Logistics Approach to Supply

Chain Management Presentation

On
SUGAR INDUSTRY

Submitted to: Submitted by:

Dr. Tejash Pujara 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

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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
Beet.

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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.

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 Nutrional Value of Sugar
Sugar
Nutritional value per 100 g
ENERGY 387 kcal
CARBOHYDRATES 99.98 g
SUGARS 99.91 g
DIETARY FIBRES 0g
FAT 0g
PROTEIN 0g
WATER 0.03 g
VITAMIN B2 0.019 mg (1%)
CALCIUM 1 mg (0%)
IRON 0.01 mg (0%)
POTASSIUM 2 mg (0%) 5

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

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Global Production:

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Global Sugar Exporters(2007-08):

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Global Sugar Balance:

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 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

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 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.)

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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.

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 Sugar Producing States:

• Uttar Pradesh
• Gujarat
• Punjab
• Haryana
• Maharashtra
• Bihar
• Karnataka
• Andhra Pradesh
• Tamil Nadu

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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
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 Indians have sweet tooth!

STATES Kg/Annum/capita
Punjab 71.5
Haryana 68.5
Maharashtra 40.9
Gujarat 40.9
Kerala 41.5
Uttar Pradesh 35.2
Tamil Nadu 29.1
Karnataka 23.3
All India 31.5
Source:“Handling Sugar and Sweeteners Intakes – Indian Experience”, Rekha Sharma R.D
Director, Clinical Nutrition and Dietetics 15
Factors affecting Sugar supply

• Climate

• Technical

• Sugarcane production

• Sugarcane cane utilization for sugar production

• Duration of season

• Recovery rate

• Political factors

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Industry Production Cycle

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Types of sugar:

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Value Flow Chart:

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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

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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

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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

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Farmers master search details:

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Cane Calendar Sequencing

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MIS Dashboard

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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

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Benefits to organization

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Distribution Channel:
Farmers or
Cooperatives

Sugar Mill Owners

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 Sugar Mills

BULK INSTITUTIONAL
GOVERNMENT
BUYERS(30%) BUYERS(60%)
(10%)
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GOVERNMENT:

• Centrally purchased
• Allocation of regional quota
• Food Corporation of India
• Fair Price Shops

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Channels Product Flow
BULK BUYERS WAREHOUSES

WHOLE SELLERS GODOWNS

SHOPS
RETAILERS

CONSUMERS HOME 34
 Institutional Buyers:
• Warehouses

•Consumption centers

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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
India
• 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

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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
him.

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THANK YOU

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