INDUSTRY PROFILE: 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. Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population in India. In the early 1930’s 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.
Transcript
INDUSTRY PROFILE:
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.
Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population in India. In the early 1930’s 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
. 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
India is the world’s second-largest producer, behind Brazil. But at an estimated 22 million tonnes (mt), India leads the world in sugar consumption. Sugar here remains a politically sensitive commodity despite its small share in the monthly household budget. Wasn’t the government the target of some strident criticism during the major part of 2009-10, when for weeks retail sugar would cost Rs 45 a kg and more? The powers that be were perforce extra careful while sanctioning exports. In the current season, New Delhi was never in doubt about a bumper cane harvest allowing it to sanction exports in three instalments of one mt each. In the past as the government would prevaricate on sanctioning exports, the local industry would helplessly watch as white sugar at LIFFE and raws at ICE would suffer price falls. Capacity of sugar factories to settle cane dues is compromised if they cannot sell sugar in the world market when prices are attractive.
Many irritants will be out of industry’s way, which depends on 50 million farmers for cane supply, provided production cyclicality is broken. Since the beginning of this decade, the high and low sugar production points were 28.361 mt in 2006-07 and 12.691 mt in 2004-05. Supply fluctuations of this order will largely explain the government’s circumspection in doing away with controls on sugar. That is why before initiating reforms, the government constituted a committee headed by the prime minister’s economic council chairman, C Rangarajan, to make recommendations on decontrol. If the committee keeps to the schedule it has given itself, its report should be available by July-August.
Much ahead of the availability of the report and whatever reforms the government will initiate, food minister K V Thomas announced he would be chasing the goal of breaking “sugar cycle with help of the industry and farmers.” Thomas is arguing that on the back of two years of encouraging production, the country should have “good sugar” output in the season to start in October 2012. “If we are able to continue with that trend in 2013-14, we will be able to break the sugar cycle,” he says. Production being dependent on the size and quality of cane crop, the outlook for 2013-14 at this point is entirely in the realm of speculation. At the same time, we have it from the director general of the Indian Sugar Mills Association (Isma), Abinash Verma, that as of now, cane planting is ahead of last year. This leads him to say, “That we will have surplus sugar next season too is not in doubt. We, therefore, expect the government to allow sugar exports for three years in a row.” In fact, the sugar supply scene for 2012-13 could get
better if the deficit in plantation coverage in Maharashtra and Karnataka is made good in the next couple of weeks.
COMPANY PROFILE:
Way back in 1919 when the spirit of nationalism was gaining momentum in India, a young lawyer decided to follow his dream… a dream that would take him away from his traditional family law practice to establish industry; what the late Prime Minister Jawaharlal Nehru called ‘the temples of modern India’.
Believing that economic development is the secret of a nation’s strength and to harness it, business potential had to be properly channelized, Mr. CM Kothari ventured into capital markets and stock broking. The Madras Stock Exchange, of which he was the Founder-President, exemplifies his pioneering spirit.
In 1936, he established Madras Safe Deposits Company Ltd which was the first and largest safe vault company in the Private Sector in India. Today, Kothari Safe Deposits Ltd (as it is known now), with 5 vaults and over 10000 customers, stands testimony to people’s belief in his enterprise and vision. One business activity followed another and soon inroads were made into Sugar and other industries.
Inspired by his father’s vision, Mr. HC Kothari, the patron of the Group took upon himself the challenge of nurturing these fledgling businesses. His farsightedness is revealed in the setting up of the chemical manufacturing facilities of the Group, thereby tapping the tremendous potential of an industry which had good prospects then and a great future now. He was the Sheriff of Madras and his concern for social welfare, education and national and international matters was no less than his commitment to high standards of business.
Today, in a vastly changed scenario with India on the upsurge, Mr. BH Kothari with his quiet determination, infectious enthusiasm and global perspective leads the HCK Group on its journey towards excellence. Inspired by the vision of his predecessors, he is deeply committed to environmental preservation and engaged in numerous socio-economic development activities specifically for the rural sector.
The HC Kothari group currently operates businesses grossing about USD 100 million, under the leadership of Mr. BH Kothari. With the support of an 800-strong committed team and countless stakeholders, the Group is moving forward to establish a global leadership position in each of its businesses. Our Mission “To establish a leadership position in our chosen businesses by exceeding customer expectations by providing employees a productive and enjoyable work and family environment, and by delivering superior returns to our shareholders” ,
Corporate philosophy our intent is to stay focused and establish a leadership position in each of our businesses globally.
Our guiding principles Care for customers and employees
Create a culture of sharing and openness
Utilise technology to facilitate information flow
Invest in environmental protection
Establish complementary joint ventures and partnerships
Promote community health and education
The Future As long as innovation, excellence and meaningful growth are values worthy of attainment, we shall march on inexorably in their pursuit, towards a better, brighter, happier tomorrow
Kothari Sugars And Chemicals Limited (KSCL) is one of the earliest sugar factories to be set up in the state of Tamil Nadu. The company was established in 1961 and its foundation stone was laid by the then Chief Minister of Tamil Nadu ‘Mr. Perunthalaivar Kamarajar’ and was inaugurated by the then Union Minister for Food and Agriculture ‘Mr. SK Patel’. Our Kattur unit, located in Kattur Village is about 30 km from Trichy and 6 km from Lalgudi railway station. In addition to sugar mill, this unit also has facilities for Co-generation of power from bagasse, Distillery unit to produce Anhydrous Alcohol, Extra Neutral Alcohol & Rectified Spirit from Molasses and Bio-compost (Organic Manure) with press-mud and distillery effluent
Our second unit is located in Sathamangalam Village of Ariyalur District which is about 50 km from Trichy and also near to Ariyalur and Thanjavur Railway stations. This unit was commissioned in 2007 with sugar and co-generation plants.
Being agro-based, KSCL has been playing a significant role in rural development. The company’s contribution to the welfare of villages and the social obligations it has taken upon itself are many and varied. Assistance to cane growers in various ways is a mark of the understanding and goodwill which has always been in evidence. Since 1973, the HCK group has been running a primary school in the premises of its Kattur Sugar factory.
Kothari Petrochemicals Limited is the largest producer of premium quality Polybutene in India. Since its founding in 1990, the company has enjoyed a strong market position in India with a rapidly growing brand across the globe that represents quality, customer responsiveness, dependability and a commitment to the environment.
During 2007-2008, Kothari Petrochemicals commissioned a second plant at Manali that doubled the production capacity to 22,000 MT per annum in order to supply Polybutene worldwide. The company has offices in Chennai, Manali, Mumbai and Belgium, and supplies to customers in 20 countries around the world. BPCL, HPCL, IOCL, Lubrizol India, Bharat Shell, Infineum Singapore, Castrol India, Exxon Mobil, Dorf Ketal are a few of its numerous customers.
Kothari Safe Deposits Ltd (KSD) was incorporated in 1936 and is engaged in the business of renting out safe deposit lockers. With an unblemished track record of 70+ years, KSD enjoys the trust of customers since generations. At present the company operates five vaults in Chennai city with a capacity of nearly 11500 lockers.
Even though a few private vaults and many banks offer locker facilities in Chennai, KSD continues to be the leader in the industry because of a commitment to provide an experience of comfort, safety and security.
Kothari Biotech Limited is engaged in processing and marketing of packaged drinking water under the brand name “Eternal”™. The packaged drinking water is hygienically processed and packed at our state-of-the-art plant near Chennai. Our process is certified by the “Bureau of Indian Standards” as per “IS 14543-2004”
.The treated drinking water, after scrutiny for quality at our own high-tech microbiological lab is packed in different sizes with tamper proof seals for economy and convenience.
Pure and safe drinking water is required for healthy citizens to build a healthy nation. We are proud to be part of this noble exercise.
Kothari Sugars And Chemicals Ltd the flagship company of HC Kothari Group, was established in the year 1961 with a sugar Mill in Kattur village of Trichy District. Kothari Sugars, the pioneers in manufacturing of sugar, now has two sugar units in Tamil Nadu one at
Kattur and another at Sathamangalam village. In addition to sugar manufacturing, Kothari Sugars also has facility for co-generation of power, production of industrial alcohol from molasses and bio-compost from press mud and distillery effluents.
We are equipped with a facility of producing white sugar by reprocessing only raw sugar and also reprocessing of raw sugar along with cane. Our group companies are Kothari Petrochemicals Ltd, the largest Polyisobutene manufacturer in India and Kothari Safe Deposits Ltd one of the oldest public limited companies in India engaged in the business of giving on hire safe deposit lockers.
Our Vision By 2015, to position ourselves among the top 5 Profitable Sugar companies in India by creating value through investment in customers, suppliers, employees, products, processes, technology, and innovation
Tag-line “We keep together and work together for success”
Mission To make the best use of the natural and other available resources with socio-economic responsibilities, by following highest quality standards and continuous benchmarking, to create stakeholders' delight by developing a sustainable, scalable and ethically sound global organisation
What is the over goal?
To build a sustainable, scalable and ethically sound global organisation to make the best use of the resources of land.
What are the main objectives supporting the mission?
1 Serving the society with socio-economic responsibilities
2 Uplifting farmers by improving their livelihoods
3 Selling highest quality products at best price for our customers
4 Providing good working environment, knowledge enrichment, growth and prosperity for our employees
5 Providing best rate of return and also build the Net worth for our shareholder
6 Practicing good business ethics with all our associates Stakeholders’ delight – through
Core Values: The following list of core values reflects what is truly important to us as an organization. These are all the underpinning of our company culture.
1 Manufacturing Products By Following Highest Quality Standards
2 Selling The Best Products Available
3 Providing Growth And Prosperity For Our Employees
4 Following Good Business Ethics With Associates
5 Winning Customers’ Trust
6 Creating Wealth Through Profits & Growth
7 Caring About Our Communities, Environment & Farmers’ Upliftment
8 Leading The Industry For Good Cause
9 Abiding The Law of the Land
Board of Directors
1. B.H. Kothari - Chairman & Managing Director2. Dr. P.S. Mani Sundaram – Director3. P.S. Gopalakrishnan – Director4. V.R.Deenadayalu- Director
Comapany Secretary & Compliance Officer
R. Prakash
Senior Management Team
N. Rangaraja Rathinam, President
N.S. Rangachari, President
M.Silvester, President
Kothari Petrochemicals Limited
A part of HC Kothari Group, Kothari Petrochemicals Limited is the largest producer of premium quality Polybutene in India. Since our founding in 1990, the company has enjoyed a strong market position in India with a rapidly growing brand across the globe that represents quality, customer responsiveness, dependability and a commitment to the environment. During 2007-2008, Kothari Petrochemicals commissioned a second plant at Manali that doubled our production capacity to 22,000 MT per annum in order to supply Polybutene worldwide. We have offices in Chennai, Manali, Mumbai & Belgium, and supply to customers in 20 countries around the world
Kothari Safe Deposits Limited
Kothari Safe Deposits Limited was incorporated in 1936 and is a 70 year old Public Limited Company engaged in the business of giving on hire Safe Lockers enjoying the confidence and trust of the customers over generations. The company has five vaults in Chennai with a capacity of nearly 10,000 lockers. Its operations epitomise the trust enjoyed by the HC Kothari Group.
Kothari Biotech Limited
Biotech Limited is engaged in processing and marketing of packaged drinking water under the Kothari brand name “Eternal”™. The packaged drinking water is hygienically processed and packed at our state-of-the-art plant near Chennai. Our process is certified by the “Bureau of Indian Standards” as per “IS 14543-2004”.
The treated drinking water, after scrutiny for quality at our own high-tech microbiological lab is packed in different sizes with tamper proof seals for economy and convenience.
Pure and safe drinking water is required for healthy citizens to build a healthy nation. We are proud to be part of this noble exercise.
Manufacturing Kothari Sugars And Chemicals Ltd operates two manufacturing units in Tamil Nadu in Southern India.
Kattur Unit Sathamangalam Unit
Kattur Unit
Our Kattur unit, located in Kattur Village of Trichy District, is about 30 km from Trichy and 6 km from Lalgudi railway station. In addition to sugar production, this unit also has facilities for co-generation of power, distillery and bio-compost. This unit was established in 1961 and is one of the earliest sugar factories to be set up in the state of Tamil Nadu. To strengthen our business model and values, a Co-generation Unit was commissioned in 1996 and a Distillery plant to process Rectified & Extra Neutral Alcohol was commissioned in 1993.
When the ethanol policy was implemented by the Government of India, an Anhydrous Alcohol plant was installed in 2003. Multi pressure distillation (MPD) system was also erected and commissioned in 2009 to produce Extra Neutral Alcohol (ENA). In the Distillery Unit, as part of the effluent treatment system, Bio-Compost is manufactured as a value added product with press-mud and distillery effluent.Cane for this factory is being supplied from Lalgudi, Manachanallur and part of Manapparai, Thuraiyur and Musiri Taluks
As part of our commitment to “Kissan Vikas”, we are running a primary school in our factory premises for imparting education to the rural children from the inception of the factory. As a corporate social responsible citizen, we are conducting camps for blood donation and polio plus along with the Rotary Club of Kattur.
Our Kattur unit is certified with ISO 9001–2000 and ISO 14001–2004 which is an endorsement for our commitment to “Quality” and “Care for the environment”. In addition to ISO, we also have Quality Management Systems like formation of Quality Circles, 5S implementation,etc.
Sathamangalam Unit
This unit is located in Sathamangalam Village of Ariyalur District which is about 50 km from Trichy and also near to the road connecting Ariyalur and Thanjavur National Highway. Both railway stations of Thanjavur and Ariyalur are in close proximity. This unit was commissioned in 2007 with sugar and co-generation plans. Cane is supplied to this factory from Ariyalur, Thirumanur, Keelapalur, Nagamangalam and Elakurichy areas. This unit is also engaged in lots of socio-economic activities like road development, conducting medical camps, programs for uplifttment of farmers, etc.
Sugar
After meeting the Government requirement for Public Distribution System, the balance sugar is being sold through primary distribution channel (agents and dealers). We are also exporting sugar to Srilanka, Indonesia and Dubai in line with the Government norms.
Distillery
Rectified Spirit and Extra Neutral Alcohol are used for producing potable liquors by the bottling plants. This is being sold to major liquor manufacturing/bottling plants. Ethanol is used by the oil companies for blending with petrol and is being sold to major oil companies
As an agro-based industry we are playing a significant role in rural development and welfare. Our company's contribution to the welfare of the villages, green-belt development and the social obligations it has taken upon itself are many and varied. Their rapport and assistance to the cane growers in various ways is a mark of the mutual understanding and goodwill which has always been in evidence. We are committed to adhere to the highest standards of business ethics and to conduct the business in a manner that will enhance our stakeholders' values. We believe that the quality of performance of our staff is commensurate with the quality of work life. We strive to provide a work environment which will lead to "Job Enrichment".
We are moving towards establishing a leadership position in our chosen businesses through continuous benchmarking and 360 improvement. Our Quality Management Systems and Environment Policy have been instrumental supports of this.
Quality Management ISO Certification
The Kattur unit of our company has been certified with ISO 9001-2000 for Quality Management System and ISO 14001-2004 for Environmental Management System.
Our Quality Policy
1. Ensure Cost effective operations by improving Productivity and reducing losses
2. Closely Monitor and Measure the Product and Process performances to ensure reliable operations
3. Update the Process and Systems to comply with Statutory and Regulatory requirements
4. Conduct effective training programs for employees to promote awareness on Operations, Safety and Competence
5. Comply with requirements of QMS to improve effectiveness of the system through Continual Development Programs
Our Environmental Policy
1. Ensuring compliance of all applicable statutory & environmental requirements.2. Undertake appropriate reviews periodically to evaluate and sustain our efforts
3. Conserve energy and explore new opportunities for waste & effluent reduction, reuse and recycle
4. Educate and impart training to all employees pm environmental objectives and performances
Green-belt development programme As part of our green-belt program, we have planted over 25000 trees of various varieties in our factory premises. The planted/grown up varieties are Teak, Eucalyptus, Aachan, Pungan, Thadasu, Poovarasu, Neer Maruthu, Punnai, Delonix, Mahagani, Cassia, Neem, Rain Tree, Ashoka (Nettilingam), Vaagai, Uthiyan, Maramalli, Nuna, Sivagundalam, Eluppai, Bhauhinia, Arasu, and Vadhanaran among others.. This is an ongoing project and we are developing green-belt by planting an average of 600 to 700 trees per month. All the existing trees have grown well. Further, we have avenue planting on the anvil at our factory premises.
