DEDICATIONS TO:

This Holy Prophet (SAW) who taught us “Seek Knowledge from cradle to the
Grave”.

My parents whose encouragement, guidance and presence are assets of my life

My teachers who illumined the dark corners of my mind and heart.

PREFACE
This report describes the effort made by me for the learning by first hand practical

experience about a business organization. Today is the era of experience as is said

by quotation “Experience makes a man perfect.” No body can deny the importance

of practical training and experience.

Through internship students get the first touch of professional exposure of the roles;

they have to play during their professional careers. The students not only acclimatize

themselves to the corporate environment but also learn to assume responsibility, co-

operation and teamwork the hallmarks of modern management.

Having experience of sugar industry is really a good experience for me. I am

submitting all my experiences. No doubt, omissions and errors are expected but it is

requested to ignore the nominal errors.

I was lucky enough to have a chance of doing internship in HEAD OFFICE OF

LAYYAH Sugar Mills Limited KARACHI. I learnt a lot about the practical business

and above all, the mental discipline and awareness, which are the most useful tools

for an executive to raise the organizational structure.

HASEEB AKHLAQUE

KHAN

ACKNOWLEDGEMENT
First of all, I want to express all and thanks to ALMIGHTY ALLAH whose

blessings are above each and every thing which make me able to present my tiny

effort. All prays to HAZRAT MUHAMMAD (PBUH) who is the reason for

creation of the universe and whose kindness came to my part.

Secondly on the successful completion of my internship program, I whish to express

my gratitude and heart worthy acknowledgement to my professors for full co-

operation and helped me in completing this report. I feel utmost pride in

acknowledging with sincere gratitude for the valuable guidance I have received from

Mr. Hassan buchas and Mr.zubair.

They have been a constant source of enthusiastic encouragement through out the

internship program. Due to their guidance I have become able to complete internship

as well as this report. Their advice, criticism and remarks were of the most value to

me.
 GROWTH OF SUGAR INDUSTRY IN PAKISTAN

Sugar is the important sector of the Pakistan’s economy. Sugar industry plays a vital

role for development of any country’s economy. In Pakistan this industry play a

significant role for economic development.

Its share in the large scale industry is 18% and in GDP is 1.9%.sugar industry

contribution to the government exchequer in Federal excise duty is 11.2%.

HISTORY

The sugar industry, which is endowed with a strong base of sugarcane, had started

its journey from almost non-existence in 1947. The industry has gone through a long

way and now possesses 77 sugar mills in all over the country. The Sugar industry

not only fulfills the entire local requirement but also sharing out the total foreign

exchange earning.

At present Pakistan’s sugar industry is facing lot of problems like lesser demand of

sugar in the country due to recession in the economy, declining prices into the

domestic as well as international markets & huge unsold stock of sugar. Government

role in R & D for developing the sugarcane varieties is not very significance; only

few private institutions are doing some research in R & D in developing various

varieties with higher yield.

Pakistan sugar industries still have 34% un-utilized capacity. Which can be utilized

by further developing the 13224 hectares area along the main feeder canal from

Indus river in Sindh. By which we can increase our export to 50000 ton. ( this

export to Arab World can be exchange of half million barrels of crude oil for

Pakistan.

In Pakistan present sugar cane varieties are not yielding reasonable production and

led to the prevailing sugar crisis. As described by the table.

Countries 1989-92 1993-97 1998-2002

USA 77.44 76.80 75.19

Mauritius 70.33 72.83 71.39
India 66.06 64.14 70.30
Brazil 62.02 61074 67.42
Pakistan 41.55 43.38 43.54
Cuba 59.98 57.04 34.83

Source: down EBR July 12-18,2002

GROUP PROFILE

The company has been sponsored by SIKANDER GROUP OF INDUSTRIES in

ISLAM ABAD. The sponsors comprise of a family of good repute and their friends.

They have vast experience of running project as well as manpower administration,

monitoring of projects and finance and accounts.

Sr. #Company Name & Location

1 LAYYAH SUGAR MILLS LIMITED

Site:
Layyah,

Distt. Layyah, Punjab, PAKISTAN.

HEAD OFFICE:

GULSHAN LAHORE

MANAGEMENT PROFILE

Chairman MIAN FAZAL HUSSAIN

Chief Executive MR. JAHANZAIB FAZAL

 Managing Director
Director finance
Director (HRD&P)
Manager(HRD&P)
General Manager (f)
General Manager (plant)
Auditors:
Mr. RAISUDDINE SHAIKH
Mr. Bashir Ahmed
Mr. Noor Ahmed Zaib
Mr. AKHLAQUE KHAN
Mr. Ghulam Hassan shigri
Mr. Mohabbat Ali Khan
Mr. Nouman Mehmood, FCA
Avais Hyder Zaman Rizwani

Legal Advisors:
Mr. Muneeb Akhter Advocate
A.K.Brohi & co.
Banks Muslim Commercial Bank Limited
National Bank of Pakistan
Habib Bank of Pakistan

MISSION OF LAYYAH SUGAR MILLS LIMITED

 To produce superior quality White Refined sugar.

 To face competition in the Local & International Market.

 Total Quality Management.

OBJECTIVES
Following are the objectives of company.

1. Total quality focus to meet customer’s requirements.

2. The highest standard of business ethics.

3. To care on the business ethics.

4. To carry on the business at best possible level.

5. To guarantee performance of contracts by members or

persons having dealing with the company.

 BRIEF INTRODUCTION

INCORPORATION

LAYYAH Sugar Mills Limited was incorporated on May 26, 1954 as a public

limited company. The authorized capital of the share of the company was

Rs.350, 000,000/-.Uder the policy of privatization of Govt. of Pakistan under

the supervision of Prime Minister Mian Nawaz Sharif, the Layyah Sugar Mills

was privatized in May 1992 with the net amount of RS.150,00,000 and an

agreement of fulfilling the liabilities of the sugar mill for the compensation of its

accounts to the employees and other stakeholders. The previous sponsor of the

company could not manage to setup the project and finally on intervention of

the BEL shares.

The management of the project was transferred to the new sponsors in 1992.

The mill is spread over the area of 250 acres land.

NATURE OF BUSINESS

Crushing of Sugarcane & Raw Sugar in to White Refined Sugar.

LOCATION

LAYYAH Sugar Mills Limited is located at distance of about 3 KM from the

city of Layyah.

HEAD OFFICE

Head Office of LAYYAH Sugar Mills Limited is located at Fazal Manzil,

Gulshan Lahore.

FINANCIAL YEAR

The financial year of the company is from 1st October to 30th September.

RAW MATERIAL

The main raw material for the mill is sugarcane, which is abundantly available in

Pakistan.

The second raw material is Baggas. Some of which is obtained by the own crushing

the other will be purchased by the Beggas Venders/Suppliers.

MAIN COMPETITORS
 Sheikhoo Sugar Mills kot Adu

 Fatima Sugar Mills Sanawan

 Bhukar Sugar Mills Bhukar

 Khan Sugar Mills Faisal Abad

 Sharif Sugar Mills Mian Chunnu

 WORK FORCE

Detail of total working force at site and at head office is as under:

AT SITE

Permanent Employees 457

Temporary Employees 150

Seasonal Employees 400 (app.)

Daily Wages Employees 40

Total 1047

AT HEAD OFFICE

Permanent employees 25

Temporary Employees 5

Total 30
 PRODUCTS OF THE COMPANY
SUGAR INDUSTRY IS AN AGRO-BASED INDUSTRY, WHICH PROVIDES
EMPLOYMENT TO THE LANDLESS RURAL POPULATION AND HASE A GREATE
IMPECT ON THE ECONOMY OF A COUNTRY.
The main product of the company is White Refined Sugar.

The three principle bye-products of a sugar industry are

1. Bagasses
2. Molasses
3. PRESS CAKES (WHICH R ABOUT 40% OF THE WEIGHT OF TOTAL CANE CRUSHED.)

4. MUD

WHITE REFINED SUGAR

Major business of the company is to produce white refined cane sugar of

intermission standard and from the erased cane and three different components are

achieved that are fibber, Pith and Moisture.

MOLASSES:
THIS IS A BY-PRODUCT AND IT IS SOLD TO MOLASSES CONTRACTORS. ONE OF
THE ALLIED CONCERN, RELIANCE COMMODITIES (PVT.) LIMITED IS THE MAIN
BUYER OF THE MOLASSES OF LAYYAH SUGAR MILLS LIMITED AND ALSO THE
MAIN BUYER OF MOLASSES FROM WHOLE THE COUNTRY.RELIANCE
COMMODITIES (PVT) LIMITED IS THE MAIN EXPORTER OF MOLASSES IN
PAKISTAN. Molasses may be used for the production of power alcohol acid portable
spirits.
BAGGAS:

This is also a by-product of the company. Begass is used as source of energy fuel for
sugar industry for juice heating. and also used for making medium density fiber

board (MDFB). baggasse is sold to the baggasse contractors.

MUD:

Mud is also the by-product of the company. It is sold to the Mud Contractors.

This is used in making chocolates and other products.

PRESS CAKE:

Press cake of sulphitation factories are used as manure and that of carbonation

factories are usually burnt.