

Present distribution channel of Nirani sugar’s limited is working well.

KIMS,KUD,DHARWAD.


INDUSTRY BACKGROUND

KIMS,KUD,DHARWAD.


THE HISTORICAL BACKGROUND OF THE INDIAN SUGAR INDUSTRY:-

“India is the largest consumer and largest producer of sugar in the world.”

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

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

India had introduced sugarcane all over the world and is a leading country in 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 grammer 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 reference and from some ‘Puranas’ it can be concluded that method of

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

industry prospering in ancient India concrete and this has helped to develop and prosper the co-operative

sugar movement in India.

KIMS,KUD,DHARWAD.


NATIONAL SCENARIO OF SUGAR INDUSTRY

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 tones

of sugarcane (69% of total cane production ) to produced 20.14 million tons of sugar. About 5 lakhs

workmen are directly 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 .Indian sugar industry

has been a focal point for social-economic development in the rural areas. About 50 million sugarcane

farmers and a large number of agriculture labors are involved in the 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 grid based on by-products –

Bagasses.It also produces ethyl alcohol, which is used for industrial and potable uses, and can be used to

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 the large sugarcane growing states like Uttar Pradesh,

Maharashtra ,Karnataka, Gujarat,Tamilnadu,and Andhra Pradesh.In sugar year 2003-04, these six states

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

Karnataka together contribute more than 65% of total production. The Govt 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 Govt de-licensed sugar sector in the year 11.September. 1988. The entrepreneur have

been allowed to set up sugar factories of expand the existing sugar factories as per the techno-economics

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.

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.

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COMPANY BACKGROUND

KIMS,KUD,DHARWAD.


HISTORY OF NIRANI SUGARS LTD.

M/s. Nirani Sugars Limited (NSL), a company incorporated on the 6 th Dec, 1995 under the

Companies Act, 1956 has applied for Term Loan of Rs. 15.90 crores to Sugar Development Fund(SDF)

for meeting part of the capital cost of its project envisaging modernization & up-gradation of existing

sugar factory with an installed capacity of 1250 TCD to 3750 TCD with substantial investment at Kulali

cross Mudhol Tq. Dist: Bagalkot, Karnataka State, NSL has included in the scope of the project, the co-

generation of surplus power also at a total project cost of about Rs. 97.00 crores. (Sugar unit Rs. 53.00

crores and cogeneration unit Rs. 44.00 crores). Total Cost of the Project, for the Sugar plant expansion

Rs. 5300 Lakhs, (Rs. 42.00 Crores for sugar and 11.00 crores loading from co-generation plant cost)

consisting of an Equity Contribution of Rs. 5.30 Crores Promoters, Rs. 15.90 crores equity from Sugar

development fund of Govt. of India & the balance of Rs. 31.80 crores funded through Term Loans from

the Financial Institutions/Banks.

The funding for the cogeneration plant costing Rs. 4400.00 Lakhs is

envisaged by obtaining Rs. 3080 Lakhs from IREDA, Rs 440.00 Lakhs from promoter’s contribution

and Rs. 880 Lakhs from sugar development fund.

M/s. Nirani Sugars Limited (NSL) is a company registered under

the Indian Companies Act, 1956, initially as Private Limited Company, vide registration certificate

number 08/19340 of 1995 dated 06.12.1995 by the registrar of companies in Karnataka, Bangalore,

Subsequently, the company has been converted into Public Limited Company vide Certificate of

Incorporation dated 15.02.2002 by ROC, Karnataka, Bangalore.

KIMS,KUD,DHARWAD.


The unit was originally established in the year 1997-98 as a modern Khandasari Sugar unit with a

crushing capacity of 500 tonnes of cane per day and later converted into white crystal sugar unit. This is

one amongst the earliest Khandasari unit in the country, which started with a new technology like:

(a) High pressure boiler (32.0 ATA)

(b) Multiple effect pressure evaporator system with falling –film evaporator and also with captive

power generation.

Subsequently making use of the Government of India’s liberalized policy, vide Govt. of

India notification DCS/S/14/DTD 02-06-1998, which permitted Khandasari sugar units to use vacuum

system, they modernized the unit quickly by adding vacuum pans and vacuum evaporators. The capacity

of the plant was increased in stages to its present capacity of 1250 TCD during 2005-06. Now the plant

has increased to 7500 TCD.(2008-2010). The plant runs fairly efficiently and is self sufficient in fuel and

power. It has recorded an average sugar recovery of over 11 percent during 2008-2009 crushing season.

M/s. Nirani Sugar Litd. Now proposes to expand the sugar factory from

the present capacity of 7500 TCD to 15000 TCD by adding a new plant of 7500 TCD, retaining the

existing plant also. Also 62 MW Cogen Power Plant is part of the expansion. The project appraisal was

done by Mitcon Consultancy Services Limted, Pune.

KIMS,KUD,DHARWAD.


Objectives of Nirani Sugars Ltd.:-

1. Maximum, effective and efficient utilization of available resources.

2. To manufacture good quality sugar and bi-products.

3. Welfare of agriculturists

4. To provide comparative market rate to the farmers.

5. Proper co-ordination and co-operation among its members.

6. To maintain proper means of transportation to the farmers during season.

7. Provide modern techniques and methods and of cultivation and to supply seeds, fertilizers to the

farmers.

8. To undertake such other activities as are incidental and conductive to the development of society.

VISION

1. To expand production capacity to 15,000 T.C.D.

2. To produce 62 Megawatt electricity.

3. To produce 120,000 liters of distillery unit..

4. To produce 10,000 ton Bio fertilizers.

5. To establish agricultural development and resource center at Mudhol.

MISSION

1.We will provide products of superior quality at competitive price and ensure sustained profitability and growth.

2.We will protect the interest of all concerned promoters, shareholders, customers, distributors, employees and

community.

3.We believe in fair trade practice, standards and strive for total customer’s satisfaction, keeping the environment

eco friendly.

4.We believe that our people are most valuable assets for personal and organizational growth.

5.We will treat our people with dignity and look after the safety and welfare of individuals and there families.

6.We provide electricity which is major necessity for the country.

7.Sugar industries are providing ethanol which can be added in diesel and diesel is major requirement of the

nation.

KIMS,KUD,DHARWAD.


COMPANY PROFILE

Name of the company : NIRANI SUGARS LIMITED. MUDHOL

Address : NIRANI SUGARS LIMITED.

No. 166, Kulali Cross,

Jamkhandi Road,

MUDHOL - 587313

DIST: BAGALKOT

Regd. Office : BBMP No.003,

House No. 4/02, left wing,

First floor, Nehru Nagar,

Sheshadripuram,

Bangalore – 560 001

Status of Company : Private limited company.

Constitution of the firm : Registered under companies act 1956

Financial Institutions : K.S.I.D.C

K.S.F.C

Bankers of the Company : I.C.I.C.I Bank Jamakhandi

S.B.I Mudhol Br.

Bank of India, Mudhol.

Punjab National Bank

Products : Sugar (L30, M30, S30)

Molasses, Press Mud, Bagasse.

KIMS,KUD,DHARWAD.


BOARD OF MANAGEMENT

1. Shri. Hanamanth R. Nirani - Chairman & Managing Director

2. Shri. Sangamesh R. Nirani - Executive Director.

3. Smt. Kamala M. Nirani - Director.

4. Shri R V Vatnal - Director (Tech)

5. Shri. S.V. Kariyannavar - Chief Executive Officer.

6. Shri Sadanand E G - Chief General Manager (Tech)

7. Shri. G G Annigeri - General Manager (Cane)

8. Shri. Bandivadekar - G.M (Distillery)

9. Shri. M.S. Heggalagi - Sr. Manager

10.Shri. M.M . Hiremath - General Manager (Fin&Accts)

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ORGANIZATION CHART

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Executive Director

ManufacturingDepartment

Chairman and MD

Director (Tech)

Chief Executive Officer

Purchase Department

Account

Sales Department

Account

Administrative Department

Account

Time office Security Department

Account Department

CaneDepartment

Cane Account

General Account

Mechanical Department

Laboratory Department

Production Department

Account

EngineeringDepartment

Electrical Department

I.TDepartment


FUNCTIONAL DEPARTMENTS IN N.S.L.

Production Department

Purchase Department

Sales Department

Mechanical Department

Chemical Department

Store Department

Time Office Department

Human resources development Department

PRODUCTION DEPARTMENT

Production department is most important part of the factory and it is divided into two departments

namely:

1. Engineering department

2. Manufacturing department

1. Engineering department:

The engineering department maintains all the work connected with plant and

machinery. Engineering department aims at enhancement of feeding capacity of factory. The department

is assisted by workshop.

Workshop:

Spares are fabricated using the lathe machine in the workshop and shaping like square,

cutting, fabricating etc. are done in the workshop. 75% of works of machinery are done in workshop.

This department has the following machines:

KIMS,KUD,DHARWAD.


1. Lathe machines for around job.

2. Shaping machine of 32Inch for right angle planning

3. Hacksaw machine for cutting

4. Redial drilling machine for drilling hole

5. Grinding machine for tool grinding

2. Manufacturing department:

Manufacturing department is divided into 3 sections namely:

a) Laboratory department

b) Manufacturing department

c) Go-down

a) laboratory department:

Laboratory department plays a significant role in sugar production. The key

activity of laboratory is checking the content of sugar in the sugarcane and fixing the correct shape and

size of sugar. The laboratory prepares hourly reports which advice in the addition of other chemicals in

the production.

Other activities of the laboratory:

1. Determining and maintenance of temperature of boiling juice.

2. Determining the percentage of water content in the dilution of juice.

3. Determining the percentage and content of chemicals to be added during

production.

4. Finding the PH of water through universal indicator.

5. Choice of color and size for sugar.

6. To manage the time and quality.

KIMS,KUD,DHARWAD.


PURCHASE DEPARTMENT

Purchase success and failure of any company depends on the cost of

materials, the proper buying of materials and procurement of materials at the right time from the right

source is having greater importance in any business. There is a need for separate department for buying

the materials know as Purchasing department.

The purchase section also connected to administrative department. In this section 3 workers are

working including purchase officers. This section is purchase all types of materials for the factory, plant

and machinery.

This department also maintains the quality of raw materials, by taking the sample of cane to

laboratory test then if the raw material will below standard then will be rejected, otherwise the raw

material will be purchased at the particular price.

FUCTIONS OF PURCHASE DEPARTMET

1.Receving purchasing requisition

2.Determing the volume of materials to be ordered

3.Placing orders

4.Inviting tenders and quotation from different suppliers

5.Checking and passing bills for payment.

6.Receving and inspecting materials.

KIMS,KUD,DHARWAD.


SALES DEPARTMENT

Meaning

It is the department which handles sales process of the company.

Structure :

KIMS,KUD,DHARWAD.

AGM

Central Excise officer

Salesman Salesman

Godown Keeper Godown Keeper

Loading supervisor Loading supervisor

Sugar House Clerks Sugar House Clerks

Sugar loading labours

Sugar loading labours


Sugar:

This unit is producing two different grades of sugar. They are S-30, M-30

grades. Production department sends weekly the report of sugar balance to “Karnataka Sugar

Federation” by telegram or letter by examining the sugar balance. Karnataka Sugar Federation sends

“released order” to the factory. The release order quantity differs every month. After receiving the

releasing order, the sales department sells the sugar through tender. The release order is the base of the

tender.

Molasses: Molasses is the mother liquor in the massecuite which is separated from

crystals by mechanical means. The mother liquor is separated before the washing of crystals is termed by

light molasses. These are again classified as A, B, C etc. According to the grade of massecuite from

which they are obtained.

The heavy molasses obtained from the last grade of massecuite is termed as final

molasses or waste molasses.

Recovery is assumed to be 4% on cane crushed and the sale price is assumed to be 600/- per M.T.

Bagasses:

Bagasses is the residue of cane after crushing in one mill or a train of mills bagasse are named

successively as first mill bagasse, second mill bagasses and so on to last mill bagasses or final bagasses

or simply bagasse.

Bagasses produced are used in the generation of electricity and in the boiler house.

Surplus is however sold. The surplus bagasse is estimated at 3% cane crushed. The price assumed at Rs

400/- per M.T.

KIMS,KUD,DHARWAD.


CANE DEVELOPMENT DEPARTMEANT:-

Objectives :-

1.To get high yield of sugarcane to factory in right time.

2.To improve variety of cane.

3.To develop the backward area.

4.To provide all facilities like seeds,fertilizers,unloading and loading charges.

5.To maintain registration of cane,gang and plantation.

The soil of the area is varying alluvial fertile soil is there on the bank of Krishna and

Ghataprabha river.Futher upwards, there is medium deep black soil,vary fertile well drained light to

medium clay soil, which has recived heavy application if from yard Manu science last 10-12 years also

is presently in some parts.

The main function of cane development department is to arrange for raw material, which is

required to factory. For this the order is recived by priority basis (that is growers who grows cane first in

his lead). They also provide a loading gang with 8 to 10 members per village and also a bonded tractor

for transportation.

Varieties of sugarcane:

At present COC-671, CO-8011 are very popular and the quality of sugarcane on the area where it

is grown. The oyher different qualities of Sugarcanes are: CO-94012, COC-86032, CO-8014 etc.

Here more than 85% of sugarcane of variety COC-671 that is mainly grown in this area. And this

variety is considered as the best and which provides good recovery.

KIMS,KUD,DHARWAD.


MECHANICAL DEPARTMENT

Meaning

It is a season in which the maintenance of machineries, repairs and over all operation are

rendered by the workers. It is to Manufacture sugar by using machines.

Structure:

KIMS,KUD,DHARWAD.

Work Manager

Chief Engineer

Asst. Engineer Asst. Engineer Asst. Engineer

Trainee. Engineer Trainee. Engineer Trainee. Engineer

Fitters Fitters Fitters

Mechanics Mechanics Mechanics

Work shop attender Work shop attender Work shop attender

Turbine attender Turbine attender Turbine attender

Lab Incharge


CHEMICAL SECTION

Meaning

It means to take chemical tests before producing sugar and manufacturing of sugar from

sugar cane.

Structure

Manufacturing Manufacturing Manufacturing Chemist Chemist Chemist

Responsibilities:

The responsibility of this department is to test the product of the sugarcane and quality of sugar.

Chemicals used:

1. Sulphor2. Lime3. H2O2 (Hydrogen peroxide)4. Orthophosporic acid5. Alcohol.6. Turckey red oil.

Cleaning Chemicals :

1. Caustic soda.2. Washing soda.3. Common salt.

KIMS,KUD,DHARWAD.

Chemical Department


STORE SECTION:-

It means storing of the equipment required to the factory for the smooth flow of process.

Structure

KIMS,KUD,DHARWAD.

Purchase officer

Store officer

Store Accountant

Store Keeper

Asst Store Keeper

Store clerk


SECURITY DEPARTMENT

Security department works under M.D secretariat and office supervision. It is also considered in

administrative department. It works around 3 shifts as under:

1st shift - 8am to 8pm

2nd shift – 8pm to 8am

Organization chart of security department are done on the requirement of the factory as given

below:

Security officer

Supervisor

Head guards Ex- servicemen

Security guards (civilians)

The main works of the department:

1. They are maintaining peace and discipline within the factory premises.

2. To maintain works attention.

3. They check the incoming raw materials as per voucher.

4. The incoming materials are checked and if they are right, they will record inwards then they seal the

bill and leave inside.

5. The out going materials with proper gate pass will be recorded in outwards and they are sent

outwards.

6. If they are returnable they are recorded in books of returns and are returned

7. Check the loaded and unloaded vehicles and collect notes.

8. Submit daily activity report to the managing director.

KIMS,KUD,DHARWAD.


HUMAN RESOURCE DEPARTMENT

This department plays a very important role in the company as there

are many numbers of workers working in this organization.

It mainly deals with the following:

1 Maintaining attendance records

2 Preparation of salary slips

3. Maintaining personal records

4. Maintaining leave records

Functions:

1. Maintenance of attendance records

2. Preparation of salary slips

3. Maintaining personnel records

There are about 530 employees working in this organization. There is a separate department called

“TIME OFFICE DEPARTMENT” for the maintenance of time in this organization.

Functions of time office department

1) Maintaining working bell.

2) Arranging duty to workers.

3) Distribution of salary according to workers attendance.

4) Sanctioning of leaves to workers.

The factory runs around 3 shifts in the season

One general shift 8am to 5pm for both seasonal and non- seasonal and for office workers 10.30 to 5.30pm

KIMS,KUD,DHARWAD.

First shift 4am to 12pm

Second shift 12pm to 8pm

Third shift 8pm to 4am


ObjectivesObjectives

MethodologyMethodology

AnalysisAnalysis

Suggestions.Suggestions.

RecommendationRecommendation

QuestionnaireQuestionnaire

BibliographyBibliography

KIMS,KUD,DHARWAD.


PROJECT TITLE:

“Measuring effectiveness of distribution channel of NIRANI SUGARS LIMITED”

OBJECTIVES:

To study the distribution channel of Nirani sugars limited,Mudhol.

“To find out the feasibility of establishing new depots by the company.”

“To understand factors influencing buying decision”.

“To find out the packaging method adopted by sugar factories”.

METHODOLOGY:

SELECTION OF DATA COLLECTION METHODS:

Primary and Secondary Data will be collected to carry out the research work

Research Design

It is a Descriptive Research. The study was based on both Primary and Secondary Data. The Primary

Data was collected through asking the questions consisting of following categories.

Open-ended questions.

Close –ended questions.

Primary data (Survey data):

Information will be collected directly from the wholesalers and retailer’s of the

Bagalkot district for the project work. The survey data collected during the study includes the data

collected through questionnaire, face-to-face interview with the wholesaler and retailers of Bagalkot

District.

KIMS,KUD,DHARWAD.


Secondary data

In this study, Secondary Data is used for exploratory research and secondary data

includes data collection from interaction with the company guide and with the officials and with the,

organizations Data, Brochures/newsletters, Reviews and Internet information websites.

MEASUREMENT TECHNIQUE:

Questionnaire:

Questionnaire is a formalized instrument for asking information directly from the wholesaler and

retailer of Bagalkot District namely Kerur,Jamakhandi,Mudhol,Mahalingpur,Kaladgi and

Banahatti During this research questionnaire will be used as measurement technique for getting

information from the wholesaler’s and retailer’s of Bagalkot district.

Select the sample:

Sampling unit: Wholesalers and Retailers of the Bagalkot District

Extended To: Kerur, Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti.

Time: 8 weeks (starting from 4th June to 4th August 2010)

Specify sampling unit:

The sampling units will be the Retailer and Wholesaler of Bagalkot District namely Kerur,

Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti.

Sampling Design

The research was mainly opted on wholesaler and retailer’s survey and company.

The sample selected for Retailer survey was of cluster sample. Sample size of 70

respondents, and the sample selected for wholesaler was 20 respondents.

KIMS,KUD,DHARWAD.


Sample Character

Respondents who sell sugar in there wholesale and Retail outlet were sources of data

collection.

. Sampling Plan

Sampling unit : WHOLESALER & RETAILER.

Sampling Method : Convenience Sampling

Sampling Size : 70 Retailers Respondents,20 Wholesaler.

Sample Area : Bagalkot,Kerur, Jamakhandi, Mudhol, Mahalingpur, Kaladgi and Banahatti

KIMS,KUD,DHARWAD.


RETAILERS

Awareness about the grading of sugar.

Awareness about grading Percentage(%) Yes 97% No 3%

ANALYSIS

The data reveals that 97% of the retailers are aware about the different grades of sugar practiced

by sugar mills and only 3% of retailers are not aware about the different grades of sugar.

KIMS,KUD,DHARWAD.


Sales of different grades of sugar from Retailers.

No of Retailers Sugar grade Percentage(%) 1 M-30 2% 41 S1 58% 1 S2 1% 13 M-30 and S1 18% 0 M-30 and S2 0% 14 S1 and S2 20% 1 All three 1%

Analysis. From the above graph and table we get that 58% of the retailers will sell S1 grade sugar

only and 18% retailers will sell M-30 and S1 graded sugar,20%of the retailers will sell S1 & S2 graded

sugar, and 2% of retailers will sell M-30 grade sugar and 1% ,1% of retailers will sell only S2 and all

three graded sugar.

Interpretation-

From the above analysis we get that most of the retailers will prefer to sell S1 graded

sugar more than the other two grade sugars.(M-30 and S2).

KIMS,KUD,DHARWAD.


Factors influencing during purchase of sugar.

Factors No.of retailers % of total Quality 21 30% Price 28 40% Availability 8 11% Service 13 19% Total 70 100%

Analysis-

From the table we get that out of 70 retailers 28 i,e 40% retailers consider price as main

factor,21 i,e 30% retailers consider quality as main factor,13 i,e 19% retailer consider service as

main factor and 8 i,e 11% retailer consider availability as main factor.

Interpretation-

From graph we can get that most of the retailers who are in business irrespective of number of

years in business will consider price as the main factor ,then they will look for the quality, then

they will look in to the availability and service provided by the wholesaler.

By this we can get that their is sufficient supply of sugar in the market, just retailers look for

good price and good quality of the sugar.

KIMS,KUD,DHARWAD.


Stock problem

Responses of Retailers about the stock problem.

Stock problem No of Retailers % of TotalYes 10 14%No 60 86%Total 70 100%

Analysis and Interpretation-

From the table we get that out of 70 retailers 60 retailers are not facing any

stock problem, and only 10 people are facing stock problem.

It generates a signal that present distribution channel is satisfied one.

KIMS,KUD,DHARWAD.


Different package styles practiced by the retailers.

Package style(kg) No of retailers % of Total 1 21 30% 2 19 27.1% 5 18 25.7% More than 5 12 17.1% Total 70 100%

Analysis and Interpretation:

From table and graph we will get that 30% of the retailers sell their sugar by making 1kg

packs,27% retailers sell their sugar by making 2kg packs most, 26% retailers sell their sugar by

making 5 kg packs most, 17% retailers sell their sugar by making more than 5 kg packs.

1kg,2kg,5kg packaging style is adopted by the most of the retailers.

KIMS,KUD,DHARWAD.


Acceptability of New depots (New distribution channel)

Acceptance No of retailers % of Total Yes 60 86% No 10 14% Total 70 100%

Analysis and interpretation-

The data reveals that 86% of the retailers are ready to buy the sugar from the Nirani

sugars company if it set up new depots in there area

14% retailers not accepted to buy the sugar from the Nirani sugars limited if it set

up new depots in there area. So its good to set up new depots in there area.

KIMS,KUD,DHARWAD.


Wholesaler;

Factors influencing the wholesaler during purchase of the sugar from the company.

Factor No of wholesaler % of Total

Quality 5 25%

Price 12 60%

Availability 3 15%

Total 20 100


The data reveals that 60% of the wholesalers will consider price as the prime factor while

purchasing of sugar from the sugar factories.

25% of the wholesalers look for the quality factor as the major factor, and 15% of the

wholesalers will consider availability as the main factor.

KIMS,KUD,DHARWAD.


Profit margin of wholesaler/quintal

Profit margin(Rs) No of wholesalers % of Total Rs 50 7 35% Rs 100 13 65% Total 20 100%


The data reveals that the 65% wholesaler get profit up to Rs 100 /quintal.

35% of the wholesalers will get profit up to Rs 50/quintal.

KIMS,KUD,DHARWAD.


Sale of sugar to final consumer from wholesalers.

Sale to final consumer No of wholesaler % of totalYes 4 20%No 16 80%Total 20 100%


The data reveals that 80% of the wholesalers sell sugar to the final consumers

20% of the wholesalers don’t sell sugar to the final consumer.

KIMS,KUD,DHARWAD.


FINDINGS

Price is the main factor considered by the most wholesalers and the retailers, while placing

orders.

S1 is the most selling sugar grade in the local market by the wholesaler and retailers irrespective

of price and quality .

97% retailers are aware about the different grades of sugar.

86% of retailers are ready to buy the sugar , if Nirani sugars limited setup new depot in their

respective area.

85% of retailers are not facing any stock problem, indicating the present distribution channel is

working fine.

Packaging method used by the most of the wholesaler as 100kg,50kg and 25kg.(most as 100 kg)

Packaging method used by the most of the retailers as 1kg, 2kg and 5kg.

Package material used by the most of the wholesaler is Gunny bag.

package material used by the most of the retailer is plastic bags.

KIMS,KUD,DHARWAD.


Recommendation

The company itself develop a cost effective eco packaging materials and distributing them

to retailers and wholesalers, this mechanism not only helps Nirani sugars to build its brand

and creates awareness about its brand.

The Nirani sugar should go ahead with its proposed area to service up to new depots

nearing delivery location as the majority of retailers have shown acceptability towards to

buy sugar from Nirani sugar industry.

The Nirani sugar should focus expanding its market, even on export market as it is facing

stiff competition in local market.

KIMS,KUD,DHARWAD.


QUESTIONNAIRE(wholesaler)

NAME: _____________________________________

NAME OF THE SHOP: _________________________

1) Do you sell sugar in your business unit?

Yes no

2) From how many years are you into the business of selling sugar?

a. 0-2 years

b. 2-5 years

c. 5-10 years

d. 10+years

3) From where you will purchase sugar for resale purpose?

_____________________________________________________________________

4) What factors you consider while buying sugar?

a. Quality b. price. c. availability d. service e. others

5) Are you aware of grading of sugar?

Yes No

6) Name of grade of sugar sold by you. ( among these 1) M-30, 2) S1, 3) S2? ) a. only 1 b. only 2 c. only 3 d. 1 and 2 e. 1 and 3 f. 2 and 3 g. all three

KIMS,KUD,DHARWAD.

NIRANI SUGARS LTD. MUDHOL7) What is the average sale per day?

_________________________________________________________________________

8) Name the areas from which retailers come in your shop to buy sugar.

_______________________________________________________________________

_______________________________________________________________________

9) What factors retailers look while purchasing sugar from you?


10) At what rate you are selling sugar per quintal?

______________________________________________________________________

11) What is your profit margin per quintal?

______________________________________________________________________

12) How do you pack your sugar?

______________________________________________________________________

13) Name the package material used by you?

______________________________________________________________________

14) How many retailers buy from you?

a. <5 b. 5 to 10 c. 10 to 20 d. 20 to 30 e. >30

15) DO you sell to final consumer?

Yes No

If yes, how?

KIMS,KUD,DHARWAD.

NIRANI SUGARS LTD. MUDHOL_____________________________________________________________________________

16) Have you faced any stock problem?

Yes No

a) If yes, give reason.

_____________________________________________________________________

_____________________________________________________________________

QUESTIONNAIRE(Retailer)

NAME: _____________________________________

NAME OF THE SHOP: _________________________

1)Do you sell sugar in your unit?

Yes no

2)From how many years are you into the business of selling sugar?

e. 0-2 years

f. 2-5 years

g. 5-10 years

h. 10+years

3)From where you will purchase sugar for resale purpose?

_____________________________________________________________________

4) If the NIRANI Sugars company setup its own depot in your area do you buy from them?

Yes No

5) What factors you consider while buying sugar?


6) Are you aware of grading of sugar?

Yes No

KIMS,KUD,DHARWAD.

NIRANI SUGARS LTD. MUDHOL7) Name of grade of sugar sold by you.(among these 1) M-30, 2) S1, 3) S2?)

a. only 1 b. only 2 c. only 3 d. 1 and 2

e. 1 and 3 f. 2 and 3 g. all three

8) What is the average sales per day?

_________________________________________________________________________

9) What factors customers look while purchasing sugar from you?


10) At what rate you are selling sugar per kg?

______________________________________________________________________

11) What is your profit margin per kg?

______________________________________________________________________

12) How do you pack your sugar?

______________________________________________________________________

13) Name the package material used by you?

______________________________________________________________________

14) Is the sales more in bulk quantity or in small quantity?

Bulk small.

15) What Kg of sugar is purchased by the customers mostly?

1) 1 Kg 2) 2 kg 3) 5Kg 4) 10 kg 5) more than 5 kg

16) Have you faced any stock problem?

Yes No

b) If yes, give reason .

KIMS,KUD,DHARWAD.

NIRANI SUGARS LTD. MUDHOL_____________________________________________________________________

_____________________________________________________________________

BIBLIOGRAPHY:

Reference Books:

o Marketing : Philip Kotlero Marketing Research : David A.Aaker,V.kumar

The responses of the respondents are assumed to be true.

Some of the journals of the company

Websites:http://www.goole.com

KIMS,KUD,DHARWAD.

http://www.goole.com/


KIMS,KUD,DHARWAD.

sugar industry project

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