D.K.S.S.K.

N, CHIKODI
Part-A 1. INDUSTRY PROFILE After the blockade and the landing of British troops superior in number than the French force of the General Deccan, the French capitulated in December 1810. From the Treaty of Paris of 1814, Mauritius and its dependencies became British, whereas Reunion even that it was captured was given back to France. Mauritius became British and got back the name the Dutch gave her, but stayed quite close to France as she kept the language, culture and French laws. Left on their own, under the same legal system, the ancient French colonist and their descendants was then able to live a French style as in the past, changing from a colony base on maritime trade to that of an agricultural one. Even that the sugar industry started under the French period, it was only during the British period that it developed in such a way that it became almost a mono-crop industry until some other crops were cultivated such as tea, tobacco, aloe and more recently small industries for food, textile and household products. ABOLITION OF SLAVERY.The most important event under the British. Administration was the abolition of slavery in 1835 EMANCIPATION OF THE SLAVES. The emancipation of the slaves in 1835 was been opposed by the colonists same at those of other British Colonies for economic reasons since the sugar industry in development needed man power. The colonists obtained a very high compensation. Then there were no trouble as expected since everything went on calmly, but to replace for the sudden lack of human resource, the country had to ask for free workers from India. The first importation of Indian human resource in Mauritius was in 1829. But it was only when the slaves were emancipated that it took importance. It resulted in an accelerated development of the sugar industry and brought prosperity as from 1850. That prosperity of 1850 was also due to a recovery in trade. Another development during the British period: the change in the constitution, which BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

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was slow at the start, but got speed after the second world war to bring independence in 1968. TOWODRS INDEPENDENCE It is as from 1937 with the requests of the workers and the establishment of the Labour Party that regrouped the colored people and certain intellectuals from Indian origin as well as the recognition of the workers unions that progress started to be done. There was also a new constitution after the elections of 1943 during which two firth of the population could vote. The elections of 1953 made democracy move ahead when the Labor party obtained more seats. It was in 1957, the year when the ministerial system started in Mauritius that Dr.Ramgoolam took the leadership of the Labor party. INTRODUTION TO SUGAR INDUSTRYThe Indian sugar industry is a key driver of rural development, supporting Indias economic growth. The industry is inherently inclusive supporting over 50 million farmers and their families, along with workers and entrepreneurs of almost 500 mills, apart from a host of wholesalers and distributors spread across the country. The industry is at a cross roads today, where it can leverage opportunities created by Global shifts in sugar trade as well as the emergence of sugar cane as a source of renewable energy, through ethanol and co generation. While some of these opportunities have been well researched in the past, there was a need to assess the potential for India and to develop a comprehensive and actionable roadmap that could enable the Indian industry to take its rightful place as a food and energy producer for one of the worlds leading economies. 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 tons per hectare. India is the largest single producer of sugar including traditional cane sugar sweeteners, khandsari, and Gur equivalent to 26 million tones. Even in respect of white crystal Sugar, India has ranked No. 1 position in 7 out of last 10 years. BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

D.K.S.S.K.N, CHIKODI
Traditional sweeteners Gur & Khandsari are consumed mostly by the rural population in India. In the early 1930s nearly 2/3 rd of sugarcane production was utilized 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 utilized 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 Year No. of factories in Installed capacity (tones) operation 1950-51 1955-56 1960-61 1965-66 1973-74 1978-79 1985-86 1990-91 1995-96 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 139 143 174 200 229 299 339 377 415 423 437 433 453 461 506 535 556 571 574 16.7 17.8 24.5 32.3 43.1 59.1 72.7 98.5 127.6 161.8 168.2 176.8 180 185 197 203 225 230 235

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SUGAR MAKING PICTURE IN 1937:

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 lakhs tones to 9.34 lakhs tones under the dynamic leadership of the private sector. Total sugar industries in India are 574 out of which 67 are public sector companies, 157 are private sector companies and 282 are co-operative societies. Total sugar industries in Karnataka are 40 out of which 2 are public sector companies, 18 are private sector companies, 19 are co-operative societies and 1 is joint venture.

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THE FOLLOWING TABLE SHOWS THE INDIAN SUGAR INDUSTRY AT GLANCENo of sugar factories established Total capital employed Total annual turnover Total payment to cane growers Contribution to central & state exchequers Direct payment : rural educated Farmers/ families involved in sugar cane 574 Rs 50,000 crores Rs 25,000 crores Rs 18,000 crores Rs 2500 crores Rs 5.00 lakhs Rs 45 million

2.COMPANY PROFILE a) Background and Inception of the company

Shree Doodhaganga Krishna Sahakari Sakkare Karkhane Niyamit, Chikodi is a co-operative society registered under Karnataka co-operative societys Act in 1969. The industrial license number of the factory is L-25/N-250/-LC dated 16/10/1970. BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

D.K.S.S.K.N, CHIKODI
Shree D.K.S.S.K.N. Chikodi is a co-operative unit. It is a situated near Nanadi village, at a distance of about 13Km from Chikodi town and the factory at present has an attractive campus with magnificent buildings over it. Agriculture was continues to; be an extremely important sector in our country and cooperative system, as one of its main pillars providing vital support services, is crucial for the transformation of agriculture. It is how inspired our founder Late Sri. Chidanand B Kore, an

agriculturist and a co-operator, to establish this factory during 1972-73 with the financial support from cane growers of this area and the State Government. With an initial crushing capacity 1250 TCD and as a stand alone sugar industry, lour factory had faced a lot of problems all these years in coming out as a viable unit. Though this factory had emerged in this area with a meager beginning, it had not only provided a source of income for forming community but also created a sustainable employment opportunity in this rural area. After a lot of dispute on location of plant, near Nanadi village, the construction work started in the year 1971 and it was completed in the year 1974. The factory was inaugurated by Vice-president Shri B.D.Jatti on 6th November 1974. The regular production has been started from December 1974. The entire plant and Machinery has been supplied by m/s National Heavy Engineering Co-operative Ltd.Pune, A co-operative institution has also been installed to meet the present requirement of the Crushing capacity. The DKSSK, at present is equipped with modern machines and skilled personals. b) Nature of the business carried The main business of the parent company are manufacturing of: Sugar Power Indian Made Foreign Liquor Ethanol

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Sugar industry is mainly based on growing of sugar cane in a particular area. And the sugar factories are opened by considering the availability of sugar cane on that area. Sugar factory runs only for 6-8 months in a year. The availability of raw material to sugar industry is not throughout the year, it will depends on season. The D.K.S.S.K is purchases the sugar cane from surrounding agriculturists for fulfilling the needs of raw material to produce the finished sugar. By making the stock of sugar it sells the sugar throughout the year depends on fluctuating market rates. The D.K.S.S.K sells the sugar in Karnataka state and also the other near states. The India produce huge finished sugar and also export the sugar to other different countries. Shree D.K.S.S.K.N also produces the Electricity and Distillery products by using the Molasses

c) Vision, Mission and Quality policy Vision To continue to remain the largest producer of sugar in South of India, to aim to be in the top three sugar manufacturing companies in India & to provide more value to the shareholders by means of efficient capacity utilization of its sugar, power and distillery based facilities.

Mission We are dedicated to deliver overall value to our customers by delivering high quality products, exceptional financial performance to our share holders& complete satisfaction to cane growers, employees & stakeholders Quality policy TOTAL CUSTOMER SATISFACTION IS OUR GOAL BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

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To achieve this we at S.D.K.S.S.K.N committed to produce quality white crystal sugar as per the Indian sugar standard through continual improvement in our processes, people and stake holders d) e) Area of Operation

Area of operation which spread over Karnataka and Maharashtra states. In Karnataka State it includes Chikodi, Athani, Raibag and JamakhandiTalukas total 114 villages. In Maharashtra State which areas are interrelated to S.K.D.S.S.K.N and which are border lines of Maharashtra State i.e. Shirole and KagalTalukas 8 villages. Under the guidelines of The central sugar control law fixes these areas. f) Ownership Pattern The authorized share capital of the Society shall be RS.15.20 crores divided in to total 38,000 shares of RS.4,000/-each as under. Rs.14,51,000/-dividend in to 36,275 shares of the face value of Rs.4,000/-each reserved for the grower members called as A Class. Rs.9,00,000/-dividend in to 225 shares of the face value of Rs.4000/each reserved for Co-operative Institutions. Called as BClass. BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

D.K.S.S.K.N, CHIKODI
Rs.20,00,000/-dividend in to 500 shares of Redeemable preference share of Rs.4,000/-each to be issued to Government of Karnataka/Maharashtra called as CClass. Rs.40,00,000/- dividend in to 1,000 shares of face value of Rs.4,000/each reserved for non grower members called as D Class. Shree D.K.S.S.K.N has the composition of Chairman, Voice Chairman, Board of Directors, and Managing Director. The following chart shows the Name of person, Place and Designation. SL.N O. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Shree. Mahantesh m Kavatigimath Shree. Ajit S Desai Shree. Amit P Kore Shree. Ashok A Patil Shree. Shantappa Y Mirje Shree. Annasaheb S Jolle Shree. Prakash J Patil Shree. Satappa N Saptasagar Shree. Bharatesh S Banvane Shree. Mallikarjun G Kore Shree. Mallikarjun V Hiremath Shree. Parasagouda I Patil Shree. Kallappa K Mashale Shree. Subhash N Katrale Shree. Tatyasaheb D Kate Shree. Nandkumar M Nasheepudi Shree. S. B. Umarani Chikodi Yadoor Ankali Bhoj Chikodi Yaxamba Sadalaga Yaxamba Naslapor Ankali Keroor Jogol Diggewadi Shirgappi Soudatti Nej Yadoor Chairman Voice Chairman Director Director Director Director Director Director Director Director Director Director Director Director Director Director Managing Director NAME PLACE DESIGNATION

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Administrative Department of S.D.K.S.S.K.N has the following members SL.NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 NAME Shree. D. S. Girigouder Shree. MurgeshHattikal Shree. A. K. Memane Shree. I. N. Golbhanvi Shree. R. D. Nigave Shree. V. S. Dhamal Shree. R. C. Pattanshetti Shree. A. B. Devraddi Shree. S. L. Hakare Shree. S. B. Chinnanavar Shree. V. B. Patil Shree. B. A. Patil Shree. B. S. Rendale Shree. D. S. Hunchali DESIGNATION Chief Manager (Sugar) Voice Chief Manager(Sub-Electricity) Chief Chemist Chief Accountant Distillery Manager Sugar Cane Development Officer Environmental Engineer Marketing Manager Labour Welfare Officer Chief Time Keeper Store Keeper Purchase Officer Cane yard Supervisor Maintenance Officer

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g) Competitors Information The Competitors for this industry is other located near by sugar industry named Competitors

Cooperative ltd 1) Hira Sugar, sankeshwar.(Karnataka) 2) Prabha Sugars, Gokak .(Karnataka) 3) Ajara factory, Ajara.(Maharashtra) 4) Gadhinglaj Factory, Gadhinglaj.(Maharashtra)

Private ltd 1) Renuka Sugars, Munnoli(Karnataka) 2) Vishwas Sugars, Bagewadi.(Karnataka) 3) Ugarkurd sugars, Athani. (Karnataka) 4) Satish Sugars Gokak (Karnataka)

The competition only for purchasing the Sugar cane from formers. Different factories are given different rates based on demand for Sugar Cane, Brand name of Sugar factories, timely Payment for purchase of sugar cane and Government interfere in fixing the Sugar Cane rate. In Belgaum district 18 sugar manufacturing plants are running. The rate given to formers is different. Based on this varying rates, season of crop and management effectiveness of factories are runs only 6 months and some factories are runs between 4-8 months. In the financial year 2008-09 for purchasing 1 tonne sugar cane the rate is given Rs.1500 to Rs.1700. Financial 2009-10 for purchasing the 1 tonne sugar cane the rate is given is Rs.2000 to Rs.2500. The rate is fixed on the bases of demand and availability of Sugar Cane. BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

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D.K.S.S.K.N, CHIKODI
h) Infrastructural Facilities An infrastructural facility includes Road, Water, near to raw material and transport facilities. Water Facilities The S.D.K.S.S.K.N is established near Krishna river of Chikoditakluk . For fulfilling the water needs to factory processes water is taken by this river. Distance between factory and river is only 3 kms. The continuous availability of water is helps to effective processing of all activities of factory. Road Facilities A well developed tar road is connected with this factory. The Chikodi Athani main road is connected with this factory . For connecting the Chikodi-Athani main road, factory has there own road of 3 kms. To connect this road. The NH4 is also is near to this factory. NH4 highway is 30 kms. far. Transport Facilities Transporting of raw-material into factory and finished goods into well developed marketing areas by way of transportation. In this area only road transportation is available. The factory uses only private vehicles to transport the goods. For transferring the raw material to factory they uses Tractors and Trucks. For transferring the finished to other places they uses only trucks. The availability of transport facility is always better in this area. The following are the facilities given to the employees or workers. Half an hours rest interval Canteen facilities Weekly holiday (every Sunday) 15 days holiday in a year 12 days casual leave in a year 12 days sick leave in a year BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

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D.K.S.S.K.N, CHIKODI
Medical treatment Provident fund Employees pension Death come retirement relief fund Sport and recreation facilities etc i) Achievements/Award Achievements STAI, SISSTA & DSTA in their recent 8th annual convention at Hyderabad held on 13-08-2005 have honored with the most prestigious award as the THE BEST EFFICIENCY & PERFORMANCE SUGAR FACTORY in the country for the year 2004-05. The award was given by Honble Union Minister for agricultural, food & Civil Supplies, in presence of Honble Chief Minister of Andhra Pradesh. The Karnataka State Co-op Federation Ltd. had adjudged as The Best Cooperative Sugar Factory in the State and AWARD had been given to us through Honble Chief Minister of Karnataka, on 14/11/2004.

Energy Department of Government of Karnataka and KREDL have awarded

The companies have the Honor of achieving the Highest Sugar Recovery @
11.80% in Southern part of India for the year 2001-02. And 11.90% for 200203 also. Awards The Karnataka State Cooperative Sugar Factories Federation Ltd., Bangalore had honored the company with the following awards for the: Highest sugar recovery in South India during 2001-02. BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

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D.K.S.S.K.N, CHIKODI
The Best Administration Award to the Managing Director with a cash prize of Rs .10.000/- and a certificate. The Best chief Chemist Award with Rs.5,000/- Cash prize and a Certificate. Best chief engineer with award worth of Rs.5,000/- cash prize and certificate. j) Work flow model (End to End)

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D.K.S.S.K.N, CHIKODI
THE FOLLOWING PICTURE SHOWS THE SUGAR CANE SUPPLY TO D.K.S.S.K.N,CHIKODI

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Staff
Good hard working citizen play essential role in the development of nation. The employees are responsible for the success or failure of company. The company has totally 778 workers are working is the company. They are divided as follows No. of Workers 1) Permanent worker 2) Seasonal workers 3) Consolidated worker 4) Daily wage worker 363 241 74 100 778

Company is paying salary of Rs. 55, 00, 000 per month to its workers.

WORKERS SHIFT SYSTEMSugar manufacturing process is continuous process it needs employees to take care of the operations 24 hours. So company employs its workers in 3 different shifts and also provide weekly off on routine basis. The shift system of the company is as follows. SHIFTS 1 2 3 TIMINGS 04:00 am TO 12:00 pm 12:00 pm TO 08:00 pm 08:00 pm TO 04:00 am BREAK 30 min 30 min 30 min

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GENERAL AND ADMINISTRATION

08:00 am TO 12:00 pm 01:00 pm TO 05:00 pm

60 min

10:00 am TO 02:00 pm 02:00 pm TO 05:30 pm

TABLE -1 SL NO. PARTICULARS 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Cane crushed

15778

312810 205135 146979 430018 60104 1

Sugar production

11003

351898 217680 158900 516169 70598 5

Recovery %

7.80

11..24

10.62

10.81

12.02

11.80

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14 12 10 8 6 4

2
0 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

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D.K.S.S.K.N, CHIKODI

Administration department hierarchyGAD Section

EST Section

Meeting Section

IW/OW Section

Share Section

Typing Section

Guest house

Legal Section

Purchase Section

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FINANCE AND ACCOUNTS DEPARTMENT Finance plays a vital role in the functioning of all industrial units. Finance is the life blood of the organization. In sugar Industry Finance and accounts Department has very vital roles. The financial plan basically deals with raising and proper utilization of funds. The funds can be raised by issue of shares as well as by raising loans various sources. The finance manager supported with accountant manager and an accountant assistant looks finance department

FUNCTIONS: They look after the overall financial requirements of the company. They see that a proper inflow and outflow of income and expenditure is maintained. Costing and accounting is framed and maintained. Yearly budget is framed so that each department can meet their cash requirements. Budget prepared is based on sales forecasting, expenses forecasting, cost forecasting, purchase forecasting etc. which submitted by respective departments. Finance Department consists of following sub branches: General Accounts Section Cane Accounts Section Sales Section Cash Section Accounts offices are the head of this department. Accountant sales manager, and head cashier assist him.

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Finance controlling repayment of term loans. Taking loans excepting and payment call deposits maintains all Accounts. Payment of all bills statutory and normal bills. 1. GENERAL ACCOUNTS SECTION: General Accounts are looking after the passing of bills and

payments. Management is also done by General account section and preparation of financial statements i.e., Balance sheet, profit and loss account is attended by general accounts section. 2. CANE ACCOUNTS SECTION: The Bills and payment concerned to procurement of sugar cane, is attended by cane accounts section. Payments like cane bills, transport and harvesting bills etc., are prepared and passed in cane accounts section. 3. SALES SECTION: It is looking after sales of sugar and by products molasses, Rectified spirit and other scrap materials. It is keeping records of the concerned to all sales section. 4. CASH SECTION: It is looking after the payments of all general bills and salary bills apart from cane payment and it is also looking after receipt of cash and check payment. All accounts are maintained in usual manner. Various records and books kept are: General ledger Sub ledger Subsidiary Cash book Bank book Vouchers.

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D.K.S.S.K.N, CHIKODI
Each branch prepares trading profits and loss account and Balance as on 31st March every year. And the government Auditors audits the accounts. PURCHESE DEPARTMENT Purchasing procedure very concededly according to the needs of the organization and authority delegated to purchase manager the successes of organization is based on effective inventory management system and interrupted production schedulethis is achieved with adequate purchasing function. The important functions are Purchasing materials Calling quotations Placing orders for supply of materials Passing bills to accounts section for payment

OBJECTIVES To receive purchase requisition from the stores department production centers or any other authorized sources. To invite quotations from a number of suppliers. To make arrangements for the purchase of appropriate quantities at any given times. To ensure the purchase of the correct quality under trade or brand name by sample, description. To follow up the orders placed. To receive incoming suppliers, verity quantity test and inspect them. To arrange for the stores and issue of materials.

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PURCHASE DEPARTMENT SYSTEM Requirement requisition

Quoting of enquiry of suppliers

Requesting to send quotation

Used to draw the model of the item

Compare the items from parties

Calling parties for negotiation

Compare the rates of the items

Place the order

Receiving the material (store)

Approval memo after receiving the material

Store dept will send the bill

Bill is sent it to the A/C office

Verification of bill with order copy

Finally payment of bill to the supplier

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PURCHASE DEPARTMENT HIERARCHYPURCHASE MANAGER

GODOWN

SUPERVISORS

STORE KEEPERS

ASSISTANTS

PROCEDURE OF PURCHASING: 1. DETERMINATION OF PURCHASE BUDGET: In the beginning of the year the purchase manager, with the help of production planning department, prepare a purchase budget. This budget guides him in knowing what when he has to buy and also quality. Size and quantity of purchase. 2. DETERMINATION OF QUANTITY: The stock availability in each location is determined and compared with the actual requirements. After receiving the sales order raw materials needed are

scheduled according to these order level. The stock availability in each location is determined and compared with actual requirements these quantities to be purchased are determined

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3. PURCHASE ORDER: After satisfy with the quantity of materials and reputation of the supplier, purchase order is send to the supplier. Purchase order contain includes the date of order, description of materials to be supplied made of supply. The companies of this send to the Head office, another to accounts departments and one copy send to the storekeeper. 4. RECEIVING AND ISSUING RAW MATERIALS:The department heads and the storekeeper check the quality and quantity of raw materials received respectively. The storekeeper enters the details of purchased materials in the store receipt book store receipt after the details are entered in the stored receipt book, the materials from the part of inventory. Then the general manager passes the amount for payment. 8) PRODUCTION DEPARTMENT Production management refers to the application of management principles to the production function in a factory. In other words production management involves application of planning, organizing, directing and controlling the production process. A well-organized production function can offer competitive advantage to a firm in the following areas. Higher quality More inventory turns Shorter new product lead time Greater flexibility Shorter manufacturing lead time Better customer satisfaction Reduced wastage

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SOCIAL AND WELFARE ACTIVITY It also knows as personal department, which deals with the workers or employees. In this department the main role is sets the wage rate of workers, total house of work. It also attends to the problem of the workers and also solves turn. The following are the facilities given to the employees or workers. Half an hours rest interval Canteen facilities Weekly holiday (every Sunday) 15 days holiday in a year 12 days casual leave in a year 12 days sick leave in a year Medical treatment Employees pension Death come retirement relief fund

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3.MICHAEL E. PORTERS 5 FORCES ANALYSIS:

Fig The 5 forces that shape industry competition Porter's five forces analysis is a framework for the industry analysis and business strategy envelopment developed by Michael E. Porter of Harvard Business School in 1979. It uses concepts developed in Industrial Organization (IO) economics to derive five forces which determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to

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reassess the marketplace. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability The Five Forces 1. The threat of substitute products 2. The threat of the entry of new competitors 3. The intensity of competitive rivalry 4. The bargaining power of customers 5. The bargaining power of suppliers 1. The threat of substitute products: The substitute product for sugar is Jaggery. Now price for jaggery is higher than the sugar, in Jaggery there are more impurities; to produce Jaggery more acids are used. Sugar is more friendly in nature than the Jaggery so there is no treat of substitute product 2. The threat of the entry of new competitors: There are many factories near to this factory, the price for sugar is all most equal in other factories. Price is fixed considering the prices set in other factories. 3. The intensity of competitive rivalry There are many players of about the same size, Players have similar strategies There is not much differentiation between players and their products, hence, there is much price competition Low market growth rates (growth of a particular company is possible only at the expense of a competitor), BLDEAS A.S PATIL COLLEGE OF COMMERCE , BIJAPUR (AUTONOMOUS)

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Barriers for exit are high (e.g. expensive and highly specialized equipment). 4. The bargaining power of customers: Sugar is selled by tender method who bids the highest price it is sold to them to the whole salers. 90% of production is sold by free sale. 10% govt takes as levy sale. Govt fixes the quantity to be sold in a month. If Customers demand for the high price the company gives from its profit. 5. The bargaining power of suppliers: For the sugarcane the price is fixed by the central govt. To retain the suppliers the company gives from its profits if customers demand for high price. Farmers are the raw material suppliers.

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