Structure and Management of Indian Sugar Industry

7/30/2019 Structure and Management of Indian Sugar Industry

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Prof. (Dr.) KISHOR BARAD

PROGRAM CHAIR PGDMSHANTI BUSINESS SCHOOL AHMEDABAD

Email: [email protected]


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Firms Performance

What is an Industry?

What is Industry Structure?

Uses of Industry Structure. S-C-M Model

Indian Sugar Industry-Facts

Govt. regulations on Indian Sugar Industry Industry Statistics

Management of Indian Sugar Industry

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MICRO

ENVIRONMENT

(COMPETITION,

RIVALARY,

BUYERS,

SUPPLIERS etc)

FIRMS RESOURCES,CAPABILITIES &

ACTIONS OF ITS

DECISION MAKERS

MACROENVIRONMENT

(ECONOMY,

TECHNOLOGY,

SOCIETY,POLITICAL

REGULATION

etc)


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An industry is a collection of firms offering

goods or services that are close substitutes ofeach other.

OR

Alternatively, an industry consists of firms that

directly compete with each other.

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The term industry structure refers to the

number and size distribution of firms in an

industry.

Industry could be fragmented or

Consolidated.

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1. Business Policy2. Public Policy

Business Policy:-

Used to gauge competition, rivalry, entry barriers, andother aspects of competitive dynamics in an industry.

Public Policy:- Govt. use for granting mergers or acquisitions permission.

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Model indicates that industry structure

impacts an industrys economic performance

& profitability of companies in that industry.

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Agro based industry

2nd largest producer of sugar in the world

5 million hectares & 50 million cane farmers anddependants.

Rs.80,000 crore industry. Cane payment of Rs.55,000

crore are directly paid to farmers without

middlemen.

Ownership-public sector, private sector &

cooperative

65% of sugar consumed by bulk consumers

Located in rural heartland, directly contributes to

rural economic development & employment

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Total Sugar Mills during 2009-10 was 651. Out of this 269 were in corporate, 62 in public sector and

320 were in cooperative sector.

Annual Installed Production Capacity during 2009-10 was

236.25 lakh tonnes. Sugar Production in 2010-11 was 24.50 million tonnes.

Sugarcane production in 2010-11 was 346 million tonnes

Area under sugarcane cultivation was 4.98 million

hectares of land

Molasses production in 2010-11 was 8.4 million tonnes.

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Indian Sugar Industry is highly regulated

Central & State Govt. regulates & control this

industry.

Regulation in terms of Set Up of Sugar MillsPlantation of Sugarcane

Pricing of Sugarcane

Packing of Sugar

Selling & Distribution of Sugar

Selling of By-products

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MAIN PRODUCT CRYSTALWHITE SUGAR BY-PRODUCT BAGASSE

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BY-PRODUCT MOLASSES BY PRODUCT PRESS MUD

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MACRO LEVEL MANAGEMENT CENTRAL & STATEGOVERNMENT

MICRO MANAGEMENT AS FOLLOWS:-

PRIVATE SECTOR SUGAR MILLS - AS PER INDIAN

COMPANY ACT 1956

COOPERATIVE SECTOR MILLS - STATE COOPERATIVE

SOCIETIES ACT

PUBLIC SECTOR MILLS - STATE GOVERNMENT

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COPERATIVE-NFCSF PRIVATE-ISMA

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SUGAR MILL UNIT DISTILLERY UNIT

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Structure and Management of Indian Sugar Industry

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