Sugar Industry

transcript

Logistics Approach to Supply

Chain Management Presentation

SUGAR INDUSTRYOn

Submitted to:

Dr. Tejash Pujara

Submitted by:

Jaykishan Joshi (08024)

Flow ……….• Introduction

• Global scenario

• India Sugar Industry

• Types of Sugar

• Production Process

• Use of I.T. in Sugar Industry

• Distribution Channel

• Case Study

Introduction:

� Sugar- The Universal Sweetener is consumed in large

quantities around the world

� Sugar industry constitutes one of the most

important agro-based industries in India.

� The industry started growing in an organized way

during the 1930s after introduction of the Sugar

Industry Protection Act in 1932

� Sugar is produced from Sugarcane and Sugar

Sugar: (SCIENTIFICALLY DEFINED)

• Sugar is an informal term for -- Sucrose

• In food, sugar almost exclusively refers to sucrose, which primarily comes from sugar cane and sugar beet

• Excessive consumption of sucrose has been associated with increased incidences of diabetes, obesity and tooth decay.

Nutrional Value of Sugar

Source :http://www.wikipedia.com./info%topics%sugar.htm

2 mg (0%)POTASSIUM

0.01 mg (0%)IRON

1 mg (0%)CALCIUM

0.019 mg (1%)VITAMIN B2

0.03 gWATER

0 gPROTEIN

0 gFAT

0 gDIETARY FIBRES

99.91 gSUGARS

99.98 gCARBOHYDRATES

387 kcalENERGY

Nutritional value per 100 g

SugarSugarSugarSugar

• Sugar is one of the oldest commodities in the world.

• Sugar is produced in 115 countries.

• Brazil, India, Thailand, Australia and Cuba are largest sugar producing countries in the world.

• In the present scenario the world sugar economy is facing a demand supply imbalance.

Global Scenario:

Global Production:

Global Sugar Exporters(2007-08):

Global Sugar Balance:

Indian Scenario:

• Land of extremes: 2nd Largest producer

Deficit at the moment.

Sugar a matter of concern for the Government.

• Presently “DUTY FREE” Import of sugar is allowed till December’10 and there is ban on exporting sugar

Indian Sugar Industry at a glance

• Second largest area under cane production

• Among the cost effective industries in its field cost

• Fourth efficient producer of sugar despite low capacity of its plants as compared to other parts of the world.

• Worth about Rs 300 billion annually

• Comprises 7.5 percent of India's Rural Population

• Farmers cultivating sugarcane 5million (approx.)

Structure:• It comprises of Public, Private & Co-Operative Mills

• Percentage-Wise break up:

PUBLIC 6%

PRIVATE 54%

CO-OPERATIVES 40%

Season: The cultivation of sugarcane starts from the

month of December to February.

Sugar Producing States:

• Uttar Pradesh

• Gujarat

• Punjab

• Haryana

• Maharashtra

• Bihar

• Karnataka

• Andhra Pradesh

• Tamil Nadu

Major Sugar Players:

• Bajaj Hindustan

• Balrampur Chini

• Triveni Engineering

• Renuka Sugars

• Dhampur Sugar Mill

• Mawana Sugar

• K K Brila Group

• Bargarh Co-operative Sugar Mills• Peralumbur Mills

Indians have sweet tooth!

31.531.531.531.5All IndiaAll IndiaAll IndiaAll India

23.323.323.323.3KarnatakaKarnatakaKarnatakaKarnataka

29.129.129.129.1Tamil NaduTamil NaduTamil NaduTamil Nadu

35.235.235.235.2Uttar PradeshUttar PradeshUttar PradeshUttar Pradesh

41.541.541.541.5KeralaKeralaKeralaKerala

40.940.940.940.9GujaratGujaratGujaratGujarat

40.940.940.940.9MaharashtraMaharashtraMaharashtraMaharashtra

68.568.568.568.5HaryanaHaryanaHaryanaHaryana

71.571.571.571.5PunjabPunjabPunjabPunjab

Kg/Annum/capitaKg/Annum/capitaKg/Annum/capitaKg/Annum/capitaSTATES

Source:“Handling Sugar and Sweeteners Intakes – Indian Experience”, Rekha Sharma R.D

Director, Clinical Nutrition and Dietetics

Factors affecting Sugar supply

• Climate

• Technical

• Sugarcane production

• Sugarcane cane utilization for sugar production

• Duration of season

• Recovery rate

• Political factors

Industry Production Cycle

Types of sugar:

Value Flow Chart:

Use of I.T. in Sugar Mills:

• Name of provider: ASM TECHNOLOGIES LTD.

• Industries covered: Manufacturing, Oil & Gas, Telecom, Defence, Retail, Automotive, Healthcare, Transportation & SUGAR.

Solutions for sugar industry• Pre configured SAP solution

• Web based Cane Mgmt. System• Add on utilities: Smart Card & SMS• ASM Clean Development Mechanism

Pre configured SAP solution

• ASM with its team of Consultants, Technologists with

experience in sugar industry, provides pre-configured Solution suiting the Business Functions and Information

needs with Best Practices in Business Processes.

• This solution also addresses the monitoring of by-

products such as Molasses, Ethanol, Bagasse

ASM Cane Management System

• Plantation Details

• Fertilizer subsidy details

• Crop loans • Cutting order details

• Cane Pricing management system

• Cane weighing and crushing management system

• Cane calendaring systems• Cane accounting system tightly integrated with Cane

management system

• Chemical laboratory reporting

Farmers master search details:

Cane Calendar Sequencing

MIS Dashboard

Smart card for farmers:

• Account accessing at Zonal/Plant Office

• Farmer ID and Photo/Signature ID

• Account statement

• Details relating to farmer and his produce

Benefits to organization

Distribution Channel:Farmers or

Cooperatives

Sugar Mill Owners

Sugar Mills

GOVERNMENT

BUYERS(30%)

INSTITUTIONAL

BUYERS(60%)

GOVERNMENT:

• Centrally purchased

• Allocation of regional quota

• Food Corporation of India

• Fair Price Shops

BULK BUYERS WAREHOUSES

WHOLE SELLERS GODOWNS

RETAILERSSHOPS

CONSUMERS HOME

Product FlowChannels

Institutional Buyers:

• Warehouses

•Consumption centers

Case Study: The EID Parry Story

• The case explains how the company developed Edge

Competency

• Indiagriline is an effort to provide an end-to-end solution

addressing the needs of the farming community in South

• EID Parry Ltd., launched this project in early 2001 by

setting up Internet kiosks in 16 villages around its sugar factory in Nellikuppam, Tamil Nadu

• A one stop shop that acted as a storefront for buying

farm inputs, a market for selling goods, and an Internet

café for communication and information services

Need for the innovative idea:

• A marginal Indian farmer is faced with several

challenges that result in yields and quality being inferior by world standards.

• He lacks access to information, accurate weather

forecasts, and up-to-date information on commodity

market prices.

• He lacks access to the market and is thus caught in the vicious cycle of suboptimal use of farm inputs, higher

cost of credit, and lower price realizations on his

produce, leading to insignificant disposable income for

THANK YOUTHANK YOUTHANK YOUTHANK YOU

Sugar Industry

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