“SUGAR MANUFACTURING PROCESS”

A project of

PRODUCTION OPERATION MANAGEMENT

Submitted in partial fulfillment of the

Requirements for the award of the

Post-Graduate Diploma in Management

Submitted By:

Isha Saxena, Roll No: 09085,

Karishma Tiwari, Roll No: 09092

Kirti Tiwari, Roll No: 09093

Neeti shree ,Roll No:09116

Neha Gulati,Roll no:09117

Submitted to

Prof.S.K.DUBEY

INSTITUTE OF MANAGEMENT STUDIES

LAL QUAN, GHAZIABAD – 201 009

March 2010

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DECLARATION

We hereby declare that all information and data provided in this report

are collected from secondary source and are true to the best of our

knowledge.

Signature of Students: -

Isha Saxena, Roll No: 09085,

Karishma Tiwari, Roll No: 09092

Kirti Tiwari, Roll No: 09093

Neeti shree ,Roll No:09116

Neha Gulati,Roll No:09117

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INSTITUTE OF MANAGEMENT STUDIES,

GHAZIABAD

CERTIFICATE

This is to certify that this report contains bonafide work of Isha saxena,

Karishma Tiwari ,Kirti Tiwari ,Neeti Shree ,Neha Gulati during Term III,

session 2009-2011 for the subject STRW.

DATE: Signature of Faculty

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ACKNOWLEDGEMENT

It is our immense pleasure to present the report on

“SUGAR MANUFACTURING PROCESS”

Here we would like to express our deep sense of gratitude to our

Respected faculty

Prof.S.K.DUBEY

For his timely guidance, valuable support and encouragement at every

step of preparing this report. We would also like to thank our lecturers,

faculty members and all those persons who have directly or indirectly

helped us in providing the books and amenities which have helped in

development of this report, without such help this report would not have

been possible

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ABSTRACT

PURPOSE -

The purpose of the project is to forecast the requirement and cost of the

raw material used in the sugar industry i.e. Sugarcane and on the basis of the

forecast , decisions are taken . This project is based on cost forecasting

model. There are two types of cost . One is fixed cost and the other is variable

cost. We have assumed that the cost of production is fixed and other costs

like transportation , custom and excise duty , prevailing local price and

exchange rate fluctuations are taken as variable. Based on these assumptions ,

the total market for sugarcane in the medium term of 18 to 36 months is

arrived at.

DESIGN AND METHODOLOGY

The project is based on a series of forecasting exercises done at various level

and actual collection and analysis of data of previous years. At this stage , a

certain level of aggregation of data is required . for example , there will be

various quality of sugarcane in the market and several new varieties will be

introduced during the planning year. These data need to be aggregated to

analysis capacity requirement and match them with capacity availability. This

data is used in the forecasting exercise carried out to estimate future demand.

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FINDINGS

On account of estimated lower production for 2008-09 and 2009-10 season,

sugar, bagasse, molasses and alcohol prices expected to rise in the coming

quarters and expected to remain high in the foreseeable future.

PRACTICAL IMPLICATIONS

The farmers based on the above collected data switched over to alternative

crops the reason being the lower rainfall in the Maharashtra and Karnataka.

And hence the more of raw sugar was imported as result which the prices of

white sugar raised up.

ORIGINALITY

In the content various forecasting techniques are used assuming the fixed and

variable cost and its implications on the total cost of production.

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INTRODUCTION

Triveni's association with the Sugar Industry is as old as the Industry it-

self. In pre- independence India, the promoters of what is now the

Triveni Group established several sugar factories in pre independent In-

dia. Even now, Triveni is the pre- eminent name in the Indian sugar in-

dustry.

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 fol-

lows;

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)

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Milak Narainpur in District Rampur (6000 TCD)

The new capacities at Chandanpur, Raninagal & Milak Narainpur to-

gether 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 and 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.

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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 utiliza-

tion.

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.

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.

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Sugar Manufacturing Process

1. Sampling

On arrival, a sample of the sugar beet is taken from the load and tested to

measure the sugar content and to determine the amount of soil, tops or

leaves present in the load.

These analyses, combined with the weight of the vehicle entering and

leaving the factory, enables the calculation of the quantity of sugar

delivered and hence the payment due.

2. Cleaning

Floats in water and in the cleaning stage of the process it is moved

around in large quantities of water, allowing the Sugar beet to pass

through machinery which 'catches' stones but allows the beet to float over

the top. Weeds and other trash are also removed before the beet enters the

factory, where it is sliced into thin slices called 'Cossettes'

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3. Slicing :

The slicing machines work in a similar manner to a kitchen grater and the

cossettes they produce have a 'V' cross section.This

ensures the largest possible surface area is presented to maximise the

sugar extraction stage.

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4. Diffusion :

Sugar is extracted from the beet by diffusion. This process takes place in

a large vessel and in simple terms is akin to brewing tea

The cossettes are mixed with hot water at around 70°C for a period of

time and the sugar simply passes from the plant cells into

the surrounding water by the diffusion process.

The vegetable material left behind from this stage is mechanically

pressed to extract as much remaining sugar and water as possible and,

after the addition of molasses, is dried to produce animal feed products. It

is this drying process which gives rise to the familiar plume of steam

rising from the factory. The liquid resulting from the diffusion process is

dark in colour and is called raw juice.

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5. Purification :

This juice is passed through an important purification stage called

carbonatation. This involves mixing the juice with milk of

gas. During lime and adding carbon dioxide this process, the carbon

dioxide and the milk of lime re-combine to produce calcium carbonate

which precipitates out, taking most of the impurities from the juice with it

6. Evaporation

The pale yellow juice which remains is called thin juice and while much

purer it is still relatively low in sugar content. It passes to the next stage

of the process - evaporation - where the water is boiled off in a series of

evaporator vessels to increase the solids The concentrated juice passes

through filters, after which it is ready for the final stage of the process; or

it can be stored and brought back into the factory during the summer to

produce crystal sugar. massecuite - is spun in d to storage silos. some

sugar remains in the separated liquid so it is boiled again in a further set

of vacuum pans to produce raw sugar. This process is repeated a third

time resulting in final product sugar and molasses. Raw and final product

sugars are re-dissolved into the thick juice. content of the juice from the

previous 16 per cent in thin juice to 65 per cent in the thick juice.

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The concentrated juice passes through filters, after which it is ready for

the final stage of the process; or it can be stored and brought back into the

factory during the summer to produce crystal sugar.

7.Crystallization

The crystallization process takes place in vacuum pans which boil the

juice at lower temperatures under vacuum. When the juice

reconcentration it is 'seeded' with tiny sugar crystals which provide the

nucleus for larger crystals to form and grow.

When the crystals reach the desired size the process is stopped and the

resultant mixture of crystal sugar and syrup - known as centrifuges to

separate the sugar from the 'mother liquor'.

The sugar crystals are washed and after drying and cooling, are conveyed

to storage silos. Some sugar remains in the separated liquid so it is boiled

again in a further set of vacuum pans to produce raw sugar. This process

is repeated a third time resulting in final product sugar and molasses. Raw

and final product sugars are re-dissolved into the thick juice.

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CONCLUSION

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 tonnes 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 cash flow from operating activities of Rs. 1,414.42 million.

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 Pun-

jab, 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 Rrelationships with Farmers

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We make timely payments to sugarcane farmers and have built excellent rela-

tionships 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 pay-

ments are made to farmers. These collection centers are located in our sugar-

cane area and hence, the farmer is not required to bring his crop to our fac-

tory 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 west-

ern Uttar Pradesh. This enables us to command a premium on the sugar pro-

duced by us.

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REFRENCES

www.triveni

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