A REPORT ON SUMMER INTERNSHIP AND INDUSTRY ANALYSIS AT

TRAVANCORE SUGAR AND CHEMICALS LTD, THIRUVALLA

Submitted to

MAHATMA GANDHI UNIVERSITY

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by,

ABIJITH N B

Reg.no:223240011129

Under the guidance of

DR. JESENA ABDEEN

Associate Professor

DEPARTMENT OF BUSINESS ADMINISRATION

MES- AIMAT, MARAMPALLY P.O, ALUVA

2022- 2024
 DECLARATION

IABIJITH N.B, do here by declare that this report entitled “A REPORT ON

SUMMER INTERNSHIP & INDUSTRY ANALYSIS AT
TRAVANCORE SUGARS AND CHEMICAL, THIRUVALLA, LTD
PATHANAMTHITTA” is a bona-fide record of industrial analysis carried under the
guidance ofDR. JESENA ABDEEN submitted in partial fulfilment of the
requirements for the award of degree of Master of Business Administration of Mahatma
Gandhi University. I also declare that this report has not been submitted by me, fully or
partially for the award of any degree, diploma, associate ship, fellowship or any other
similar title of any other university or institution.

Date: ABIJITHNB

Place: Marampally Reg. No: 223240011129

 ACKNOWLEDGEMENT

I am very much thankful to the God Almighty for having blessing to complete my report
successfully.
I gave my extreme pleasure and satisfaction to express my sincere thanks to all those who
helped me directly and indirectly to make this study a faithful one. I would like to express
my sincere thanks toDR. JUBEL MATHEW, DIRECTOR OF MES-AIMAT
MARAMPALLY.
I would like to express my gratitude toDR. JESENA ABDEEN,HODof MES-AIMAT,
MARAMPALLYfor giving me an opportunity to conduct this study. I extend deep
gratitude for guiding me to complete this project successfully.
I wish to express my heartfelt gratitude to my parents and friends who gave me the
inspiration and help throughout this study.
ABIJITH N.B
 TABLE OF CONTENT
Sl. No Chapter Particulars Page. No

1 1 Company Profile

1.1 Brief History of the Company 1-6

1.2 Business Process of the Organization 7-10

1.3 Customers of the Company 11

1.4 Competitors of the Company 11

1.5 Strategies- Business, Pricing, Management 11-12

1.6 CSR Activities 13-14

1.7 Export/ Import 14

1.8 Collaborations and Expansion Plans 14-16

1.9 SWOT Analysis of the Company 16-17

2 2 An Overview of the Industry

2.1 Brief History of the Industry 19-23

2.2 Business Process of the Industry 23-27

2.3 Market Demand and Supply- Contribution to GDP- 27-30

Revenue Generation

2.4 Level and Type of Competition- Firms Operating in the 30-32

Industry

2.5 Pricing Strategies in the Industry 32-34

2.6 Prospects and Challenges in the Industry 34-37

2.7 Key Drivers of the Industry 38-40

2.8 Stalwarts in the Industry 40-42

3 3 Industry Analysis- Porter's 5 Force Model 44-47

4 4 Discussion

4.1 Observation 49-51

4.2 Specific Learning Outcome 51-53

5 5 5.1 Findings 55-56

5.2 Suggestion 58

5.3 Conclusion

Bibliography

LIST OF TABLES
SL.NO PARTICULARS PAGE NO.

1 Business process 5

2 Organization structure 7

3 Finance department 9

4 CSR 12

5 Production department 25

6 Diagram 28

7 5 force model 45

8 Pest 47

9 5 forces model 46
 CHAPTER-1
COMPANY / ORGANISATION
1.1 Brief History of the Company / Organisation

The Travancore Sugars and chemicals Ltd. (TSCL), a Kerala Government Company
incorporated in 1937 with a Registered Office and Factory at Valanjavattom about 7 Kms
from Thiruvalla in Pathanamthitta District, Kerala commenced commercial production on
12.11.1948. The company which had three divisions viz sugar division, Distillery division
and blending and bottling division was originally owned by M/s Parry and Co. The
Government of Kerala (GOK) took over the company in 1974. Due to non-availability of
the raw material i.e., sugarcane, the sugar division was closed in the year 1998. The
distillery division was manufacturing and supplying arrack to Abkari contractors and until
1992, the company was enjoying a monopoly status in this activity. The competition
arising due to liberalisation of arrack purchase after 1992 and the subsequent ban by GOK.
production and consumption of the Arrack Distillery division was also closed. The
company is at present engaged in the manufacture of Indian Made Foreign Liquor (IMFL)
only and the products are sold through Kerala State Beverages Corporation Ltd. KSBC a
company wholly owned by Government of Kerala, which is a monopoly procurement
Agency of IMFL. The major departments are Production department, Finance, Accounts
department, Secretarial, Personnel and Administration Department, and Purchase and
Stores Department etc.

Characteristics of Organisation
Division of work
Co-ordination
Common objectives
Co-operating relationships
Well-defined authority-responsibility relationships

Objectives of Organization
The organization aims at the achievement of the following aims: -

To help management:
The organization help management to have a control over various business functions. The
work is divided properly, and control centres are established. The authority is delegated,
and responsibilities are fixed. It helps management to have a co-ordinate administration.

1
To increase production:

The duties are assigned according to the principle of division of labour. The efficient
system of organization encourages every employee to make his best contribution in raising
output the increase in output and control of wasteful expenditure helps to decrease the cost
of production. The profitability of the concern will also go up.

Co-ordination of employees: -

The organizational structure will succeed will only if employee co-operate with others. The
manager introduces various incentives schemes and gives monetary and other benefits to
the employees so that they work in a team spirit.

Types of Organization

Line organization

Functional organization

Line & staff organization

Line & Staff organization

Functions of Board of Directors

Controller and Auditor General of India shall be appointed as statutory auditors. Board of
directors approved the account and submitted to statutory auditors. The statutory auditors
and when complete the audit assignment and audit issue the auditor’s report. Afterward the
accounts and reports submitted to controller and Auditor General of India andfinance
SecretaryGovt.of Kerala for getting their commencement as and when receive the above
commence. We shall present the same along with account to the shareholders for their
approval.

2
Strength of Board of Directors

Board of directors includes seven members. Two directors nominated by Govt. Remaining
five appointed by shareholders. One third directors retiring by rotation, but he is eligible
for reappointment quorum of the board include two members.

The Management

While considering their responsibilities and nature of activities, the organization is having
all the three levels of management. They are,

The Manager

The managers are entrusted with and responsibilities to their respective departments. They
are obtaining directors from the top level and giving directions to the lower levels
especially to supervisors. Each manager is in charge of one or two organizational activities.
The day today administration and management under their field are conducted by them.
But matters are of high importance and casual in nature cannot be done without obtaining
the advice from the top.

Supervisors

The supervisors are responsible for the work of operating the employees. It is by getting
things done through the staff. They are receiving orders from the managers and implement
through the staff. As motivators and energy providers to the employees their role is very
important. They are capable of maintaining a friendly and harmonious relation among the
employees.

Staff

The managers may be the goal setters whereas the staff members are the real executors.
The success of the organizational is mainly depending upon the deficiency and
effectiveness of the staff. They are doing the work under the directions of the managers.

3
The skill and experience have an impact on their performance. The understanding and
understandable character of the staff is essential for the synergic group dynamism. They
are trustworthy and loyal to the organization.

The Management

. Manager

. Supervisors

. staff

Product Profile

Travancore Sugars and Chemicals Ltd produce variety of products which are given below:

 Indian Made Fine Liquor (IMFL)

During the financial year 2020-2021 the company sold 47996993 bulk litres of IMFL
valued Rs.251416074.

Now the company produces so many brands of liquor which are given below:

 Major Premium Brandy

This brand is specially produced for high class segment. Normally this brand is costlier
than other products.

It is one of the brands which have great move in the market. This product is an
advancement of its earliest Product named Commander VSOP Brandy.

 Festival XXX Rum

Festival xxx Rum is a leading brand in middle class segment. During the year 2020-2021
as per sales report This brand makes good sales.

4
  Jawan XXX Rum

During the year 2020-2021 as per the sale report this is the most profit making brand of
company. These Brand targets mainly on middle class segments. Price of those products
is around 650 Rs for 1 litre bottle.
The main ingredients are chromic colour, essence, Extra 96% neutral alcohol + food
flavour.

 Cheers XXX Rum

This is special brand for low class segments, these brands also keep good sales report,
but low compared to others.

 Rectified Spirit

During the year 2020- 2021 the company sold 215565 litres of rectified spirit valued 82
lakhs. It contains 94% alcohol.
1.2 Business Process of the organisation – Product

The Business Process of Travancore Sugars and Chemicals (Beverage Products)

 Product Development: The Company Conducts Research and Development
Activities to Create new Beverage Products
 Ingredient Sourcing: Raw materials and ingredient such as fruits, flavouring,
sweeteners, and additives are sourced from reliable suppliers.
5
 Production planning: The production schedule is established, considering factor
like
Mixing and Blending: The beverage mixture, mixed, and blended in specific
proportions to achieve the desired taste, flavour.
 Carbonation: for carbonate beverage, carbonation is added during the production
process to create the desired level of fuzziness.
 Packaging: The beverage is filled into bottles, cans, or other suitable containers.
Packaging materials, labels, and seals are applied, along with batch coding and
expiration date information.
 Quality Control: strict quality control measures are implemented throughout the
production process
 Distribution and Logistics: The packaged beverages are stored in warehouses and
then distributed to various retail outlets.
 Marketing and Sales: The company develops marketing strategies to promote the
beverages products, including branding, advertising, and engaging with distributors
and retailers.
 Customers Feedback and Continuous Improvement: Travancore and Chemicals
actively seeks customer feedback on its beverage products and uses that
information to make continuous improvement in terms of taste, quality, and
packaging.

Machinery

Where malt is stored in silos, the opening should he protected and strict rules enforced
regarding entry of personnel, as described in the box on confined spaces in this chapter.
Conveyors are much used in bottling plants; traps in the gearing between belts and
drums can be avoided by efficient machinery guarding. There should be an effective
lockout/agout programme for maintenance and repair. Where there are walkways
across or above conveyars, frequent stop buttons should also be provided.

6
Organizational Structure

7
In Tsc the work activities that are similar and logically connected are grouped to form
departments. At present there are seven departments

1 Production Department

2 Quality Control Department

3 Production Planning Department

4 Material Department

5 Finance Department

6 Personal and Administration Department

Production Department

The production department function is responsible for the manufacturing processes of a

company’s products or services. It is primary function is to ensure that products or services
are produced efficiently, on time, and to the required quality standards.

Quality Control Department

Management of the quality of raw materials, assemblies, products and components,

services related to production, and management, and inspection process comes under the
quality control department.

Administration Department

An Administration department is a unit in an organization that oversees all it’s daily

operations. This can include overseeing the organisations financial management, managing
it’s strategic planning, directing it’s budget operations

Finance Department

A finance is the units of business responsible for obtaining and handling any money on
behalf of the organization

Function were

Plan’s allocating works to accurate staff

Salary and administration

8
Verifying cash books

Verifying stock statement

Verifying debtors statement

Monthly closing accounts

Finance Department

1.3 Customers of the Company

Travancore Sugars and Chemicals Limited is a company based in India that operates in
sugar and chemicals industry. now they were only focus on beverage products, they may
have a diverse customer base, including individuals, retailers, wholesalers.

1.4 Competitors of the Company

There are no competitors for Travancore sugars and chemicals (beverage product jawan).

As the demand for Kerala's most popular brand jawan soars, the company is all set to
increase production.

Other competitors (fertilisers and

chemical products). The Fertilisers and
Chemicals Travancore Ltd. FERAND.

9
  Agro Phos India Ltd. AGRA.
 Aries Agro Ltd. ARIAGR
 Bohar Industries Ltd. BOHIND
 Radica khaitan
 SABMiller India Ltd
 Crown Beers India private Ltd
 Car sberg India Ltd

1.5 Strategies - Business, Pricing, Management

Travancore Sugars and Chemicals Ltd. Primarily known for sugars and chemical products.
Now they change to beverage products.
Pricing Strategy:

 Competitive Pricing:
They analyse the pricing strategies of their competitors in the beverage market and set
prices that are competitive and appealing to customers while considering factors like
production costs, profit margins, and market demand.
 Value-based pricing:

The company focusing on highlighting the unique value proposition of their beverage
products, such as quality ingredients, health benefits, or special formulations.

Management Strategy

 Supply Chain Management:

Efficient management of the beverage supply chain is crucial. This includes sourcing high-
quality ingredients, ensuring timely production and bottling, managing inventory levels,
and maintaining effective distribution channels to meet market demand.

 Quality Assurance:
Quality control measures in place to maintain the consistency, taste, and safety of their
beverage products.

10
  Branding and Marketing:

Building a strong brand image and effective marketing campaigns can help create
awareness and drive demand for the beverage products.

Business Strategy:

 Market Research:
Market research to identify customer preferences, market trends, and potential target
segments for their beverage product.
 Distribution Channels:

The company may establish partnerships with distributors, wholesalers, and retailers to
ensure wide availability of their beverage products in both traditional retail outlets and
emerging channels. . Innovation and Product Development: invest in research and
development to introduce innovative beverage products.

 Marginal Cost Pricing

The process of setting an item's price at the same level as the extra expense involved in
producing another item. By using marginal cost pricing, a business helps keep their sales
price down in order to encourage sales during slow periods or to gain marketshare.

 Contributionpricing

Is a pricing strategy which maximizes the profit coming from a product. In Contribution
Pricing. the price of the product is kept on the basis of its contribution to cover the fixed
costs it incurs even if to a minimal level.

11
1.6 Annual Report on CSR Activities of
the Travancore-sugars And Chemicals
Ltd

Corporate Social Responsibility (CSR) for Travancore Sugars and Chemicals ltd
(Government Companies) is an important aspect of their operations. While private
companies typically have more autonomy in their CSR initiatives, public or government
companies also have responsibilities toward society and the environment. Some key points
regarding CSR for such companies: Legal obligations: Travancore Sugars and Chemicals

12
Ltd (government companies) often have legal obligations and regulations governing in
CSR activities. These requirements vary by country and can include reporting on
environmental,social and governance(ESG) factors. Stakeholder engagement: Travancore
Sugars and Chemicals ltd(government companies) need to engage with various
stakeholders, including shareholders, tax payers and the public, to ensure that their CSR
initiatives align with the expectations and needs of these groups. Government companies
often engage in corporate social responsibilities (CSR) activities to contribute positively to
society and environment. These activities can vary widely depending on the company’s
focus and industries. Some common examples include supporting education, healthcare,
environmental conservation, community development, and disaster relief efforts. These
initiatives showcase the company’s commitment to been a responsible cooperate citizen
and contributing to the well-been of the communities they operate in. If you’re looking for
specific examples or details about a particular government company’s CSR activity, feel
free to provide more information. CSR for Travancore sugars and chemical ltd is an
important aspects of their operations. While private companies typically have more
autonomy in their CSR initiatives, public or government companies also have
responsibilities toward society and the environ

1.7Export/Import
Travancore Sugars and Chemicals ltd mainly focused on Kerala Market. But all so export
the product all over India. Especially they export spirit more than product mostly they
import Raw materials. The T.S AND C Ltd. Are D.M. Water, E.N.A Spirit, and Chemicals.

Internal Movement

Trolley and vehicles are used to move semi- finished goods from one process station to
another processstation.

External Movement

In the case of road transport TSC has made contract with various transport companies like
K.R.S (Kerala Service Ltd) and A.C cargo management. Other mode of transportation is
rail.

13
1.8 Collaboration and Expansion Plans Expansion Plans:

In recent years, TSC has been focusing on expanding its operations. It has undertaken
initiatives to modernise its manufacturing processes, improve product quality, and
increase its production capacity Expanding a Travancore sugars and chemicals Ltd
involves careful planning and collaboration. The steps that consider for the expansion
of Travancore sugars and chemicals Ltd(government owned company)

Market Research: Conduct thorough market research to understand consumer

preferences, demand trends, and competition in the liquor industry.

Strategic Planning: Develop a comprehensive business expansion strategy, including

setting clear goals and objectives.

Regulatory Compliance: Ensure full compliance with all liquor production and
distribution regulations. Collaborate with relevant government agencies to navigate the
legal requirements.

Financial Planning: Secure the necessary funding for expansion through government
budgets, loans, or partnerships.

Production Capacity: Invest in upgrading and expanding production facilities to meet

increased demand.

Product Diversification: Consider expanding your product range to cater to different

consumer preferences, such as different types of liquor or flavour’s.

Distribution Network: Collaborate with distributors, retailers, and wholesalers to

expand your reach and make your products more widely available.

Marketing and Branding: Develop a strong brand identity and marketing strategy to
promote your products effectively.

Quality Control: Maintain high-quality production standards and quality control

measures to ensure consistency and safety.

Sustainability: Consider environmentally sustainable practices in production and

packaging to align with modern consumer values.\

Community Engagement: Engage with local communities and stakeholders to build

positive relationships and address any concerns.

14
Talent and Training: Invest in employee training and development to ensure a skilled
workforce.

Technology Integration: Explore technology advancement production and distribution

to optimize efficiency

Risk Management: Develop a risk mitigation strategy to address potential challenges

such as changing regulations or market fluctuations

Collaboration with Local Businesses: Collaborate with local businesses for sourcing
raw material Remember that expanding Travancore sugars and chemicals Ltd requires a
balance between economic development, social responsibility, and regulatory
compliance. Collaboration with various stakeholders, including government agencies,
is crucial for success.

1.9 SWOT Analysis of the Company

Strength

 Travancore Sugar and Chemicals Ltd (T.S) is only IMFL manufacturer in the
central Travancore.
 As T.S ltd is a government owned firm, it enjoys all privilege granted by the
government.
 The standard quality of their products is their great strength.
 They have a high market share.
 Employees are the strength of any organisation; it is so fold T.S and C ltd also.
 They have a very good training system.
 Trade unions are a vital part of any organisation. T.S and C ltd experience good co-
operation from the various trade union present there.
 Good organisational climate also adds to the strength of T.S and C ltd.
 Efficient quality control system also adds to its strength.
 Employees are maintaining good relationship with each other.

15
Weakness

 Excess manpower is the major weakness of the company. The company at present
has more employees than required. Wastage of money through payment of salary.
 Lack of modern technology is another weakness of the company. They are still
using the outdated machinery and technology. The technology now followed by
them in 24 years old.
 As the finished products compared to the competitor's product.
 Unnecessary influence on the part of government political parties.
 Higher cost of the products compared to the competitor's product.
 There is no proper mechanism to handle the grievances of the customers.
 Absence of computerization is also another weakness of the company.
 Unnecessary formalities cause a delay in business decisions.
 Lack of raw materials cause disruption in the production process.
 Outdated salary package.

Opportunities

 The budget amount should be used wisely so as to get maximum visibility for the
product.
 Company introduces promotional programmes.
 The company should opt for psychographic segmentation of the market. Where
more stress should be given for the quality and fitness of the product.
 It should expand the distribution network to that place where the product is less
available.
 It should switch on to new technology in order to reduce its cost price.
 Exporting and expanding to north Indian markets can consider once it increases
production.

16
Threats
 Scarcity of raw materials is the major threat faced by the company.
 Out-dated techniques are still following.
 Good replacement facility of other brands.
 High in price of raw materials.
 Time to change government policies.

17
 CHAPTER-2

AN OVERVIEW OF THE INDUSTRY

18
2.1 Brief History of the Industry

Liquor production is one of the profitable businesses in today’s word. In India several
private, public and government companies are producing liquor and making huge profits.
But this liquor consumption is injurious to human body. It will spoil the life of young
generations of a country. The government cannot stop the production and distribution of
liquor because it accelerates the revenue in the form of tax. The turnover tax of liquor
(IMFL) sales is 96.
KSEBC (Kerala State Beverage Corporation) has the monopoly right to distribute the
liquor throughout the state by KSBC and any other selling activities within the state are
illegal and are subject to serve punishment including imprisonment.
The Kerala State Beverage (M&M) Corporation handle potable liquor made out of Extra
Neutral Alcohol. Potable liquor is a consumable item containing potable Alcohol and other
chemicals. The role the KSBC is channelizing all kinds of liquor /beer/wine from
manufactures throughout the country for the consumer in Kerala. Any non-availability of
any item is the decision of the respective manufacturer not to sell the items in Kerala. As
such KSBC is not restricting purchase of liquor from any manufacturer who is prepared to
enter into a valid contract. KSBC performs the role of procuring liquor and take adequate
steps to ensure the quality standards of liquor and place them to the consumer through the
various channels of distribution enabling the consumer to take his preference. The liquor
brought through KSBC contains the holographic stickers pasted on the bottle caps. The
activity of KSBC confines to contracts for procurement and distribution. Consumer has to
know his health condition while deciding to drink. Alcohol is not a freely marketable item
like any other consumable but can be sold only through licences. In this point of view there
is massage that consumer has to check his health while consuming liquor.
The judicial commission of inquiry appointed by the Government to streamline the liquor
trade in the state recommended.

 To providing genuine liquor at reasonable price, through Government agencies.

 Exploitation through increased taxation and exploitation by middleman should be
stopped and consumer must be the guiding policy.

19
For achieving the above, nationalisation of entire liquor trade was suggested. In line with
the suggestion the Government decided to set up a public sector corporation to procure
spirits and arrange blending, bottling, sealing and distribution of arrack and also for dealing
with the sale of IMFL. An amendment was made in the Abkari act in 1984 to give effect to
the same KSBC was formed on 23.2.1984 to take over the wholesale distribution of liquor
in phased manner and to eventually set up distillers and blending units to produce spirits,
arrack and IMFL. Since then, the distribution of liquor has been bright under the control of
the corporation. As at present the whole activity of IMFL from procurement to distribution
and sales to the consumer is controlled by the corporation except for loose vending of
liquor by Bars/Clubs and a small portion of the retails by consumer Federation.

Liquor production is one of the profitable businesses in today’s word. In India several
Private, public and government companies are producing liquor and making huge profits.
But this liquor consumption is injurious to human body. It will spoil the life of young
Generations of a country. The government cannot stop the production and distribution of
Liquor because it accelerates the revenue in the form of tax. The turnover tax of liquor
(IMFL) sales is 96 KSBC (Kerala State Beverages Corporation) has the monopoly right to
distribute the liquor throughout the state by KSBC and any other selling activities within
the state are Illegal and are subject to severe punishment including imprisonment. The
Kerala State Beverages (M&M) Corporation handles potable liquor made out of extra
Neutral Alcohol. Potable liquor is a consumable item containing potable Alcohol and other
chemicals. The role the KSBC is channelizing all kinds of liquor /beer/wine from
manufacturers throughout the country for the consumers in Kerala. Any non-availability of
any item is the decision of the respective manufacturer not to sell the items in Kerala. As
such KSBC is not restricting purchase of liquor from any manufacturer who is prepared to
enter into a valid contract. KSBC performs the role of procuring liquor and take adequate
steps to ensure the quality standards of liquor and place them to the consumer through the
various channels of distribution enabling the consumer to take his preference. The liquor
brought through KSBC contains the holographic stickers pasted on the bottle caps. The
activity of KSBC confines to contracts for procurement and distribution. Consumer has to
know his health condition while deciding to drink. Alcohol is not a freely marketable item
like any other consumable but can be sold only through license. In this point of view there
is massage that consumer has to check his health while consuming liquor. The judicial
commission of inquiry appointed by the Government to streamline the liquor trade in the

20
state recommended. To providing genuine liquor at reasonable price, through Government
agencies. Exploitation through increased taxation and exploitation by middleman should be
stopped and consumer protection must be the guiding policy. For achieving the above,
nationalization of entire liquor trade was suggested. In line with the suggestion the
Government decided to set up a Public Sector Corporation to procure spirits and arrange
blending, botting, sealing and distribution of arrack and also for dealing with the sale of
IMFL. An amendment was made in the Abkari Act in 1984 to give effect to the same.
KSBC was formed on 23.2. 1984 to take over the wholesale distribution of liquor in phased
manner and to eventually set up distilleries and blending units to produce spirit, arrack and
IMFL. Since then, the distribution of liquor has been brought under the control of the
Corporation. Bya decision in 2007 the majority of the retail outlets also have been
entrusted to the corporation. As at present the whole activity of IMFL from procurement to
distribution and sale to the consumer is controlled by the corporation except for loose
vending of liquor by Bars/ Clubs and a small portion of the retails by consumer Federation.

A Sugar Industry Perspective & Ethanol Production

India is the largest producer of sugar in the world. In terms of sugarcane production, India
and Brazil are almost equally placed. In Brazil, out of the total cane available for crushing,
45% goes for sugar production and 55% for the production of ethanol directly from
sugarcane juice. This gives the sugar industry in Brazil an additional flexibility to adjust its
sugar production keeping in view the sugar price in the international market as nearly 40%
of the sugar output is exported. The annual projected growth rate in the area under
sugarcane at 1.5% per annum has doubled during the last five years. This is because it is
considered to be an assured cash crop with good returns to the farmers’ vis-à-vis other
competing crops. India is currently passing through a glut situation with closing stocks at
the end of the year of over 100 lakh tons since 2021-2022. Correspondingly, molasses
production has also increased. The table below gives the production of molasses, alcohol
utilization by the alcohol-based chemical industry, potable sector and the surplus at the end
of each year. It is therefore evident that along with sugarcane production, phenomenal
growth is also taking place in the production of molasses, the basic raw material for the
production of ethanol from sugarcane. Of course, there are also other agro routes available
to produce ethanol. According to MPNG, 5% ethanol blends on an all-India basis would
require 500 million litres. The current availability of molasses and alcohol would be

21
adequate to meet this requirement after fully meeting the requirement of the chemical
industry and potable
The Indian Alcohol Market
The alcohol market in India is primarily divided into four categories:
Indian-made Foreign Liquor (IMFL): This term is used by the governments to designate
the types of liquors that are domestically manufactured apart from the indigenous alcoholic
beverages like Feni, arrack, etc. IMFL category includes drinks like Rum, brandy,
whiskey, vodka, gin, etc.
Beer: This segment comprises all sorts of beer, strong or mild. United breweries dominate
the market with its Kingfisher beer.
Wine: It has three main types- red wine, white wine, and rose wine. India is also a huge
market for wine that is both imported and produced in the country itself. Wine customers
are mostly from the middle-class urban population. Maharashtra and Karnataka have the
largest vineyards in India.
Indian-made Indian liquor (IMIL) or Country Liquor: These are regional drinks that
are locally produced. For instance, Feni is the most popular local drink which is produced
in parts of Goa. Feni is made of cashew or coconut. Similarly, Mahua is prevalent in parts
of Bihar, Bengal, and Jharkhand. Almost every state in India has its regional drinks
consumed by its local population. The rate of consumption of alcohol has been growing in
India for the last three decades. After the pandemic, the swift bounce back of alcohol
shows the vast customer base inside the country. Because of India’s high population
growth rate, every year produces 13 million drinking-age adults of which at least 3-5
million eventually end up consuming alcohol in some way or another which shows an
increase in the rate of consumption of it at a huge pace.
With such a high-growth trajectory, consumption patterns are significantly changing with
surprising trends emerging every year in the alcohol industry. World statistics show that
India is the largest consumer of whiskey. Additionally, India is the 9 th largest alcohol
consumer in the world from the perspective of consumption volume.
According to the National Family Health Survey-5 (NFHS-5) 2019-23, alcohol
consumption among both men and women is higher in rural India than in urban India.
Overall, 1% of women aged between 15-49, drink alcohols, compared to 22% of men in
the same age group. This breaks up into 1.6 %( rural) and 0.6 %( urban) among women,
and 19.9% and 16.5% respectively among men. Arunachal Pradesh, Telangana, and
Sikkim have the highest drinking men population, standing at 52.6%, 45.4%, and 39.9%

22
respectively. On the other hand, Lakshadweep, Gujarat, Jammu and Kashmir have the
lowest percentage of 0.4%, 5.8%, and 8.7% respectively. Among women, Arunachal
Pradesh, Sikkim, and Assam have the highest drinking percentage of 24.2%, 16.2%, and
7.3% respectively. Whereas, the percentage in Kerala and Jammu and Kashmir stands at
0.2% each.
Arunachal Pradesh tops the rank and has the highest percentage of both men (53%) and
women (24%) drinking alcohol. Among women, Arunachal Pradesh is followed by Sikkim
(16%) and among men, it is followed by Telangana (43%). Alcohol consumption is more
common in scheduled tribes than in any other caste/tribe groups; this is true for both
women (6%) and men (33%).
Besides Arunachal Pradesh and Telangana, alcohol consumption among men is higher
(40%) in the upper Brahmaputra region of Assam, districts in Jharkhand and Bastar region
of Chhattisgarh, and the Chhota Nagpur region of Jharkhand and Odisha.
Here are some popular start-ups that are making waves in the liquor industry in India:
Nao Spirits – Nao Spirits is a Delhi-based start-up that has made a name for itself by
producing artisanal gins and other spirits. Its flagship brand, Greater Than, is made using
Indian botanicals and has won several awards for its unique flavour profile.
Jimmy’s Cocktails – Jimmy’s Cocktails is a Mumbai-based start-up that offers a range of
ready-to-drink cocktails, including margaritas, mojitos, and cosmopolitans. The company
uses only natural ingredients and has won praise for its convenient and high-quality
products.
Rock Climber – Rock Climber is a Bangalore-based start-up that produces a range of
alcoholic and non-alcoholic beverages made using locally sourced ingredients. Its products
include craft beer, cider, and mead, and the company has won several awards for its
innovative flavours and packaging.
Saluda – Saluda is a Mumbai-based start-up that produces premium quality tequila made
from blue agave plants grown in the highlands of Jalisco, Mexico. The company’s focus on
sustainability and ethical sourcing has won it a loyal following among environmentally
conscious consumers.
Spiritedly – It is another interesting start-up that has developed a range of low-alcohol and
non-alcoholic beverages, catering to health-conscious consumers who want to enjoy the
social aspect of drinking without the intoxicating effects.
2.2 Business Process of the Industry

23
Demand forecasting, inventory management, and production capacity. The Business
Process of Travancore
Sugars and Chemicals (Beverage Products)

 Product Development: The Company Conducts Research and Development

Activities to Create new Beverage Products.
 Ingredient Sourcing: Raw materials and ingredient such as fruits, flavouring,
sweeteners, and additives are sourced from reliable suppliers.
 Production planning: The production schedule is established, taking into account
factor like
 Mixing and Blending: The beverage mixture, mixed, and blended in specific
proportions to achieve the desired taste, flavour.
 Carbonation: for carbonate beverage, carbonation is added during the production
process to create the desired level of fizziness.
 Packaging: The beverage is filled into bottles, cans, or other suitable containers.
Packaging materials, labels, and seals are applied, along with batch coding and
expiration date information.
 Quality Control: strict quality control measures are implemented throughout the
production process
 Distribution and Logistics: The packaged beverages are stored in warehouses and
then distributed to various retail outlets.
 Marketing and Sales: The company develops marketing strategies to promote the
beverages products, including branding, advertising, and engaging with distributors
and retailers.
Stages of production process
Production Process
Blending machine is used blending the ingredients (raw materials) of liquor. Blending
machine uses three large tanks for blending purpose. These tanks are in huge size which
helps to mix bulk quantities of liquor. The process of blending is an important thing in
making of quality product.

1. Blending Process

24
 After the blending process the liquor come into the filling machine. With the help of this
machine liquor is filled into the empty bottles. This process help filling process with great
speed and effectively.

2. Filing Process
3. Screening Process
On this stage liquor bottles are checked by screening machine, to make sure that bottle
doesn’t contain any dust or another items. It is done as a matter of safety measure and
5. Quality assurance.
6. Cap Sealing Process
Cap sealing machine are used for putting caps on bottles. It is a process through which
7. Bottles are capped and sealed.
8. Labelling Process
On this stage different brand labels are pasted on different brands of bottles Label printing
Machines are used for printing the brand labels.
9.Packing Process
After labelling, various brand liquor bottles are packed with various cardboard boxes and
make a seal on each box; and kept in go down.
Manpower Development
Production section has two types of workers, that operator and general workers.
Operations are skilled workers and general workers are unskilled workers. One operator
and two general workers will operate each machine. Every week this shift will be changed.

Production Department

25
Supervisor-1
Supervisor-2
Supervisor-3
Chief
Technician
Quality
Check-1
Production department is divided into two section that are liquor production section and
packing and dispatching section. The liquor production section working in three shifts and
packing and dispatching section in one shift. The capacity of production is 1500 of 75Oml
bottles or 3000 of 375ml bottle per day. Liquor production section includes following
steps.

Receiving the Work Order

On receiving the work from the production planning department, the production in charge
will mention the necessary raw materials required to the store department. As the
production can start only after the receiving the raw materials from the store is should be
provided by store as soon as production planning department inform them.

Receiving the Raw Materials

On getting the order, the raw material will be received from the store department. Because
of the proper functioning of this department of production is working properly and on
Time. 2rotation policy is the key factor to the production policy. This means that the duty
of every worker except the operator will be changed every week. This policy will reduce
the workload related disputes.

Quality Control Department

In Travancore Sugar and Chemicals ltd strict quality control measure are implemented. It
starts from taking of raw materials for the production on words. Production quality and
customer satisfaction are the priorities of the company always. Quality begins right from

26
the raw materials. It is the degree to which set of internet characteristics fulfils the need on
expectations. The company ensures strict quality control measures in their factory due to
which their liquor productions are well accepted all over Kerala.

Quality Policy
T.S &C. Ltd is committed to manufacture and supply high quality products in Kerala
markets by focus in Customer satisfactory and regulatory requirements. Upgrading the skill
of workers and employees by providing training. Continuous up gradation of
manufacturing facilities.

Structure
Quality control department is under the control of Quality Control Manager. Under
quality control superintendent there are two inspectors and lab assistants. Lab in the factory
is BIS approved. One quality inspector will be present in a shift. He will check the quality
of the products at different stages of production and advise the workers whenever there is
some quality related matter occurs at the production unit after the passing of the stringent
examination only the products will be after pulling quality control seal.

Production Planning Department

Production planning department is under the supervision of planning engineer. The
department is responsible for the entire production. Planning in constitution which various
departments’ proper communication with the department is necessary for the success of the
production. This mainly because every activity in the plant in some way or the other 26

2.3 Market Demand and Supply-Contribution to GDP-Revenue

Generation
Social and Cultural Factors:

Drinking habits and cultural norms related to alcohol consumption can affect demand.
Societal attitudes, celebrations, and traditions around alcohol can impact the overall
demand for liquor.

Income and Economic Conditions:

27
The economic well-being of consumers can influence the demand for liquor. During
economic downturns, consumers may reduce discretionary spending, including on
alcoholic beverages.

The global brewery equipment markets size was valued at USD 15.97 billion in 2019
and is expected to grow at a compound annual growth rate(CAGR) of 5.6% from
2020 to 2027. Rising preference for craft brewery on all of it’s unique taste and
popularity among beer and liquor among consumer.

Demographic Factors:

The age distribution and population trends can shape the demand for liquor. For example,
younger demographics might have different preferences and consumption patterns
compared to older generations.

Supply:

Raw Materials:

The availability and cost of raw materials required for liquor production, such as grains
(for whiskey), grapes (for wine), or sugarcane (for rum), can impact the supply side of the
industry.

Production Capacity:

The production capacity of liquor manufacturers plays a crucial role in the overall supply.
Factors like production facilities, equipment, and skilled labour availability determine the
industry's ability to meet demand.

Regulatory Environment:

28
Regulations surrounding liquor production, including licensing, permits, taxes, and
distribution restrictions, can affect the supply side. Government policies can shape the
industry's operations and influence the market.

Competition:

The presence of other liquor producers in the market can impact supply dynamics.

Competition can drive innovation, quality improvements, and price adjustments among
manufacturers.

Export and Import Factors:

The global trade environment and international demand for specific liquor products can
influence the supply dynamics. Export opportunities or import restrictions can impact the
industry's overall supply.

It's important to note that the demand and supply dynamics of the liquor production
industry can vary across countries and regions due to varying cultural, legal, and economic
factors. Additionally, changes in consumer preferences, health consciousness, and
regulatory policies related to alcohol consumption can also impact the industry's demand
and supply in the long term.

The contribution of the liquor production industry to GDP can vary depending on the
country and its economic structure. The liquor industry typically includes production,
distribution, and retailing of alcoholic beverages such as beer, wine, spirits, and other
alcoholic drinks. Here are some ways the industry can contribute to GDP:
Direct Contribution:
The production, processing, and distribution activities within the liquor industry directly
contribute to GDP. This includes the value added by liquor manufacturers, breweries,
wineries, distilleries, and associated businesses involved in the production process.

Employment and Wages:

The liquor industry often generates employment opportunities across various sectors,
including agriculture (for sourcing raw materials like grapes, barley, or sugarcane),

29
manufacturing, packaging, transportation, marketing, and retailing. The wages and salaries
earned by employees in these sectors contribute to GDP.

Taxes and Government Revenue: The liquor industry is typically subject to various
taxes, including excise duties, sales taxes, and import/export duties. The taxes collected
from liquor production, distribution, and sales contribute to government revenue and,
subsequently, to GDP.

Indirect and Induced Effects: The liquor industry also has indirect and induced effects on
the economy, contributing to GDP through related industries and consumer spending. For
example, it supports industries that provide inputs such as packaging materials, agricultural
machinery, transportation services, advertising, and hospitality sectors like bars,
restaurants, and hotels where liquor is consumed.

Tourism and Exports: In countries with a strong tourism sector, the liquor industry can
contribute to GDP through tourist spending on alcoholic beverages. Additionally, if a
country has a significant presence in the global alcohol market, exports of locally produced
liquor can contribute to GDP by earning foreign exchange.

2.4 Level and Type of Competition-firm operating in the industry.

Brand Competition:
In the beverage industry, companies often compete based on brand recognition, loyalty,
and reputation. Established brands with a strong market presence have an advantage in
attracting customers and gaining shelf space in retail outlets. Companies invest heavily in
marketing and advertising to build and maintain their brand image and differentiate
themselves from competitors.

Product Differentiation:
They develop unique recipes, flavours, or ingredients to create distinct offerings that
appeal to specific consumer preferences. Differentiation can also occur through packaging,
nutritional content, or product positioning, enabling companies to target specific market
segments.
Pricing Competition: Companies may offer promotional pricing, discount, or special
offers to attract price-sensitive consumers. Pricing strategies can impact market share and
30
profitability, and companies must carefully balance pricing decisions with maintaining
brand value and profitability.

Innovation and New Product:

Beverage companies face competition through innovation and the introduction of new
products. Companies that continually invest in research and development and bring novel
and appealing products to the market can gain an edge over competitors.

Global Competition:
With globalisation, beverage companies face competition not only from local or regional
rivals but also from international players. Global beverage giants often have extensive
resources, established distribution networks, and well-known brands that can pose a
significant challenge to local or smaller companies. The government liquor production
industry is a unique sector in which government entities engage in the production and
distribution of alcoholic beverages. This industry often exists alongside private sector
players, creating a dynamic landscape of competition. In this study, we will explore the
level and types of competition that characterize the government liquor production industry

Level of Competition:
The level of competition in the government liquor production industry can vary
significantly depending on the region, government policies, and market dynamics. It can be
categorized into three main levels:

Monopoly:
In some regions, government entities hold a monopoly over the production and distribution
of alcoholic beverages. This means that a single government agency or entity controls all
aspects of the industry, from production to retail.
Oligopoly:
In contrast, certain regions have multiple government-owned enterprises that operate in the
liquor production industry. These entities might have a significant market share, effectively
creating an oligopoly. Competition among these government-owned entities can be limited,
as they often follow similar pricing and marketing strategies.

31
Competitive Coexistence:
In some regions, government entities coexist with private sector players. These regions
have a more competitive landscape, where government-owned liquor producers compete
with private breweries, wineries, and distilleries. The level of competition in such areas is
similar to that of any other market, with varying degrees of market share among different
players.

Types of Competition:
The types of competition in the government liquor production industry can be categorized
as follows:

Price Competition:
Price competition is prevalent in regions with competitive coexistence. Government-owned
liquor producers often compete with private businesses by offering competitive pricing
strategies, discounts, and promotions to attract consumers. Price wars can emerge in these
markets, benefitting consumers with lower prices.

Product Differentiation:
In regions with multiple government-owned entities, product differentiation becomes a key
competitive strategy. These entities may introduce unique product lines, such as craft beers
or locally sourced wines, to distinguish themselves from their competitors.

Regulatory Competition:
Government entities in the liquor production industry are subject to various regulations and
policies. Some may engage in regulatory competition by advocating for changes in laws or
regulations that could favours their operations or increase market access. This type of
competition can indirectly impact market dynamics.

The level and types of competition in the government liquor production industry
vary widely depending on the region and government policies. While some regions operate
with a monopoly, others encourage a competitive coexistence between government-owned
entities and private sector players. The nature of competition, whether based on price,
product differentiation, or regulatory influence, shapes the dynamics of this industry and
ultimately impacts consumers’ choices and access to alcoholic beverages. Understanding

32
these dynamics is crucial for policymakers and industry stakeholders to navigate this
unique sector effectively.

2.5 Pricing Strategies in the Industry

The pricing strategy of a liquor production Industry can vary depending on various factors
such as the type of liquor, target market, brand positioning, production cost, competition,
and market demand.

Premium Pricing:
This strategy involves setting higher prices to position the liquor as a high-quality, luxury
product. It relies on creating a perception of exclusivity and superior craftsmanship.
Companies that use premium pricing focus on targeting affluent consumers who are
willing to pay a premium for perceived quality and prestige.

Economy Pricing;
In contrast to premium pricing, economy pricing aims to offer liquor at a lower price point.
This strategy targets price-sensitive consumers and aims to gain market share by providing
affordable options. It may be used for entry-level or lower-tier liquor products that
compete primarily on price.

Penetration Pricing:
It involves setting lower prices initially to enter or expand in a market share by offering
competitive prices that may attract price-sensitive consumers. Once a foothold is
established, the company may gradually increase prices or introduce premium offering
.
Bundle Pricing;
Bundle pricing involves offering multiple liquor products or related items together at a
discounted price compared to purchasing them individually. This strategy encourages
consumers to buy more by providing perceived value and saving. It can be used to promote
multiple products or up sell customers to premium offering. The government-controlled
liquor production industry plays a significant role in generating revenue for governments
worldwide. The pricing strategy employed by governments in this industry is a crucial
aspect of their fiscal policy. This study explores the various factors and considerations that

33
influence the pricing strategy of government liquor production, its economic implications,
and potential social consequences.

Revenue Maximization:
One primary objective of government-controlled liquor production is revenue
maximization. Governments aim to generate substantial income through liquor sales to
fund public services and infrastructure projects. Pricing strategies are designed to strike a
balance between affordability for consumers and profitability for the government.

Taxation:
Governments often heavily tax alcoholic beverages, which directly impacts pricing. High
taxes can lead to elevated liquor prices, discouraging excessive consumption and
mitigating social issues related to alcohol abuse. However, this can also lead to illegal
production and smuggling.

Price Regulation:
In some regions, governments directly regulate liquor prices to ensure affordability and
control over the market. This can involve setting a minimum or maximum price for
different types of alcoholic beverages to meet social and economic goals.

Social Considerations:
Governments must consider the social implications of their pricing strategies. High liquor
prices may reduce alcohol-related harms, such as public health issues and accidents, while
lower prices can promote responsible consumption but may lead to increased alcohol-
related problems.

Competition:
The level of competition in the liquor production industry can affect pricing strategies. In
some cases, governments operate monopolies, allowing them to control prices more
effectively. In others, they may allow private players to compete, influencing pricing
dynamics.

Cross-Border Trade:

34
Globalization and cross-border trade can complicate pricing strategies. Differing tax rates
and regulations in neighbouring regions can lead to price differentials and smuggling,
undermining the effectiveness of pricing policies.

Public Health:
The pricing strategy must consider public health objectives. Higher prices can deter
excessive consumption and its associated health risks. Governments may also invest in
public health campaigns to educate consumers about responsible drinking.

Economic Impact:
Liquor production is often a significant contributor to a country’s economy. The pricing
strategy must consider the industry’s economic impact, including job creation, exports, and
contributions to GDP.
The pricing strategy of government-controlled liquor production is a multifaceted
endeavour. It aims to balance revenue generation, social responsibility, and economic
considerations. Striking the right balance is essential to achieving the desired outcomes of
revenue maximization, public health, and responsible consumption. Effective pricing
strategies in this industry require continuous evaluation and adaptation to address evolving
social and economic dynamics.

2.6 Prospects and Challenges in the Industry

One of the challenges in the liquor production industry under government is the increasing
demand for diverse and unique alcoholic beverages. Consumers are seeking new flavours,
innovative ingredients, and craft spirits, leading to a proliferation of specialty and niche
products. This presents a challenge for liquor producers as they need to continuously adapt
and develop new recipes and production techniques to meet consumer preferences and stay
competitive in the market.

Another challenge is complex and stringent regulatory environment surrounding liquor

production and distribution. Each country and region often have its own set of laws and
regulation governing the production, labelling, and sale of alcoholic beverages.
Compliance with these regulations can be time-consuming and medium-sized producers
who may have limited resources and expertise in navigating the regulatory landscape.
Additionally, sustainability and environmental considerations pose challenges for the

35
liquor production industry. Increasingly, consumers are concerned about the environmental
impact of the products they consume, including alcoholic beverages. Sustainable sourcing
of ingredients, water conservation, energy efficiency, waste management, and packaging
materials are all areas where liquor producers need to focus to reduce their environmental
footprint. Implementing sustainable practices while maintaining product quality and
profitability can be a significant challenge.
Furthermore, distribution and market access can be a hurdle for liquor producers,
especially for small-scale or artisanal brands. The liquor industry is often dominated by
large-scale producers and establishment distribution networks, making it difficult for new
or smaller players to enter the market or gain shelf space in retail stores and bars. Building
effective distribution channels, establishing relationships with distributors, and securing
retail partnerships can be a considerable challenge for liquor producers looking to expand
their market reach. Lastly, changing consumer preferences and responsive to market shifts.
The rise of health-conscious consumers and the increasing popularity of low-alcohol-free
alternatives pose challenges for traditional liquor producers. Adapting product offerings to
cater to changing consumer demands while maintaining brand identity and quality can be
significant challenge in the industry.
Overall, the liquor production industry faces challenges related to product diversification,
regulatory compliance, sustainability, distribution, and evolving consumer preferences.
Addressing this challenge requires innovation, flexibility, and a deep understanding of the
market dynamics to remain competitive in a rapidly changing industry.Proponents argue
that a government-run liquor production industry could bring numerous benefits, including
increased revenue, improved regulation, and reduced social issues associated with alcohol
consumption. This study about the organization explores the prospects and potential
advantages of a government-controlled liquor production industry.

Revenue Generation:

One of the primary prospects of a government-run liquor production industry is the

potential for significant revenue generation. Governments could benefit from the sales of
alcoholic beverages through taxes and licensing fees. These revenues could be directed
towards funding various public services, such as healthcare, education, and infrastructure
development. The liquor industry has proven to be a lucrative source of income for many
countries, and government involvement could maximize these financial gains.
36
Regulation and Control:

Government control of liquor production could lead to more effective regulation and
control of the industry. This includes setting and enforcing quality standards, monitoring
production practices, and implementing strict safety measures. By taking charge of the
industry, governments can ensure that alcoholic beverages meet safety and health
standards, reducing the risks associated with poorly produced or counterfeit products.

Social Responsibility:
A government-run liquor production industry would place a higher emphasis on social
responsibility. This means that policies could be designed to discourage excessive alcohol
consumption and promote responsible drinking. Initiatives such as public awareness
campaigns, pricing controls, and restricted sales hours could be implemented to mitigate
the negative social consequences of alcohol abuse, such as drunk driving and alcohol-
related health issues.

Economic Impact:
The establishment of government-operated liquor production facilities could have a
positive economic impact. It would create jobs in various sectors, from production and
distribution to regulation and oversight. Additionally, the industry could stimulate other
sectors of the economy, such as agriculture and tourism, leading to further economic
growth.

Reducing Illicit Trade:

Government control of the liquor industry can help reduce the prevalence of illicit alcohol
production and sales. Illicit trade often results in lower-quality, unsafe products and
deprives governments of tax revenues. By offering a legal and regulated alternative, a
government-run industry can undermine the black market, ensuring safer products and
increased revenue collection.

37
 The prospects of a government-run liquor production industry are promising. It offers
opportunities for revenue generation, improved regulation, enhanced social responsibility,
positive economic impacts, and a reduction in illicit trade. However, the implementation of
such an industry would require careful planning, effective regulation, and consideration of
the potential social and health implications. Ultimately, the success of a government-
controlled liquor production industry depends on how well it balances economic gains with
public welfare and safety.

Challenges Faced by Indian Liquor Industry

The liquor industry in India faces several challenges, ranging from regulatory hurdles and
high taxes to shifting consumer preferences and evolving market dynamics. Here are some
of the major challenges faced by the liquor industry in India:

Regulatory Hurdles – The liquor industry in India is heavily regulated, with a complex web
of laws and regulations governing production, distribution, and sale. This can make it
difficult for companies to navigate the system and can lead to delays and bureaucratic red
tape.

High Taxes – The liquor industry in India is subject to high taxes, which can drive up the
cost of production and reduce profit margins. In addition, taxes can vary widely from state
to state, making it difficult for companies to plan and budget effectively.

Changing Consumer Preferences – As India’s economy grows and consumer tastes evolve,
companies in the liquor industry must adapt to changing trends and preferences. For
example, there is a growing demand for premium and craft spirits, as well as low-alcohol
and non-alcoholic beverages.

Distribution Challenges – The distribution system in India is highly fragmented and can be
difficult to navigate, particularly for small and medium-sized companies. This can make it
challenging to get products to market and can limit the reach of companies in the industry.

38
Competition – The liquor industry in India is highly competitive, with several large players
dominating the market. This can make it difficult for new and innovative companies to
gain a foothold and compete effectively

2.7 Key Drivers of the Industry

The beverage production Industry is driven by various factors that shape its growth and
development.

Changing Consumer Preferences:

Consumer preferences and tastes are crucial drivers for the beverage industry. Shifts in
consumer demand towards healthier options, natural ingredients, sustainability,
convenience, and premium, sustainability, convenience, and premium products influence
the types of beverages produced and the formulation of new recipes. Manufactures need to
adapt to changing preferences and introduce innovative products to meet consumer needs.

Health and Wellness Trends;

Increasing awareness of health and wellness has driven the demand for healthier beverage
choices. Consumers are seeking beverages with reduced sugar content, natural ingredients,
functional benefits, and low-calorie options. As a result, the industry has seen a rise in the
production of functional beverages.Sustainability has become a significant driver in the
beverage industry. Consumers are more conscious of the environmental impact of beverage
production, packaging waste, and carbon footprints. Beverages companies are responding
by adopting sustainable practices, such as using eco-friendly packaging materials, reducing
water usage, implementing recycling water usage.
The rise of digital technologies and e-commerce has transformed the beverage industry.
Online platforms provide opportunities for direct-to-consumer sales, personalises
marketing, and targeted advertising. Beverage companies are leveraging digital channels to
engage with consumers, promote their products, and facilitate online purchase and delivery
services. Travancore sugars and chemicals Ltd (government liquor production industry) is
influenced by several key drivers that shape its operations, growth, and overall impact.
Some of the key drivers include:

39
Regulatory Environment: Government policies and regulations play a critical role in
shaping the Travancore sugars and chemicals Ltd. Licensing, taxation, distribution laws,
and advertising regulations directly impact how companies operate within the industry.

Demand and Consumer Behaviour:

Consumer preferences and trends in alcohol consumption influence the demand for liquor
products. Changes in consumer preferences, including shifts towards premium or healthier
options, can impact the industry’s product offerings and marketing strategies.

Economic Factors:
Economic conditions, including disposable income levels and overall economic growth,
impact consumer spending on alcohol. Economic downturns might lead to decreased
consumer spending on discretionary items, while economic upswings might boost demand
for premium products.

Taxation and Revenue Generation:

Travancore sugars and chemicals Ltd often serves as a revenue generation source for
governments. Taxation policies on alcohol products directly impact the industry’s
profitability and pricing strategies.

Competition and Market Dynamics:

The level of competition in the industry, market saturation, and the presence of other
alcoholic beverage options (such as beer and wine) influence the strategies that companies
adopt to differentiate themselves and capture market share.

Social and Cultural Factors:

Social attitudes, cultural norms, and health consciousness influence consumer choices and
consumption patterns. Awareness campaigns about the health risks associated with
excessive alcohol consumption can impact demand for certain types of liquor.

Technological Advancements:

40
Technological innovations impact production processes, distribution methods, and
marketing strategies within the industry. Adoption of new technologies can lead to
increased efficiency, improved quality, and innovative product offerings.
Government Priorities and Policies:
Government priorities related to public health, revenue generation, and social
considerations can influence the overall direction of the Travancore sugars and chemicals
Ltd. Changes in government objectives can lead to shifts in regulations and policies that
affect the industry Export and International Trade: If the government liquor production
industry is involved in exporting products, global market dynamics, trade agreements, and
international demand for alcoholic beverages can have a significant impact on the
industry’s growth and profitability.

Environmental and Sustainability Concerns:

Increasing awareness of environmental sustainability and responsible production practices
can influence industry practices. Companies that prioritize sustainability initiatives may
gain a competitive advantage and meet evolving consumer expectations.These drivers
interact and shape the trajectory of the Travancore sugars and chemicals Ltd (government
liquor production industry) . Industry players must navigate these factors to make informed
decisions, adapt to changing circumstances, and address evolving consumer needs and
government regulations.

2.8 Stalwarts in the Industry

TSCL was established in 1937 as a government-owned enterprise and has since grown into
a significant contributor to the beverage industry in Travancore. The company primarily
focuses on sugar production, but it also produces a range of other beverages and related
products. TSCL’s flagship product is sugar, and it operates multiple sugar mills in
Travancore region. The company has established itself as a reliable and trusted suppliers of
sugar to various industries, including the beverage sectors. Its sugar products cater to both
domestic and international markets.
TSCL has diversified its product portfolio to include various beverages. It produces a range
of packaged drinking. These products are popular choices among consumers in Travancore
and beyond. TSCL’s commitment to quality and its adherence to sustainable practices have
helped it maintain a strong position in the beverage industry. The company has

41
implemented modern manufacturing processes and has consistently invested in technology
and infrastructure upgrades to meet the changing demands of the market
Revenue Generation:
One of the primary reasons for government involvement in the liquor production industry
is revenue generation. Taxation of alcoholic beverages is a significant source of income for
governments. By controlling production and distribution, governments can ensure a steady
stream of revenue that can be used for various public services.

Regulation and Safety:

Government control allows for strict regulation of the production process, ensuring that
liquor meets safety standards and quality control measures. This helps prevent the sale of
counterfeit or harmful products in the market, safeguarding public health.
Social Responsibility:
Governments often impose strict age restrictions and pricing policies to discourage
excessive alcohol consumption. This approach aligns with the principle of social
responsibility, aiming to minimize the negative social impacts of alcohol abuse.

Reducing Black Market Activity:

Government control helps curb black market activities related to the production and sale of
illicit alcohol. This, in turn, promotes public safety and law enforcement.

Benefits to Society:

Public Health and Safety:

Government-controlled liquor production ensures that alcoholic beverages are produced
under strict quality standards, reducing the risk of contamination or adulteration. This
contributes to public health and safety.

Revenue for Public Services:

The revenue generated from the liquor industry supports vital public services such as
healthcare, education, and infrastructure development, benefiting society as a whole.

Responsible Consumption:

42
Government regulations promote responsible alcohol consumption through age restrictions
and pricing policies, mitigating the adverse effects of excessive drinking.

Crime Reduction:
By minimizing the black market for alcohol, government control helps reduce associated
criminal activities, contributing to safer communities.Government involvement in the
liquor production industry has been a stalwart of revenue generation, regulation, and social
responsibility. It ensures that the production and sale of alcoholic beverages are carried out
in a controlled and safe manner, benefiting society through revenue generation, public
health, and crime reduction. While challenges persist, the government’s role in this
industry remains essential for a well-balanced and regulated market.

43
 CHAPTER –3

INDUSTRY ANALYSIS

44
3.1 Industry Analysis- Porter’s 5 Forces Model
Porter’s Five Forces model is a framework used to analyse the competitive dynamics of an
industry. It helps in understanding the attractiveness and profitability of a particular
market. Five Forces model of the manufacturing of food products and beverages;

Threat of New Entrants:

45
The manufacturing of food products and beverages can be a relatively capital-intensive
industry, requiring significant investment in production facilities, distribution networks,
and regulatory compliance. However, the threat of new entrants can still exist, especially
for specialised segments. Factors such as economies of scale, brand recognition, access to
distribution channels, and regulatory barriers can deter new entrants. Existing
manufacturers may also engage in strategies to increase barriers to entry, such as securing
supplier contracts or patenting key technologies.

Bargaining Power of Suppliers:

Food product and beverage manufactures rely on suppliers for various inputs, including
raw materials, ingredients, packaging, and machinery. The bargaining power of suppliers
can be influenced by factors such as the concentration of suppliers, availability of
substitute inputs, and the importance of the suppliers input to the final product.

Bargaining Power of Buyers:

In the food product and beverage industry can vary depending on the distribution channels
and end consumers. Large retailers and food service providers may have significant
negotiating power due to their volume of purchasing and ability to switch suppliers easily.
Brand loyalty, product differentiation, and the availability of substitute products can impact
buyer power

Industry Rivalry:

The manufacturing of food products and beverages is a highly competitive industry with
numerous players. Intense competition can be driven by factors such as price competition,
product differentiation, advertising and promotional activities, and market saturation. The
degree of rivalry can also depend on the concentration and balance of competitors, industry
growth rate, and exit barriers. Manufacturers need to monitor competitors, invest in
research and development, and build strong brands to gain a competitive advantage.

Pest Analysis

46
A PEST analysis is a strategic tool used to assess the external macro-environmental factors
that can impact a business or industry. PEST analysis of Travancore sugars and chemicals
Ltd to understand the various political, economic, social, and technological factors that
might affect its operations.

Political Factors:

Government regulations and policies have a significant influence on a Travancore sugars

and chemicals Ltd. These regulations encompass a wide range of areas, including
production, distribution, pricing, taxation, advertising, and licensing. Changes in
government policies can directly impact the company’s operations and profitability. For
instance, stricter regulations on alcohol advertising could limit the company’s marketing
efforts. Taxation policies can affect the affordability of liquor products, potentially
impacting demand.

Economic Factors:

47
Economic conditions and trends play a crucial role in shaping the performance of a
Travancore sugars and chemicals Ltd. Economic factors such as disposable income levels,
inflation rates, exchange rates, and overall economic growth can influence consumer
spending on alcohol products. During periods of economic downturn, consumers might cut
back on discretionary spending, affecting the demand for liquor. On the other hand, during
economic upswings, consumers may be more inclined to spend on premium liquor brands.

Social Factors:

Social attitudes and cultural norms towards alcohol consumption can significantly impact
the demand for liquor products. Changing consumer preferences, health consciousness, and
trends in drinking patterns can affect the sales and marketing strategies of the Travancore
sugars and chemicals Ltd. Increasing awareness of health risks associated with excessive
alcohol consumption might lead to shifts in consumer behaviour, favouring low-alcohol or
alcohol-free alternatives.

Technological Factors:

Technological advancements can transform various aspects of the Travancore sugars and
chemicals Ltd operations. Embracing new technologies can lead to improvements in
production methods, distribution channels, and marketing strategies. For instance,
innovative packaging solutions could enhance the visual appeal of the products. Online
sales platforms and digital marketing can open up new avenues for reaching consumers
directly.

In conclusion, a comprehensive PEST analysis of Travancore sugars and chemicals Ltd

underscores the importance of considering the external environment in strategic decision-
making. Political regulations, economic conditions, social trends, and technological
advancements collectively shape the company’s operating landscape. Adapting to these
factors by staying compliant with regulations, understanding consumer preferences, and
embracing technological innovations is crucial for the sustained success of Travancore
sugars and chemicals Ltd. This analysis serves as a valuable tool for identifying
opportunities and challenges that lie ahead and enables the company to formulate strategies
that align with the prevailing macro-environmental conditions.

48
CHAPTER- 4

DISCUSSION

49
4.1 Objective Assessment-Observation about the Organisation

Travancore sugars and chemicals Ltd is a public sector undertaking (PSU) that operates in
the sugar and chemical industries. TSC primarily produces and sells sugar, molasses, and
mainly focus on industrial alcohol.

Industrial Alcohol: Travancore sugar and chemical is known for its production of industrial
alcohol, which is used in various industries such as pharmaceuticals, cosmetics, and
chemicals. Industrial alcohol serves as a raw material for the manufacturing of several
products.

Cogeneration Power Plant: Travancore sugar and chemical operates a co-generation power
plant that generates electricity using bagasse, a fibrous residue from sugarcane processing.
This power plant helps the company meet its energy requirements and also contributes
excess power to the grid.

Employment and Impact: Travancore sugar and chemical provides employment

opportunities to a significant number of people in the region, including farmers who supply
came to the mill. It plays a crucial role in the economic development of local community.
The government liquor production company exhibits several noteworthy characteristics.
Firstly, it operates within a highly regulated industry, subject to strict government
oversight and compliance. This is evident in its adherence to stringent quality control
standards and the implementation of responsible drinking campaigns to mitigate societal
harm.
Secondly, the company’s organizational structure appears to be hierarchical, with clear
lines of authority and decision-making processes. This hierarchical structure ensures that
critical decisions related to production, distribution, and pricing are made with due
diligence and in alignment with government policies.

50
Thirdly, the company seems to prioritize sustainability and environmental responsibility.
Efforts to minimize water usage, reduce carbon emissions, and implement eco-friendly
packaging are indicative of its commitment to environmental stewardship. However, one
observation is that the Travancore sugars and chemicals Ltd faces challenges related to
consumer preferences and competition from private-sector competitors. In recent years,
consumer tastes have shifted towards craft and artisanal beverages, posing a potential
threat to the company’s market share. Additionally, private liquor producers often have
more flexibility in adapting to market trends and innovations. Overall, the Travancore
sugars and chemicals Ltd demonstrates a strong commitment to regulatory compliance,
sustainability, and responsible business practices. However, it needs to remain adaptable in
a dynamic market to address changing consumer preferences and competitive challenges
An organizational study of a Travancore sugars and chemicals Ltd reveals a complex and
multifaceted entity operating in a highly regulated and competitive industry. This essay
offers an objective assessment and observation of the key characteristics, strengths, and
areas of improvement within such an organization.

Regulation and Compliance:

One prominent aspect of this Travancore sugars and chemicals Ltd is its unwavering
commitment to regulatory compliance. It operates under strict government oversight,
abiding by comprehensive rules and regulations governing the production, distribution, and
sale of alcoholic beverages. This commitment is evident in the meticulous quality control
processes, safety protocols, and responsible drinking campaigns employed by the
organization. Consequently, it serves as a model for responsible and safe alcohol
production.

Organizational Structure:
The organizational structure of this government-owned entity appears to be predominantly
hierarchical. Clear lines of authority, well-defined roles, and formal decision-making
processes are prevalent. This hierarchical structure ensures that critical decisions,
especially those pertaining to product quality and adherence to government policies, are
made with precision and accountability.

Sustainability Initiatives:

51
One commendable observation is the company’s dedication to sustainability and
environmental responsibility. In an era where environmental concerns are paramount, this
organization actively seeks to minimize its ecological footprint. Measures such as water
conservation, carbon emission reduction, and the implementation of eco-friendly
packaging demonstrate a commitment to environmentally sustainable practices.

Challenges and Adaptation:

However, no organization is without its challenges. In recent times, this Travancore sugars
and chemicals Ltd has faced evolving consumer preferences and increasing competition
from private-sector alcohol producers. The changing landscape of consumer tastes,
favouring craft and artisanal beverages, poses a potential threat to the company’s market
share. Private sector competitors, often more agile and responsive to market trends, have
gained traction. Therefore, the company must remain adaptable and forward-thinking to
address these dynamic market challenges effectively.
The organizational study of the Travancore sugars and chemicals Ltd underscores Its
dedication to regulatory compliance, sustainability, and responsible business practices. It
serves as a responsible steward of a controlled substance, prioritizing safety and public
welfare. Nevertheless, to thrive in an ever-changing market, the organization must
continuously evolve, embracing innovation and customer-centric strategies to remain
competitive. In doing so, it can maintain its vital role in the industry while addressing the
shifting landscape of consumer preferences and private-sector competition.

4.2 Specific Learning Outcome

Understanding the organisational structure through the study, one can gain insights into the
hierarchical structure, departmental divisions, reporting relationships, and coordination
mechanisms within Travancore sugars and chemicals. This understanding helps in
comprehending how the organisation functions and how different departments collaborate.
Exploring the business processes deep understanding of the core business processes within
the Travancore sugars and chemicals. This includes studying the production processes,
supply chain management, quality control, sales and marketing strategies, and other
operational aspects of the organisation.

52
Analysing the organisational culture by immersing in the organisation, one can assess the
prevailing organisational culture in Travancore sugars and chemicals. This includes
observing shared
values, beliefs, norms, and practices that shape the work environment. Understanding the
organisational culture is crucial for effective communication, decision-making, and
employee engagement.

The study provides insights into the human resource management practices of Travancore
sugars and chemicals. This involves understanding recruitment and selection processes,
training and development initiatives, performance evaluation systems, employee relations.
Evaluating these practices can help identify areas for improvement or best practices that
can adopted.
Identifying strengths and weaknesses of TSC. This includes assessing factors that
contribute to the organisation's success, such as strong product portfolio, market presence,
or technological capabilities. Additionally, weaknesses such as outdated infrastructure,
inadequate systems, or lack of innovation can be identified for further improvement. An
organizational study conducted within Travancore sugars and chemicals Ltd serves as a
comprehensive analysis that unveils the inner workings and dynamics of the organization.
Such a study encompasses a range of aspects, leading to a multifaceted outcome that sheds
light on the company’s structure, management strategies, operational efficiency, financial
performance, and overall impact.

At its core, the outcome of an organizational study from Travancore sugars and chemicals
Ltd provides a detailed understanding of the company’s organizational structure. This
includes delineating the hierarchy, functional departments, and reporting relationships. By
mapping out this structure, the study allows stakeholders to grasp how decision-making
flows and how responsibilities are distributed across different levels of the organization.

Furthermore, the study delves into the company’s management practices. It examines
leadership styles, communication methods, and strategies for goal setting and performance
evaluation. By evaluating these practices, the study highlights the company’s ability to
effectively lead and motivate its workforce, ensuring alignment with its objectives and
mission.

53
Operational efficiency is a crucial aspect assessed in an organizational study. This involves
scrutinizing processes, workflows, and resource allocation to identify bottlenecks and areas
for improvement. Insights gained here can lead to recommendations for streamlining
operations, reducing wastage, and enhancing productivity.

From a financial standpoint, the study delves into the company’s fiscal health. It analyses
revenue generation, cost structures, profitability, and budget allocation. By assessing
financial data, the study provides a clear picture of the company’s economic sustainability
and its contributions to government revenue.

Beyond internal operations, the study assesses the company’s compliance with regulations
and legal requirements. This includes adherence to liquor production and distribution laws,
taxation regulations, and safety standards. Evaluating compliance is essential for ensuring
that the company operates ethically and within the boundaries set by the government.

The broader Impact of the Travancore sugars and chemicals Ltd is another facet explored.
This involves examining its contribution to the economy, job creation, and social
implications. The study can reveal how the company’s activities affect local communities
and the environment, offering insights into its social responsibility efforts.

Travancore sugars and chemicals Ltd yields a multifaceted outcome that encompasses
insights into organizational structure, management practices, operational efficiency,
financial performance, regulatory compliance, and societal impact. The study’s
comprehensive nature equips stakeholders with valuable information to make informed
decisions, improve operations, and ensure the company’s responsible and effective
functioning

54
CHAPTER-5
FINDINGS

55
5.1 FINDINGS

 No major environment pollution has been reported for the past 50 years of
operations
 Company follows management by convenience and not management by objective
 From the study it is clear that all the employees said that employees are satisfied
with training and development program
 Old business model were following
 Employees were appointed by some political recommendation
 Over man power is used
 They employees do work with full dedication and developing are highly motivate
 All the employees are fully committed to their works
 The main product the in demand is xxx Jawan
 There is a regular maintenance of machine for smoothing function
 The effectiveness of training is evaluated by verification of the knowledge gained,
by personal interview or monitoring the performance after providing training
 The public sector company is now running successfully but has accumulated loss of
the previous year’s Which are now written off with current year’s profit.
 The main reason for this crisis is the excess manpower supply. More labour and
less work to be done is the Problem faced by the company.
 The employees of TSC Ltd are sincere and hardworking in putting this again at
profit-making company Back on track. Employees are highly helpful and
supportive most of the employees are satisfied with the Labour welfare measures.
 Apart from the earning from the organisation, the company has earnings from
company quarters. Earlier it was provided only for its employees only. But now it is
provided for others also. Now it is Provided on the rent basis. The quarters are well
furnished with all facilities.
 The service provided by canteen is efficient. The employees are given concession
for the food which They consume.
 The management has informed the employees that it would have to resort to layoff
if the downward Trend in raw material realisation prevails.

56
 The company which is still using older techniques of production is now under
heavy loss.
 The company spent huge money on raw materials. Thus, the cost production is
increased. Thereby causing the price of the product.
 There is good coordination between the different departments of the organisation.
 Huge buildings kept unused. Most of the land buildings are held without any
working.
 If these can be utilised effectively company can turn into different level.
 It provides quality products at reasonable price
 The common size statement of the company for the last five years shows good
financial position.
 Products are high quality
 Demand of the product is very high
 It has regular customers
 Maintenance team is responsible to carry out preventive and breakdown
maintenance of plant and machinery

57
5.2 SUGGESTIONS

Management should take essential steps to explore new areas concerned with the industry.
Management should provide necessary step for the stress and mental tension faced by the
higher officials in the organization. Modern technique should be adopted for production
and also for good record keeping of employees. Better strategies for maintaining work
principle should be observed. Company should try to reduce cost of production.
Management should take firm decision regarding procurement of raw materials at a
cheaper rate.
Management should go for implementing IT measuring HRM duties and contributions.
Promotion techniques can to be improved
Make separate department for sales and marketing
Ensure a safe working environment to prevent accidents and downtime. Promote a culture
of safety among employees.
Invest in modern production technology such as automation.
Utilize data to monitor and analyse production data in real-time, allowing for quick
decision making and adjustments.
Anticipate demand and align production capacity according to prevent overproduction,
which can also reduce costs in the long run.
The salary structure needs to be improved and also implementation of modern methods for
providing training to employees
Provide rewards for employees
Encourage their work
The organization should provide security for improve the workers productivity

58
5.3CONCLUSION

TCS Ltd is public company under the control of state government. There are mainly seven
departments in this company and they are production, quality, control, production
planning, materials, finance, human resources and personnel & administrative department.
TSC Ltd is trying to provide better products; to satisfy its consumer’s needs. The firms
recommitted to professional management and provides a decent living to employees and is
really a leader in this part of the word. I believe that in era of globalisation this firm will
glorify our nation by concerning the global market by satisfying the needs of the global
consumers. The organisation study done at TSC Ltd gave me practical exposure to the
theory that i have learned. I have undergone the training sincerely and satisfactorily. The
firm also was so co-operative to complete the training. I am concluding the study in a
satisfactory ma

59
BIBLIOGRAPHY

Books.
 Kothari CR, (1984), Research Methodology, New Delhi

 McGraw Hill Chhabra T.N, (1994). Human Resources Management, Dhanpat& Co

Pvt Ltd

Annual Report
 Travancore trade and tax 2020-2021

 Annual report of Travancore sugars and chemicals 2021-2022

Websites
 https://www.travancoresugars.com/home.php
 https://www.ksidc.org
 https://industry.kerala
 https://www.tenderdetail.com

60