Performance_appresal in Dhampur Sugar Milli Ltd000000

7/28/2019 Performance_appresal in Dhampur Sugar Milli Ltd000000

1/89

1

INTRODUCTION


2/89

INTRODUCTION

HRM

Human Resource Management (HRM) is the management of an organization's

employees. While human resource management is sometimes referred to as a "soft"

management skill, effective practice within an organization requires a strategic focus to

ensure that people resources can facilitate the achievement of organizational goals.

Effective human resource management also contains an element of risk management for

an organization which, as a minimum, ensures legislative compliance.

Definition

Process by which a manager or consultant (1) examines and evaluates an employee's

workbehavior by comparing it with preset standards, (2) documents the results of the

comparison, and (3) uses the results toprovidefeedbackto the employee to show where

improvements are needed and why. Performanceappraisals are employed to determine

who needs what training, and who will be promoted, demoted, retained, or fired.

Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20 th century can

be traced back to Taylors pioneering Time and Motion studies. But this is not very

helpful, for the same may be said about almost everything in the field of modern human

resources management.

As a distinct and formal, management procedure used in the evaluation of work

performance, appraisal really dates from the time of the Second World War not more

than 60 years ago.

2
http://en.wikipedia.org/wiki/Managementhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/manager.htmlhttp://www.businessdictionary.com/definition/consultant.htmlhttp://www.businessdictionary.com/definition/examine.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/behavior.htmlhttp://www.businessdictionary.com/definition/standards.htmlhttp://www.businessdictionary.com/definition/documents.htmlhttp://www.businessdictionary.com/definition/result.htmlhttp://www.investorwords.com/994/comparison.htmlhttp://www.businessdictionary.com/definition/use.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/feedback.htmlhttp://www.businessdictionary.com/definition/improvements.htmlhttp://www.investorwords.com/3665/performance.htmlhttp://www.investorwords.com/237/appraisal.htmlhttp://www.businessdictionary.com/definition/employed.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/training.htmlhttp://en.wikipedia.org/wiki/Managementhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/manager.htmlhttp://www.businessdictionary.com/definition/consultant.htmlhttp://www.businessdictionary.com/definition/examine.htmlhttp://www.businessdictionary.com/definition/employee.htmlhttp://www.businessdictionary.com/definition/work.htmlhttp://www.businessdictionary.com/definition/behavior.htmlhttp://www.businessdictionary.com/definition/standards.htmlhttp://www.businessdictionary.com/definition/documents.htmlhttp://www.businessdictionary.com/definition/result.htmlhttp://www.investorwords.com/994/comparison.htmlhttp://www.businessdictionary.com/definition/use.htmlhttp://www.businessdictionary.com/definition/provide.htmlhttp://www.businessdictionary.com/definition/feedback.htmlhttp://www.businessdictionary.com/definition/improvements.htmlhttp://www.investorwords.com/3665/performance.htmlhttp://www.investorwords.com/237/appraisal.htmlhttp://www.businessdictionary.com/definition/employed.htmlhttp://www.businessdictionary.com/definition/need.htmlhttp://www.businessdictionary.com/definition/training.html


3/89

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of

things historical, it might well lay claim to being the worlds second oldest profession!

There is, says Dulewicz (1989), . a basic human tendency to make judgments about

those one is working with as well as about oneself. Appraisal, it seems, is both

inevitable and universal. In the absence of a carefully structured system of appraisal,

people will tend to judge the work performance of others, including subordinates

naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal

problems in the workplace. Without a structured appraisal system, there is little chance

of ensuring that the judgments made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is

appraisal was used to decide whether or not the salary or wage of an individual employee

was justified.

The process was firmly linked to material outcomes. If an employees performance was

found to be less than ideal, a cut in pay would follow. On the other hand, if their

performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If

was felt that a cut in pay, or a rise, should provide the only required impetus for an

employee to either improve or continue to reform well.

Sometimes this basic system succeeded in getting the results that were intended; but

more often than not, it failed.

For example, early motivational researchers were aware that different people with

roughly equal work abilities could be paid the same amount of money and yet have quite

different levels of motivation and performance.

3


4/89

These observations were confirmed in empirical studies. Pay rates were important, yes;

but they were not the only element that had an impact on employee performance. It was

found that other issues, such as morale and self- esteem, could also have a major

influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In

the 1950s in the United States, the potential usefulness of appraisal as tool for motivation

and development was gradually recognized. The general model of performance

appraisal, as it is known today, began from that time.

PERFORMANCE APPRAISALS ARE A REGULAR REVIEW OF EMPLOYEE

PERFORMANCE WITH IN ORGANIZATIONS.

Generally, the aims of a scheme are;

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary increases, promotions Disciplinary

actions, etc.

Provide the opportunity for organizational diagnosis and development.

Facilitate communication between employee and administrator.

Validate selection techniques and human resource policies to meet federal Equal

Employment opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar rating

system whereby managers are asked to score an individual against a number of

objectives/attributes. In some companies, employees receive assessments from their

manager, peers, subordinates and customers while also performing a self assessment.

This is known as 360 appraisals.

4


5/89

The most popular methods that are being used as performance appraisal process are:

Management by objectives (MBO)

360 degree appraisal

Behavioral Observation Scale (Bos)

Behaviorally anchored Rating Scale (BARS)

Trait based systems, which rely on factors such as integrity and conscientiousness. Are

also commonly used by businesses. The scientific literature on the subject provides

evidence that assessing employees on factors such as these should be avoided. The

reasons for this are two-fold:

1) Because trait based systems are by definition based on personality traits. They make it

difficult for a manager to provide feedback that can cause positive change in employee

performance. This is caused by the fact that personality dimensions are for the most part

static, and while an employee can change a specific behaviour they cannot change their

personality. For example, a person who lacks integrity may stop lying to a manager

because they have been caught, but they still have low integrity and are likely to again

when the threat of being caught is gone

2) Trait based systems, because they are vague, are more easily influenced by office

politics. Causing them to be less reliable as a source of information on an employees

true performance. The vagueness of these instruments allows managers to fill them out

based on who they want to/feel should get a raise, rather than basing scores on specific

behaviors employees should/should not be engaging in. These systems are also more

likely to leave a company open to discrimination claims because a manager can make

biased decisions without having to back them up with specific behavioural information.

5


6/89


7/89

1) Number of employees to be trained.

2) Existing employees to be retrained.

3) Skill areas for training.

4) Availability of trainers.

5) Training period.

6) New courses to be developed and changes to be made in existing courses.

7


8/89

BASIC PHILOSOPHY OF PP & A:

LEADERSHIP THROUGH QUALITY

PERFORMANCE PLAING

Link to company Goals Policy Deployment Understandin & a reein the role

8

RECOGNISATION AND

REWARD

Individual

Reorganisation

PERFORMANCE

IMPROVEMENT

Building on Successes

Skill Development

Regular Counselling &


9/89

PERFORMANCE APPRAISAL METHOD

Performance appraisal methods include 11 methods / types as follows:

1. Critical incident method

The critical incidents for performance appraisal is a method in which the manager writes

down positive and negative performance behavior of employees throughout the

performance period

PP &

A

9

CAREER PLANING

Mapping towards skills and

experience

MANAGEMENT

RESOURCE PLANING

Input to Succession plans

Company Resource

PERSONAL DEVELOPMENT

Individual developmentaction plans
http://www.humanresources.hrvinet.com/critical-incident-method-of-performance-appraisal/http://www.humanresources.hrvinet.com/critical-incident-method-of-performance-appraisal/


10/89

2. Weighted checklist

This method describe a performance appraisal method where rater familiar with the jobs

being evaluated prepared a large list of descriptive statements about effective and

ineffective behavior on jobs

3. Paired comparison analysis

Paired comparison analysis is a good way of weighing up the relative importance of

options.

A range of plausible options is listed. Each option is compared against each of the other

options. The results are tallied and the option with the highest score is the preferred

option.

4. Graphic rating scales

The Rating Scale is a form on which the manager simply checks off the employees level

of performance.

This is the oldest and most widely method used for performance appraisal.

5. Essay Evaluation

This method asked managers / supervisors to describe strengths and weaknesses of an

employees behavior. Essay evaluation is a non-quantitative techniqueThis method

usually use with the graphic rating scale method.

6. Behaviorally anchored rating scales

This method used to describe a performance rating that focused on specific behaviors

10
http://www.humanresources.hrvinet.com/weighted-checklist/http://www.humanresources.hrvinet.com/paired-comparison-analysis/http://www.humanresources.hrvinet.com/graphic-rating-scales/http://www.humanresources.hrvinet.com/essay-evaluation/http://www.humanresources.hrvinet.com/behaviorally-anchored-rating-scales-bars/http://www.humanresources.hrvinet.com/weighted-checklist/http://www.humanresources.hrvinet.com/paired-comparison-analysis/http://www.humanresources.hrvinet.com/graphic-rating-scales/http://www.humanresources.hrvinet.com/essay-evaluation/http://www.humanresources.hrvinet.com/behaviorally-anchored-rating-scales-bars/


11/89

or sets as indicators of effective or ineffective performance.

It is a combination of the rating scale and critical incident techniques of employee

performance evaluation.

7. Performance ranking method

Ranking is a performance appraisal method that is used to evaluate employee

performance from best to worst.

Manager will compare an employee to another employee, rather than comparing each

one to a standard measurement.

8. Management By Objectives (MBO)

MBO is a process in which managers / employees set objectives for the employee,

periodically evaluate the performance, and reward according to the result.

MBO focuses attention on what must be accomplished (goals) rather than how it is to be

accomplished (methods)

9. 360 degree performance appraisal

360 Degree Feedback is a system or process in which employees receive confidential,

anonymous feedback from the people who work around them.

10.Forced ranking (forced distribution)

Forced ranking is a method of performance appraisal to rank employee but in order of

forced distribution.

11
http://www.humanresources.hrvinet.com/performance-ranking/http://www.humanresources.hrvinet.com/management-by-objectives-mbo/http://www.humanresources.hrvinet.com/360-degree-performance-appraisal/http://www.humanresources.hrvinet.com/forced-ranking-forced-distribution/http://www.humanresources.hrvinet.com/performance-ranking/http://www.humanresources.hrvinet.com/management-by-objectives-mbo/http://www.humanresources.hrvinet.com/360-degree-performance-appraisal/http://www.humanresources.hrvinet.com/forced-ranking-forced-distribution/


12/89

For example, the distribution requested with 10 or 20 percent in the top category, 70 or

80 percent in the middle, and 10 percent in the bottom.

11. Behavioral Observation Scales

Behavioral Observation Scales is frequency rating of critical incidents that worker has

performed.

PROCESS OF PERFORMANCE APPRAISAL

12
http://www.humanresources.hrvinet.com/behavioral-observation-scales/http://www.humanresources.hrvinet.com/behavioral-observation-scales/


13/89

Establishing Performance Standards

The first step in the process of performance appraisal is the setting up of the standards

which will be used to as the base to compare the actual performance of the employees.

This step requires setting the criteria to judge the performance of the employees as

successful or unsuccessful and the degrees of their contribution to the organizational

goals and objectives. The standards set should be clear, easily understandable and in

measurable terms. In case the performance of the employee cannot be measured, great

care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

13


14/89

Once set, it is the responsibility of the management to communicate the standards to all

the employees of the organization. The employees should be informed and the standards

should be clearly explained to the. This will help them to understand their roles and to

know what exactly is expected from them. The standards should also be communicated

to the appraisers or the evaluators and if required, the standards can also be modified at

this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the performance appraisal process is measuring the actual

performance of the employees that is the work done by the employees during the

specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect the

outcome of the process and providing assistance rather than interfering in an employees

work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards

set. The result can show the actual performance being more than the desired performance

or, the actual performance being less than the desired performance depicting a negative

deviation in the organizational performance. It includes recalling, evaluating and analysis

of data related to the employees performance.

DISCUSSING RESULTS

14


15/89

The result of the appraisal is communicated and discussed with the employees on one-to-

one basis. The focus of this discussion is on communication and listening. The results,

the problems and the possible solutions are discussed with the aim of problem solving

and reaching consensus. The feedback should be given with a positive attitude as this can

have an effect on the employees future performance. The purpose of the meeting should

be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR

decisions like rewards, promotions, demotions, transfers etc.

CHALLENGES OF PERFORMANCE APPRAISAL

In order to make a performance appraisal system effective and successful, an

organization comes across various challenges and problems. The main challenges

involved in the performance appraisal process are:

Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the top

management. The performance data to be considered for evaluation should be

carefully selected. For the purpose of evaluation, the criteria selected should be in

quantifiable or measurable terms

Create a rating instrument

15


16/89

The purpose of the performance appraisal process is to judge the performance of the

employees rather than the employee. The focus of the system should be on the

development of the employees of the organization.

Lack of competence

Top management should choose the rates or the evaluators carefully. They should

have the required expertise and the knowledge to decide the criteria accurately. They

should have the experience and the necessary training to carry out the appraisal

process objectively.

Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait

influencing the evaluators rating for all other traits) etc. may creep in the appraisal

process. Therefore the ratter should exercise objectivity and fairness in evaluating

and rating the performance of the employees

Resistance

The appraisal process may face resistance from the employees and the trade

unions for the fear of negative ratings. Therefore, the employees should be

communicated and clearly explained the purpose as well the process of appraisal.

The standards should be clearly communicated and every employee should be

made aware that what exactly is expected from him/her.

PURPOSE OF PERFORMANCE APPRAISAL

16


17/89

Performance Appraisal is being practiced in 90% of the organizations worldwide. Self-

appraisal and potential appraisal also form a part of the performance appraisal processes.

Typically, Performance Appraisal is aimed at:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior

subordinates and management employees.

PERFORMANCE APPRAISAL & DEVELOPMENT PLAN

PURPOSE:

The purpose of conducting a Performance Appraisal is to review and evaluate the

performance of an executive/journalist on contract.

OBJECTIVE:

To inform the appraise of his/her relative performance in terms of targets and Key

Result Areas(KRA)

To encourage meaningful and transparent communication between the appraiser and

appraise.

17


18/89

To identify the training need for development.

GUIDELINES:

The date and time for the appraisal interview has to be fixed well in advance by

mutual consent between the appraiser and the appraise to allow for adequate

preparation.

A separate self-evaluation form has to be filled by every executive/journalist on

contract prior to the appraisal interview and submitted to the appraiser. After the

form is filled, the appraiser should then proceed with the appraisal interview.

During the appraisal interview the appraise first do a Target based review for the

appraise and he should appraise the appraise on the important parameters that have

been identified.

The appraiser should explain to the appraise why he/she has been given a particular

score against a particular parameter and point out the appraisers strengths and

weaknesses.

The targets for the next year should be retained by the Department Head for mid-

term review.

The appraiser should keep a copy of his/her self-evaluation and performance

appraisal form and note the areas for improvement

DEFINITION OF SCORES:

Scores/ Rating Definition

18


19/89

High Flier/Outstanding (5) Employee who truly achieves outstanding success

in the given targets and accomplishes much more

than the expected tasks with efficiency and

effectiveness. Research indicates that only 1% of

the total employee population belongs to this

category.

Regularly Exceeds (4) Employee who exceeds the requirements of the

job. It gives an indication that the person is

prepared sufficiently for a higher classified job.

Research indicates that only about 15% of the

total employee population belongs to this

category.

Meets Requirement (3) This rating is to be given to the employee who

has the requisite qualities to perform the present

job with efficiency. Research indicates that 73%

of the total employee population belongs to this

category.

Occasionally Meets (2) Employee whose performance is adversely

affected due to the lack of qualities required to

perform in his current job. This is an indication

that the person needs to be trained and developed

sufficiently to orient him towards good

performance.

Fails To Meet (1) This rating means totally unacceptable

performance over a period of time. In spite of all

efforts in training and development the employee

19


20/89

continues to demonstrate lack of qualities to

perform the job..

1) Performance Assessment Discussion

This candid discussion between the Appraiser and the Appraise on the latters

performance during the year should focus on the following aspects:

Demonstration of the extent of performance by the employee in the objective

terms.

Identifying the key drivers and facilitators for performance.

Reviewing and discussing performance bottlenecks and making plans to

overcome them.

Planning of KRAs, Measures and Performance Standards for the next

year.

2) Assessment by Appraiser

Post discussion with the employees, the Appraiser will fill in the following

information:

3) Performance Review

The Appraiser will forward the Worksheet duly assessed and completed by him/her

to the Reviewer (the immediate supervisor of the Appraiser) for his/her review and

validation. Based on discussion with the Reviewer, the Assessed Level ofOverall

Performance for the employee will be documented in the Worksheet (based on the

guidelines in the above table).

The reviewer and the appraiser shall document their overall comments relating to the

assessment of employee and sign off at respective places in the worksheet.

4) Performance Calibration Process

20


21/89

After the completion of performance review, the Overall Performance as assessed

will be taken through the Performance Calibration Process by the Functional

Directors. This process would aim at reviewing performance levels across the

functional area and apply necessary changes in line with structured guidelines, if any.

5) Feedback to Appraise

Post calibration process, the Assessed Level of Overall Performance will be

communicated to the Appraise by the Appraiser. The Appraise writes down his

impressions and views (including those regarding the objectivity of the process),

signs off the worksheet and hands it over back to the Appraiser. The Appraiser then

forwards the Worksheet to the Functional Head.

EMPLOYEE DEVELOPMENT GUIDELINES

(A) Identifying Key Behaviour Areas and their Desired Level

The Appraise should fill in the following information in consultation with the Appraiser

and HR Managers.

Sl.No. Term Description

1 Key Behavior Area These are the behaviors that are required by an

individual To perform his/her job effectively.

2 Desired Level of Behavior This is the proficiency with which the Key Behavior is

Required to be demonstrated by the job-holder for

performing his/her job effectively.(B) Demonstration of Key Behaviours by Appraise

Appraise provides Examples of Demonstration ofKey Behaviour (with reference to the

Desired Level of Behaviour) for each of the Key Behaviour Areas. These Examples

(may be Critical Incident) would always have to be work-related and would be

determinants of their Proficiency Level (explained below) on the applicable Key

Behaviour Areas.Review

21


22/89

(C) Development

Post filling in the Examples of Demonstrated Behaviour, the Appraise and the

Appraiser candidly discusses the following:

1. The Frequency of demonstration of a Behaviour by the Appraise, as well as the

Proficiency with which it is demonstrated over a defined period of time.

2. Development Support required by the Appraise to take on higher/ wider roles

within the next year.

3. Training Needs of the Appraise that need to be addressed within the next year.

Post discussion with the Appraise, the Appraiser will fill in the following information in

the Worksheet:

The Appraiser signs off and forwards the documents to the Appraise for his/her

comments and sign-off. Post this; the Appraise forwards the Worksheet to the concerned

HR Manager. The Proficiency Level is communicated the Functional Director. This data

will form an important parameter for Progression / Re-designation decisions.

22


23/89

OBJECTIVES OF THE STUDY

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To study the procedure of performance appraisal implemented in Dhampur

Sugar Mill, Dhampur

23

OBJECTIVES OF

THE STUDY


24/89

To analyse the methods of performance appraisal used in Dhampur Sugar Mill,

Dhampur

To analyse how to calculate the gap between the actual and desired performance

To explore how the individual use their strength and weakness so that their

performance may be appraised

To study how performance appraisal linked with T&D needs

To study how performance appraisal is a tool to strong them relationship and

communication between superiors and subordinates

24


25/89

SCOPE & IMPORTANCE

This project report is proven to be relevant and important in various aspects related to the

topic360 Degree Performance Appraisal . It provide the details of the term

performance appraisal that is, How it came into existence, its relevancy in the

organization and for the employee, What all benefits it provide, What process is

25

SCOPE &

IMPORTANCE


26/89

followed for performance appraisal and to what extent it is efficient, effective and

satisfactory.

The researched had tried to view the things critically so as the suggestion can be

proposed for the issues which are up to the mark.

26


27/89

INDUSTRY PROFILE

Introduction

Sugars are a major form of carbohydrates and are found probably in all green plants.

They occur in significant amounts in most fruits and vegetables. There are three main

27

INDUSTRY PROFILE


28/89

simple sugars sucrose, fructose and glucose. Sucrose is in fact a combination of

fructose and glucose and the body quickly breaks down into these separate

substances.

The Need For Energy

All energy stored in food is derived originally from the sun and it is made by green

plant life. The sun's energy acts upon the green chemical "chlorophyll" in the leaves of

plants to produce sugars and starches from the carbon-dioxide in the atmosphere and

the water from the roots by a process known as Photosynthesis. These carbohydrates

(starches and sugar) acts as a plants food and energy supply. The energy need of

human body is largely dependent on the carbohydrates that are derived from plants.

A Balanced Diet

A balanced diet can come from a variety of different foods, calculated to give the

desired levels of carbohydrates, proteins, fats, vitamins and minerals. Nutritional

scientists advocate that carbohydrates should provide at least 50% of over energy

requirements.

India has been known as the original home of sugar and sugarcane. Indian mythology

supports the above fact as it contains legends showing the origin of sugarcane. India is

the second largest producer of sugarcane next to Brazil. Presently, about 4 million

hectares of land is under sugarcane with an average yield of 70 tonnes per hectare.

India is the largest single producer of sugar including traditional cane sugar sweeteners,

khandsari and Gur equivalent to 26 million tonnes raw value followed by Brazil in the

second place at 18.5 million tonnes. Even in respect of white crystal sugar, India has

ranked No.1 position in 7 out of last 10 years.

28


29/89

Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population in

India. In the early 1930s nearly 2/3rd of sugarcane production was utilised for

production of alternate sweeteners, Gur & Khandsari. With better standard of living and

higher incomes, the sweetener demand has shifted to white sugar. Currently, about 1/3rd

sugarcane production is utilised by the Gur & Khandsari sectors. Being in the small scale

sector, these two sectors are completely free from controls and taxes which are

applicable to the sugar sector.

The advent of modern sugar processing industry in India began in 1930 with grant of

tariff protection to the Indian sugar industry. The number of sugar mills increased from

30 in the year 1930 - 31 to 135 in the year 1935-36 and the production during the same

period increased from 1.20 lakh tonnes to 9.34 lakh tonnes under the dynamic leadership

of the private sector.

The era of planning for industrial development began in 1950-51 and Government laid

down targets of sugar production and consumption, licensed and installed capacity,

sugarcane production during each of the Five Year Plan periods. The targets and

achievements during various plan periods are given below.

History

The discovery of sugarcane, from which sugar as it is known today, is derived

dates back unknown thousands of years. It is thought to have originated in New

Guinea, and was spread along routes to Southeast Asia and India. The process

known for creating sugar, by pressing out the juice and then boiling it into

crystals, was developed in India around 500 BC.

Its cultivation was not introduced into Europe until the middle-ages, when it

was brought to Spain by Arabs. Columbus took the plant, dearly held, to the

West Indies, where it began to thrive in a most favorable climate.

29


30/89

It was not until the eighteenth century that sugarcane cultivation was began in

the United States, where it was planted in the southern climate of New Orleans.

The very first refinery was built in New York City around 1690; the industry

was established by the 1830s. Earlier attempts to create a successful industry in

the U.S. did not fare well; from the late 1830s, when the first factory was built.

Until 1872, sugar factories closed down almost as quickly as they had opened. It

was 1872 before a factory, built in California, was finally able to successfully

produce sugar in a profitable manner. At the end of that century, more than

thirty factories were in operation in the U.S.

Uttar Pradesh Sugar Industry is one of the largest sugar industries in the Indian economy. The

lavish measures in form of new promotional policies for the Uttar Pradesh sugar industry by the

state government of Uttar Pradesh was introduced at a time when it was much needed to further

boost the growth of the Uttar Pradesh sugar industry. The improvements in the plant capacity and

the introduction of new techniques which enables the optimization of the existing plant capacities

has the further made the growth definite.

With the new promotional policies of the Uttar Pradesh sugar industry, the investors have already

starting eying the future prospects. There are 20 more sugar processing units are coming up as a

part of Uttar Pradesh sugar industry. The existing companies under the Uttar Pradesh sugar

industry are planning an investment pertaining to expansion of about Rs 4,000 crore. At present

the major companies in the Uttar Pradesh sugar industry are Balrampur Chini, Simbhaoli Sugars

Ltd., Bajaj Hindusthan Ltd., etc. A batch of Brownfield and Greenfield expansion projects has

already started their activities of crushing cane. The increase in the capacity would help the Uttar

Pradesh sugar industry to churn out an extra 140,000 tons of crushed cane everyday to the

existing 2.5 million tons of sugar produced within a few years time. The total sugar production

under the Uttar Pradesh sugar industry would lead to 7.5 million tons, making Uttar Pradesh the

biggest manufacturer of sugar in India.

30


31/89

The Uttar Pradesh sugar industry has a bright future as one of the prospective players in the

global sugar market. The demand for sugar across the world has been growing exponentially.

The Uttar Pradesh sugar industry with its capacity can cater to this international demand. The

advantages of the Uttar Pradesh sugar industry are that the cost of production is quite low and the

climatic conditions and the conditions of the soil are favorable to the sugarcane production. The

region of India where the state of Uttar Pradesh lies is one of the most fertile lands in India called

the 'doab'. This is an extremely fertile belt of lands between the rivers Ganges and Jamuna. To

boost the production of the Uttar Pradesh sugar industry, the government of Uttar Pradesh is

likely to set up a research and development unit which would develop better quality sugarcane

plants to have better yield and diseases-resistant crops to ensure that the industry has a

sustainable growth. The geographical position of the state of Uttar Pradesh is one of the key

advantages as it is very easy to access. With all these developments the Uttar Pradesh sugar

industry can meet the increasing domestic demands in India, which due to the improvements in

the economic conditions and the rise in the general income level. The present consumption of

sugar is nearly 19 mt annually and it may go up to 24 MT on a yearly basis.

At present, the situation of the Indian sugar production can improve with all these measures. In

the financial year of 2004-2005, India had to import 8.89 lakh tons of sugar from different

countries due to the huge decline in the national sugar production. These measures would have a

long term effect on the sugar production of the state and therefore of the entire country.

31


32/89

Sugar Industry in India is well developed with a consumer base of more than billions of people.

It is also the second largest producer of sugar in the world.

There is around 45 millions of sugar cane growers in India and a larger portion of rural labourers

in the country largely rely upon this industry. Sugar Industry is one of the agricultural based

industries. In India it is the second largest agricultural industry after textile industry.

Statistics on Sugar Production

As to the statistics there were a total number of 571 sugar factories in India as on March 31, 2005

compared to 138 during1950-51. These 571 sugar mills produce a total quantity of 19.2 million

tones (MT). Sugar production in India increased from 15.5 MT in 1998-99 to 20.1 MT in 2002-

03.

32


33/89

Department of Agriculture and Co-operation, sugarcane production in 2004-05 is estimated at

232.3 MT from 237.3 MT in 2003-04. Sugarcane production is expected to reach 257.7 MT in

2005-06.

Sugar Production In states

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

State 2002-03 2003-04 2004-05 Estimated

Uttar Pradesh 58.74 46.08 50.32

Maharashtra 61.64 31.99 22.29

Karnataka 17.98 11.57 13

Tamil Nadu 17.04 11.9 9.84

Andhra Pradesh 11.88 8.81 9.75Gujarat 12.38 10.77 8.32

Haryana 5.99 5.86 4.03

Uttaranchal 4.59 3.93 3.82

Punjab 5.11 3.88 3.37

Bihar 4.21 2.77 2.77

Madhya Pradesh 0.85 0.94 0.85

Other 0.91 1.09 1.58

The sugar production in the states largely depends upon monsoon. From 1998-03 good monsoon

resulted a larger production of sugar in the country.

Sugar Pricing:

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

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

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

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

INDIAN GOVERNMENT ON SUGAR INDUSTRY

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

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

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

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

efficiency in the industry.

33


34/89

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

modernization of the industry.

Manufacturing Process and Technology

Sugar (sucrose) is a carbohydrate that occurs naturally in every fruit and vegetable. It

is a major product of photosynthesis, the process by which plants transform the sun's

energy into food. Sugar occurs in greatest quantities in sugarcane and sugar beets from

which it is separated for commercial use. The natural sugar stored in the cane stalk or

beet root is separated from rest of the plant material through a process known as

refining.

For sugarcane, the process of refining is carried out in following steps

Pressing of sugarcane to extract the juice.

Boiling the juice until it begins to thicken and sugar begins to crystallize.

Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar.

Shipping the raw sugar to a refinery where it is washed and filtered to remove

remaining non-sugar ingredients and color.

Crystallizing, drying and packaging the refined sugar

Beet sugr processing is similar, but it is done in one continuous process without the

raw sugar stage. The sugar beets are washed, sliced and soaked in hot water to separate

the sugar -containing juice from the beet fiber. The sugar-laden juice is then purified,

filtered, concentrated and dried in a series of steps similar to cane sugar processing.

For the sugar industry, capacity utilization is conceptually different from that

applicable to industries in general. It depends on three crucial factors the actual number

of ton of sugarcane crushed in a day, the recovery rate which generally depends on the

quality of the cane and actual length of the crushing season.

Since cane is not transported to any great extent, the quality of the cane that a factory

receives depends on its location and is outside its control. The length of the crushing

34


35/89

season also depends upon location with the maximum being in south India.

Sugarcane in India is used to make either sugar, khandsari or gur. However, sugar

products produced worldwide are divided into four basic categories : granulated,

brown, liquid sugar and invert sugar.

Granulated : Granulated sugar is the pure crystalline sucrose. It can be classified into

seven types of sugar based on the crystal size. Most of these are used only by food

processors and professional bakers. Each crystal size provides unique functional

characteristics that make the sugar appropriate for the food processor's special need.

Granulated Sugar

There are many different types of granulated sugar. Most of these are used only by food

processors and professional bakers and are not available in the supermarket. The types of

granulated sugars differ in crystal size. Each crystal size provides unique functional

characteristics that make the sugar appropriate for the food processor's special need.

"Regular" Sugar, Extra Fine or Fine Sugar

"Regular" sugar, as it is known to consumers, is the sugar found in every home's sugar bowl

and most commonly used in home food preparation. It is the white sugar called for in most

cookbook recipes. The food processing industry describes "regular" sugar as extra fine or

fine sugar. It is the sugar most used by food processors because of its fine crystals that are

ideal for bulk handling and are not susceptible to caking.

Fruit Sugar

Fruit sugar is slightly finer than "regular" sugar and is used in dry mixes such as gelatin

desserts, pudding mixes and drink mixes. Fruit sugar has a more uniform crystal size than

"regular" sugar. The uniformity of crystal size prevents separation or settling of smaller

crystals to the bottom of the box, an important quality in dry mixes and drink mixes.

Bakers Special

Bakers Specials crystal size is even finer than that of fruit sugar. As its name suggests, it was

developed specially for the baking industry. Bakers Special is used for sugaring doughnuts

35


36/89

and cookies as well as in some commercial cakes to produce fine crumb texture.

Superfine, Ultrafine, or Bar Sugar

This sugar's crystal size is the finest of all the types of granulated sugar. It is ideal for extra

fine textured cakes and meringues, as well as for sweetening fruits and iced-drinks since it

dissolves easily. In England, a sugar very similar to superfine sugar is known as caster or

castor, named after the type of shaker in which it is often packaged.

Confectioners ( Powdered ) Sugar

This sugar is granulated sugar ground to a smooth powder and then sifted. It contains about

3% corn starch to prevent caking. Confectioners sugar is available in three grades ground to

different degrees of fineness. The confectioners sugar available in supermarkets is the finest

of the three and is used in icings, confections and whipping cream. The other two types of

powdered sugar are used by industrial bakers.

Coarse Sugar

The crystal size of coarse sugar is larger than that of "regular" sugar. Coarse sugar is

normally processed from the purest sugar liquor. This processing method makes coarse

sugar highly resistant to color change or Inversion (natural breakdown to fructose and

glucose) at high temperatures. These characteristics are important in making fondants,

confections and liquors.

Sugar has Medical Value

Apart from sugar being a cheapest instant source of energy, it has several medical &

therapentical values. Some of them are as elaborated below.

Sugar For Oral Rehyderation

Sugar is extremely valuable in treatment of severe infantile diarrhea, a serious problem that

kills around 3.5 million children in a year in underdeveloped countries. Oral re-hydration

treatment (restoring of liquids by mouth) is used for infants with diarrhea due to cholera or

re-hydrating viruses. It is simpler and easier to mix sugar with salt to treat de-hydration

children even in the most remote areas. Further studies prove that oral sucrose was an

36


37/89

effective as intravenous treatment in retaining re-hydration.

Sugar Heals Wounds

Sugar has tremendous healing power. Sugar helps in wiping out infections in all types of

wounds and speed up the healing time as well. Fills up sugar in the open wounds and it

dissolves in tissue where micro organism cannot survive.

Sugar is the Best Carrier of Vitamin E, A and Minerals

Vitamin A deficiency in South American population is being combated successfully with the

use of fortified sugar. Encouraged by the results, fortification of sugar with vitamin A is

being attempted to combat vitamin A as well as mineral (iron ) deficiencies a major area of

concern in some of the developing countries.

Sugar Brokers & Wholesalers Address Phone Number

A R Chocklingam Chettiar &

Sons

76, Rajammal Layout,

Coimbatore - 641 001

Tamil Nadu, India

+ 91 - 422 - 2470687

Kesajee Corporation

113, Subbiah Mudaliar

Street,

Coimbatore - 641 001,

Tamil Nadu, India

+ 91 - 422 - 2395605

Lakshmi Sugar Merchant

11 / 33A, Thadagam Road,

Edayarpalayam, Coimbatore

- 641 025

Tamil Nadu, India

+ 91 - 422 - 2401028

P N Nelson Agency

79, Subbiah Mudaliar

Street,


Tamil Nadu, India

+ 91 - 422 - 2395454

Sakthi Sugars Ltd 180, Race Course Road ,


+ 91 - 422 - 2210569

37


38/89

Tamil Nadu, India

Tamil Nadu Co-Op Sugar

Federation

Central Co-Op Bank

Building,

State Bank Road,


Tamil Nadu, India

+ 91 - 422 - 2300573

Tribhovandas Vendravan &

Bros

105 / 106, Old Market

Street,

Tiruppur - 641 604,

Tamil Nadu, India

+ 91 - 421 - 2240060

V Hirachand

23 / 63, Subaiyah Mudaliyar

Street,


Tamil Nadu , India

+ 91 - 422 - 2392993

Vellingiri & Co

438, Rangai Gowder Street,


Tamil Nadu, India

+ 91 - 422 - 2391019

Sugar Mill Machinery Mfrs Address Phone Number

Aeromen Engg Co

167, Thirumalayam

Palayam,

Ettimadai Pirivu,


Tamil Nadu, India

+ 91 - 422 - 2656495

Doall Ehgineering Products A1, Kanakkal Street,

K.K.Pudur,


+ 91 - 422 - 2447519

38


39/89

Tamil Nadu, India

Krishna Industries

29-D, Dharapuram Road,

Udumalpet - 641 126

Tamil Nadu, India

+ 91 - 4252 - 223879

Murthy Industries

12 / 15, Ammankulam

Street,


Tamil Nadu, India

+ 91 - 422 - 2654271

R K Industries

761, Marapallam

Madukkarai,


Tamil Nadu, India

+ 91 - 422 - 2622378

Sakthi Sugars Ltd

45, N Gounder Street,

Pollachi - 642 001

Tamil Nadu, India

+ 91 - 4259 - 223935

Sri Sujay Engineering Products

1276, Mettupalayam

Road,


Tamil Nadu, India

+ 91 - 422 - 2442430

Sri Vijayalakshmi Industries

54, Sowripalayam Road,


Tamil Nadu, India

+ 91 - 422 - 2316202

39


40/89

Sugar Producers Address Phone Number

Bannariamman Sugars Ltd12/175 Sathy Road,

Annur, Tamil Nadu, India

+ 2354214

Hirachand V & Ottagee Sugars

23 / 63 Subbiah Mudaliyar

Street,


Tamil Nadu, India

+ 91 - 422 - 2392983

Jeypore Sugar Co Ltd

53-54, Race Course Road,


Tamil nadu, India

+ 91 - 422 - 2216767

Raasi Sugars

338, Avinashi Road,

Peelamedu,


Tamil Nadu, India

+ 91 - 422 - 2576746

Rajshree Sugars Chemicals Ltd

D 338 Avinashi Road,


Tamil Nadu, India

+ 91 - 422 - 2575199

Sakthi Sugars Ltd

95-A, Vyshnav Complex,

Race Course ,


Tamil Nadu, India

+ 91 - 422 - 2211060

Sri Velmurugan Trading Co

818, Ranga Gounder Street,


Tamil nadu, India

+ 91 - 422 - 2393381

Velan Distributors (P) Ltd 1127, R G Street,


+ 91 - 422 - 2397733

40


41/89

Tamil Nadu, India

41


42/89

COMPANY PROFILE

42

COMPANY PROFILE


43/89

DHAMPUT SUGAR MILLS LTD

HISTORY

The Dhampur Group began its operations at Dhampur, Uttar Pradesh in 1933 with a crushing

capacity of 300 TCD. The current capacity of Dhampur Group is 39,500 TCD. Its products

include Power, Ethanol, Chemicals, Refined Sugar and Plantation White Sugar.

Leadership begins with a vision

Lala Ram Narain ji [1880 1943], founder of the Dhampur Group, took on the task of

supporting his entire family at a very young age and shouldered his responsibilities with fortitude

and confidence. During this period he worked with a forest contractor but the craving to press

forward and accomplish, burnt deep within his heart. He soon spotted an opportunity in supply of

wooden sleepers, for laying new railway tracks and boldly struck out on his own. His

determination defied logistics and laid the foundations of the Dhampur Group.

From such modest beginnings, he hand-crafted the destiny of the corporate house that today,

directly and indirectly, provides employment and livelihood to a large number of individuals and

families of the rural India.

In the early 1930s, while the strategists debated over choice of role models on which to shape

the Indian economy, Lala Ram Narain ji anticipated the need for industrialization. The outcome

of his foresight was investment in two sugar mills one at Dhampur and the other as a 50%

partner, at Bareilly, in Uttar Pradesh.

The Dhampur Sugar Mill was commissioned in 1933.

Shri Murli Manohar ji [1916 1964], eldest son of Lala Ram Narain ji took up the baton at an

early age to carry forward the vision and legacy of his father. Even in face of a youth spent in

comparatively difficult circumstances, the indomitable will he inherited from his father

manifested itself in 1947 when the Indian Sugar Industry was passing through a challenging

43


44/89

phase.

He resisted efforts to divest the Dhampur unit and took over the Managing Agency of the

factory agreeing to pay a fixed dividend to his partners. He accomplished this task with great

lan and successfully turned around the fortunes of the Dhampur factory.

He passed away at the young age of 48 but the path for the future generations had already been

etched.

Dhampur Today

The Dhampur Group is spearheaded by its dynamic Chairman, Mr.V.K.Goel. His visionary

innovativeness and emphasis on continuous R&D have made the company a technological leader

in sugarcane processing and green energy solutions.

Starting from 300 TCD in 1933 the Dhampur Group has recorded an impressive performance

taking its crushing capacity of sugarcane to 39500 metric tonnes per day, with power co-

generation capacity of 145 MW and alcochem capacity of 270,000 liters per day. Through its

successful pioneering efforts, the Dhampur Group directed the industrys development by

introducing new technologies like Fibrizors, Pressure Feeders, Fiber based single tandem,

Pressure Evaporation System with Falling Film Type Evaporator Bodies, Vertical Continuous

Pans etc. These innovations became the mainstay of sugar technology in India.

Dhampur is one of the most integrated sugarcane processing companies in India. Dhampur's

sugarcane co-generation capacity is one of the largest in the country and it has perhaps the

highest ethanol manufacturing capacity relative to its cane crushing capacity, in the country. It is

also the first and the largest producer of refined sulphurless sugar in the country.

BOARD OF DIRECTORS

44


45/89

Mr. V.K. Goel

Promoter Director and Chairman, aged 69 years is a Chemical Engineer. He is a well known

Sugar Technologist and Entrepreneur with vast experience of around 47 years. He is the

source of inspiration for every innovation and R&D and has placed the company among the

global leaders in sugarcane technology. He has been the President of Indian Sugar Mills

Association (ISMA), an apex body of sugar manufacturers of India. An avid sportsperson, he

is also the Founder President of Delhi Squash Association.

Mr. A.K. Goel

Promoter Director and Vice Chairman, aged 63 years, is a commerce graduate. He too has

vast experience of over 41 years in the Sugar and Paper Industry. He has been the President of

U.P. Sugar Manufacturers Association (UPSMA) and President of Indian Sugar

Manufacturers Association (ISMA). He is also the Founder President of Indian Agro Paper

Mills Association (IAPMA). He is a dedicated bridge player and Founder President of

Contract Bridge Association. He has represented India at the Bridge Olympiad and the

Bermuda Bowl.

Mr. Gaurav Goel

Promoter Director and Managing Director. Mr. Gaurav Goel, aged 36 years is the son of Mr.

Ashok Kumar Goel. He is a Business Management Graduate from United Kingdom and has

been associated with the company since 1994. He is responsible for the overall management of

financial aspects. He has been the President of Entrepreneurs Organization (EO), Delhi

Chapter, for the year 2006-07. He takes avid interest in Tennis, Bridge and Reading.

Mr. Gautam Goel

Promoter Director and Managing Director. Mr. Gautam Goel aged 36 years is the son of Mr.

45


46/89

Vijay Kumar Goel. He has been associated with the company since 1994. He is responsible for

the technical and working aspect of operations. He is presently the Chairman of the

Cogeneration Sub-Committee as well as of the Media and Communications Sub-Committee of

the Indian Sugar Mills Association (ISMA). He is a dedicated sportsperson with special

interest in Squash and has represented Delhi in national tournaments.

Mr. Ashwani K. Gupta

Independent Director. Mr. Ashwani Kumar Gupta, aged 54 years, is a Chartered Accountant,

headquartered at Lucknow. He has experience of over 31 years and is acknowledged as one of

the leading Finance, Treasury, Real Estate, Securitisation, Re-construction of Assets Experts

in the Industry today and is on the Board of various prestigious companies. Mr.Gupta is

Regional Council Member of Central India Regional Council of Institute of Chartered

Accountants of India. He has been Government Nominee on the Board of Joint Sector

Companies and RBI nominee on the Boards of Bank.

Mr. M.P.Mehrotra

Independent Director. He is a Chartered Accountant with experience of over 41 years and

with vast exposure of finance and taxes. He has wide experience as an Auditor and Tax

Consultant and is an expert on Companies Act and Income Tax Act. He is the founder Partner

of Mehrotra & Mehrotra and member of several prominent organizations such as Central

Board of Trustees, Employees Provident Fund Organization (EPFO), Ministry of Labour,

Govt. of India, Task Force for MOUs, Ministry of Heavy Industries & Public Enterprises,

Govt. of India, Advisory Committee, Handlooms, Ministry of Textiles,Govt. of India,

PHDCCI and ASSOCHAM and several others. He has been Director, Canara Bank and

Trustee, Cochin Port Trust.

Mr. Harish Saluja

46


47/89

Independent Director. He is a Chartered Accountant with experience of about 36 years and

with vast exposure of the financial market in India.

Mr. Rahul Bedi

Independent Director, aged 57 years. Experienced Journalist. He is the India Correspondent

for the Daily Telegraph, UK and the Irish Times, Dublin. He specializes in military and

security-related issues. An MA in English Literature from Delhi University he was also at

Oriel College, Oxford as the Reuters Fellow in the mid 1980's.He has co-authored several

books. In the 1970's he was Assistant Master at The Mayo College, Ajmer and The Doon

School where he taught English, History and Mathematics.

Mr. J.P. Sharma

Employee Director. A senior employee of the company, acting as Occupier for the Factories

of Company.

Mr. Priya Brat

Independent Director. He is a science graduate and started his career as an academician but

has been a banker since 1959. During his remarkable career he has been associated with

several major financial institutions. He has been on the boards of State Bank of Patiala, State

Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, State Bank of

Mysore, State Bank of Travencore, State Bank of Saurashtra, M.P.State Development

Corporation, M.P.State Electronic Development Corporation and OPTEL.

Mr.B.B.Tandon

Independent Director. Mr. B.B. Tandon was a member of Indian Administrative Services

(IAS) 1965-2001, Election Commissioner of India w.e.f. 13.06.2001 to 15.05.2005, member

of the Delimitation Commission w.e.f. 12.07.2002 to 15.05.2005 and Chief Election

47


48/89


49/89

Dhampur stands tall with the collective confidence that our farmers, our workers, our vendors

and our stakeholders have pledged with us. Their sense of belonging, their hopes and

expectations motivate us to perform better each time. Preserving their trust is our corporate

mantra.

At Dhampur we have striven to realize a corporate environment of collaborative effort and

have worked towards continuous improvement in every sphere of our activity. In our quest for

excellence we have given special consideration to our social obligations, whether it is caring

for the rural hinterland or the environment we live in. A significant and endearing feat for the

Group is that some of its employees have been a part of the Dhampur family for two to three

generations.

Projections of the sugarcane based Industry in India are exceptionally promising and Dhampur

is totally geared up to think beyond the cube:

To provide energy alternatives to an energy-starved country through co-

generation and ethanol.

To value add on our product portfolio

To maximize the potential of the agro industry in India.

To continuously bring down the cost of conversion.

To encourage creativity and resourcefulness, and focus on continuous R&D.

To optimize the value of stakeholder investments with a continuous improvement

in financial performance.

To diversify and protect the bottom-line during industry downturn.

To attain the highest level of accountability, corporate governance and

shareholder value.

49


50/89

In a country where agriculture is the predominant activity, sugarcane processing units wield a

tremendous impact on the area of their location. We continue to play our role with absolute

commitment and watch with fascination and pride as even the most backward areas where our

units are located, slowly transform into a beehive of activity, touching the lives of thousands

of people, now a part of the ever increasing Dhampur family.

50


51/89

PRODUCT PROFILE

SUGAR:

BRAND : DHAMPURE

51

PRODUCT PROFILE


52/89


53/89

BAGASSE, the residual fiber of sugarcane after crushing and extraction, is a valuable by-

product generated during the sugar manufacturing process. It has high calorific value and is

therefore used to generate steam and thereby electricity, which is a conventional thermal

alternative and eliminates emission of green house gases.

In 1994, Dhampur was the first sugar company in India to start eco-friendly cogeneration at one

of its units, with a low project outlay as compared to conventional power plants.

Conventionally, this was restricted to providing captive power in order to meet the energy

requirements of the sugar factory. However, Dhampur was one of the first to realize the

tremendous potential it had towards reducing the power deficit, by supplying to the grid, thereby

contributing to the bio-energy effort undertaken by the country.

An additional benefit of using bagasse is that it is a renewable source of fuel and does not

contribute to Greenhouse gasses as the sugarcane plantation consumes more carbon dioxide than

that generated in burning bagasse. Today, the Groups combined co-generation capacity stands at

145 MW with 80 MW of grid interactive power.

Dhampur is the first in the world to install 105 kg.cm2

boiler and turbine in its sugar division,

which has increased efficiencies in bagasse usage and made it perhaps the most efficient

cogeneration unit in the world. Dhampur additionally installed energy saving devices which

would further increase bagasse savings. This saving would enable the company to run its power

plants without external bagasse purchases. Power generation in non-sugar season as well, will

result in consistent cash inflows.

Dhampur was the first sugar company in Uttar Pradesh, which was allowed export of power

under Open Access (during off-season), from 1 st October, 2009, resulting in higher realizations.

ETHANOLCAPACITY : 270 KL Per Day

Ethanol is a generic name for Ethyl Alcohol which is a product of sugarcane molasses and juice,

prepared by fermentation and distillation processes. It is a volatile, flammable and colourless

liquid, widely used as a solvent of substances intended for human contact or consumption,

including fragrances, flavoring, colouring and medicines. When blended, as an additive with fuel

for motor vehicles, it is known as Motor Fuel Grade Alcohol or Power Alcohol. It can be blended

53


54/89

with petrol in varying quantities up to any extent depending upon the technology of the engine.

Up to 15% blend no modifications are required in the engines.

Usage of ethanol-blended gasoline began in the late 1970s. Environmentally, the use of ethanol

blends has assisted in reducing carbon monoxide emissions. In the United States, one out of

every eight gallons of gasoline sold contains ethanol. Most of this ethanol is purchased as blends

of 10% ethanol and 90% gasoline, known as E10, and is used as an octane enhancer to improve

air quality.

In India we are presently using E5 that is, 5% ethanol blend with gasoline but a government

order for 10% blend is expected in the near future.

A SUGAR INDUSTRY PERSPECTIVE & ETHANOL PRODUCTION

Most sugar companies in India are evolving into integrated players as diversification into

distillery, ethanol and power has become possible. This has improved the demand for molasses

and ensures better economics.

The Government of India has made blending of 5% Ethanol in motor vehicle fuels, compulsory

all over India. This directive has provided sugar mills the opportunity to implement forward

integration.

A 5% ethanol blend on an all-India basis would require around 500 million liters. The current

installed capacity would be adequate to meet this requirement as also for E10 blend, even after

fully meeting the requirement of the chemical industry and potable sectors, as India is the second

largest producer of sugar in the world.

Ethanol blended fuels are advantageous due to the following characteristics:

Renewable source of energy

Renewable source of energy

Use Molasses which is readily available and is a by-product of the sugar manufacturing

process

54


55/89

Diversifies the Sugar Industry

Utilizes industrial installed capacity, improving the economy of the industry.

Energy security, trade balance and risk reduction.

Reduce use of gasoline and ensures less dependence on imports of oil

Market opportunity for agricultural crops

Rural economic development and boost to the agricultural sector

Environmental benefits (reduced carbon dioxide and carbon monoxide emission. It does

not contribute to the harmful greenhouse gasses)

Displaces dangerous and environmentally damaging components in gasoline, such as

benzene.

India presently has an installed capacity of over 3,000 million liters per annum but is producing

less than 50% of installed capacity.

PERFORMANCE APPRAISAL IN DHAMPUR SUGAR MILL

The employee Performance Appraisal enables the manager or the supervisor to identify,

evaluate and develop an individuals performance. It is a tool to encourage strong

performers to maintain their high level of performance and to motivate poor performers

to do better. It offers a chance for a supervisor and subordinate to have time out for a

one-on-one discussion of important work issues that might not otherwise be addressed.

Performance Appraisal is a medium that provides recognition for an employees good

work. The existence of an Appraisal program indicates to an employee that the

organization is genuinely interested in their individual performance and development.

This has a positive influence on the individuals sense of worth, commitment and

belonging.

Performance Appraisal offers an excellent opportunity, for a supervisor and subordinate

to recognize and agree upon individual training and development. From the point of view

of the organization as a whole, consolidated appraisal data can form a picture of the

55


56/89

overall demand for training. This data may be analyzed by variables such as sex,

department etc. in this respect, performance appraisal can provide a regular and efficient

training needs audit for the entire organization.

Appraisal data can be used to monitor the success of the organizations recruitment and

induction practices. For example how well are the employees performing who were hired

in the past two years? Appraisal data can also be used to monitor the effectiveness of

changes in recruitment strategies. By following the yearly data related to new hires (and

given sufficient numbers on which to base the analysis) it is possible to assess whether

the general quality of the work force is improving staying steady or declining.

Performance Appraisal not only results in a healthy interaction between the supervisor

and the employee but also brings forth the problems of a job (if any), needs of a job,

strengths and weaknesses of an employee, the training needs etc. The benefits of

Performance Appraisal can be discussed under three headings.

Benefits for the employee

Gaining a better understanding of their role.

Understanding more clearly how and where they fit in within the wider picture.

Understanding of how performance is assessed and monitored.

Getting an insight into how their performance is perceived.

Improving and understanding their strengths, weaknesses and developmental

needs.

Identifying ways to improve employee performance.

Providing an opportunity to discuss and clarify developmental and training needs.

Understanding and agreeing to their objectives for the next year.

Discussing career direction and prospects.

The above if done in true spirit encourages employee satisfaction.

56


57/89

Benefits to the line manager/supervisor/team leader

Opportunities to hear and exchange views and opinions away from the normal

pressure of work.

Identifying potential difficulties or weaknesses.

Understanding the resources available.

Planning for and setting objectives for the next period.

Thinking about and clarifying each ones role in the team.

Planning for achieving improved performance.

Planning for further delegation and coaching.

Motivating members of the team.

Benefits to the organization

Identifying and assessing potential.

Gathering information regarding the expectations and aspirations of employees.

Analyzing information to improve decisions about promotions and motivation.

Reviewing succession plan.

Assessing training needs which forms the base for developing training plans.

Updating of employee records (achievements, new competencies).

Career counseling.

In reality, many managers handle performance appraisals quite poorly. The result is not

only an unpleasant meeting, but one where the manager and his/her staff members never

quite appreciate the others point of view, and never appreciate the others point of view,

and never quite settle an appropriate goals for the coming year. Its almost inevitable that

the staff members will end up less happy, motivated and less motivated than what she/he

was before. To make performance appraisal an enriching experience for both the

57


58/89

employee and his supervisors, the supervisor should remember not to make the following

5 mistakes.

Waiting for the performance appraisal to give feedback

This is a very commonly committed blunder. Its where a manager falls to give

someone adequate feedback on their performance during the year, and then dumps it

on them in the performance appraisal meeting. Unfortunately, the feedback is almost

always negative, so the employee ends up sitting there in shock- at best, wondering

why his/her manager didnt say something sooner, at worst, feeling unjustly

victimized.

Overemphasizing recent performances

Its very natural to remember and give greater weight to recent events rather than

earlier events. This can lead to an inaccurate and unfair assessment when it comes to

reviewing an employees performance. The manager must take notes of an

employees work throughout the year.

Being too positive or too negative

Some managers feel uncomfortable giving negative feedback and consequently, can

omit to give employees the constructive criticism they need to improve. And then

there are other managers who are instinctively too negative, leaving the employee

wondering if they can do anything right. As a manager, appraising an employees

performance, he should give an honest opinion, so that the employee understands and

appreciates the managers view.

Being critical without being constructive

58


59/89

Some managers can be too critical and neglect to provide any constructive advice on

how an employee can improve. This doesnt help the employee or the manager. In

order to refrain the employee from feeling victimized, the manager should validate

his criticism by giving reasons and improvement tips.

Talking and not listening

The final big mistake that the managers make in a performance appraisal is, doing

too much talking and not enough listening. Performance Appraisal meeting are meant

to be interactive- where the manager doesnt simply rely on his/her own appraisal of

the employees performance but also listens to the employees viewpoint and his

feedback of the job.

In truth, managers who seek to influence the performance of their employees need

not always have the support of an elaborate corporate system. The most effective

performance management approaches build on a strong communication system that

is transparent; exemplifies high standards and trust. In a nutshell Performance

Appraisal is a legitimate employee evaluation and feedback system which makes the

system and working of a company more transparent and goal-oriented. It is not just a

process to review an employees performance but also an opportunity that can give

the employee, the required motivation to do better and the superior a feedback on the

problems

Self Appraisal

59


60/89

This involves assessment of ones performance by the employee himself. The employee

identifies his own strengths and weaknesses, offers his opinion on the adequacy of the

training he has received and suggests ways in which the organization might better use his

talents, skills and experiences. Self appraisal is based on the assumption that nobody

knows a person better than the person himself. Further, it helps in making the process of

appraisal more transparent.

However, employees often have an inaccurate perception of their performance where

they exaggerate their accomplishments and in such cases, self appraisal may lose its

meaning.

Therefore, most often, self-appraisal on the part of the employees is taken as a

supplement, that is as an additional input to formal appraisal by the superiors in an

organization.

Self appraisal is used only for developmental purposes and not for administrative

purposes.

60


61/89

RESEARCH METHODOLOGY

61

RESEARCH

METHODOLOGY


62/89

Research Design

The research design is the conceptual structure with in which research is

conducted it consist the blue print of the collection measurement and analysis of data.

In that project the research design was adopted for the Descriptive cum

Analytical The main purpose of such studies is that of formulating a problem for more

precise investigation or of developing the working hypothesis from an operational point

of view

Research design is simply the framework or plan for a study, used as a guide in

collecting and analyzing data. There are three types of Research Design:-

1. Exploratory Research Design:- The major emphasis in exploratory

Research design is on discovery of ideas and insights.

2. Descriptive Research Design:- The Descriptive Research Design Study is

typically concerned with determining the frequency with which something

occurs or the relationship between two variables.

3. Causal Research Design:- A Causal Research Design is concerned with

determining cause and effect relationship.

Descriptive cum Analytical Research Design is used in my project report .

DATA COLLECTION

I have taken the primary data for this project report since the data is

secondary nature so test of sampling have not undertaking

Instrument used: Questionnaire

Sample Size: 50

Population of Interest: Employees.

Sampling Technique: Convenience.

62


63/89

FINDINGS AND ANALYSIS

63

FINDINGS &ANALYSIS


64/89

Q.1. Do you understand the basic objective of performance appraisal?

Table No. 1

Sr. No.. Options Percentage

1 Yes 75%

2 No 25%

Graph No. 1

75%

25%

YesNo

Interpretation: About the understanding of the basic objecties of perfofmance appraisal,

75% respondents said Yes & 25% respondents said No.

Q.2. How is your Performance appraised?

Table No. 2

64


65/89


1 Individually 70%

2 In team 30%

Graph No. 2

70%

30%

Individually

In team

Interpretation:

Your performance is appraised by the company, then 70% respondents say that his

performance is appraised individually, 30% respondents say his performance is appraised

in team.

Q.3. Who is appraising your performance?

Table No.3

65


66/89


1 Manager 100%

2 Customer 0%

3 Employees 0%

4 Others 0%

Graph No. 3

100%

0%0%0%

Manger

Customer

Employees

Others

Interpretation:

100% respondents said that his performance is appraised by Manager.

Q.4. Does the system of appraisal provide real measurement of the performance of

employee?

Table No.4

Sr. No. Options Percentage

66


67/89

1 Correct 86%

2 Partially Correct 10%

3 Incorrect 4%

Graph No. 4

86%

10%4%

Correct

Partially Correct

Incorrect

Interpretation:

Is the system of appraisal provides real measurement of the performance of employees,

then 86% respondents say that it is real, 10% respondents say that it is partially correct

and 4% respondents say that it is incorrect.

Q.5. Do you find that Appraisal System reflect any scope of improvement in ones

performance?

Table No.5


1 Agreed 70%

67


68/89

2 Partially Agreed 20%

3 Disagreed 10%

Graph No. 5

70%

20%

10%

Agreed

Partially

Disagreed

Interpretation:

Appraisal sysem reflects any scope of improvement in ones performance than 70%

respondents are agreed about this statement, 20% respondents are partially agreed and

10% respondens are disagreed.

Q.6. Does this Appraisal System help you to know your progress in achieving the set

target?

Table No.6


1 True 100%

2 Partially True 0%

68


69/89

3 False 0%

Graph No. 6

100%

0%

0%

True

Partially true

False

Interpretation:

The appraisal system help you to know the progress in achieving the set targets then

100% respondents say that this statement is true.

Q.7 Perforamnce Appraisal helps you in:-

Table No.7


1 Promotion 25%

2 Career Planning 15%

3 Goal achievement 60%

4 Any other 0%

69


70/89

Graph No. 7

25%

15%60%

0%

Promotion

Career Planning

Goal achievement

Any other

Interpretation:

Performance appraisal helps in then 25% respondents say it help in promotion, 15%

respondetns say is help in career planning, 60% respondents say it help in goal

achievement.

Q.8 Are you satisfied with criteria adopted to appraise you?

Table No.8


1 Yes 69%

2 No 31%

Graph No. 8

70


71/89

69%

31%

Yes

No

Interpretation:

About the satisfaction with the criteria adopted to appraise the employee by the company

then 69% respondents were satisfied and 31% respondents were not satisfied.

Q.9. Is the Performance Appraisal System transparent?

Table No.9


1 Yes 78%

2 No 22%

Graph No. 9

71


72/89

78%

22%

Yes

No

Interpretation:

Is the performance appraisal system transparent, then 78% respondents say Yes and 22%

respondent say No.

Q.10. Do you feel that rewards are given according to your performance?

Table No.10


1 Yes 85%

2 No 15%

Graph No. 10

72


73/89


74/89

72%

28%

Yes

No

Interpretation:

The feed

Documents

Performance_appresal in Dhampur Sugar Milli Ltd000000