Incoming and Outgoing Shipments in 3 STEPS Using Odoo 17
Bawany Sugar Mills Internship Report
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Allah
- Beginning with the name of –
The Most Gracious, the Most Merciful
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CERTIFICATE
This is to certify that Mr. Zubair Ahmed S/o Abdul Khalique Memon, student of
MBA (Final), has done the internship work on Bawany Sugar Mills (Pvt) Ltd. Talhar
Under my supervision and guidance which is a partial fulfillment of master’s degree
program.
The task Carried out by Zubair Ahmed is original and has been found
satisfactory and compliant with requirement and standards.
Khalid Hussain Abbasi Muhammad Hayat Keerio
Research Guide Principal
University of Sindh Laar Campus @ Badin University of Sindh Laar Campus @ Badin
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DEDICATED TO:
My parents whose encouragement, guidance and presence are
assets of my life
My teachers who illumined the dark corners of my mind and heart
.And I want to say
Thanks to all of them.
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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.
acknowledging with sincere gratitude for the valuable guidance I have received from Sir
Khalid Hussain Abbasi. They have been a constant source of enthusiastic encouragement throughout
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.
I am very thankful to all my Superiors i.e. My Teachers, Specially Sir. Khalid Hussain
Abbasi. I completed this report under his supervision.
I am also grateful to all employees of the Mill who guided me during the course of
internship. The behavior of all the department supervisors was very good.
Specially, bundle of thanks to the management of Bawany Sugar Mills Ltd who accepted
my request to do internship in the Mill.
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CONTENT
Sr.# Description Page No.
Executive Summary
Chapter 1
Brief History of Sugar
Sugar Manufacturing Process
Manufacturing of Sugar in Pakistan
Sugar Mills in Pakistan
Research Methodology
Limitations
Chapter 2
Omni Group of Companies
Introduction
Objective
Business Profile
Business Activities
Vision
Mission
Business Activities
Chapter 3
Bawany Sugar Mills Ltd
Brief History
Business Profile
Products
Organizational Structure
Chapter 4
Departments of mill
Administration Department
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o Operations
o Civil Section
o Estate Section
o Security Section
Chemical Department
o Equipment Handling
o Process House
o Bagging House
o Functioning
Mechanical Department
o Operations
o Mill House
o Boiler house
o Process House
o Workshop
o Electrical Work
Cane Department
o Operating Area
o Factors Affecting Cane Procurement
o Location
o Tuff Competition
o Middle Man
o Artificial Shortage
o Shortage of Water
Finance and Accounts Department
o Activities
o Cane Section
o Store Section
o Finance Section
o Accounts
o Sales
o Budgeting
o Cost Calculation
o Cost Center
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o Raw Material
o Conversion Cost
o Operating Expenses
o Finance Expenses
o Selling Expenses
Production of By Products
Audit
Chapter 5
Store Facilities
Sugar Storage
Tools and instrumental store
Chapter 7
Financial Statement
Financial Position
Share holding
Dividend
Income Statement for June 2012
Balance Sheet for June 2009
Income Statement for June 2009
Cash flow Statement for June 2009
Chapter 6
Industry Review
SWOT Analysis
o Strength
o Weaknesses
o Opportunities
o Threats
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Chapter 8
Conclusion
Recommendation
Bibliography
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Executive Summary:
Bawany Sugar Mills Ltd is one of the pioneers of the sugar industry in Sindh. Infect, it is the
second oldest sugar industry of Sindh. It is a part of Omni Group of Industries. Omni Group of
Companies purchased this Mill in November of 2010.
Main product of company is white refined sugar which is being imported to other countries
and also locally sold. The capacity of Bawany Sugar Mills is 6000 Tons crushing of cane per day.
The organization believes in strict adherence to commitment, discipline and fair business
principles. The operational activities of the mill revolve on its department i.e. Cane Deptt.,
Mechanical Deptt., Finance Deptt., Administration and Chemical Deptt.,
There are different types of employees which are hired at need basis. Some employees are
permanent who work for whole year and some are temporary (seasonal) and Permanent employees.
Bawany Sugar employs poor people who have no land or employment facilities. Bawany Sugar is
giving different incentives or benefits to employees to improve the production.
The management is quite successful in providing a congenital and co operative atmosphere
to its employees. The organization provides all the basic facilities to the employees.
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CHAPTER 1:
INTRODUCTION
1) Brief History of Sugar:
The word sugar originates from the Sanskrit word Sharkara which means sugar. It may also
be traced through different languages, as Schaker in Persian, Sukkar in Arabic, Sincer in Assyrian,
Zucchero in Italian, Sucre in French, Zucher in German, Saccharum in Latin and Ozucarin in
Spanish. But its origin is traced from Sharkara.
Sugar is one of the essential commodities of life and plays important role in the dietary of
human beings. Sugar is a major form of carbohydrates and is found probably in all green plants. It
occurs in significant amounts in most fruits and vegetables. There are three main simple sugars
Sucrose, Fructose and Glucose. Sucrose is in fact a combination of fructose and glucose and the
body quickly breaks down into these separate substances.
2) Sugar Manufacturing Process:
The sugar can be produced by many of the sources like Sugarcane, Sugar Beet, Maple,
Palm, Coconut and Apple, but these sources are costly and their production is in negligible quantities
except sugarcane and sugar beet. The main crop which is being used for production of Sugar all over
the world is Sugarcane.
In a nut shell, the process for sugarcane refining is carried out in following steps:
• Pressing of sugarcane to extract the juice.
• Boiling the juice until it begins to thicken and sugar begins to crystallize.
• Spinning the crystals in a centrifuge to remove the syrup, producing raw sugar.
• Refining the raw sugar by washing and filtering to remove remaining non-sugar
ingredients and color.
• Crystallizing, drying and packaging the refined sugar
3) Manufacturing of Sugar in Pakistan:
In Pakistan, the sugar industry possesses the organized and unorganized players. The
unorganized players mainly produce Molasses and Sugar, the less refined forms of sugar and the
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organized players are Sugar Mills owners. In the world, the Brazil is a country that is largest
producer of sugarcane as well as Refined Sugar.
4) Sugar Mills In Pakistan
Pakistan Sugar Mills Association (PSMA) has listed the names of sugar mills of Pakistan
province-vise. There are 87 names of Sugar Mills listed on their website among which 45 are located
in Punjab, 33 in Sindh and 9 in KPK.
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CHAPTER 2:
OMNI GROUP OF INDUSTRIES
1) Introduction:
Omni group is a large privately owned company based in Pakistan. It owns several factories
such as rice, sugar, distilleries, polythene bags, and are also involved in media and aviation. It has
emerged as one of the fastest growing industrial groups in the country. Bawany Sugar Mills limited
is one of its Business units.
2) Objective of Omni Group:
The objective of Omni Group of Companies is to expend industrial activities to provide job
opportunities and economic growth in the country.
3) Vision:
―To be one of the leading business houses employing best business practices‖
4) Mission:
―Undertake safe and profitable commercial activities in a manner that portrays Omni Group
Of Companies images as a respected market leader‖
5) Business Profile:
Industry Focus Grain, Sugar & Sweeteners
Business Type Manufacturer
Products/Services Rice, sugar
Markets Africa
No. of Employees Above 1000 People
Annual Sales Range(USD) US$5 Million - US$10 Million
Legal Representative CEO (Recent CEO is Mr. Anwer Majeed)
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Company Address 2nd Floor Hockey Stadium Road, Karachi, Sindh, Pakistan
Postal Code 75350
Telephone Number +92 -21 -35220845
6) Business Activities:
Apart from many other business units, the main business units in sugar production of Omni
Group of Companies are:
Khoski Sugar Mills
Bawany Sugar Mills
Ansari Sugar Mills
Naudero Sugar Mills
New Dadu Sugar Mills
Tando Allah Yar Sugar Mills
Chambar sugar Mills
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CHAPTER 3:
BAWANY SUGAR MILLS LIMITED
1) Brief History:
Bawany Sugar mills Limited was established by Bawany Group of Industries Pakistan. It
was installed in 1964/65. This is the second oldest Sugar mill of Province located at Talhar City
District Badin, Sindh. It is the first sugar industry established in Badin. Mr. Mohammad Amin
Bawany, Owner and Chief Executive of Bawany Group led this Mill to be established.
Later on, this mill was purchased by Deewan Group of Industries. From 2004 to 2010, this
Mill remained under the supervision of Deewan Muhammad Yousuf Farooqui, CEO of Deewan
Group. Then it was owned in November 2010 by Omni Group.
The Machinery of this Mill Was Imported from BMA and Bakau Wolf and Germany and
(Heavy tax machinery) HMC Taxila. The present capacity of cane crushing is 6000 tons per 24
hours.
Besides, Bawany Sugar Mills provides agricultural loans to the growers of sugar cane
through Sindh bank.
2) VISION:
To be the leading company in sugar industry and make more customers.
3) MISSION:
To deliver the quality sugar in our country in the most cost effective way.
4) Business Profile:
Crushing Capacity 6000 TCD
Employees 582
Mill Area 155 acres
Location Tando Bago Road Talhar City
Head of Dept General Manager
Head Office 2nd Floor Hockey Stadium Road, Karachi, Sindh,
Pakistan
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5) Products:
Bawany Sugar Mills Ltd produces refined sugar and molasses. They sell sugar first and
molasses after the end of sugar manufacturing season
The mill produces three types of sugar one is high quality sugar which is exported. Second
is middle quality sugar which is sold nationwide where as third normal or low quality sugar which is
sold locally.
6) Facilities:
The mill provides these facilities to its employees:
A residential colony.
Mosque
School
Provision of Electricity & Sui Gas in Mills colony.
Hospital.
Moreover, medical allowances, travel allowances and bonus are also given them.
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7) Organizational Structure:
CEO
Board of Director
General Manager
Admin Dept Fin Dept Cane Dept Mechanical Dept Chemical Dept
(AGM) (AGM) (AGM) (AGM) (AGM)
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CHAPTER 4:
DEPARTMENTS OF MILL
There are several departments in every Company including Information Technology,
Human Resource, Accounting and Finance, Electrical, Mechanical, Chemical, Audit Production and
Quality Control. But Bawany Sugar Mills Ltd has Main four departments which perform all the
functions of mentioned departments.
Each department is headed by Assistant General Managers. These AGMs work under
General Manager of company. Muhammad Ramzan Arain is present GM of Bawany Sugar Mills
Ltd.
Administration Department
Finance Department
Cane Department
Mechanical Department
Chemical Department
1) Administration Department:
Admin department is main department which is handling all the matters of company. It is
responsible for rules and regulations, security attendance of employees and other facilities to
workers. This department also encircles quality control, production, security and I.T departments.
Operation:
The department further divided into these sections as under:
Civil Section
Estate Section
Security section
Civil Section:
Bawany Sugar Mill has a number of buildings in the shape of factory building, offices,
workers family colony, workers hostels, officers’ colony, Mosque, school, fair price shop etc.
For proper maintenance and upkeep of these buildings a civil section having experienced
workforce also exist at Bawany Sugar Mill.
Estate Section:
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Estate section includes sweepers, gardeners and other workforce for upkeep and cleanliness
of the area.
Security Section:
For protection of the mill the colony and officers, there is one security section. Security
inspector is the head of the section.
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2) Chemical Department:
Chemical department is responsible for processing of sugar cane juice to manufacture white
refined sugar. The department has to maintain a quality standard. Quality of sugarcane, sugar is
being tested here. Different labs are working under this department.
Equipment Handling:
Chemical department handles the equipment in process house and Bagging house
manufacture sugar.
Process house:
Process house is the section where the juice is processed to produce sugar.
Bagging house:
Bagging house section is responsible to pack the sugar in bags of desired quantity.
This section contains the following equipment:
Wet sugar elevator
Sugar dryer
Sugar dust catcher
Sugar bin
Auto net weigher
Bag sewing machine
Functioning:
Sugar is made in the field by nature and extracted in sugar factories. Main function of
chemical department is to extract maximum quality of good quality sugar of sugar cane. This is
called sugar recovery and indicated in percentage. Sugar recovery depends upon two factories:
a. Sugar contents available in the sugarcane, which is generally termed as POL
percentage.
b. Efficient processing of juice to control losses during the process. The losses incurred
during process are of following four types. Bagasse Pol, Mud losses, losses in final
Molasses, Other losses.
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3) Mechanical Department:
Mechanical Department has Mechanical workshop that provides all the equipments for
smooth running of mill during season. In case of failure of machine or any part this department is
responsible for the repair.
Operations:
The operation activities of Mechanical department can be divided into:
Mill House
Boiler House
Process House
Workshop
Mill House:
These activities are performed in mill house:
Cane carrier
Cane cutters mill rollers
Hydraulic head
Steam turbines reduction gears
Intermediate carriers
Juice pumps
Crush hoppers
Raw juice receiver tank bag gasses elevator
Boiler House:
Juice scale
Centrifugal pump
Juice heaters
Carbonation tanks filter press lime kiln
Sulphitation
Evaporating stations
Crystallizes
Bagging house
Process House:
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Process house is the section where the juice is processed to produce sugar. All the boiling of
juice is done with the heat produced by the steam which is generated at boiler house by Mechanical
Department.
Workshop
The work shop consists of following section
Machine shop
Carpeting shop
Welding shop smithy shop
Molding shop
Transport shop
Electrical Work:
Electrical department is also merged in Mechanical Department. It is responsible for
electricity. In this age of modernization, every machine is being operated with computers and
without electricity no machine can run. Electricity problems in mill area are fixed by this
department.
The mill has its personal power house for producing electricity. During the crushing season,
mill needs a lot of power for running its machines. The Govt could not fulfill their power
requirements so they produce their own electricity. During off season, mill uses the electricity
supplied by HESCO.
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4) Cane Department:
Cane is the most important department of mill. Sugar mill is totally dependent upon this
department. Function of this department is to conduct surveys and held meetings with cane growers
for purchase of sugarcane. Only the effective working of the department can ensure full capacity
operation of the mill throughout the crushing season and thus reduce the fixed costs. After survey
grower are issued a pass book. By pass book they can carry their sugarcane to mill cane yard. In
cane yard weightment, indent and a receipt are given to grower. This receipt is used for payment.
After this, cane accountant makes arrangements for payments through bank. For this purpose bank
have been deposited a lump sum amount.
Operating Area:
The area, in which cane department operates for the purpose of cane procurement, is divided
into 8 broad areas called circles. Each circle is then divided into smaller areas called sectors.
1. Talhar
2. Dando
3. Rajokhanani
4. Karyo Ganwher
5. Peru Lashari
6. Haji Sawan
7. Mataaro
8. Gularchi
Factors affecting Cane procurement:
Location:
Bawany Sugar Mill is not located in good area. Sugar cane of surrounding is also taken by
Pangrio, Khoski, Mirza, Army and Ansari Sugar Mills.
Tuff Competition:
Competition between surrounding mills for more and more cane procurement result into
substantial increase in the cane procurement cost.
Middleman:
Purchasing of standing crop by middleman before season plays another important role to
make the cane procurement difficult for the sugar mills. Although cane procurement by the
middleman is prohibited under Act 1950.
Artificial Shortage:
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Artificial shortage of sugar cane is often created by the growers to fetch better price.
Shortage of Water:
Shortage of water, particularly, in lower Sindh is affecting the interest of growers in sowing
sugar cane.
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5) Finance Department:
Finance department is the most important department of company. It is responsible for sale,
sale tax, payments, receipts, provident fund, salaries and store sections. It keeps and provides
sufficient funds at the time of production. My internship also related to finance and admin
department and information about that is written in detail in report. At last of repot problems of
sugar industry has been discussed and few recommendations are suggested to management of
Bawany Sugar Mills.
Activities:
The activities of Finance and accounting department are divided into several sections:
Cane Account Section:
It supervises and checks the cane price bills, sugar bills. Recovery bills of seeds and
fertilizers loan from the cane grower and make arrangements for funds to the concern banks for
payment.
Store Account Section:
The purpose of store accounts section is to maintain the record of stores and spares
purchased. Detailed functioning of the section is as under:
Purchase of stores:
Stores spares are purchased after approval of GM/R.D/C.O.O. On receipt of store spares in
main stores, receiving report is prepared.
Finance Section:
The finance section of this department prepares the monthly and annual budget and financial
statement bills. The cheques are also prepared in this section. Moreover the following books of
account are maintained in this section.
Main Cash Book
Vouchers / Cheques
General Register
Record of Sugar and Molasses
Bank reconciliations
Monthly, Quarterly, and Annual financial statements.
Accounts:
The Mill has several bank accounts among different banks.
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Their detail is as follow:
1 Account in HBL Talhar Branch.
1 Account in Sindh Bank Talhar Branch.
1 Account in MCB Badin Branch.
1 Account in National Bank Badin Branch.
1 Account in National Bank Talhar Branch.
Mill’s main account is at MCB Badin.
Sales:
Sugar and Molasses are sold by Head Office. Delivery orders are issued to Parties as per
term of sale. Sale is booked on the basis of delivery of goods.
Budgeting:
For the preparation of budget, estimates and requirement from all the departments are
obtained. It is prepared in the month of August before the start of new financial year. These
estimates, after summarizing in accounts department, are discussed with the COO for finalizing.
After finalizing at the project level it is taken to Head Office for presentation and final approval by
Board of Directors.
Cost Calculation:
During the crushing season the production activity is monitored closely by working out cost
of production and contribution margin etc on daily basis.
Cost Centers:
Following is the description of cost centers and allocation of cost for the purpose of cost of
production on daily basis:
Raw Material.
Sugarcane is the only raw material used in sugar production. Cost of raw material per unit of
production depends upon the price of sugar cane and the sucrose recovery of the day.
Conversion cost:
Conversion cost includes direct labor and factory overheads including chemicals, oil and
lubricants, power and fuel, packing material, repair & Maintenance of plant and depreciation of plant
etc.
Operating Expenses:
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Operating expenses includes admin expenses, depreciation, pay and allowances of admin
and Accounts department and storage charges.
Financial Expenses:
Financial expenses comprises the markup to be given on working capital taken from HO or
any amount borrowed from financial institutions for running day to day affairs.
Selling Expenses:
Sales tax is the only selling expenses. Per ton cost is charged to production of the day as per
rates of taxes levied by Govt.
6) Production of By Products:
The mill produces molasses from the used material i.e. used crushed sugar cane. It stores
this molasses in steel tanks. There are 4 steel tanks for its storage.
7) Audit:
There is another department i.e. Audit which audits the financial data of company provided
by finance dept. the Auditor is directly concerned with GM of Mill.
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CHAPTER 5:
STORE FACILITIES
As sugar is produced for three to four months of crushing season and its sale is spread over a
period of twelve months. This situation wants the availability of a reasonable storage capacity.
Therefore Bawany Sugar Mills (Pvt).Ltd. has four sugar go downs having total capacity of 8, 00,000
bags 50 Kg each. Go down wise storage capacity is as under:
Go downs Capacity in Tons Capacity in Bags (50 Kg)
1. 10,000 2, 00,000
2. 10,000 2, 00,000
3. 10,000 2, 00,000
4. 10,000 2, 00,000
Total 40,000 8, 00,000
Tools and Instrumental Store:
There is another store in the mill which is used for keeping tool and instruments. This store
is controlled by mechanical department. These tools and instruments are used for repairing
emergency faults of machinery.
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CHAPTER 6:
FINANCIAL STATEMENT
Bawany Sugar Mills Ltd’s financial position is not well. The firm is continuously facing
loss. The reasons of loss are:
Lesser production of sugar
Low production of sugar cane
Low rates of sugar announced by government
Increased expenses due to inflation
It is noticed that flood disasters have affected Badin district a lot. About 70% of crop was
destroyed in flood. Moreover, the flood water remained in lands for more than 6 months. So, land
did not grow quality crop this year.
For three to four years, rates of sugar are decreased below 50 rupees and the rate of sugar
cane is about 140 rupees. The Bawany Sugar Mill purchases sugar cane at higher rate and sells sugar
at lower rate. This price of sugar is not reaching the cost of sugar and the company faces loss.
Financial Position
The Company is suffering losses of over Rs. 1,110.41 Million and is not in a position to earn
profit in its business operations to meet its obligations. As per annual, audited financial statements
for the year ended on Sep 30, 2011. The accumulated losses of Rs, 1,110.41 Millions as against paid
up capital of Rs.87, 245,910 i.e. the shareholders equity has fully eroded and has become negative
by Rs. (1,020.66) Million.
Share Holding
The sponsors hold about 69.35% shares of the company the General public holds about
30.35% of total paid up of the capital of the company.
Dividend
Due to accumulated losses and deteriorate financial position, the company is not in a.
position in any dividend to its shares holders now or in near future.
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BAWANY SUGAR MILL’S INCOME STATEMENT FOR NINE MONTHS PERIOD
ENDED JUNE 2012
Nine-months Period Ended Quarter Ended
30 June 30 June 30 June 30 June
2012 2011 2012 2011
(Rupees) (Rupees)
Sales -Net 828,165,562 949,178,259 335,242,043 283,120,429
Cost of Sales (883,361,465) (823,270,214) (308,833,731) (200,587,023)
———– ———– ———– ———–
Cross (55,195,603) 125,908,045 26,408,312 82,533,406
(loss)/Profit
Operating
Expenses
Distribution 1,532,592 3,949,231 1,224,815 343,846
cost
Administrative 49,301,081 19,921,894 15,280,302 10,297,145
expenses
50,833,673 23,871,125 16,505,617 10,640,991
Operating (106,029,275) 102,036,920 9,902,695 71,892,415
(loss)/Profit
Other operating 1,399,336 9,558,371 108,334 100,682
income
(104,629,939) 111,595,291 10,011,029 71,993,097
Finance cost (198,183,054) (130,424,992) (104,995,343) (65,202,885)
Other charges (1,026,290) - (155,650) -
(Loss)/Profit (303,839,284) (18,829,701) (95,139,964) 6,290,212
before taxation
Provision for - (9,491,783) (3,872,420) (2,831,204)
taxation-
Current
(Loss)/ profit (303,839,284) (28,321,484) (99,012,385) 3,959,007
after taxation
(Loss)/Earning (34.83) (3.25) (11.25) 0.45
per share
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CHAPTER 7:
INDUSTRY REVIEW
As compared to last year, sugar price has increased by government up to 25%. Crop of sugar
cane was in bulk quantity in Pakistan last year. But here in Badin, heavy rains and flood destroyed
most of the crops. This destruction cause a huge loss in production of sugar in Badin District and
sugar mills of Badin faced this loss as a result.
Sugar, in Pakistan, was produced in excess quantity. So, the rates of sugar remained very
low. The government announced sugar cane rate 154 per 40kg which is quite high as compared to
sugar rate. Due to lower sugar rate and higher cane rates, mills cannot achieve their cost of
production.
Sugar industry is demanding government to export the excessive production, in the way
somehow industry can stand on.
SWOT Analysis:
Strength:
Cane crushing capacity:
Bawany Sugar Mills has higher capacity of sugar cane crushing per day. It is 6000 TCD
which is highest among the mills of district.
Good quality sugar:
The Bawany sugar mill is providing very good quality of sugar, which is used by a large
number of people all over the country.
Good plant location:
The plant of Bawany sugar mill is located near the growing area. It does not have to bear
any extra transportation charges.
Good relationships :
It has developed very good relationships with the growers of the area. The growers
considered the Bawany sugar mill as their home mill. Sincerity of the growers with the mill is due
the better policies of the management. This producer-grower relationship is considered as strength of
the mill.
Weaknesses:
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Un hygienic atmosphere :
The unhygienic atmosphere badly affects the workers.
Laboratory
This is totally modernized era where every task is performed with latest methods and
techniques.
The mill has modern laboratory but there is unavailability of the modern instruments in the
laboratory.
Canteen Is Not Sufficient
There is only one canteen present in the mill which is not sufficient at all, Moreover, no air
conditioner and TV. Facilities are available in the canteen and it has no modern system.
Scarce Liability Of Cane
The scarce liability of cane is one of the main problems of the mill due to this problem the
project is running on loss.
Training:
No proper training system is available for the employee of the mill.
Poor Communication
The communication is very poor. In other words the communication process is not good
which is affecting the smooth running of the project.
Opportunities:
Good location
The Bawany sugar mill has great opportunities to grow because its location is quite good
and the nearby area is suitable for sugar cane production.
No direct competitor inside the city
The Bawany sugar mill does not have any competitor inside the city, so it can manipulate its
strategies without any big hurdle.
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Great investment
The financial position of the Bawany sugar mill is excellent and it is attracting the investors
to invest more and more money. More investing obviously means more opportunities to grow.
Good reputation
The solvency position of the mill owners is also very good. The good reputation of the
owners will also help the company to grow.
Threats:
Competitors
The major threat of Bawany sugar mill is its competitors. The Army sugar mill and the
Pangrio sugar mill are very tuff competitors of Bawany sugar mill. They are providing direct
competition by attracting the growers through there attracting policies.
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CHAPTER 8:
CONCLUSION
Bawany Sugar Mills Ltd is a well known organization of Sindh. For some years it is not
performing well. In the earlier days of its downfall, the reason for its loss was mismanagement. Later
on, Its management was made better and then, economic instability and inflation again brought the
profit of company to negative. The company is still suffering the severe conditions of loss.
The business activities of Bawany Sugar Mills are under sound and trustworthy systems. Its
operational performance compared to its neighbor’s mills has always been excellent. It acts as the
sole source of healthy and positive competition within the sugar industry of the region the ultimate
benefit of which goes to sugarcane growers.
In a nutshell, these are the reasons of Bawany Sugar Mill’s crisis:
The Mill has faced political instability, energy crisis and economic recessions.
The Managerial level employees are mostly given the task that they have to do
independently but on ground they have to work in their teams. So lack of practices
towards team work causes the failure.
At time in mill the new employees are not given the proper training.
Sugar Mills mostly employees are bore of their jobs and they feel that they have
been become frustrated by doing the same old tasks again and again.
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RECOMMENDATIONS:
Bawany Sugar Mills Ltd needs these activities to act upon for improving its performance.
For assuring safety and security of workers, there should be a separate department.
There should be a training program after three months or six month to provide the
employees required skill and to remove the gap from their performance.
To make employees punctual, there should be a card system.
There should be family quarters for all married workers.
All the employees especially those associated with production should be encouraged,
and should be involved in decision making and empowered to make innovative
decisions. In this way employees can add to the organization, a lot. E.g. a new cost
effective production technique can result in comparatively huge profits.
Work should be divided in team and reward should be on team based rather than on
individual basis.
The shortage of water and fertilizers is remaining constant and government is not taking
any satisfactory action to reduce the shortage. Due to this shortage, sugar cane crop is
decreasing.
41. P a g e | 29
Bibliography:
www.psmacentre.com
www.bizearch.com
www.omnigroup.com.pk
www.wikipedia.org
www.corporateinformation.com
www.ppinewsagency.com
Interviews with employees