A

PROJECT REPORT
ON
“COMPREHENSIVE STUDY OF SALES &
DISTRIBUTION CHANNEL”
OF
TRIVENI ENGINEERING & INDUSTRIES LTD.

IN PARTIAL FULFILLMENT OF THE AWARD FOR

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: SUBMITTED BY:

Prof. Vikas Saxena SACHIN KUMAR
MBA-III Sem.
Roll No.: 0903870042

1
 INSTITUTE OF TECHNOLOGY & SCIENCE
GHAZIABAD
PREFACE
Modern organizations are highly complex and dynamics systems. They

operate under very turbulent social economic and political environment. They are

required to reconcile several incompatible goals. Conflicting roles and divergent

interest they are also fraught with the use risk and uncertainties, hence tactful

management of such organization to plan to execute guide, coordination and

control the performance of people to achieve predetermined goals. Management

has to keep the organization vibrant moving and in equilibrium. It has to achieve

goal which themselves are changing it is therefore a problem highly complex and

ticklish.

T h i s i nf o r m a t i o n wi l l be asset t o m ar ket i ng m anager i n

m a k i n g e ff e c t i v e d e c i si o n s. The r esear ches ar e used t o acqui r e and
a n a l y z e i n f or m a t i o n a n d to m ake suggest i ons t o m anagem ent as t o
h o w m a r k e t i n g p r o b l e m s shoul d be sol ved.

The marketing re sear ch is t he pr ocess whi ch l i nks to

m a n u f a c t u r e r , d e a l e r s a nd i ndi vi dual s thr ough i nf or m at i on i n
i m p o r t a n t p a r t o f c u r r i c u l um of M.B.A. pr ogr am m er s i s pr oj ect
taken by th e st u d e n t s in any busi ness or gani zat i on, af t er
c o m p l e t i o n o f se c o n d se m est er of t he pr ogr am m e.
2
3
 ACKNOWLEDGEMENT

Myself SACHIN KUMAR student of Institute technology & science

Mohan nagar Ghaziabad ,underwent six-week training with Triveni
Engg. & Industries ltd., KHATAULI. This is a part of MBA for which I
had undergone practical training to understand exactly about the
working of Triveni engg. & Industries ltd.

First of all I would like to thank Triveni engg. & Industries ltd.for its co-
operation than I would express my gratitude to Mr.Ajay Tripathi (Sr.
Manager-Godown) and Mr. Harish Grover (Sr. Manager- Quality
Control) Triveni Engg. & Industries for accepting me as trainee and
allowing me to do project under their supervision.

I express my gratitude to Prof. Vikas Saxena for their personal

evolvement& support without which this project could never have been
the light of this day.

Last but not the least, I acknowledge with thanks the active co-operation
extended by all the respondents while collecting the data and to those
who were concerned directly or indirectly with this project.

SACHIN KUMAR
Institute Of Technology &
Science
Mohan Nagar, Ghaziabad
4
 Declaration
I, Sachin Kumar students of MBA III (Marketing ) 2009-11 studying at
ITS, Mohan Nagar, Ghaziabad, declare that the project work entitled
Sales and Distibution Channel of Triveni Engineering & Industries
Ltd.was carried by me in the partial fulfillment of MBA program under
the Uttar Pradesh Technical University Lucknow.

This project was undertaken as part of academic curriculum according to

the university rules and norms and it has not commercial interest and
motive. It is my original work. It is not submitted to any other
organization for any other purpose.

Date: Sachin Kumar

Place:Ghaziabad MBA III Sem

5
 INDEX

CHAPTER-I INTRODUCTION PAGE

• PREFACE
• DECLARATION
• INDUSTRY PROFILE
• COMPANY PROFILE

CHAPTER- II DIVERCIFICATION PAGE

• CO-GENERATION
• KHUSHALI BAZAR

CHAPTER – III BRANDED SUGAR – SHAGUN PAGE

6
CHAPTER- IV BY-PRODUCTS OF SUGAR PAGE
• MOLASSES
• BAGASSE
• PRESS-MUD

CHAPTER V RESEARCH & DEVELOPMENT PAGE

CHAPTER VI KEY STRENGTHS PAGE

CHAPTER VII FACT SHEET PAGE

CHAPTER VIII OBJECTIVES OF STUDY

RESEARCH METHODOLOGY

CHAPTER IX
• SALES AND DISTRIBUTION CHANNELS
• DATA ANALYSIS
• FINDINGS & CONCLUSION
• SUGGESTION
• QUESTIONAIRE

7
 CHAPTER – I
INTRODUCTION OF
SUGAR INDUSTRY

8
INDUSTRY PROFILE

We are a focused, innovative corporation having core competencies in the areas of sugar
and engineering. Our growth has been empowered with steadfast and distinctive
adherence to business ethics, transparent governance and commitment to highest
standards of social responsibility.

From a humble beginning in 1930s, we have transformed ourselves into an INR 19

billion company through an interesting blend of people, technology and entrepreneurial
spirit.

Today, we touch the lives of millions of people globally by serving our customers in the
areas of sugar, turbines, gears & gearboxes and water & wastewater treatment. While we
are amongst the three largest sugar manufacturers in India, we are also the market leaders
in our engineering businesses, having a global footprint.

Embracing the virtues of integrity, excellence and commitment, we move ahead to take
on the opportunities and challenges offered by the future. We are geared to transform
into a truly global enterprise through a prudent mix of technical innovation and
exceptional customer service delivery.

9
Our commitment to excellence and strong corporate governance guides us in this
endeavour, as we look ahead at powerful growth and building a socially equitable,
sustainable future.

BUSINESS OVERVIEW;-

Triveni's association with the Sugar Industry is as old as the Industry itself. In pre
independence India, the promoters of what is now the Triveni Group established several
sugar factories in pre independent India. Even now, Triveni is the pre- eminent name in
the Indian sugar industry.

With a current cane crushing capacity of 61,000 TCD (Tonnes Crushing per Day), the
Triveni Group continues to be one of the largest producers of sugar in India. The crush
capacity of the existing plants are (as follows;

• Khatauli, in District Muzaffarnagar (16,000 TCD)

• Deoband in District Saharanpur (14,000 TCD)

• Ramkola in District Kushinagar (6,500 TCD)

• Sabitgarh in District Bulandshehar (7,000 TCD)

• Chandanpur in District J P Nagar (6000 TCD)

• Raninagal in District Moradabad (5500 TCD)

• Milak Narainpur in District Rampur (6000 TCD)

10
The new capacities at Chandanpur, Raninagal & Milak Narainpur together with the
brownfield expansion at Ramkola were commissioned during the sugar season 2006-07.
All seven sugar factories are located in the state of Uttar Pradesh. In all the factories,
double suphitation process is followed for sugar production.
The sugar produced at Triveni's factories is direct consumption plantation
white low ICUMSA (an International method for determining colour value of sugar,
lower value means whiter sugar), bold grain sugar which commands premium in the
market. A lot of emphasis is placed on the quality control procedures an quality of sugar

produced in the factories.

At all the factories, emphasis is on usage of energy efficient systems, modern technology
and R & D for better operations and for improved per hectare sugar output. As a result of
Triveni's tie up with Sugar Research International of Australia, the group factories have
access to modern equipments & process knowhow.
Khatauli, Deoband & Sabitgarh plants are located in fertile, well irrigated and high cane
intensity region of western Uttar Pradesh where the sugar cane crop is least dependent on
the vagaries of the Monsoon & therefore are very consistent in terms of the cane
availability & capacity utilization.
The Ramkola unit is located in lucrative eastern UP where the realization of
sugar (particularly because of the robust demand from sugar deficient West Bengal) is
better as compared to western UP.

The three new sugar units are located in the Central UP.

11
The cane development activities taken up by the factories are regarded to be amongst the
best in the industry. Group has been pioneer in using modern techniques like Satellite
tracking for getting information on area in its command for enabling decisions on which
variety to be propagated in which area. Factory has huge data base on individual farmer's
field data (total cane area, past supplies, ratoon and plant cane acreage, soil details, land
type details etc.) to take prudent decisions on cane development.

12
MILESTONES :-

Since the setting up of first unit at Deoband in 1932, the overall performance of our
Sugar Business has been commendable. During the last two decades we have crossed
many milestones and are committed to cross many more in the future.

Following is a glimpse of our achievements during the last two decades:

1989
Awarded "Certificate of Merit" for best performance during season 1987-88 by National
Productivity Council of India. This award was presented by Hon'ble Shri J. Vengala Rao,
then Hon'ble Minister of Industries, Govt. of India and President of NPC.

1991
The Double Carbonation and Double Sulphitation process was converted successfully
into Double Sulphitation process having due consideration to Environmental problems.

1992
Successfully completed Expansion and Modernisation of the Plant from 5000 TCD to
10,000 TCD.
1998
Successfully completed the Expansion of the Plant from 10,000 TCD to 11,000 TCD.

13
2000
We exported 2.42 Lac. Qtls. of Sugar to Pakistan.

2001
Launching of the Biological Control Lab. for Soil testing and developing of biological
pest control system for the benefits of the Cane Growers of the area.

2003
In August, 2003 launched Branded Sugar "Shagun" and started packing of consumer
packets.

2005
Launched "Triveni Kushali Bazaar" an Agri-business Centre at Village Ladpur near our
Sugar Unit mainly for making available agricultural implements & inputs and other
domestic items under one roof for the Cane Growers of the area.

2005
We crushed 186.61 lac. Qtls. of cane during season 2007-08 which was the highest crush
in India with highest production of 19.59 lac. Qtls. of Sugar.

Expansion of the Plant from 12,500 to 16,000 TCD by adding a new Milling Tandam
with complete automation system is being done which will commence production in
season 2008-09.

14
A new Co-generation plant of 24.0 M.W. is under installation which will commence
production in October, 2005.

Product Quality

The commercial grading of sugar in India is based on grain size and colour categories.
Currently 3-grain sizes and 3 colour series are identified.

GRADE GRAIN SIZE

L > 1.70 – mm
M 1.18 - 1.70 mm
S 0.60 - 1.18 mm

APPROX. ICUMSA COLOUR

COLOUR
UNITS
31 < 100
30 100-150

15
 29 29 >150

Khatauli Sugar Quality :-

In India bold grain carries a premium. Keeping this in mind, the Khatauli unit produces
sugar of bolder grain of low colour value. The production is categorised as following
(figures are approx. as they vary every year)-

L-31 20%
M-31 70%
S-31 10%
Sugar is statutorily required to be packed in 100 Kg twill jute bags

CANE DEVELOPMENT PROGRAM :-

Cane Development Programme

The philosophy of the cane development and marketing is almost common for all the
sugar units. While in following paragraphs, description is for Khatauli but applies

16
generally to Deoband & Ramkola units as well.

After identifying the constraints in the area of operation, the mill has undertaken an
ambitious programme of Cane Development for improvement in productivity and quality
of cane. The mill has separate cane development wing with qualified staff and
experienced personnel. For this purpose the operational area has been divided into sub-
zones and the field supervisory staff has been provided with the necessary facilities for

efficient working and proper supervision of the various cane development activities.
The cane development programme is planned with following activities:-

• To educate the farmers regarding modern agricultural practices in sugarcane

cultivation.

• To replace the unapproved and degenerated cane varieties

• To initiate and propagate the use of healthy and generically pure, seed material.

• To initiate heat therapy for the treatment of cane seed through moist hot air
treatment plant to eliminate the diseases.

• Fertilizers recommendation based on soil testing.

• Supply of press mud on subsidized cost for improving the soil fertility.

• Distribution of agro-chemicals on subsidized rates.

• Incentive for high sugared varieties like CoS-88230, CoS-8436, CoJ- 64/85 and
CoS-88230 in the early group and CoS-8432, CoP-84212 in the mid and late
group.
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 • Three tier seed nursery programme for multiplication of disease free good quality
seed.

• Propagation of newly released high yielding and high sugared cane varieties.

• Contribution of funds with cane development councils for construction/repairing

of link roads and culverts for the development of infrastructure.

• To layout the demonstration/trial plots to demonstrate yield potential and

better/improved cultivation techniques.

The details of various schemes of cane development being undertaken by mill are
enumerated as below:-
» Plantation of High Yield Variety of Sugarcane
» Seed Distribution
» Demonstration Plots
» Technical Assistance to Cane Growers
» Moist Hot Air Treatment
» Irrigation
» Ratoon Management
» Biological Laboratory
» Soil Analysis and Soil Treatment
» Control of Post Harvest Sugar Losses
» Awareness Among Cultivators

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PLANT & MACHINARY INTRODUCTION :-
For Triveni, sugar to sugar plant & machinery was a natural diversification. Triveni
entered in this field in mid 60s and has been a major player in this business area of sugar
machinery & turnkey sugar plants.
This division has executed more than 35 sugar plants ranging from 1000 TCD - 10000
TCD capacity and carried out major expansion, balancing work for over 20 sugar
factories.

The mills designed by Triveni are considered by experts to be very robust and rugged,
requires least maintenance and give higher mill extractions.

Triveni got out of the business of complete new sugar units installation as it started
focussing on niche technology and equipment available because of tie up with SRI, a
premier sugar research institute of Australia and industry turning to low cost small
players (at a time when sugar industry was going through bad phase) started eating away
the profits made by this division.

Now, Triveni SRI Limited (TSL), a Triveni Group Company, under a License Agreement
with Sugar Research International, offers the latest models of plants and machinery
available to the Australian industry to the Indian Sugar Industry.

19
COMPANY PROFILE :-

TEIL was incorporated in 1932 and has been managed by the Triveni Group, of which
Mr. Dhruv Sawhney is the key promoter. The promoters hold around 70% of the
company’s equity and have over four decades of experience in the sugar business. Apart
from its main business of sugar manufacture, TEIL is also engaged in the manufacture of
small steam turbines and high-speed gears, and in the execution of water treatment
related projects. TEIL is the third largest domestic sugar manufacturer with a combined
capacity of over 61,000 tonnes crushed per day (tcd). The company’s sugar mills are
located at Khatauli (16,000 tcd), Deoband (14,000 tcd), Sabitgarh (7,000 tcd),
Chandanpur (6,000 tcd), Raninagal (5,500 tcd), and Narayanpur (6,000 tcd), all in

western UP, and at Ramkola (6,500 tcd) in eastern UP. Apart from these, TEIL also has a
46 MW co-generation capacity at its Khatauli sugar mill, a 22 MW cogeneration capacity
at its Deoband sugar mill, and a 160 kilo litres per day (klpd) distillery at Muzaffarnagar
UP. The company’s sugar business, including the co generation and distillery facilities,
is the largest among its businesses in terms of revenues and capital employed.
TEIL’s steam turbine division, which is in Bangalore, is its second largest
division in terms of revenues and capital employed. This division manufactures steam
turbines of less than 18 MW size, and has recently started making turbines in higher MW
segments of up to 30 MW. TEIL also has a high-speed gears division in Mysore,
Karnataka,and a water projects division at Noida, UP. While the high-speed gears
division supplies gears to the steam turbine division and to other industries and utilities,

20
the water project division offers engineered-to-order mechanical equipment relating to
water/waste water treatment. Although these divisions account for a relatively small
portion of TEIL’s revenues, profits and capital employed, the recent growth in them has
been significant.
TEIL’s sugar (including co-generation) and turbines divisions have remained the
main contributors to the overall turnover and profits of the company , together accounting
for over 90% of the company’s turnover and profits. However, the contributions have
varied significantly over the last few years because of the cyclicality in the sugar
business.
TEIL’s sugar and allied businesses account for almost 80% (around Rs. 15
billion) of the total capital employed, and the turbine division for just around 10%. For
the 15 months ended June 2007, TEIL reported a PBIT of Rs 1.26 billion, contributed
largely by its engineering businesses.

VISION

21
 Have leadership position
In each of our businesses

Create value and delight for

Our customer and stakeholders

Incorporate technology as the key

Differentiator and tool to deliver growth
And sustain our position of leadership

CORE VALUES

CUSTOMER FOCUS

ORGANISATIONAL PRIDE

MUTUAL RESPECT AND TRUST

INITIATIVE AND SPEED

TOTAL QUALITY

22
 KHATAULI PLANT – AT A GLANEC
Triveni sugar factory at Khatauli began operations in 1933. The cane crushing then
was 100 tones per day. Through Constant investment in modern plant and
machinery, and through regular technology up gradation, the khatauli plant can
now crush 16000 tones of cane per day. The cane itself comes from the area of
1,50,000 acres. The technical Efficiencies achieved by the plant are one of the best
in the state.

Khatauli Sugar Quality

In India bold grain carries a premium. Keeping this in mind, the Khatauli unit
produces sugar of bolder grain of low color value. The production is categorized as
following (figures are approx. as they vary every year)-

L-31 20%

M-31 70%

S-31 10%

Sugar is statutorily required to be packed in 100 Kg twill jute bags.

Triveni is pre-eminent name in the sugar industry. With a presence in the key field
of energy – oil & gas and power Triveni, Probably, offers the widest range in
medium size power generation capacity with steam, gas and hydel turbines.

The Following diagram Show the service offered by triveni group at khatauli plant
is as follows:

23
Sugar Businesses:
• Sugar Manufacturing: Triveni plans to expand its sugar manufacturing capacity
to around 52,000 tons of sugarcane crushed per day (tcd) in fiscal 2006-07.
This expansion will include three new sugar factories with capacities
ranging between 5000 to 7000 tcd. All the three factories will be located in
West Uttar Pradesh, allowing the company to operate in a well irrigated cane
growing areas with close access to sugar deficient markets. The company is
also expanding its sugarcane crushing capacities at its factories in Deoband
and Khatauli. The expansions in capacity and one new sugar factory (at
Sabitgarh, district Bulandsher) will be operational within the financial year
2008-09.

• Cogeneration of Power: Triveni currently produces 74MW of power for export

to the UP State grid through its cogeneration facility at Deoband. The
company is installing another 47MW cogeneration facility at Khatauli by
September 2005. Therefore the total co generated power produced by
Triveni, for export, will equal 45M

24
Engineering Businesses:
• Turbines: Triveni will double its capacity to manufacture turbines by March
2006. It will also expand the capacity output of its range of turbines and
focus on exports.

• Gears & Gearboxes: The gears business has expanded its production capacity
three fold and is actively pursuing export opportunities through its License
partner - Lufkin.

• Water & Wastewater Treatment: The water business is pursuing strategic

alliances with various business units of US Filter to expand its already
diverse product portfolio.

25
26
PROCESS FLOW DIAGRAM

27
GLOBAL CONSUMPTION

28
MANAGEMENT:-
Management - Triveni Engg

Name Designation
Dhruv M Sawhney Chairman and Managing director
Nikhil Sawhney Executive Director
K K Hazari Director
M K Daga Director
Shekhar Datta Director

29
CHAPTER – II
DIVERSIFICATION

30
CO-GENERATION
We have co-generation plants in Deoband and Khatauli that are located in Western
Uttar Pradesh ("Co-generation Business"). In a sugar mill, bagasse, which is a by-
product, is used for production of electricity and steam through a co-generation
plant. Co-generation plants are used to produce two forms of useful energy
simultaneously i.e. electric power and steam, with the surplus electric power being
supplied to the power distribution company (ies). While we have had captive
power plants in our sugar mills for a number of years, we started the co-generation
of electricity with the commissioning of the new co-generating plant in Deoband
on December 5, 2004. This facility has a capacity of 22.0 MW and the surplus
electric power is being supplied to Uttar Pradesh Power Corporation Limited
("UPPCL") under a power purchase agreement for a period of 10 years.

In fiscal 2005, the revenue net of excise duty generated from co-generation was
Rs.188.04 million, which was 1.95% of our total revenue net of excise duty and the
profit before tax was Rs. 32.88 million, which was 2.65% of our total profit before
tax.

• CO-GENERATION FACILITIES- KHATAULI

Having gained experience in cogeneration in one sugar unit, Triveni decided

31
 to put up a similar co-gen plant at its largest crushing capacity sugar unit at
Khatauli. The cogeneration project at Khatauli at present is under execution
and expected to be completed by 1st of September 2005 to match with the
expansion of the crushing capacity of Khatauli unit to 16,000 TCD. The
capacity of the cogeneration plant is 47 MW.

Triveni has already entered into a PPA with UPPCL for the export of power
from it's Khatauli unit. The plant & machinery of the cogeneration plant at
Khatauli consists of the following:

• 120 tph 87 ata/515 degree C high pressure/temperature boiler

• 47 MW double extraction condensing type TG set
• All auxiliaries (Includes cooling towers, water treatment plant, fuel & ash

After providing for certain captive requirements of the sugar factory and auxiliary
requirements of the cog-en plant, this project shall export power to the grid to the
extent of 17.00 MW in season (approximately 185 days) and 20.00 MW in off
season (approximately 133 days).
At Khatauli, the water treatment plant is based on imported CEDI (Continuous
Electro De -Ionization) technology and first in India to use such a sophisticated
state of the art system for water treatment in a bagasse based co-gen plant

CO-GENERATION- Future Initiative

Triveni has decided to continue to expand its cogeneration business in next few
years to come. This will see addition in capacities of power generation and
exportable power to the grid. The power generation facilities shall continue to be

32
world class with focus on usage of the world's best, most modern system for
maximizing power generation and export.

The cogeneration plants shall also be a key driver in achievement of lowest per kg
energy (steam & power) usage in sugar production in our units for which major
plans for implementation are already underway. This will maximize the export of
power to the grid.

TRIVENI KHUSHALI BAZAAR

Triveni Engineering & Industries Limited has a command area of over 1 lakh
ha.under sugarcane cultivation, covering over 1.46 lakh farmers and buys more
than Rs. 300 Crore of sugarcane per annum from these farmers.

We have a team of over 250 staff in the Cane development who work closely with
these farmers. We are now leveraging our longstanding relationship with these
farmers to provide them with the entire range of Agri inputs and services under one
shop called Triveni Khushali Bazaar.

Triveni Khushali Bazaar will increase the association of rural communities with us
and further strengthen their relationship with us. Such a relationship, coupled with
our track record of timely payment to farmers will enable us to secure the source of
our primary raw material.

TRIVENI KHUSHALI BAZAAR-Future Initiative

33
Currently Khushali Bazaar has 2 Triveni owned stores and 4 franchise owned
stores. The self owned stores are at Khatauli and Deoband. The franchises are at
Jansath, Sisauli, Ghatain and Badgaon. These stores are operating since February
2005.
These stores will provide to farmers, Agri inputs, Agri implements for sale as well
as rental, Irrigation equipment, Agri extension services, Cement, Cattle feed,
FMCG, Petrol/Diesel, Lubricants, Two wheelers, Tractors and other goods to
complete the farmers' basket of goods. We have established tie-up with a number
of leading companies to sell their products through our stores. We have also tied
up a bank to provide loans to our sugarcane farmers to facilitate their shopping in
our
stores.

After stabilising the operations at these stores, we would like to expand our
network to other parts of UP.

CHAPTER – I
34
 BRANDED SUGAR
SHAGUN

BRANDED SUGAR- SHAGUN

on 26 September 2003 Triveni launched its 1kg & 5kg packets of sugar under the brand
name of SHAGUN

Shagun is a premium quality sugar from Triveni, a pioneer in

the Indian sugar industry since 1932. It stands for pure, healthy,
superior quality crystal sugar, which is manufactured using the
best technology from UK & USA, by crushing the juiciest

35
sugarcane from the Ganga-Jamuna Doab region.

The production of Shagun sugar takes place in a completely hands-free and sterile
environment. We also deploy double micro filtration system that removes minutest
foreign particles to make the sugar pure & healthy.

Objective of branding:-

To get closer to end consumer and provide them with a value added product.

High disposable income.

Better life style.

Springing of departmental stores

Target customer

House wife

25 – 40 years

Upper and middle – middle class

36
Quality and health conscious

37
Competition

Last Price Market Cap. Sales Net Profit T

(Rs. cr.) Turnover otal
Assets
Shree Renuka 64.25 4,303.47 2,234.20 143.50 2,563.71
EID Parry 398.00 3,438.64 1,179.43 205.28 1,671.58
Triveni Engg 101.40 2,614.90 1,895.94 169.78 1,756.78
Bajaj Hind 113.85 2,178.60 1,780.71 154.61 5,368.83
Balrampur Chini 79.65 2,058.74 1,704.58 226.51 2,147.28
Bannariamman 847.45 969.46 884.44 143.63 799.32
Andhra Sugar 135.80 368.11 578.34 66.84 639.61
Dhampur Sugar 61.20 329.90 948.04 56.19 1,231.60
KCP Sugar 20.30 230.17 301.55 23.74 208.25
Sakthi Sugars 55.00 202.44 1,374.71 103.49 2,159.63

38
CHAPTER – III
By-products Of
Sugarcane

39
 By-products Of Sugarcane
The Sugar mill produces many by-products along with sugar. A typical sugarcane
complex of 3000 tcd capacity can produce 345 ton of sugar, 6000 liters of alcohol,
3 ton of yeast, 15 ton of potash fertilizer, 25 ton of pulp, 15 ton of wax, 150 ton of
press-mud fertilizer and 750KW of power from bagasse.
Sugar factories world over has successfully pursued the route of value addition to
by – products for improving their financial health. Indian sugar industry would do
well to adopt the same route in the interest of achieving long-term sustainability.
Bagasse & molasses are two most important by – products of the sugar industry

Molasses
Molasses is the final effluent obtained in the preparation of sugar by repeated crystallization. It is
the end product from a refining process carried out to yield sugar. Sucrose and invert sugars
constitute a major portion (40 to 60%) of molasses.

Use of Molasses
Molasses is used in Distillery to produce Alcohol and then further chemicals and
also for cattle feed.
Definition of Molasses

i. Molasses means the heavy, dark colored viscous liquid produced in the
final stage of manufacture of sugar by vacuum pans, from sugarcane or gur,
when the liquid as such or in and form admixture contains sugar.

ii. Molasses means the mother liquor produced in the final stage of
manufacture of sugar by the vacuum pan process for sugarcane and gur.

40
 iii. Molasses is the final liquor in the process of sugar manufacturing from
which no more sucrose can be crystallized and recovered with the physical
means as applied in a sugar mill. The product is technically called as final
molasses or exhaust molasses.

Molasses Specification
General composition of molasses as follows:
1. Solids.

2. Sucrose and reducing sugars.

General Composition
Sucrose 30 - 35 %
Reducing Sugar 10 - 15 %
Ash 10 - 12 %
Total Sugar % dry solids 55 - 60 %
Nitrogen 0.15 to 0.25 %

41
Gums 0.05 to 3.5 %
CaO 1.0 to 1.5
So4 1.2 to 3.5
P2O5 0.25 to 0.30
PH 5.4 to 5.7
Total organic non-sugar 15 - 20
Unfermentable reducing matter 1.5 to 2.5

Categorization of Molasses
Molasses is categorized by the total of fermentable sugar content, commercially
known as TRS (Total reducing sugar) on the basis of which, the categories are as
under:
Grade %age of Total sugar contents of molasses
(Expressed as reducing sugar)
I 50.00 % and above
II 44.00 – 49.99 %
III 40.00 – 43.99 %

Below grade below 40 %

Testing Parameters
In commercial practice the molasses is tested for the Brix (Total Dissolved solid)
and TRS (Total reducing sugars), which represent its quality and grades for sale.

42
 Capacity of Molasses in all tanks at Khatauli

Tank Tank capacity

No
No 1 19000
No. 2 19000
No.3 22000
No 4 48000
No 5 80000
No 6 100000
No 7 60000
TOTAL 348000

Molasses is used for production of rectified spirit, which is used as as feedstock

for production of chemicals as well as potable liquor. The country has been
producing about 1.7 billion liters of alcohol utilizing 75-80% molasses production
in the country. The surplus molasses is either exported or carried forward to the
next sugar season resulting in quality deterioration.
Technology in the country has developed scheme for utilization of molasses for
production of alcohol and down the line alcohol based chemicals. Alcohol industry
has an installed capacity of 2700 million liters per annum and the production is of
the order of 1300 million liters. Major part of the alcohol produced in the country
is utilized for production of alcohol based chemicals and some part is used for
production of alcohol-based chemicals and some part is used for potable and
pharmaceutical industries. The current level of consumption is 1200 to 1300
millions liters and as such the capacity of the industry remains unutilized and the
industry is faced with the glut of molasses, in the last season it was reported that
molasses were to be disposed off more or less free. One of the constraints in

utilization of the molasses has been the movement of alcohol and restrictive
alcohol polices as well as restrictive policies in respect of allocation of molasses.
Government is now thinking in terms of promotion the use of alcohol as an
additive to petrol and some committees appointed by the Government are reported

43
to be working out the modalities thereof. Faced with the situation of excessive
molasses and alcohol the Government has recently permitted exports, which are
picking up.
In U.P. Current policy is 10% for making country liquor and 90% is other
bonafide users like chemicals plant and industrial chemicals. In U.P. Molasses is
mainly being used for production of Alcohol, liquor and organic chemicals.
India now claims to have the largest chemical industry in the world using sugar
cane molasses as fed stock. Alcohol based Acetaldehyde, Acetic acid poly vinyl
chloride (PVC) and Molasses is producing Mono Ethylene Glycol (MEG) etc.
only. Elsewhere these are produced via Petro Chemicals route. India thus
contributes to minimization of the Green House effect Plans are also being made to
use Ethanol as blend for motor fuel.

Bagasse

Bagasse is another by-product of the sugar industry, which constitutes about 30%
of cane processed for production of sugar, is used as fuel for generation of steam
and power to meet the process requirements. The potential of sugar cane for Power
Production besides sugar has been estimated at 120 KWH per tones.
In India the exploitation is yet at a very low level. Generally the power generation
is for captive use at about 25-30 uni Bagasse is a fibrous residue of cane stalk that
is obtained after crushing and extraction of juice.

It consists of water, fiber and relatively small quantities of soluble solids. The
composition of bagasse varies based on the variety of sugarcane, maturity of cane,
method of harvesting and the efficiency of the sugar mill.

The usual bagasse composition is given below.

44
 Content Range %

Moisture 46-52

Fiber 43-52

Soluble solids 2-6

Bagasse is usually used as a combustible in the furnaces to produce steam that in

turn is used to generate power. It is also used as raw material for production of
paper and as feedstock.
On Country scale the power export potential of sugar mills is being estimated at
over 3500 MW, which it harnessed, could be a substantial supplement in the
deficient power situation.
Considerations of power shortage, need for harnessing the non-conventional
energy sources and the concept of ultimate dependence on Agriculturally
renewable sources, in view of depletion of fossil fuels and the impact of their use
on the environment and CO2 balance have generated global interest in the subject.
Sugar Mills of course are the appropriate focal points due to Bagasse.
It will not be out of place to mention that 45% factories in the country are working
with fuel consumption below 30% bagasse on cane and that more than 60 %
factories are booking fuel consumption of above 36% bagasse on cane. Bagasse
can be used as raw material for the manufacture of paper, fulfural etc. The Forest
Research Institute (FRI) at Dehradun worked out a project for the manufacture of
insulation board, straw board, practical board, furniture, rough paper, bag paper
high Alfa cellose pulps, grease proof paper, pules and newsprint paper etc. from
bagasse. In spite of all this there has been little progress towards utilization of
bagasse in areas other than fuel. R & D units at factory level can take up further
work in co-ordination with Central Research Agencies.

Bagasse is partly used by the Sugar Mills for fuel to generate steam and power for
captive use. Several factories manufacturing paper are utilizing the same bagasse
and other fiber based products and wood substitutes. Recently the idea of co-
generation production of power is being encouraged and the industry’s potential
for production of power has been assessed at 3000 MW, which can do a substantial

45
contribution to deficit power position in the country. With growing consciousness
about the environment there is a realization that the generation of power through
agricultural residues like bagasse will help the conservation of ecological balances
to contain the global warming.

Co-generated power apart from being a renewable source of energy is also most
eco-friendly. The Government of India has a vision plan to increase the share of
renewable energy to 10% by the year 2010.
Paper Industry generally uses bagasse. Paper Industry use bagasse for making
paper out of it. In Sugar Industry, bagasse is also an important part on account of
funds generation. In the current scenario every sugar mill is going to set up a co-
generation plant for cost viability.
It is used for generation of steam & power required for processing of sugarcane.
With energy saving around 5 to 10% of bagasse is saved by a majority of units and
is utilized for production of sugar and in some cases cogeneration of power.
The following table indicates the usage of bagasse for paper and possible
production of paper estimated by the development council for pulp& paper by the
year ending 2015-2016.

Year Forest based Mill wet Straws waste total pro-

Raw material bagasse paper duction

RM Paper RM Paper RM Paper RM Paper

1994-95 32.10 12.35 21.60 3.60 6.75 2.25 3.69 2.77 20.97

2000-01 32.10 12.35 36.00 6.00 7.50 2. 50 6.34 4.75 25.60

2008-09 32.10 12.35 43.20 7.20 7.50 2.50 7.43 5.57 27.62

2010-11 32.10 12.35 50.40 3.40 7.50 2. 50 11.05 8.29 31.54

2015-16 32.10 12.35 50.40 8.40 7.50 2. 50 13.33 10.00 33.25

46
sugar mills have been successful in reducing dependence on state electric board's
for power supply. For example, Ballarampur Chini Mills procured 95% of its total
power requirement for FY98 from captive generation from steam turbines.

Press-Mud (Filter Cake)

The filter cake of sulphitation factories is used as manure. Work was done at
National Sugar Institute up to pilot plant scale to produce crude and refined wax
from this. These R&D units can take further feasibility studies for semi-
commercial scale application.
Press Mud, which was considered a waste by Sugar Industry, is now being
increasingly utilized for production of Bio Manure to substitute at least partly the
chemical fertilizers. Several units are already in commercial production.
Technology has also been developed for production of Fuel Gas from the Press
Mud. We hope in near future the Press Mud will become even more valuable by-
product.
Press-Mud is waste-product of the sugar industry, which constitutes about 4% of
cane processed for production of sugar, is used as fuel by bricks manufacturer and
by farmers as fertilizer.
Press Mud is a waste generated out of the total cane crushed. Sugar Mill has to
make special efforts for keeping and disposal of the Press Mud. Some time when
accumulation of Press Mud takes place, sugar mill has to stop the cane crushing
operations during peak season. The disposal of Press Mud is very much specific.
Press Mud can be used only either as fertilizers in the farmer’s fields. Or for
burning purpose with the bricks manufactures. Why it is used for burning purpose,
in press mud sugar contents are inside it helps in burning purpose.

47
CHAPTER – IV

48
 RESEARCH
&
DEVELOPMENT

RESEARCH & DEVELOPMENT

• Triveni turbine business group derives its technological source from various
international collaborations.

• Our R&D and Engineering team has 25-30 years rich experience in steam
turbine designs.

• Combination of extensive design experience with state of the art design tools
helps us in developing the latest designs of critical components such as
rotors, blades, nozzles etc.
49
 CHAPTER – V

KEY STRENGTHS

50
 KEY STRENGTHS

One of the Leaders in the Indian Industry

The sugar industry in India is highly fragmented with over 500 sugar factories. We
are amongst the three largest producers of sugar in India based on sugar production
in Sugar Year 2003-2004 derived from ISMA Working Results of Sugar Factories
in India, 2003-2004. We manufactured 0.38 million tones of sugar in the Sugar
Year 2005.

Strong Financial Position

We have a strong financial position, which we believe will enable us to finance our
capacity expansion plans. As of March 31, 2005, we had a long-term debt to equity
ratio of 0.72: 1 and total debt to equity ratio of 2.74:1. In fiscal 2005, we have net

51
Strategic Location of Mills
All of our manufacturing facilities for sugar production are located in the north
Indian state of Uttar Pradesh and the two largest sugar mills at Khatauli and
Deoband are located in western Uttar Pradesh, which is one of the largest

sugarcane growing areas in India. As a result of our presence in the state of Uttar

Pradesh, we benefit from the following advantages.

Proximity of Sugarcane Deficient Markets

Our sugar mills are located close to the sugarcane deficient markets of Punjab,
Haryana, Delhi, Madhya Pradesh, Rajasthan, Gujarat and West Bengal. Thus, our
primary markets are located close to our manufacturing facilities and we do not
rely on transporting our sugar to distant markets, which gives us a comparative
advantage in distribution costs of this bulk commodity.

Excellent Relationships with Farmers

We make timely payments to sugarcane farmers and have built excellent
relationships and goodwill with them, which is an important factor in our industry.
We have a good record of payments to farmers for sugarcane despite the cyclical
nature of the sugar industry and have strong ties with approximately 167,000
sugarcane farmers.

Extensive Network for Sugarcane Collection

In order to facilitate the sale of sugarcane to us by the sugarcane farmers, we have
established a extensive network of more than 350 collection centers in the state of
Uttar Pradesh, where the sugarcane is collected by us and payments are made to
52
farmers. These collection centers are located in our sugarcane area and hence, the
farmer is not required to bring his crop to our factory gates.

Good Product Quality

The sugar produced by our sugar mills in Khatauli and Deoband is bold grained
and is rated as one of the better qualities of sugar produced in western Uttar
Pradesh. This enables us to command a premium on the sugar produced by us.

CHAPTER – IV

53
Overview
Refurbishment
Repairs
Spare Parts
Service Network

FACT SHEET

FACT SHEET
In India we are the first company to rise to superlatives in many areas of our
operations. Given below is a glimpse:

1988
Completion of the largest Wastewater Treatment Plant in India, of 182 MLD

54
capacity constructed on turnkey basis for Vizag Steel Plant

1989
Awarded "Certificate of Merit" for best performance during season 1987-88 by
National Productivity Council of India. Hon’ble Shri J. Vengala Rao, then
Hon’ble Minister of Industries, Govt. of India and President of NPC presented
this award.

1994
Gear Manufacturing Unit becomes the first to be ISO-9001 Certified in India.

1999
Completion of the largest Oil Water Separation system for Reliance Petroleum,
Jamnagar.

2000
We exported 2.42 Lac. Qtls. of Sugar to Pakistan.
Pioneered joint manufacturing concept for gearboxes -supplied 25 MW retrofit
supply to L and T, Awarpur as replacement to Renk Germany.

2002
BPR initiatives - Complete system on SAP, BPR by Accenture.

2003
Gear Box Unit reaches 5000 mark of dispatch of gearbox/gear set.

2005
We crushed 186.61 lac. Qtls. of cane during season 2007-08 which was the
highest crush in India with highest production of 19.59 lac. Qtls. of Sugar.
Secured first ever-Indian order for CEDI based Boiler Feed Water Treatment
Plant of 85 M3/Hr. capacity for Khatauli Co-gen Plant.
First vertical roller mill gearbox of 70 tons - supplied as indigenous replacement
to Flender Bocholt - Germany to cement industry.

55
 CHAPTER – V

SOCIAL
RESPONSIBILITY

56
 SOCIAL RESPONSIBILITY
TRIVENI fulfilled the social responsibility by taking initiative for protecting
the environment in the following ways –
Harmony between man and environment is the essence of healthy life and
growth. Therefore, maintenance of ecological balance and a pristine
environment has been of utmost importance to TRIVENI.

Environment protection continues to be a key area of activity in TRIVENI

along with growth in generation of power.

Driven by its commitment for sustainable growth of, TRIVENI has evolved a
well defined environment management policy for minimizing environmental
impact arising out of setting up of power & Sugar plants and preserving the
natural ecology.

"TRIVENI has its Environment Policy and Environment Management System".

Amongst the guiding principles, adopted in the document, are the company's
proactive approach to environment, optimum utilization of equipment, adoption
of latest technologies and continual environment improvement. The policy also
envisages efficient utilization of resources, thereby minimizing waste,
maximizing ash utilization and providing green belt all around the plant for
maintaining ecological balance

TRIVENI's environment-friendly approach to power has already begun to show

results in conservation of natural resources such as water and fuel (coal, oil &
gas) as well as control of environmental pollution. NTPC has chalked out a set
of well-defined activities that are envisaged right from the project
conceptualization stage.
TRIVENI's environment-friendly approach to power has already begun to show
57
 results in conservation of natural resources such as water and fuel (coal, oil &
gas) as well as Control of environmental pollution. NTPC has chalked out a set
of well-defined activities that are envisaged right from the project
conceptualization stage.

Performance enhancement and up gradation measures are undertaken by the

organization during the post-operational stage of the stations. These activities
have

About the Group

Board of Directors
Corporate Governance
Management Team
Focus on Quality
Social Commitment
Our Financials
Global Network

Greatly help greatly helped to minimize the impact on environment and preserve
the ecology in and around its power projects. These measures have been
enumerated as follows.

58
CHAPTER – VIII

59
 INTRODUCTION OF
TOPIC

OBJECTIVES OF THE STUDY

Ba si c a l l y t h e o bj e c t i v e of t he st udy was t wo fol d, on t he
r e se a r c h e r s part, it wa s gai n a pr act i cal exposur e of t he
m a n a g e m e n t t h e o r i e s i n t he fi el d of m ar ket i ng wi t h t he com bi ned
aim of getting t wo year s MAS TE R OF BUI S NE S S
ADMI NI S T RATI ON ( MBA) degr ee.

On t h e c o m p a n i e s p a r t t h e obj ect i ve was “STUDY OF SALES &

DISTRIBUTION CHANNEL OF TRIVENI GROUPS” which includes

60
• To understand the distribution channels of triveni
• To understand the sale of branded sugar
• To understand the consumer preference
• To understand the consumer awareness about “shagun”

61
RESEARCH METHODOLOGY

Me t h o d o l o g y , fo r a st u d y li ke thi s i s t he m ost i m por t ant par t . The

m e t h o d of st u d y a d o p t e d b y m e i s tot al l y i s t o i ncr ease & t o gat her
t h e m o r e i n f or m a t i o n r e g a r di ng t hi s pr oj ect .

T h e m a j o r e m p h a si s i n such st udi es i s on t he di scover y of t he

i d e a s & fr u i t f ul r e l e v a n t i nf or m at i on. As such t he resear ch de si gn
a p p r o p r i a t e f or su c h st u d i es m ust be f l exi bl e enough t o pr ovi de
o p p o r t u n i t y fo r c o n si d e r i ng di ff er ent aspect s of a pr obl em under
st u d y .

METHODS OF DATA COLLECTION:

PRIMARY DATA:

S u r v e y m e t h o d -- T hi s m et hod was adopt ed because i t hel ped i n

se c u r i n g d e t a i l i nf o r m a t i on f rom a sam pl e of respondent s. T he
i n f or m a t i o n r e c e i v e d f r o m the respondent s i s r ecor ded on a for m
c a l l e d t h e q u e st i o n n a i r e . T hi s i s onl y m et hod t o m easur e at t i t ude
& m o t i va t i o n d ir e c t l y .
62
 Op e n fr a m e d d i sc ussi on wi t h m anager s.

S ECO NDARY DATA :

I h a v e a l so u se d t h e se c ondar y dat a, whi ch incl uded t he wr i t t en

d o c u m e n t o f t h e o r g a n i z a t i on & ot her pl aces.

1 . INTERN ET
2 . P AP ERS & RECO RDS

T h e d a t a c o l l e c t e d f ro m t he above m ent i oned sour ces hel ped m e i n

g e t t i n g i n f or m a t i o n a b o u t t he br i ef hi st or y tr i veni .

63
Khatauli unit has the capacity of sugarcane crushing is 8500 tcd in 2007-08 and

11400 tcd in 2008-09 and wanted to expend this to 16000 tcd in 2006-07.

Triveni produces two type of Sugar.

1. White Sugar

2. Branded Sugar

White Sugar:

Triveni produces plantation white sugar through the double sulphitation

process. Sugar accounted for 70 % of the Company’s revenue in 2008-09. The
company posses the capacity of 40,500 tcd spreads across its Khatauli,
Deoband, Ramkola and Sabitgarh units.
The company expects cane supply to be based on mill’s capacity and

therefore expects cane allocation to be increased from the 2010-11-sugar season.

64
Branded Sugar:

The Company’s branded sugar is manufactured in Khatauli and marketed under the

Shagun Brand. During the year under review, the off take of Branded sugar

increased by 44 % to 6522 MT. While the market of branded sugar is not large,

demand is increasing due to increased urbanization and life style changes.

SUGAR PRICING

After the production of sugar, company sale their sugar. All sugar is taking

place through agents and Banks. The Indian Government follows a dual pricing

policy, under which a fixed proportion of production is to be sold by the sugar

companies to the public distribution system at a fixed price (Levy Sugar). This

price varies from region to region and the sugar directorate (under the ministry of

consumer affairs, Food and Public distribution) releases this quantity in favor of

the various states.

Interestingly, there has been a decline in sales through the Public

Distribution System as the Levy sugar has declined from 60 per cent in the
early 1980s to 10 percent effective from March 2002 (according to the
government’s Revitalization Report). The balance of sugar (free sugar) can

65
 be sold in the open market, is not subject to the Levy, the government
continuous to regulate sales through a release mechanism, determining the
amount of sugar that can be sold each month.

A turnaround in free sale sugar realizations commenced in February 2004,

with subsequent increases in May 2004 and January 2005 (Indian Sugar Mills
Association data). Triveni’s realizations were higher than the all India average due
to a combination of regional, quality, colour and crystal size factors.
On average, domestic sugar prices strengthened in 2007-08 and demand-supply
forecasts indicate that they could remain firm over the coming two years.

Ex-Factory Prices of Free Sale Realizations:

(Rs/MT/sugar) 2005-06 2006-07 2007-08

October 11600 11290 14710

November 11140 12030 14650

December 10810 11770 15360

January 10710 11660 16630

66
 February 10660 12930 16530

March 10540 12770 16500

April 10650 13420 16640

May 10580 13990 16650

June 10810 14220 16620

July 11810 14060 16710

August 12590 14650 17110

September 12340 14720 17010

Average 11190 13210 16260

India’s Sugar Import Policy:

The upturn in India’s sugar cycle is a direct result of the forward-looking policies
of the Ministry Of Food, Government of India. There have been instances in the
past when a sugar shortage in India was followed by a reductions in customs tariff,
allowing an enormous quantity of white sugar to flood the market and trigger a
steep fall in sugar prices. This time the government permitted only the import of
raw sugar-by-sugar factories- not traders- with an export obligation under the

67
Advance License Scheme, one of a number of policies to ensure long-term price
stability, given the temporary imbalance between production and consumption.

In 2007-08, government policies ensured that sugar prices remained at

reasonable levels, which improved industry viability and resulted in a record,
timely and even nationwide sugarcane planting and will translate into higher
output, notwithstanding a lower-than-average monsoon.

Levy Sugar Prices:

Under the provision of sub-section © of section 3 of the Essential Commodities

Act, 1955, the ex-factory prices of levy sugar are determined each year by the
Ministry of Food and Civil Supplies, Government of India. The current ratio of
free-to-levy sugar is 90:10 i.e. 10 per cent of the sugar produced is to be sold at
prices fixed by the Government for different levy price zones in the country. Every
month, a fixed quantity is released to each factory in respect of specified buyers
nominated by the Central Government. In U.P., there are three levy price zones:
while the Khatuli and Deoband factories figure in the Western U.P. price zones,
Ramkola figures in the Eastern U.P. price zones. The levy price for West U.P. was
Rs 1275.92 per quintal and Rs 1383.41 per Quintal for East U.P.

Statutory Minimum Sugarcane Price (SMP):

68
 This price is determined by the Central Government on the basis of Clause 3
of the Sugarcane (control) Order, 1966 with respect to each sugar season. The
Government fixes the price considering the recommendations by the Commission
for Agriculture Costs and Prices. The SMP for 2007-08 seasons was fixed at Rs.
74.50 per quintal corresponding to a base recovery of 8.5 percent. The previous
season’s average recovery for each sugar unit was used to determine what SMP
payment needed to be made by each factory, calculated on the basis of Rs 0.88 per
quintal for an every 0.1 per cent increase in recovery over 8.5 per cent. The SMP
for Khatauli, Deoband and Ramkola units were fixed at Rs 89.46 per quintal, Rs
92.10 per quintal and Rs 87.70 per quintal respectively.

For the purpose of extra sugarcane payments to growers above the SMP, a formula
of sharing sugar realizations with the growers has been prescribed under Sugarcane
Control Order, 1966.after the ‘L’ factor (representing the cost of production) based
on the SMP is announced by the Government (which invariably comes some two
or three years later), the cost based on the ‘L’ factor is subtracted from the actual
realization of sugar; 50 per cent of this extra amount is shared with growers. In
reality, factories in U.P. invariably pay much more than what is arranted by this
formula as State Advised sugarcane Prices (SAP) announced by the U.P.
government are higher than the 50 per cent sharing payable.

State Advised Price:

A majority judgment of the Supreme Court dated 5 May 2004 held that the
State Government in U.P., in exercise of its regulatory power as contained in the

69
U.P. Sugarcane (Regulation of Supply and Purchase) Act 1953, could fix the price
of sugarcane. A review petition field by ISMA, highlighting the inconsistencies
with an earlier unanimous decision of a five-judge bench of the Supreme Court of
1956 in Ch. Tikaramji’s case, and other specific constitutional points, was turned
down. The U.P. Government announced an SAP higher than that paid by the
industry in 1996-97, 2005-06 and 2006-07. on a demand made by the sugarcane
societies and the U.P. Government, Triveni made all these payments for its three
sugar units under protest, making it one of a handful of such factories in U.P. to
have done so.

U.P. Government Sugar Policy:

To encourage investment in the sugar industry, the U.P. Government

announced Sugar Industry Incentive Policy 2004 during the year under review. It
spelt out the following:
• The sugar industry as the most important industry in the state and sugarcane as
its principal cash crop, supporting the livelihoods of 3.2 mn farmer families and a
labour force of 160000 directly or indirectly in the state.
• The industry’s position as a driver of social and economic growth in the
locations of its presence.
• The identification of various ancillary or downstream industries like sugar
machinery, distilleries, electricity co-generation, ethanol and bio-fertilizers as
being linked with the industry.

70
• The contribution of almost Rs 4 bn to the Indian and state exchequer via excise
and purchase tax.
• The reservation of almost 2.3 mn hectares for U.P. sugar mills, accounting for
124 mn tones of sugarcane (almost 42 per cent of the national production).
• The use of only 41.04 per cent of the sugar cane produced in the state by the
sugar industry, the rest going to gur, Khandsari, seed, juice, cattle feed and
chewing.
• The need to produced 7.5 mn tones of sugar by 2010-11 through enhanced cane
drawal to fulfill the country’s increased appetite for the commodity.

• The planned special incentive policy for the entry of private mills into sugar
manufacture due to a funds constraint among the government and co-operative
sectores.
• An estimated capital requirement of Rs 20 billion to fund the new plants for
which a special incentive package may be required.
For being eligible for the incentives, the government announced the following
guidelines:
• Minimum one time capital investment of Rs 3.5 bn or phased (from2007-08)
capital investment of Rs 5 bn; to commence commercial production by 31 march
2007.
• Eligibility covering the setting up of new sugar units, expansion of existing
sugar capacity and related projects (ethanol/alcohol from molasses as well as co-
generation from bagasse).
• Provision of monetary benefits in the form of capital subsidy and various
incentives on the cane purchase and sugar and molasses sale.
71
The government announced that these incentives would be provided only after the
company or the unit cleared all its sugar cane dues to farmers. For an investment of
over Rs 3.5 bn, the incentive would be applicable for five years; for an investment
over Rs 5 bn, the incentive would be applicable for ten years with a provision that
proceeds from the overall incentive did not exceed the capital investment. Triveni
intends to take advantage of this scheme.

The domestic price of sugar is expected to stay firm over the foreseeable
future on account of the following factors: inventory is expected to stay under
control due to increased consumption and rising exports; international sugar prices
are expected to remain buoyant.
Some times saleable price is decided according to the average rate
(Rate of last 1 year+2year+3 year) / 3.

MARKETING AND DISTRIBUTION

The company markets major parts of its output across Gujarat, Rajasthan, Punjab,
Utter Pradesh, Delhi and West Bangal through a network of 23 agents, each
enjoying an average relationship of over 25 years with the company.

SUGAR SALE:

TAX / DUTY FREE SALE

LEVY SALE

72
 90% 10%

U.P. Sale Central U.P. Sale Central

Sale Sale

Basic Rate 1800 / beg 1800 / beg 1277.49(by 1277.49(by

rail) rail)

1275.92(by 1275.92(by

road) road)

Excise Duty 71 / beg 71 / beg 38 / beg 38 / beg

Cess 14 / beg 14 / beg 14 / beg 14 / beg

Educational Cess on duty 2% 2% 2% 2%

Entry Tax 2% NIL NIL NIL

Insurance charges NIL 2.25 / beg NIL NIL

73
 • Company also has to give a commission of 0.50% to the agent on the
amount of sugar plus excise duty on sugar.
• If sale is above then 4,00,000 then company pay service tax plus cess on
service tax.
• Service tax is 10% plus 2% cess on service tax till 17 April and after 17
April 12% plus 2% cess on service tax.
• Company has to pay 4% Trade tax also.
• Impart of Sugar Company also sale the MOLASSES. Molasses is also a very
important product, which is come after the production of sugar. Molasses is
used for the distillery. Company has a distillery unit in Muzaffarnagar.there
are two type of molasses sale.
• Free sale. (80%)
• Levy sale. (20%)

MOLASSES SALE

TAX / DUTY FREE SALE LEVY SALE

74
 80% 20%

Basic rate 225/beg 225/beg

Excise duty 75/beg 75/beg

UP administration charges 11/beg 11/beg

Educational cess on duty 2%(1.50/beg) 2%(1.50/beg)

C.S.T. 4% 2.5%

OTHER SALES

Company also has some other type of sales.

• Scrap sale

• Press mud sale

• Baggasse sale

SCRAP SALE

TAX/DUTY UP SALE CENTRAL SALE

75
Rate As per order As per order

Trade tax 5% Against C format 4% or 10

State development tax 1% NIL

TCS 1.02% 1.02%

PRESSMUD SALE

TAX/DUTY UP SALE CENTRAL SALE

Rate As per order As per order

Trade tax Nil Against C format at 4% or

10%

State development tax Nil NIL

TCS Nil NIL

76
 BAGGASSE SALE

TAX/DUTY UP SALE CENTRAL SALE

Rate As per order As per order

Trade tax Nil Against C format at 4% or

10%

State development tax Nil NIL

TCS Nil NIL

There are some important points, which are necessary to understand or have to
keep in mind by the customers about the company.
• Company has their sale office in New Mandi, Muzaffarnagar.
• Each and every agent or customer has to pass there through this office.
• After passing the bill, bill comes in the company.
• Then company prepares a sale voucher and sends all details of sale to the
bank.Then sale takes place and bank receives the money from the agent or
customers.
After this whole process starts from the procurement of sugar cane and
payment of the sugarcane to the sale of sugar and receiving the payments from
agents or customers, Bank deduct the payment from the receives amount and their

77
Interest or commission, give the rest money or balance to the company. This
receivableable amount, which is getting by the company, is known as the profit of
the company.

WORLD SUGAR BALANCE:

(October/ September) 1000tonnes, raw value

SUGAR 2001-02 2005-06 2006-07 2007-08 2008-09

Opening Stock 58443.1 58526.1 67104.7 65105.0 59501.4

Production 138456.8 150516.5 143711.4 144047.8 148796.3

Imports 45134.6 48086.0 49006.1 50290.8 49625.4

Disappearance 134713.8 140120.9 142184.8 145275.4 147548.9

Exports 48794.6 49903.0 52532.4 54667.0 52537.3

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Ending stocks 58526.1 67104.7 65105.0 59501.4 57836.9

Cl. Stock/ 43.44 47.89 45.79 40.96 39.20

Consumption (%)

DOMESTIC OVERVIEW
Performance: MMT

2005-06 2006-07 2007-08 2008-09 2006-07 2007-08

(p) (p)
Opening 11.3 11.6 8.5 4.8 4.2 5.6

Stock
Production 20.2 14.0 12.7 19.0 23.0 24.0
Imports 0.0 0.4 2.1 0.0 0.0 0.0
Total 31.5 26.0 23.3 23.8 27.2 29.6

available
Local 18.3 17.3 18.5 19.1 19.6 20.2

Consumption
Exports 1.5 0.2 0.0 0.5 2.0 2.5
Total 19.8 17.5 18.5 19.6 21.6 22.7

Dispatches
Closing Stock 11.6 8.5 4.8 4.2 5.6 6.9
Closing 63.4 49.1 25.9 22.0 28.6 34.2

Stock/

Consumption

79
(%)

LIMITATIONS
The problems being faced by me during this were as follows:

• Appointment problems with the customers.

• Time duration of the project as the whole project was to be done in the stipulated time of

two months.

• Customer’s incorporation sometimes.

• Hot and humid climate

• Non-cooperation of farmers.

• Certain other constrains affecting the study.

• Concealment of certain trade secrets and trade facts affects my understanding towards the

working of the sugar industry which in return affect my financial analysis up to the

extend.

PROBLEMS

1) I observed during my training program that there is communication gap between top-

level management and lower level management.

80
2) There is insufficient number of computers in the Sugar unit of Triveni in Deoband.

3) Unhealthy competition by the near by sugar factories in procurement and payment of

sugarcane.

4) Reluctant to answering the question.

5) Lack of education among the farmers.

6) Delay in clearances in the payments of the farmers which left them anger and frustration.

7) Due to competition low prices have been pay to the farmers, which in return does not

ignite the zeal to produce the quality of sugar and sugarcane, which hampers the

production and productivity.

8) Mismanagement in the storage of inventory due to which 7 % of the total material got

destroyed every year.

9) Proper clearing of machinery is not done up to the mark which give the slight brown

texture to the sugar which lower down the price of sugar which hamper the production

and productivity and profit.

DATA ANALYSIS
81
Q1) What is the proportion of distribution of produced sugar?

Free

Levy

Q2) What is the proportion of distribution of Mollasses?

Free

Levy

82
Q3) What is the quantity of cane crushing in a particular unit / day?

Khatauli

Deoband

Ramkola

Sabitgarh

Q4) what is the Percentage of use of the different way in distribution of produced sugar?

83
Rail

Road

Q5) What is the contribution of a particular state in generating the sales revenue?

Utter Pradesh

Panjab

Rajsthan

Haryana

84
Q6) What is the Percentage of total profit contributed by the sugar business in respect of other

businesses of the company?

In 2007-08

Sugar

Other

In 2008-09
Sugar

Other

Q7) What is the per capita sugar consumption in different countries?

85
Brazil

Pakistan

India

Africa

Q8) what is the percentage role of banks played in the payment of sugarcane payment?

Bank Role

Company Role

Q9) does raw sweet affects the sale of sugar?

Yes

No

86
Q10) Up to what extent raw sweet affects the sale of sugar?

Affects

Not Affect

Q11) What is the percentage of sugar production in each unit?

Khatauli

Deoband

Ramkola

Sabitgarh

Q12) What is the percentage contribution of profit given by each unit?

Khatauli

Deoband

Ramkola

Sabitgarh

87
88
Q13) Does company give any commission to the agents of the company?

Yes

No

89
Q14) What is the percentage of sale of sugar in Utter Pradesh with respect to other states?

U.P. Sale 3

Central sale

90
Q15) which type of sugar does the company produce?

S-31

M-31

L-31

Q16) What is the mode of sugar payment by agents?a

In cash

In credit

By check

Partially by check and credit

Q17) Which type of transportation facility you have?

Own facility

Hired

91
Q18) What is the time spending in between the delivery of sugar and payment of sugar?

With in 7 days

With in 15 days

With in 30 days

Q19) To whom agents give the payment of sugar?

To Bank

92
To Company

Findings & Conclusion

 Triveni use give more preference to road transport in comparison
to Rail Transport.

 People are less aware about brand Name Sagun

 Company supply finished goods mostly Soft Drink Companies like
– Coca-Cola, Pepsi.
 So that availability of sugar in retail market is less in comparison
to others.
93
94
 Suggestion

 Company should advertise its product

 There should be free flow of information between top management
and lower management
 Company should provide the facility of training and development
for adopting new technology
 The payment to the farmers should made in time
 Company should control the wastage to increase the profit

95
 BIBLIOGRAPHY
Company Internal Records

• Books

• Records

• Old Reports

Websites

• www.trivenigroup.com

• www.sugartoday.com

• www.sielsugar.com

• www.google.co.in

References Books

• Marketing Management, Philip Kotler

• A Hand Book on Sugar Industry, by Ajay Tripathi

96
 QUESTIONNAIRE

Name : …………………………………………

Phone No.: ………………………………………….

Q1) What is the quantity of cane crushing in a particular unit / day?

Khatauli

Deoband

Ramkola

Sabitgar

Q2) Which method is used for distribution of produced sugar?

Rail

Road

Q3) What is the contribution of a particular state in generating the sales revenue?

Utter Pradesh

97
Panjab

Rajsthan

Haryana

Q4) does raw sweet affects the sale of sugar?

Yes

No

Q5) Up to what extent raw sweet affects the sale of sugar?

Affects

Not Affect

Q6) What is the percentage contribution of profit given by each unit?

Khatauli

Deoband

Ramkola

98
Sabitgarh

Q7) Does company give any commission to the agents of the company?

Yes

No

Q8) which type of sugar does the company produce?

S-31

M-31

L-31

Q9) What is the mode of sugar payment by agents?

In cash

In credit

By check

99
Partially by check and credit

Q10) Which type of transportation facility you have?

Own facility

Hired

Q11) What is the time spending in between the delivery of sugar and payment of sugar?

With in 7 days

With in 15 days

With in 30 days

Q12) To whom agents give the payment of sugar?

To Bank

To Company

100