SUBMITTED TO: - SUBMITTED BY: -

POOJA KANSRA SUNNY KUMAR PANDEY

ROLL NO: -RQ1010A24

REG NO: -11004178

 INDEX

CHAPTER 1 HISTORY OF BAJAJ GROUP

bajaj hindustan ltd.

CHAPTER 2 DEMAND AND SUPPLY OF SUGAR

World sugar produced

Production of sugar in India

Demand of sugar in India

CHAPTER 3 KEY FACTOR WHICH EFFECT DEMAND OF

THE SUGAR FOR BAJAJ HINDUSTAN

WITH QUANTITATIVE ANALYSIS

Social factor

Economical factor

Government policies

Price of sugar

CHAPTER 4 OTHER PRODUCT OF BAJAJ HINDUSTAN

CHAPTER 5 FINANCIAL RESULT OF BAJAJ HINDUSTAN

CHAPTER 6 SUGGESTION AND RECOMMENDATION

CHAPTER 7 VALUE ADDED INFORMATION

CHAPTER 8 BIBLIOGRAPHY / REFERENCES

 ACKNOWLEDGEMENT

No serious and lasting achievement or success one ever achieves

without the friendly guidance and co-operation of so many
people involved in work. Foremost of all, I express my gratitude
to the Almighty for his blessings and foresting wisdom in all my
wishes.
I am also thankful to my Subject Teacher Miss pooja kansra,
who has helped me a lot each and every time when I had some
difficulty. Words are not sufficient to register my sincere regards
to my loving parents for their deep affection and unabated
inspiration that really kept me going. They were and unending
source of strength and perseverance during the course of the
study. I place my thanks to al l those who spared their time and
made it convenient for me to complete the research. I deeply
acknowledge their concern for my research. Last but not the
least, I also wish to red cord my gratitude for any person(s), my
memory has failed to recall, who rendered his/her/ their support
and services.
Chapter1

HISTORY OF BAJAJ GROUP

The Bajaj Group came into existence during the

turmoil and the heady euphoria of India's freedom
struggle. Jamnalal Bajaj, founder of the Bajaj
Group, was a confidante and disciple of Mahatma
Gandhi and was deeply involved in the effort for
freedom. The integrity, dedication, resourcefulness
and determination to succeed which are
characteristic of the company today, are often
traced back to its birth during those long days of
relentless devotion to a common cause.

Kamalnayan, the eldest son of Jamnalal Bajaj,

succeeded his father in 1942, at the age of twenty-
seven. Putting the nation before business, he
devoted himself to the latter only after India
achieved independence in 1947. But when he did
so, he put his heart and soul into it. Within a short
while, he not only consolidated the Bajaj Group, but also diversified into various
manufacturing activities elevating the Bajaj Group to the status it enjoys till this
day.

BAJAJ HINDUSTAN LTD.

Bajaj Hindusthan Ltd. (BHL), a part of the 'Bajaj

Group', is India's Number One sugar and ethanol
manufacturing company, headquartered at Mumbai
(Maharashtra), India.

The Company has ten sugar plants, which are all

located in the northern Indian state of Uttar Pradesh
(UP): Golagokarannath, Palia Kalan and
Khambarkhera (district Lakhimpur Kheri), Barkhera
(district Pilibhit), Kinauni (district Meerut),
Gangnauli (district Saharanpur), Thanabhavan and
Budhana (district Muzaffarnagar), Bilai (district
Bijnore) and Maqsoodapur (district
Shahjahanpur).These ten plants have an aggregate sugarcane crushing capacity of
96,000 tcd (tonnes crushed per day).

BHL's subsidiary, Bajaj Hindusthan Sugar and Industries Limited (BHSIL), has
four sugar plants across Uttar Pradesh at Pratappur (district Deoria), Rudauli
(district Basti), Kundarkhi (district Gonda) and Utraula (district Balrampur).
BHSIL has a total crushing capacity of 40,000 tcd. The Bajaj Hindusthan Group as
a whole, with fourteen manufacturing facilities, has an aggregate sugarcane
crushing capacity of 136,000 tcd. The Group has a distillery capacity to produce
800,000 liters of Alcohol per day.

BHL is India’s largest ethanol producer. It is the pioneer of India’s fuel ethanol
programme. BHL is currently producing 38 million litres of ethanol in a year. In
anticipation of emerging market demand, the Company has increased its ethanol
manufacturing capacity to nearly 218 million litres per year.

BHL generates 430 MW of power from the bagasse produced in its sugar mills.
After meeting its own energy needs, BHL has a surplus of 105 MW. The Company
has already begun to supply a significant part of this surplus power to the UP state
grid. BHL has now embarked upon the expansion of its power generation capacity
by 450 MW through the setting up of new coal based power plants of 90 MW each
in the vicinity of 5 of its existing sugar units. These new projects are expected to be
completed within a period of eighteen months at an aggregate project cost of
around Rs. 23 billion.

Besides this, through a Consortium, the Company, in a major diversification move,

has also embarked on developing a mega thermal power project in UP which will
produce 1,980 megawatts of power, ready for commissioning in around 5 years.

BHL’s wholly owned subsidiary, Bajaj Eco-tec Products Limited (BEPL),

produces environment-friendly Medium Density Fibre Boards (MDF) and Particle
Boards (PB), both from its bagasse waste. Both MDF and PB are invaluable
substitutes for wood in construction and furnishing. The manufacturing of MDF
and PB has been a trail-blazing venture in India. It will protect and preserve India’s
forests from commercial exploitation by the construction and furniture industries.
A 50,000 cubic metre MDF plant saves one lakh mature trees from being cut down
in a year.

BEPL is among the very few units in the world to manufacture MDF and PB that is
completely wood-free. Its three Units, put together, turns out 210,000 cubic metres
of MDF and Particle Boards in a year. This will prevent the felling of an estimated
420,000 fully matured trees annually.
BHL recorded a net profit of Rs.1.546 million and annual turnover of Rs. 17,807
million for the year October 1, 2008 - September 30, 2009

Chapter2

SUPPLY AND DEMAND OF SUGAR

WORLD SUGAR MARKET

 Produced in more than 120 countries

 About 78% is produced from sugarcane

 Beet sugar has gone down from 40% in 1990 to 22% in 2006-07

 The cost of sugar from cane is less than the cost of sugar from beet

 About 70% of production is consumed in the country of origin

 The balance 30% is traded in world markets

 In 2006-07, almost 41% of export market was controlled by Brazil,

9%by EU, 8% by Australia & 4% each by Thailand & UAE

WORLD SUGAR PRODUCED

The above chart shows the world sugar level and country wise production in MMT.

PRODUCTION OF SUGAR IN INDIA

This chart shows the production of sugar in India in million metric tons from the
year 1961 to 2009.

Sugar is produced in India primarily in nine major states. In 2009, the six states of
Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Uttar Pradesh and Tamil Nadu
produced more than 1MMT of sugar per annum each, with the three states of
Bihar, Punjab and Haryana producing less than 1 MMT of sugar. In 2009, these
states accounted for 94% of the total sugar production in India with Maharashtra
and Uttar Pradesh leading with 27% and 30% of the total production. 6 Sugar
productions have been increasing steadily but there have been periods of low
Production, due to a variety of reasons including pests and drought. Production has
been cyclical, with the typical cycle duration ranging between 4 to 6 years. The
Indian sugar production has grown at a CAGR of 6% over the last 4 decades.
DEMAND OF SUGAR IN INDIA

India, the world’s largest consumer and

second-largest producer of sugar, is
turning into a net importer of the
sweetener as growth in population and
household incomes leads to higher
consumption and forces the country to
meet domestic demand from other
nations.

Sugar consumption has increased by three million tons in the past two years,
pushing up the annual domestic consumption to about 23 mn tones from only 19
mn tones in 2006-07. Consumption is growing by over 4% annually, but the
government prefers to keep tightlipped about it and pegs the annual sugar
consumption at only 21 mn tones.

This means
domestic
consumption will
surpass the
projected output (22
mn tones at present)
for the 2009-10
year, paving the
way for sugar
imports and
sharpening
domestic sugar
prices for both
industrial and retail
consumers.
Analysts have
already projected
that India will be a sugar importer from the 2010-11 sugar year. From the chart
above, we can see the demand for the sugar in the coming year.

Lower carryover stocks and the projected low sugarcane output projected for 2010-
11 could spell high domestic sugar prices.

Sugar prices are among the most sensitive of election issues and the fact that the
domestic prices have shot up from around Rs 20/kg in the retail market earlier this
year to around Rs 30/kg now has already forced the Centre to pull out all stops to
boost open market availability and drag down or at least hold prices.

Ironically, most recent studies show that sugar consumption has gone up
significantly on account of industry (such as ice creams, soft drinks, pastries,
chocolates and the pharmacy sector) and not on account of domestic consumption
by the economically weaker sections for whom the government commands 10% of
the production by mills for levy sugar.

Chapter3

KEY FACTORS WHICH AFFECT DEMAND OF THE SUGAR FOR

BAJAJ HINDUSTAN WITH QUANTITATIVE DATA

There are mainly four major factor which effect the demand of the sugar in
India

1. Social factor

2. Economic factor

3. Government policies

4. Price

SOCIAL FACTOR
Sugar industry is the important
aspect in development of any
country. It provides income
opprtunity, employment, resources
for other industries such as ice
cream, bakery and other sugar
related business. Further many
sugar industries have established
school, colleges, medical facilities,
for the benefit of the peoples. BHL
have diversified its business into many fields also like distilleries, organic plants,
chemical plant and board factories.BHL also generates electricities. But there are
some social issues which effect the demand of the product in the market such as

a. Eating habbits: - eating habbits fo every person mostly lies that in which
society the are living. People used to their climate and have their foood as
per their behaviuoral changes by their family, friends and other related
persons. In india there are many festivals celebarated all along the year.
People celebrate their festival by preparing sweets or by buying it from the
market. This makes them to consume large amount of sugar each year and
due to which demand of the sugar incraeses. There is some special offer
given to every wholeseller from BHL for festivals in the price of the sugar.

b. Price driven: - human kind is a social

animal and in india demand of the
product is tatally based on the price of
the product. If priceof the product will
decrease then there will be a substantial
decrease in the demand of the product.
Due to change in the price price there
will be some change in the price of its
complimentry goods which also take
time to hold their leg in the market and
effects in lower demand.
 c. Place: - demand of sugar is sependent on a very important social factor
which is ‘ where the mass is living ?’ this is very important factor because it
determines the sugar productivity, if the person is living in india, then it is
for sure that he will be a good consumer of sugar. So place decides the
production as well as thedemand of the sugar.

ECONOMIC FACTOR

Population:- currently the population of india is 1,065,070,607. Population of

India is rising at very high speed and due to that consumption of sugar is also
increasing at a higher speed.

One can see that in 1960-61

the consumption of sugar was
5-6 million tonnes but in
2005-2006 it rose to around
15-19 million tonnes, which
is a drastic change within a
time span of 45 years.
 Supply:- supply and
demand are both
interdependable with
each other .as by the
demand and supply
theories, we know
that demand and
supply have a inverse
relation with each
other and if the
supply of the product
will increase then the
demand for the
product will decrease whereas if the supply of the product will decrease then the
demand of the sugar will increase. So by this relation one can able to understand
that how the production of the sugar can create demand or how decrease in the
production declines the demand for it.

Size of the sector:- Size of the sector is another factor which makes demand of the
sugar high or low. BHL is the leading manufacturer of sugar in india. Whereas
there are other manufacturer also. The demand of the sugar is much higher than the
production which is done by the sugar manufacturing sectors.

INCOME OF A PERSON: - this is one of the

deciding factor which affect the demand for sugar .in
other words this can be called as per capita encome.
Per capita Income means how much an individual
earns, of the yearly income that is generated in the
country through productive activities. It means the
share of each individual when the income from the
productive activities is divided equally among the
citizens. Per capita income is reported in units of
currency. Per capita income reflects the gross national
product of a country.
 In this context if the per capita income of the
people of India rises then it is beneficial for the
sugar industries because as we know from the
macroeconomics that if the income of the
person increases then the consuming capacity
also increases and due to that his buying
capacity also increases resulting in demand for
the product.

Per capita income of Indians

in this figure we can see the per capita income spend by different consumers of
consumption of sugar, and the figure below shows the growth of consumption in
india with comapison to the increase in the price.

GOVERNMENT POLICY

For the demand of the sugar government policy plays an important role.
Government sets the price for the sugar and it takes reserve also. Government sets
some rules and regulations also due to which demand and supply of the sugar
affect. The major policy of the government which makes the demand and supply of
the change in the economy are

Policy Issues:-

• Sugar acts & orders: -

• Essential Commodities Act, 1955

• Sugar (Control) Order, 1966

• Sugarcane (Control) Order, 1966

• Levy Sugar Supply (Control) Order, 1979

• Sugar (Packing and Marking) Order, 1970

• Sugar Cess Act 1982

• Sugar Development Fund Act 1982

• Sugar Development Fund Rules 1983

• LSPEF Act, 1976

(Source: - www.fcamin.nic.in)

PRICE OF SUGAR

Recognizing the fact that price of the sugar is the most important variable of
sugar’s demand. If other things being constant, then price of sugar play an
important factor. As per the demand of the law states that other things remain
constant, when the price of the commodity rises, the demand of the commodity falls
and when the price of the commodity falls, the demand for the commodity rises. In
other words, demand for a product is inversely proportional to its price thus
demand function can be stated for the sugar can be illustrated as

D (SUGAR) = f (PRICE OF THE SUGAR)

Hence demand for the sugar is the negative function of price.

Price of the sugar is further affected by different factors such as

Environmental factor: -

a. Water scarcity: - Sugarcane is a deep-rooted crop and can have a great

impact on river flow as it reduces run-off from the catchment into rivers and
draws heavily on ground water resources.

b. Field level impact

 Erosion is a significant issue in areas under sugar cane or beet cultivation,

since erosion rates in tropical agro-ecosystems are usually greater than the
rate of soil formation.
  Cane harvesting can cause a significant removal of soil with the roots.
Declining soil quality is associated with cane and beet production, due to
soil compaction, loss of organic matter, Stalinizations and acidification. 10-
30 percent of the total beet harvest weight is soil.

c. Climatic condition: - climatic condition is the other factor which affect

production of sugarcane due to which price gets affected.

Transportation

Transportation is another factor which affects the price of the product and
ultimately becomes a deciding factor in the demand for the product.
Like this there are many factors which effect the production finally demand
of the product.

Chapter4

OTHER PRODUCTS OF BAJAJ HINDUSTAN

ETHANOL AND INDUSTRIAL

ALCHOHAL

PLY WOODS

ELECTRICITY

PARTICLE BOARD

BHL is divided into three parts

1. BHL
 2. BHSIL (produces sugar and distilleries)

3. BEPL

Chapter5

FINANCIAL RESULTS

The summarized financial results of the Company for the year ended September
30, 2009 are presented below:

On a stand-alone basis the Company achieved a turnover of Rs. 18,148.94 million

as compared to Rs. 18,028.72 million in the previous year. The Profit after tax
stood at Rs. 1,562.37 million as compared to the loss of Rs. 476.84 million on the
previous year. On consolidated basis, the turnover is Rs. 23,335.19 million as
compared to Rs. 21,202.60 million in the previous year. The profit after tax and
minority interest is Rs. 617.84 million compared to a loss after tax and minority
interest of Rs. 1,574.22 million in the previous year.

Bajaj Hindusthan Sugar and Industries Limited During the year 2008-09, Bajaj
Hindusthan Sugar and Industries Limited (BHSIL) achieved a turnover sales and
other income of Rs.4,157.79 million as compared to Rs.3,021.69 million in the
previous year. The Company recorded Net loss of Rs. 89.29 million against a loss
of Rs.757.48 million in the previous year. BHSIL crushed 1.308 Million MT
(MMT) of sugar cane during the season 2008-09 as against 1.342 MMT during the
sugar season 2007-08. Production of sugar for the season 2008-09 was 0.115 MMT
Us against 0.140 MMT during the season 2007-08. The recovery during the season
2008-09 was 8.79% as compared to 9.75% during the season 2007-08. BHSIL's

cogeneration plants have generated 37,242 MW power during the year 2008-09 as
against 44,564 MW power generated during the previous year.
Competitors of BHL

The major competitors of

BHL are

1. Shree renuka sugar

2. Eid parry

3. Balrampur chini

4. Triveni engg

Chapter6

SUGGESTION AND RECOMMENDATION

There are many suggestions by which company can increase their revenue and earn
profits in future; some of them are listed below

1. Increase their productivity as per the demand of the market.

2. Overproduction always causes loss (as it happened in the year 2007), this
should be avoided.

3. Make their consumer happy by giving some extra offer.

4. Keeping the environmental factor in mind, should follow the law for the
production.

5. Keep up the good works by making some more schools.

6. Increase their branches of sugar.

7. Make India the world largest producer of sugar.

8. Become the world biggest manufacturer of sugar, ethanol, and particle

board.

9. Export sugar to different countries without keeping too many reserves,

which can decay and make maximum revenue and help in increasing GDP.

10.Technologically behind Brazil and other countries, so invest in areas for

technology advancement.
Chapter7

VALUE ADDED NEWS

Press releases
Stock rates of BHL

Stock market analyst Sudarshan Sukhani has maintained 'buy' rating on Bajaj
Hindustan Ltd stock to achieve an intraday target of Rs 117. According to analyst,
the interested investors can buy the stock with strict stop loss of Rs 112. The stock
of the company, on August 31, closed at Rs 113.95 on the Bombay Stock
Exchange (BSE). The share price has seen a 52-week high of Rs 242.90 and a low
of Rs 101.05 on BSE.Current EPS & P/E ratio stood at 8.96 and 12.91 respectively.
Country's major producer of sugar, Bajaj Hindusthan Ltd, announced that it has
registered a loss worth Rs 14.91 crore for the three month period ended June 30,
2010. The company announced that it suffered loss owing to soaring cost. In Apr-
Jun period of the last year, the company registered a net profit of Rs 60.08 crore.
But, the company's total income during the period under review has gone up. Bajaj
Hindusthan's total income during the quarter stood at Rs 727.78 crore as against Rs
399.33 crore for the like period during 2009.

Chapter8
REFERENCES
http://www.bajajhindustan.com

www.fcamin.nic.in
www.moneycontrol.com

www.economictimes.indiatimes.com

www.business.mapsofindia.com

in.finance.yahoo.com

http://www.capitaline.com/user/framepage.asp?id=1

http://books.google.co.in/books?
id=wXh6NqVN9pAC&pg=PA70&lpg=PA70&dq=FACTORS+FOR+INCREASING+RATES+OF+SUGAR+IN+
INDIA&source=bl&ots=2Gul1IgCRP&sig=x0YZ9IbVE3qmt6WHE6bMzPoOM5w&hl=en&ei=rmrNTLucJIrR
cd_b3ZgO&sa=X&oi=book_result&ct=result&resnum=7&ved=0CC8Q6AEwBg#v=onepage&q&f=false

a text book of microeconomics by TR jain and VK ohri