Chapter 4

MOLASSES BASED BY-PRODUCTS OF THE

SANJIVANI CO-OPERATIVE SUGAR FACTORY
 Chapter 4

Molasses Based By-products of the

Sanjivani Co-operative Sugar Factory

PART-I

4.1 By-products of Cane Sugar Industry

The waste products of an industry are those substances which are

inevitably produced in the process of manufacturing of the main product.
Some of the waste products have great commercial value. A large quantity
of cane sugar wastes has made it necessary to consider the production of by-
products today. Most of the sugar producing countries are now paying
attention to the by-products. Today, Brazil is a leading country in the
production of such by-products. The main purpose behind it is to reduce
cost of production of sugar industry in the international sugar market.
Taiwan has made tremendous progress by using bagasse and molasses for
by-products like paper, hardboard, particle board from bagasse and acetate,
mono-sodium, gluconate, animal feed and yeast from the molasses. The
other countries like West Germany, France, Finland, Belgium etc. are
producing by-products from sugar. India is also not lagging behind in the
utilization of such by-products. The production of by-products have ample
scope in Maharashtra. Therefore, proper utilization of wastes is necessary to
promote the efficiency of the sugar industry. It may strengthen the economy
of sugar industry. Proper utilization of by-products is necessary to create an
industrial complex. It is possible to establish other allied factories based on
the products of cane sugar.

95
 There are farm wastes, which are left in the field after cutting of
sugarcane and the factory wastes, which are found in the factory, after
utilization of sugarcane for sugar production. These various types of wastes
in sugar industry are cane tops, stubble, cane trash which are included in
farm production and the bagasse, molasses, press mud, ash are included in
factory production. These wastes of cane sugar industry in the farm and
factory are also a problem of the day. The conservation and proper
utilization of wastes would ultimately lead to success and stability of
industries.

Constituents in sugarcane and their proportions are shown in the

following diagram no 4.1.

Diagram 4.1

CONSTITUENTS IN SUGARCANE AND THEIR PROPORTIONS

\ ^^^^^k ^ ^ ^ ^ B T Malisses

"•^^"/^ a...T.p. 3-^^V.

10% I Ash
3-30%

%
 It is observed that 33 percent of sugarcane is bagasse, while 11.25 per
cent is in form of sugar. Percentage of molasses is 3.75 and press mud is
3.80 and ash is 3.30 percent. Cane tops percentage is about 10 per cent. And
remaining portion of sugarcane is water. Percentages of bagasse, molasses,
press mud, ash and sugar etc. depend upon the quality and maturity of
sugarcane and process of manufacturing adopted. By considering
constituents in sugarcane and their proportions an attempt has been made to
study the economics of by-products of cane sugar industry.

The by-products of cane sugar industry are given in chart 4.1.

Chart No. 4.1 clearly indicates the by-products of the cane sugar
industry.

The Chart No 4.1 explains the number of by-products, which can be

produced from sugarcane in the process of manufacturing of sugar. Bagasse,
molasses, press mud, cane tops and trash, ash and protein from sugarcane
green leaves are the important waste products of the cane sugar industry.
From the wastes of sugarcane other products like Acetate, Rectified Spirit,
Acid, Pulp and Paper, Electricity and gas, Animal feed, etc. can be produced
as indicated in the chart.

97
 Cliart 4.1

By-products of Cane sugar Industry

Electricity
Charcoal briguest
Methone
Producer gas

Pulp and Paper

Paper Board
Fiber Board
Particle Board

Fertilizer Fur fural

Alpha cellulose
Plastics
Poultry litter &
Animal Mukh
feed Animal feed
Bagasse concrete
Soil amendment

Wax&
Exportation
Fats
Fertilizer
Animal feed
Furnace
ash Protein
from Rum
Cane Ethyl alcohol
juice Distilling Rectified Spirit
Industry Power alcohol
Alcohol derivatives

Vinegar & Aceti

Other acid
Fermen- Acetone-butanol
tation Citric acid
industries Lactic acid
Glycerin
Yeast

Aconitic acid
Miscella- Monosodium
neous Glutamate
Dextran

Source : Paturu.J.Murice "By-products of the cane sugar industry"

Elsevier publishing Company; Amsterdam, London, New Yark
1969, page 8.
98
4.2 Molasses

Molasses is the most important waste of the sugar industry. Molasses

is the final mother liquor left over during the manufacturing of sugar from
various raw materials and from which sugar, on a commercial scale, cannot
be extracted economically. Molasses is, therefore, considered as a waste
obtained during the manufacture of sugar. It is the only waste product,
which gives some return and is being accounted for, in the cost of
production of sugar. Generally, it amounts to about 3.75 per cent of
sugarcane. It depends upon the quality of sugarcane juice, process of
manufacture and the amount of sugar extracted. There are three types of
molasses: unsulphured, sulphured and blackstrap. There are three major
grades of molasses i. e. first molasses, second molasses and blackstrap
molasses.

After analyzing molasses we get water 20 per cent and solids 80 per
cent. Solids contain 55 per cent sugar and 25 per cent non-sugar. '

From molasses it is possible to produce feeding stuff for animals.

Molasses mixed in all live-stock feeds contain the carbohydrate minerals
and organic matter which is very nutritious for all live-stock. In some sugar
factories molasses was being used as boilerfiaelto a great extent till 1960's
since there was no export market and no proper industrial use of it. Some
attempts were made to mix it with bagasse, various grades of oil and other
ingredients. It can also be used as a fertilizer. It contains a number of
minerals. It is used for the purpose of curing tobacco, which is very valuable
for the manufacture of high-class cigarettes as well as it can be used for
mixing with hukka tobacco and different kind of sweet test chewing
tobacco. It is used in foundries as a binding material to be mixed with sand

99
for making moulds. To make the oil cake compact molasses is used. It is a
good source of nutrients like iron, calcium, potassium, sodium etc. and
therefore it is used for edible purposes. Molasses is mainly used for
production of ethyl acetate, which can be used for industrial, potable and
fuel purposes.'^

Thus, it appears that molasses is a very valuable waste. Hence, efforts

should be made to provide adequate storage facilities to prevent the
deterioration of molasses. As there was a problem of storing of molasses,
the sugar factories used to destroy molasses every year. A very little
quantity of molasses was being used by the farmers as a fertilizer and
animal fodder. But in the subsequent years, with the abundant availability of
chemical fertilizers, the use of molasses as fertilizer declined. There was no
market for molasses up to 1956-57.

After independence, in the early stages, there was no significant

demand for molasses either from farmers or from distilleries. Thereafter,
due to the progressive policy of the Indian Government regarding setting up
of more molasses based industries the number of distillery units have been
increased significantly. In 1957-58, the State Government of Maharashtra
had established a distillery at Chitali in Shrirampur taluka. After the
establishment of Chitali distillery the demand for molasses increased to
some extent. ^

At present, near about 295 distillery units with a capacity of 27000 lac
liters per annum are operating in the country producing, annually, about
15000 lac liters of acetate from molasses.""

100
4.3 Distillery

Molasses is the main raw material of distillery. The main operations

in a distillery are fermentation and distillation. Fermentation is a biological
process, whereas distillation is a chemical engineering operation.

The technical efficiency of a distillery is an important factor, which

affects cost of production and ultimately the income of the unit. The
efficiency of a distillery can be judged by factors such as: a) Fermentation
efficiency, b) Distillation efficiency and c) Steam consumption in KG. An
acetate plant should be able to produce not less than 10 lac Gallons per year.
Thus 5 lac mounds of molasses will be required to make an acetate plant
viable. The average fermentation and distillation efficiencies of the
distilleries in India are of the order of 90 per cent and 98 per cent,
respectively.

In order to strengthen the development of acetate based industries,

following factors are important:

A) Maximum utilization of molasses for industrial acetate production by

taking all-possible care during transportation and storage to avoid
deterioration.

B) Preferential allocation of molasses for the production of acetate for its

use as a raw material for chemical conversion.

C) Price control of molasses and acetate are necessary for ensuring

reasonable costs for acetate based chemicals.

101
D) Acetate, required for the manufacture of liquor and pharmaceuticals,
be free from price controlA

According to the opinion of experts, from one tonne of molasses 230

to 250 liters of acetate can be produced and for economic viability the
minimum production capacity of every distillery should be 45000 bulb
liters, per day.^ Therefore, the government should give serious thoughts to
find out a viable unit on the basis of production capacity.

PART - II

4.4 By-products of the Sanjivani Sugar Factory

The use of sugarcane merely for the production of sugar would not be
economical in future because of a continuous rise in the price of sugarcane
and cost of its transportation. Therefore, use of wastes of cane sugar
industry for the production of by-products is inevitable which would help in
reducing the cost of sugar production and generate more income and
employment in rural areas.

A proper utilization of wastes of cane sugar factory plays an

important role in determining the margin of profit and its further
development. From economic point of view, the production of by-products
provides greater economic security and stability to the sugar factory. If the
wastes of cane sugar factories were sold in original form it would contribute
very little to the revenue of the factories. On the other hand, if they were

102
used as raw material for by-products their value would increase by several
folds and would add to the income of sugar factories to a greater extent. But
the availability of this raw material is an important factor. Each sugar
factory has its own limitations to use it; but it is very essential to take
initiative in using the same as it is a matter of its survival. Proper planning
for using waste material would ultimately lead to a sugar factory complex
rather than a monotype sugar industry. This industrial complex may include
manufacturing of sugar as well as many units utilizing waste material of
sugarcane and the by-products of the main factory, for creating other
commodities. With this view, the Sanjivani Sugar Factory started integral
diversification of its production activities and commissioned a series of
acetate based chemical projects.

Since 1979-80 the Sanjivani Co-operative Sugar Factory concentrated

on the production of molasses based by-products projects including captive
co-generation scheme and biogas plant. The sugar factory has used modem
technology in the sugar plant and increased its capacity utilization by more
than 100 percent over the last 15 years. Due to this, the total production of
molasses has increased significantly. Moreover, the Distillery unit has
constructed a steel tank to store molasses and this stock helps the unit to
work for maximum days in a year. The units which show improvement in
technical efficiency may be given liberal and timely allocation of molasses
by the concerned authorities.

At present, the sugar factory uses the entire quantity of its own
molasses for the by-product units. In addition to this, the unit needs
additional quantity of molasses for the production of acetate. Therefore, it
has to purchase, on an average, 66532 MT molasses from outside the area of
operation, per year.

103
 The present by-product units of the Sanjivani Co-operative Sugar
Factory are given in table 4.1.

Table 4.1

By-product Units of the Sanjivani Sugar Factory

Sr. Name of the project Year of Project Annual

No. commence- cost production
ment (Rs. in capacity
crores)
1 2 3 4 5
1 Oxalic Acid (molasses
1981-82 3.09 1,000 MT
based)
2 Diethyl Oxalate
1982 1.04 1,000 MT
(Molasses based)
3 Acetic Acid (Old and
1984 10.53 10,000 MT
New) (Molasses based)
4 Ethyl Acetate
1985 0.72 18,000 MT
(Molasses based)
5 Country Liquor As per
1985 0.75
(Molasses based) government
quota
6 Distillery (R S)
1987 5.55 22,500 KL
(Molasses based)
7 Fusel Oil By-product No separate cost
1987
(Molasses based) of the and production
distillery capacity
8 Acetic Anhydride
1992 6.01 3,000 MT
(Molasses based)
9 Extra Neutral Acetate
1993 1.09 6,000 KL
(Molasses based)
10 Bio-gas Plant 36,000M3 (per
1992, 5.09, 6.91
Co-generation System day), 1700 KW
(Captive) 1997-98 (1.8 MWS Per
(Bagasse based) Hour)

Source : The office record and from 41^' Annual Report of The
Sanjivani Co-operative Sugar Factory.

104
 The information regarding molasses based units such as Distillery,
Country liquor, Ethyl Acetate, Extra Neutral Acetate, Diethyl Oxalate,
Acetic Acid, Acetic Anhydride, Oxalic Acid and Fusel oil has been
presented. For the successful working of these units the sugar factory has
used available resources most efficiently and these by-products are
produced to the maximum extent. All these units are professionally
managed and commercially utilized very effectively and treated as a source
of nutrients and energy to the sugar factory.

The economic aspects are important while establishing by-product

units. For this purpose, the installed production capacity, actual utilization of
the capacity, total cost of production, selling price, total sale proceeds and
profits or losses are to be taken as the economic parameters of by-product
units. To find out whether these by-product units are working efficiently the
proportion of raw material for manufacturing of by-products, quantity of by-
products produced and profit earned are taken into account as efficiency
indicators of by-product units. In the light of accepted indicators, an
attempt has been made to find out the economic viability of the by-product
units.

Table 4.2 indicates the total requirement of molasses for the Sanjivani
Disfillery and its value from 1997-98 to 2001-2002.

Table 4.2 explains that in 1997-98 total cane crushed was 486600 MT
which was the lowest and the highest was 625262 MT in 1999-2000.

105
 Table 4.2

Production of molasses by the Sanjivani Co-operative Sugar Factory,

purchase of molasses from outside and their consumption and total
value (1997-98 to 2001-2002)

Year Total %age of Supply of Supply of Total Rate of Total

cane molasses molasses molasses consum- molasses value
crushes to cane from the from ption of (Rs Per Of
MT crushed Sanjivani outside molasses MT) molasses
otiS.lv. the (MT) (Rsin
(MT) Sanjivani Lac)
S.S.K.
(MT)
1 2 3 4 5 6 7 8
1997-
4,86,600 3.95 19,221 69,143 88,364 1,767 1,561
98

1998-
5,93,641 3.83 22,736 63,390 86,126 1,068 920
99

1999-
6,25,262 3.67 22,947 64,949 87,896 909 799
2000

2000-
5,12,818 3.51 18,000 71,430 89,430 1,185 1,060
2001

2001-
5,06,039 4.02 20,343 63,750 84,093 2,021 1,700
2002

Source : The office record of the Sanjivani Co-operative Sugar Factory

106
 The above table also indicates the percentage of molasses to
sugarcane crushed. The lowest percentage was 3.51 in 2000-2001 and the
highest percentage was 4.02 in 2001-2002, under the period of study.

In 1997-98 total consumption of molasses was 88364 MT, out of it

19221 MT fi-om the Sanjivani S.S.K. and 69143 MT from outside the
Sanjivani S. S. K. and the rate of molasses was Rs 1767 Per MT. Total
consumption increased to 89430 MT in 2000-2001, out of it 18000 MT from
The Sanjivani S.S.K. and 71430 MT molasses from outside the Sanjivani
S.S.K. and its rate was Rs 1185 Per MT. Thereafter, the total consumption
decreased to some extent. It is evident from the table that the lowest
consumption was recorded 84093 MT in 2001-2002 and highest
consumption was recorded 89430 MT in 2000-2001.

The highest grand total value of molasses was recorded Rs. 1700 lac
in 2001-2002. And the lowest grand total value of molasses was recorded
Rs. 799 lac in 1999-2000.

The change in total value of molasses occurred due to the change in

the price of molasses. It can be said that when the rate of molasses
increases, the cost of production of by-products also increases and therefore
it reduces the total income and profits of the distillery.

Table 4.2 depicts the required quantity of molasses for the distillery
unit. It also shows the total molasses production of the Sanjivani Sugar
Factory. If we compare the requirement of molasses to the Sanjivani
distillery to the production of molasses of the sugar factory, it is clear that
the Sanjivani Sugar Factory cannot produce required quantity of molasses.
For 100 percent capacity utilization of the Sanjivani distillery, the Sanjivani

107
Sugar Factory has to purchase molasses from other factories or from other
States. Moreover, under such circumstances the state government is issuing
licenses to sugar factories for establishing distillery to encourage them to
start by products from wastes. Due to this more distilleries are emerging. It
means there will be a need for more tonnes of molasses. But there is not an
adequate production of molasses in Maharashtra or in other States. This
eventually spells the danger of shortage of molasses and ultimately a big
threat to the molasses based industry.

4.5 Distillery of the Sanjivani Sugar Factory

The main raw material required for a distillery is molasses. The

production of molasses is seasonal. The Sanjivani Distillery constructed a
steel tank to store molasses. With the help of these stocks it works for
maximum days in a year. Besides, the Sanjivani Distillery also purchases
molasses from other sugar factories.

In the beginning, the Sanjivani distillery was producing only rectified

spirit. At present, distillery produces many other products such as Silent
Spirit, Ordinary Denechard Spirit, Country Liquor, Foreign Liquor, Ethyl
Acetate, Power acetate and acetate derivatives.

In table 4.3, details of the distillery (R S) are given.

From the table 4.3 it is clear that annual production capacity remained
unchanged over the period under study. During this period optimum
capacity has been utilized by the distillery. The lowest capacity was utilized
in 1997-98 i. e. 96.15 per cent whereas the highest capacity was utilized in
2000-2001 i. e. 108.65 percent.

108
 Table 4.3

Details of the Distillery (R S)

Particulars 1997- 1998- 1999- 2000- 2001-

98 99 2000 2001 2002
1 2 3 4 5 6
Annual production
22,500 22,500 22,500 22,500 22,500
capacity (Kilo Liters)
Capacity utilization
96.15 102.51 104.16 108.65 103.45
(%)

Total production
21,634 23,065 23,437 24,447 23,277
(Kilo Liters)
Growth rate of
- 6.61 1.61 4.31 -4.79
production (%)
Total cost of production
2,110 2,150 2,100 2,150 2,477
(Rs. In Lac)
Average cost of
9,753 9,321 8,960 8,795 10,641
production (Rs. per KL)
Selling price (Rs. Per
11,250 10,700 9,500 9,829 11,500
kilo liter)
Total sale proceeds
2,434 2,468 2,227 2,403 2,677
(Rs. In lac)
Growth rate of
- 1.40 -9.76 7.90 11.40
Sales (%)
Total profit
324 318 127 253 200
(Rs in lac)

Growth rate of
-1.85 -60.07 99.21 -20.95
Profit (%)

Source : The office record of the Sanjivani Sahakari Sakhar Karkhana.

109
 In 1997-98 total production of distillery was 21634 Kilo liters. It
increased to 24447 Kilo liters in 2000-2001. Thereafter, it declined to 23277
Kilo liters in 2001-2002. Growth rate of production shows an increasing
trend except in 2001-2002.

The total cost of production was RS 2110 lac in 1997-98. It decreased

to Rs. 2100 lac in 1999-2000. It increased to RS 2477 lac in 2001-2002.

Average cost of production shows decreasing trend except in the year

2001-2002. The lowest average cost was Rs. 8795 in 2000-2001. It means
that in the year 2000-2001 the plant achieved good production.

In 1997-98, selling price was Rs. 11250 per Kilo liter. It decreased to
Rs. 10700 per Kilo liter in 1998-99. Thereafter, selling price increased to
Rs. 11500 in 2001-2002. Selling price was fluctuating over the period under
study.

In 1997-98, total sale proceeds was Rs 2434 lac. It increased to Rs.

2677 lac in 2001-2002. The total sale proceeds marks an increasing trend
throughout the period under study, except in the year 1999-2000.

In 2001-2002, the highest growth rate of sales was recorded 11.40 per
cent and the lowest growth rate was recorded -9.76 per cent in 1999-2000.

The distillery plant has achieved good profit during the period under
study. The highest profit was Rs. 324 lac inl997-98 and the lowest profit
was Rs. 127 lac in 1999-2000. The growth rate of profit ranged from -60.06
to 99.21, during the period under study.

110
 The annual production of the distillery has always remained higher
than the sanctioned production capacity. Due to this, the Sanjivani distillery
has maintained good financial position from the beginning till today. The
production of the Sanjivani distillery has captured foreign markets and
earned foreign exchange and thereby acquired economic stability and
viability.

4.6 Country Liquor

A substantial quantity of acetate is used for the manufacture of

Country Liquor. This is manufactured by diluting Rectified Spirit with water
to different grades of 25° UP strength. Different varieties are produced by
adding flavors and are called Spiced Liquor. Liquors are manufactured in a
synthetic way to imitate Foreign Liquors, Whiskey, Brandy, Rum and Gin.
They are called Indian Made Foreign Liquors.

The annual production capacity, capacity utilization, total production,

total cost of production, selling price, total sale proceeds and profits of the
Country liquor from 1997-98 to 2001-2002 are exhibited in table 4:4.

The production of country liquor depended upon the government

quota sanctioned to the distillery. Hence, there is no specific production
capacity. Total production did not show any specific trend. The highest
production was achieved in the year 1998-99 i.e. 12600 Kilo liter. The
lowest production was recorded 10,000 Kilo liter in 1999-2000. The highest
growth rate of production was 15.60 per cent in 1998-99.

Ill
 Table 4.4

Total production, total cost, selling price, total sale proceeds,

growth rates and profits of Country liquor (1997-98 to 2001-2002)

Particulars 1997-98 1998-99 1999- 2000- 2001-

2000 2001 2002
1 2 3 4 5 6
Total production
10,900 12,600 10,000 10,500 11,100
(Kilo Liters)
Growth rate of
- 15.60 -20.63 5.00 5.71
production (%)
Total cost of
1,610 1,818 1,468 1,530 1,843
production
(Rs. in Lac)
Average cost of
14,771 14,429 14,680 14,571 16,604
production (In Rs.)

Selling price
19,500 18,600 19,600 19,700 19,750
(Rs. Per kilo liter)
Total sale proceeds
2,126 2,344 1,960 2,069 2,192
(Rs. in Lac)
Growth rate of
- 10.25 -16.38 5.56 5.94
sales (%)
Total profit
516 526 492 539 349
(Rs. in Lac)
Growth rate of
- 1.94 -6.46 9.55 -35.25
profit (%)

Source : The office record of the Sanjivani Co-operative Sugar Factory.

112
 Table 4.4 indicates that in 1997-98, total cost of production was Rs.
1610 lac. It decreased to Rs 1468 lac in 1999-2000. Thereafter the total cost
of production increased to Rs 1843 lac in 2001-2002.

The lowest average cost of production was Rs. 14429 in 1998-99.

And the highest average cost of production was Rs. 16604 in 2001-2002.

Selling price per kilo liter showed increasing trend except in the year
1998-1999.

The lowest total sale proceeds were recorded as Rs. 1960 lac in
1999-2000 and the highest sale proceeds were recorded as Rs. 2344 lac in
1998-1999.

The highest growth rate of sales was 10.25 per cent and the lowest
growth rate of sale was -16.38 per cent. It was fluctuating.

Table 4.4 also explains that the total profits achieved by the country
liquor are satisfactory as compared to the profits of other by-products. The
highest total profit was recorded as Rs. 539 lac in 2000-2001, whereas the
lowest total profit was recorded as Rs. 349 lac in 2001-2002. The country
liquor product could not achieve a constant growth rate of profit. It showed
a decreasing trend. However, the country liquor product has achieved good
profitability.

4.7 Extra Neutral Alcohol

A major portion of the molasses produced in India is used for the

production of Ethyl Acetate by fermentation in distillery. Acetate is

113
normally manufactured as a rectified spirit and 50 to 60 percent of the total
acetate production goes for chemical conversion. By re-distilling the
Rectified Spirit Extra Neutral Acetate is produced. It is produced mainly for
the potable purpose such as Indian made foreign liquor. It is also useful for
cosmetics and perfumes. ^

Table 4.5 encompasses the annual production capacity, total

production, total cost of production, selling price, total income, total profit
and present situation of Extra Neutral Alcohol unit from 1997-98 to 2001-
2002.

Table 4.5 indicates the following facts.

The production capacity of Extra Neutral Acetate is 6000 KL, per

annum. It remained unchanged over the period under study. However, actual
capacity utilization of this product is lower than the sanctioned capacity. In
2000-2001 the maximum capacity utilization was recorded i.e. 68.33 per
cent.

The total production was recorded 2000 KL in the year 1997-98. It

increased to 4100 KL in 2000-2001. Thereafter, the total production
declined to 3800 KL in 2001-2002.

The highest growth rate of production was 35 per cent in 1998-99 and
the lowest growth rate of production was -7.32 per cent in 2001-2002.

The table 4.5 manifests that the total cost of production was Rs. 252
lac in 1997-98. Thereafter, the total cost of production showed an increasing
trend. The highest cost of production was Rs 432 lac in 2000-2001.

114
 Table 4.5

Annual production capacity, capacity utilization, total production, total

cost of production, selling price, total sale proceeds, growth rates and
profits of the Extra Neutral Alcohol from 1997-98 to 2001-2002

Particulars 1997- 1998- 1999- 2000- 2001-

98 99 2000 2001 2002

1 2 3 4 5 6
Annual production Capacity 6,000 6,000 6,000 6,000 6,000
(Kilo Liters)
Capacity utilization
(%) 33.33 45 51.67 68.33 63.33
Total production
(Kilo Liters) 2,000 2,700 3,100 4,100 3,800
Growth rate of production
(%)
- 35 14.81 32.26 -7.32
Total cost of Production
(Rs. In Lac) 252 315 360 432 390

Average cost of production 12,600 11,667 11,612 10,536 10,263

(In Rs.)

Selling price (per Kilo Liter 16,500 16,610 16,450 16,550 17,260
in Lac)
Total sale proceeds
(Rs. in Lac) 330 448 510 679 656

Growth rate of sales (%) - 35.76 13.84 33.14 -3.39

Total profit (Rs. in Lac) 78 133 150 247 266

Growth rate of Profit 70.51 12.78 64.67 7.69

Source: The office record of Sanjivani Co-operative Sugar Factory.

115
 The average cost of production showed a decreasing trend over the
period under study.

The lowest selling price of Extra Neutral Acetate was recorded as Rs.
16450 per KL in 1999-2000 and the highest selling price was recorded as
Rs. 17260 per KL in 2001-2002. One can, therefore, conclude that the
selling price showed an increasing trend over the period of five years.

The total sale proceeds of Extra Neutral acetate was Rs. 330 lac in
1997-98, which was recorded as the lowest sale proceeds. It increased to Rs.
679 lac in 2000-2001. These were the highest sale proceeds recorded during
the period under study.

The growth rate of sales indicates an increasing trend, except in the

year 2001-2002.

The profit of the unit continuously increased from Rs. 78 lac to Rs.
266 lac. From the table, though it is clear that the Extra Neutral Acetate unit
produces less than its installed annual production capacity, still it is working
profitably.

The growth rate of profit seems to be fluctuating in nature. However,

this product has been earning profit over the period under study.

4.8 Fusel Oil

The Fusel Oil is separated from any acetate by distillation. It is a

complex mixture produced to the extent of a few tenths percent in the
ordinary acetateic fermentation. It is a variable composition depending upon

116
the nature of the material fermented, probably also on the kind of yeast and
on the method of distillation. It is a yellow oily liquid with a suffocating
characteristic odour. Fusel oil consists of four higher Acetates, viz. N-
propel, Isobutyl, Active Amyl and the inactive Amyl Acetates. The last is
the largest constituent. Small proportions of yeasts and free fatty acids are
also present with more or less ethyl acetate and water. Other constituents
that have been detected are hexyl, heptyl acetate, Furfural, Terpenes and
basic substances. Distilleries get 4 to 5 liters of fusel oil per thousand liters
of acetate while using molasses as the raw material. ^

Fusel oil is used as a solvent in the arts and industries. It is also used
in the manufacture of explosives, artificial fruit essences and in the
manufacture of paints and lacquers.'"

Table 4.6 gives details regarding Fusel Oil.

The lowest total production of Fusel oil was 26.20 Kilo-liter in 1997-
98 and the highest production was recorded as 50.35 Kilo-liter in 2000-
2001. The growth rate of production showed an increasing trend over the
period under study, except in the year 2001-2002.

Table 4.6 indicates that the total cost of production was Rs. 2.58 lac in
1997-98, which was recorded as the lowest. And the highest total cost of
production was recorded as Rs 5.30 lac in 2001-2002. The average cost of
production was ranging between Rs. 6.95 per liter to Rs. 12.57 per liter.

In 1997-98 selling price was Rs. 17 per liter. It increased to Rs.

18.50 per liter in 2001-2002.

117
 Table 4.6

Total production, total cost of production, selling price, total sale

proceeds, growth rates and profits of the Fusel oil
from 1997-98 to 2001-2002

Particulars 1997- 1998- 1999- 2000- 2001-

98 99 2000 2001 2002
1 2 3 4 5 6
Total production (Kilo Liters) 26.20 38.50 44.60 50.35 42.16

Growth rate of production (%) - 46.95 15.84 12.89 -16.27

Total cost of production ( Rs in 2.58 3.06 3.10 4.46 5.30

Lac)
Average cost of production (Per 9.84 7.95 6.95 8.86 12.57
Liter in Rs)
Selling price (Per Liter in Rs) 17.00 17.50 18 18.20 18.50

Total sale proceeds (Rs in Lac) 4.45 6.74 8.03 9.16 7.80

Growth rate of sales (%) - 51.46 19.14 14.07 -14.85

Total profit (Rs in Lac) L87 3.68 4.93 4.70 2.50

Growth rate of profit (%) - 96.79 33.97 -4.67 -46.81

Source: Data collected from 38^, 41'' and 44* Annual Reports of the
Sanjivani Co-operative Sugar Factory.

The lowest total sale proceeds were recorded Rs. 4.45 lac in 1997-
98. The highest total sale proceeds were Rs. 9.16 lac in 2000-2001. The
growth rate of sales remained between 14.85 per cent to 51.46 per cent.

118
 The profit gained by the Fusel Oil unit were Rs. 1.87 lac in 1997-98.
Thereafter, the profit increased to Rs. 4.93 lac in 1999-2000. It decreased to
Rs. 2.50 lac in 2001-2002. This reduction in profit was due to the under-
utilization of capacity and increased cost of production. The growth rate of
profit remained between -46.81 to 96.79 per cent. Finally, one can conclude
that the profits of the Fusel Oil fluctuate significantly. At present, the Fusel
Oil unit of the Sanjivani Sugar Factory is working profitably.

4.9 Oxalic Acid

It is the simplest of the dibasic acids. The product is commercially

available as the Dihydrate HOOC.COOH.2H2O. For producing it from
sugar or molasses, Nitric acid has to be used as an oxidizing agent. The
technical advances in the manufacture of Nitric acid, particularly in the
recovery of Nitrogen, oxides in a form suitable for use cyclically are mainly
responsible for the success of the process. Oxalic Acid is also produced as a
by-product while citric acid is produced from carbohydrates by
fermentation.

Oxalic Acid is used as stain cleaning solutions in laundries, as dye

stripping of wool in the textile industry, degassing of silk, for printing of
cotton, for cleaning and dyeing of fabrics and for bleaching plant fibbers.
Oxalic Acid and Oxalates are useful as reducing agents for photography. It
is used for removing rust and scale, which accumulate in cooling systems,
and for cleaning steel surfaces. It is used along with sulfuric acid in
aluminum anodizing baths. It has a host of other domestic and industrial
applications."

Table 4.7 gives information regarding Oxalic Acid.

119
 Table 4.7

Production capacity, capacity utilization, total production, cost of

production, selling price, total sale proceeds, growth rates and profit of
Oxalic Acid unit from 1997-98 to 2001-2002

Particulars 1997-98 1998-99 1999- 2000- 2001-

2000 2001 2002
1 2 3 4 5 6
Annual production 1,000 1,000 1,000 1,000 1,000
capacity (MT)
Capacity utilization 93.90 72 101 103.50 76.40
(%)
Total production 939 720 1,010 1,035 764
(MT)
Growth rate of - -23.32 40.28 2.48 -26.18
production (%)
Total cost of 154 110 183 178 129
production (Rs in
Lac)
Average cost of 16,400 15,278 18,119 17,198 16,885
production (In Rs)
Selling price 18,000 17,500 18,900 18,910 19,000
(PerMTinRs)
Total sale proceeds 169 126 191 196 145
(Rs in Lac)
Growth rate of sales - -25.44 51.59 2.62 -26.02
(%)
Total profit 15 16 08 18 16
(Rsin Lac)
Growth rate of profit - 6.67 -50 125 -11.11
(%)

Source : The office record of the Sanjivani Co-operative Sugar Factory.

120
 The annual production capacity remained unchanged over the period
of five years. (1000 MT). The highest capacity utilization was 103.50 per
cent in the year 2000-2001, whereas the lowest capacity utilization was 72
per cent in 1998-99.

The table 4.7 shows the total production from 1997-98 to 98-99,
which was recorded as 939 MT and 720 MT, respectively. After that, the
total production of Oxalic Acid increased to 1035 MT in 2000-2001. It
again declined to 764 MT in 2001-2002. This shows that the total
production of Oxalic Acid differed considerably over the period of five
years mentioned in the table. The growth rate of production varied from -
26.18 to 40.28.

The total cost of production was Rs. 154 lac in 1997-98. After this
year, total cost of production increased to Rs. 183 lac in 1999-2000. It again
decreased to Rs. 129 lac in 2001-2002.

Thus, the average cost of production was fluctuating. In 1999-2000,

the highest average cost was recorded as Rs. 18119 per MT.

Table 4:7 also explains that in 1997-98 and 98-99 selling price was
Rs. 18000 per MT and Rs. 17500 per MT, respectively. The highest selling
price was recorded as Rs. 19000 Per MT in 2001-2002.

Table 4:7 shows that the total sale proceeds of Oxalic Acid were Rs.
169 lac in 1997-98. ft declined to Rs. 126 lac in 1998-99. In 1999-2000 and
2000-2001 total sale proceeds were recorded as Rs. 191 lac and Rs. 196 lac,
respectively. The growth rate of sales was ranging from -26.02 per cent to
51.59 per cent.

121
 Regarding the profits, it is clear from the table that there is no specific
growth in profits of the Oxalic Acid. Table indicates that the Oxalic Acid
unit gains nominal profits over the period of five years. The decrease in
profits was due to the increase in the cost of production. The growth rate of
profits of Oxalic Acid fluctuated considerably.

4.10 Diethyl oxalate (Chemical Formula: C2H5OOCCOOC2H5)

Molecular Formula: H10C60. It is a white transparent liquid

combustion. It is a clear oily liquid, soluble in miscible with acetates, ether
and other common organic solvents. It is stable under ordinary conditions. It
is sensitive in moisture. Diethyl oxalate is used as an intermediate in the
production of pharmaceuticals, agrochemicals and dyestuffs. It is mainly
used as an intermediate of phenobarbital, triaethanolamihe smz; and also
used as an intermediate of plastics and solvent of fiber and perfume. As the
basic material for pharmaceutical industry, diethyl oxalate is the
intermediate of manufacturing the following medicines: caldarimycin, CAP,
long-effect sulfanilamide, iodine amine, oxazole, azathioprine, SMZ,
sulphur sodium methoxide, diphenoxylate, perdurine geopen, lactic acid,
chloroquine Phosphate, tiebendazol and penicillin. Moreover, it is the main
material of the new well-sold medicine "SMZ". Secondly, diethyl oxalate
can be also used to manufacture plastic accelerant and used as the solution
element of coated cathode of TV kinescope, intermediate of dye, the
impregnant of fibrin and flavor as well. In Japan, diethyl oxalate is even
used as the impregnant of natural or compound colophony. Diethyl oxalate
is used also as a solvent for paint stripping and resins; as a cleaner for
polynetic residues and pigment dispersant. It is used as an intermediate to
produce barbituates (a group of ureides that act as nonselective central
nervous system depressant) and dyes.'^

122
 The production of Diethyl Oxalate, its Cost, Price, Income, and Profit
are shown in the table 4.8.

Table 4.8

Annual production capacity, capacity utilization, total production, cost

of production, selling price, total sale proceeds, growth rates and profit
of the Diethyl Oxalate unit from 1997-98 to 2001-2002

Particulars 1997- 1998- 1999- 2000- 2001-

98 99 2000 2001 2002

1 2 3 4 5 6
Annual production capacity (MT) 1,000 1,000 1,000 1,000 1,000

Capacity utilization (%) 77.80 70 78.70 89.40 68.20

Total production (MT) 778 700 787 894 682

Growth rate of production (%) - -10.03 12.43 13.60 -23.71

Total cost of production (Rs in 310 271 292 331 253

Lac)

Average cost of production (Rs) 39,845 38,714 37,103 37,025 37,097

Selling price (Rs Per MT) 46,483 40,839 37,436 37,436 37,217

Total sale proceeds (Rs in Lac) 362 286 295 335 254

Growth rate of sales (%) - -21.00 03.15 13.56 -24.18

Total profit (Rs in Lac) 52 15 03 04 01

Growth rate of profit (%) - -71.15 -80 33.33 -75

Source : The office record of the Sanjivani Co-operative Sugar Factory.

123
 The table 4.8 indicates that the annual production capacity of 1000
MT remained unchanged, over the period under study. However, actual
capacity was not utilized up to the mark. The highest capacity utilized was
89.40 per cent and the lowest was 68.20 per cent in 2000-2001 and in 2001-
2002, respectively.

The total production was recorded as 778 MT in the year 1997-98. It

decreased to 700 MT in 1998-99. Thereafter, it increased to 894 MT in
2000-2001. In 2001-2002, the lowest production was recorded as 682 MT.
The growth rate of production did not show exact trend. In the year 2001-
2002, it decreased by 23.71 per cent as compared to the previous year 2000-
2001.

From the table 4.8 it is clear that the total cost of production
fluctuated over the period of five years. The highest total production cost
was recorded as Rs. 331 lac in 2000-2001. The lowest total cost of
production was recorded as Rs. 271 lac in 1998-99. The average cost of
production indicates a decreasing trend.

The highest selling price was recorded as Rs. 46483 per MT and the
lowest selling price was recorded as Rs. 37217 per MT in the years 1997-98
and 2001-2002, respectively. The price has influenced the total income from
the product.

The highest total sale proceeds were Rs. 362 lac in 1997-98. It
declined to Rs. 254 lac in the year 2001-2002. The growth rate of sale
proceeds was of a fluctuating nature.

124
 The highest profit was Rs. 52 lac in 1997-1998, thereafter it decreased
to one lac in 2001-2002. The highest growth rate of profit was achieved in
2000-2001 i. e. 33.33 per cent.

4.11 Acetic Acid

Acetic Acid is produced by the liquid phase oxidation of Acetyldhyde

approximately 65°c with a Magnese Acetate catalyst. Acetic Acid is an
organic heavy chemical, finding many applications in industry. Apart from
its wide use in esterification and acetylation reaction, it is used in the
preparation of Teryal, Acetamide, Acetanilide, Acetylacetone,
Acetalcloride, Acrylic Anhydride etc. and for the manufacture of
Monochloroacetic Acid, Vinyl Acetate and other acetates. Acetic Acid is
highly corrosive, and therefore, most of the equipment in the plants needs
to be of stainless steel.'^

Table 4.9 shows the annual production capacity, total production, and
cost of production, selling price, total income and profit of Acetic Acid.

The annual production capacity of the Acetic Acid is 10,000 MT,

which remained unchanged over the period under study. The table reveals
that the actual production capacity is over and above the annual production
capacity throughout the years.

Table 4.9 indicated that the total production was 9945 MT in 1997-98.
During 1998-99 and 99-2000, total production of Acetic Acid increased to
10440 MT and 14437 MT, respectively. After this period, the total
production declined to 10751 MT in 2001-2002. The growth rate of
production was ranging between -3.60 per cent to 9.55 per cent.

125
 Table 4.9

Annual production capacity, capacity utilization, production, cost of

production, selling price, total sale proceeds, growth rates and profit of
Acetic Acid from 1997-98 to 2001-2002

Particulars 1997-98 1998-99 1999- 2000- 2001-

2000 2001 2002

1 2 3 4 5 6
Annual production
capacity MT
10,000 10,000 10,000 10,000 10,000

Capacity utilization
(%)
99.45 104.40 114.37 110.25 107.51

Total production MT
9,945 10,440 14,437 11,025 10,751
Growth rate of
production (%)
- 4.98 9.55 -3.60 -2.49

Total cost of
production (Rs in Lac)
2,041 1,790 1,910 1,955 1,854
Average cost of
production (In Rs) 20,523 17,146 16,700 17,732 17,245

Selling price
21,743 18,640 18,163 20,982 19,802
(Rs. Per MT)
Total sale proceeds
2,162 1,946 2,077 2,313 2,129
(Rs in Lac)
Growth rate of sales
(%)
- -10 6.63 11.36 -7.96

Total profit
121 156 167 358 275
(Rs in Lac)
Growth rate of profit - 28.92 7.05 114.37 -23.18
(%)

Source : The office record of the Sanjivani Co-operative Sugar Factory.

126
 Table 4.9 also explains the total cost of production of the acetic acid.
In 1997-98 total cost of production was Rs. 2041 lac which was the highest
one. The lowest cost of production was recorded as Rs. 1790 lac in 1998-
1999. The lowest average cost of production was Rs 16700 per MT in 1999-
2000 and the highest cost of production was recorded as Rs 20523 per MT
in 1997-98.

The selling price of the Acetic Acid was Rs. 21743 per MT in 1997-
98, which was the highest price over the period under study. The lowest
price was Rs. 18163 per MT in 1999-2000. From the table it can be noticed
that there were fluctuations in its selling price.

The highest total sale proceeds were recorded as Rs. 2313 lac in
2000-2001. The lowest sale proceeds were recorded as Rs. 1946 lac in
1998-1999. In 2001-2002 total sale proceeds were recorded as Rs. 2129 lac.
It is obvious that due to the fluctuations in the selling price, the total income
of the Acetic Acid fluctuated over the period. The growth rate of sales was
ranging between -10 per cent to 11.36 per cent.

The total profits differ significantly over the period under study. It
differs from Rs. 121 lac to Rs. 358 lac in 1997-98 and 2000-2001,
respectively. The growth rate of profit increased from 28.92 per cent to
114.37 per cent in 1998-99 and 2000-2001, respectively. After this period, it
declined to -23.18 per cent.

The table brings out that the unit of Acetic Acid is working
satisfactorily.

127
4.12 Ethyl Acetate (Chemical Formula: CH3COOC2H5)

The chemical properties of Ethyl acetate are mainly based on its

hydroxyl group. Dehydration, dehydrogenation, oxidation and esterification
which can convert ethyl acetate into various value-added chemicals.

Ethyl acetate is used as a raw material for the manufacture of various

chemicals like ethyl Acrylate, vinegar, glycol ethers, ethyl amines, acetyl
dehyde and ethyl acetate. Since 1965 the use of acetate in chemicals
declined over 60 percent due to the competition from less expensive
substitutes and alternate processes. However, since 1980 the market has
stabilized. The quantity of ethyl acetate consumed in ethyl acetate is near
about 37.8 percent. Brazil is one of the countries, which uses large volume
of Ethyl Acetate for the production of Ethyl Acetate. India is the another
country where 50 percent of acetate production is used annually for the
manufacture of twenty types of chemicals, and Ethyl Acetate is one of
them.''

Ethyl Acetate is synonymous to Acetic acid, ethyl Yeaster, Acetic

ether, Acetoxy ethanel. Ethyl Acetic Yeaster Ethyl ethanoate. Ethyl Acetate
is flamable liquid and vapor. It is fruity in odour. It is stable under ordinary
conditions of use and storage. Heat will contribute to its instability. It slowly
decomposes by moisture. Its contact with strong oxidizers may cause fire.
Its container should be kept closed and away from heat, sparks and flame,
strong acids, strong alkalis, strong oxidizers, plastic, rubber and coatings,
and protected against physical damage, stored in cool, dry well-ventilated
location. It is harmful if swallowed or inhaled. It affects nervous system,
causes irritation to skin, eyes and respiratory tract. So its contact with eyes,
skin, clothing should be avoided. Ethyl Acetate, when released into the soil,

128
it may leach into groundwater and may evaporate to a moderate extent.
When released into water it may biodegrade to a moderate extent. When
released into the air it may be moderately degraded by photolysis. Ethyl
Acetate is not expected to be toxic to aquatic life.'^

Ethyl Acetate is used widely in formulating inks adhesives. It is an

effective solvent for many types of resins. It is used extensively as a
cellulose nitrate solvent in the manufacture of products such as artificial
leathers, inks, cement, and photographic films. Ethyl Acetate is a useful co-
extracting for camphor, fats, oil, antibiotics and several resins and gums. ^^

The details of Ethyl Acetate are given in the table 4.10.

Table 4.10 indicates that annual production capacity of Ethyl Acetate

unit in 1997-98 was 1800 MT which continued fill 2001-2002. With regard
to the capacity utilization of Ethyl Acetate it is clear that it was not utilized
its 100 percent capacity.

The total production of Ethyl Acetate was recorded as 1282 MT in

1997-98. Later on the total production increased to 1720 MT in 2001-2002.
It shows an increasing trend. The growth rate of the product shows an
increasing trend, except in the year 2000-2001.

Total cost of production indicates an increasing trend. The highest

cost of production was Rs. 408 lac in 2001-2002 and the lowest cost of
production was Rs. 322 lac in 1998-99. The average cost of production
shows a decreasing trend throughout the period under study.

129
 Table 4.10

Annual production capacity, capacity utilization, total production, cost

of production, selling price, total sale proceeds, growth rates and profit
of Ethyl Acetate from 1997-98 to 2001-2002

Particulars 1997-98 1998-99 1999- 2000- 2001-

2000 2001 2002
1 2 3 4 5 6
Annual production
1,800 1,800 1,800 1,800 1,800
capacity MT
Capacity utilization
7L22 73.78 87.17 87 95.56
(%)

Total production MT 1,282 1,328 1,569 1,566 1,720

Growth rate of - 3.59 18.15 -0.19 9.83

production (%)
Total cost of
341 322 365 390 408
production (Rs in
Lac)
Average cost of 23,721
26,599 24,247 23,263 24,904
production (Rs)
Selling price per MT
28,468 26,093 24,538 27,761 27,603
(Rs)
Total sale proceeds
365 347 385 435 475
(Rs in Lac)
Growth rate of sales - -4.93 10.95 12.98 9.20
(%)

Total profit (Rs in 24 25 20 45 67

Lac)
Growth rate of profit - 4.17 -20 125 48.89
(%)

Source: The office record of the Sanjivani Co-operative Sugar Factory.

130
 The selling price of Ethyl Acetate was Rs. 28468 per MT in 1997-98.
Later the selling price decreased to Rs. 24538 per MT in 1999-2000.

The lowest total sale proceeds were recorded as Rs. 347 lac in 1998-
99. The highest total sale proceeds were Rs. 475 lac in 2001-2002. Except in
the year 1998-99, total sale proceeds were continuously increasing. The
growth rate of sales ranges fr-om - 4.93 per cent to 12.98 per cent during the
period under study.

In the year 1997-98, profits were recorded as Rs. 24 lac. In 20001-

2002, the highest profits were recorded as Rs. 67 lac. Thus, we conclude
that there were huge fluctuations in the profit. At present, the unit is
working profitably. The highest growth rate of the profit was 125 per cent in
2000-2001, whereas in 2001-2002, the growth rate of profit was 48.89 per
cent.

4.13 Acetic Anhydride

Acetic Anhydride can also be made from Acetic Acid. For this
purpose, some of the Acetic Acid is first cracked to Kenton and water, in a
vapour phase-reaction, operated at high temperature and low pressure by
using Try-Ethyl Phosphate as catalyst. The reaction gas is quickly cooled to
separate ketene from the UN reacted acid and water and ketene is then
observed in Acetic Acid to give Acetic Anhydride which is purified by
distillation. Acetic Anhydride is used for industrial Acetylations and for the
manufacture of vinyl Acetate and cellulose triacetate. Aspirin etc.

A better method of manufacturing Acetic Acid and Acetic Anhydride

is to produce them simultaneously in a 50:50 ratio by oxidizing

131
acetaldehyde vapor with air using a mixture of copper and cobalt acetates as
17
catalyst.

Table 4.11 gives information regarding Acetic Anhydride.

The table 4.11 encapsulates the annual production capacity of the

Acetic Anhydride, v^hich remained the same i.e. 3000 MT during the period
under study. In 1997-98, the percentage of capacity utilization was recorded
as 97.17. Later it decreased to 56.80 per cent in 2001-2002.

The total production was 2915 MT in 1997-98. The production

decreased to 1704 MT in 2001-2002. From 1997-98 to 2001-2002 the total
production of Acetic Anhydride was continuously decreasing. The growth
rate of production shows a decreasing trend, except the in year 1999-2000.

The highest cost of production was recorded as Rs. 1103 lac in 1997-
98 and the lowest cost of production was recorded as Rs. 580 lac in 2001-
2002. It can be concluded that the cost of production of Acetic Anhydride
shows a decreasing trend. Average cost fluctuates considerably. It shows
positive relation with total cost of production.

Table 4.11 also indicated that the selling price of Acetic Anhydride
was Rs. 39726 lac per MT in 1997-98. The selling price of the Acetic
Anhydride remained higher than any other year's price mentioned in the
table. The selling price of Acetic Anhydride fluctuated significantly over the
period of five years under study.

132
 Table 4.11

Annual production capacity, capacity utilization, total production, total

cost, selling price, total sale proceeds, growth rates and profit of the
Acetic Anhydride unit from 1997-98 to 2001-2002

Particulars 1997-98 1998-99 1999- 2000- 2001-

2000 2001 2002
1 2 3 4 5 6
Annual production
capacity (MT) 3,000 3,000 3,000 3,000 3,000
Capacity utilization
97.17 83.97 85.80 78.70 56.80
(%)
Total production
2,915 2,519 2,574 2,361 1,704
(MT)
Growth rate of 2.18 -8.28 -27.83
- -13.58
production (%)
Total cost of production 1,103 880 950 848 580
(Rs. in Lac)
Average cost of 37,839 34,934 36,908 35,917 34,038
production
(In Rs.)
Selling price per MT 37,971 36,085 34,204
39,726 37,256
(In Rs.)
Total sale proceeds 1,158 938 911 852 583
(Rs. in Lac)
Growth rate of sales - -19 4.16 -12.79 -31.57
(%)
Total profit 55 58 27 4 3
(Rs. in Lac)
Growth rate of profit - 5.45 -53.45 -85.19 -25
(%)

Source: The office record of the Sanjivani Co-operative Sugar Factory.

133
 The total sale proceeds of Acetic Anhydride were recorded as Rs.
1158 Lac in the year 1997-98 which was the highest among all the years
mentioned in the table. The lowest total sale proceeds were recorded as Rs.
583 lac in 2001-2002. It can be stated that total sale proceeds declined
throughout the period under study. The growth rate of sale proceeds
changed significantly.

The profit earned by the Acetic Anhydride was Rs. 55 lac in the year
1997-98. During 1998-99 and 1999-2000 the profit was recorded as Rs. 58
lac and Rs. 27 lac, respectively. Afterwards, profit declined swiftly. The
growth rate of profit was 5.45 per cent in 1998-99. Thereafter, it declined to
a large extent, as the ratio of cost of production to sales had gone down
during the period under study.

The by-product units of the Sanjivani Co-operative Sugar Factory

have utilized their actual capacity less than its installed capacity, except that
of its Distillery and the Country liquor units. These two units have utilized
their actual production capacity more than their installed capacity. Right
from the beginning these by-product units have been producing their
products to its maximum extent. Therefore, it has become possible to
produce these products at minimum cost, except in case of the unit of Oxalic
Acid.

For judging the financial position of the by-products of the Distillery

and Chemical Division two important ratios are considered :
(1) Gross Profit to Total Sale Proceeds Ratio
(2) Total Cost to Total Sale Proceeds Ratio.

134
(1) The Gross Profit Ratio is defined as Gross Profits divided by Sales.
This is explained in terms of percentage.
(2) Total Cost to Total sale Proceeds ratio is defined as Total Cost
divided by Total sale Proceeds. This is explained in terms of
percentage.

Ratio analysis is extremely helpful in providing valuable insight into

a unit's financial picture. It helps the management to analyse the past
performance of the Distillery and Chemical Division and to make further
projections.

From the table 4.12 it is clear that the gross profit margin of the
Distillery, Country Liquor, Extra Neutral Alcohol and Fusel oil is relatively
higher than the profit margin of the Oxalic Acid, Diethyl Oxalate, Acetic
Acid, Ethyl Acetate and Acetic Anhydride. But overall performance of the
Chemical and Distillery Division is satisfactory. "The higher the ratio, the
better the position".

Ratio analysis is extremely helpful in providing valuable insight into

a unit's financial picture. It helps the management to analyse the past
performance of the Distillery and Chemical Division and to make further
projections.

From the table 4.12 it is clear that the gross profit margin of the
Distillery, Country Liquor, Extra Neutral Alcohol and Fusel oil is relatively
higher than the profit margin of the Oxalic Acid, Diethyl Oxalate, Acetic
Acid, Ethyl Acetate and Acetic Anhydride. But overall performance of the
Chemical and Distillery Division is satisfactory. "The higher the ratio, the
better the position".

135
 Table 4.12

Analysis of profits and costs with sales (1997-98 to 2001-2002)

Particulars 1997-98 1998-99 1999- 2000- 2001-

2000 2001 2002
1 2 3 4 5 6
DISTILLERY
Gross profit to Total Sale 13.31 12.88 05.70 10.53 7.47
Proceeds Ratio
Total Cost to Total Sale 86.79 87.12 94.30 89.47 92.53
Proceeds Ratio
COUNTRY LIQUOR
Gross Profit to Total Sale 24.27 22.44 25.10 26.05 15.92
Proceeds Ratio
Total Cost to Total Sale 75.73 77.56 74.90 73.95 84.08
Proceeds Ratio
EXT]RA NEUTRAL ALC OHAL
Gross Profit to Total Sale 23.64 29.69 29AI 36.38 40.55
Proceeds Ratio
Total Cost to Total Sale 76.36 70.31 70.59 63.62 59.45
Proceeds Ratio
FUSEL OIL
Gross Profit to Total Sale 42.02 54.60 61.39 51.31 32.05
Proceeds Ratio
Total Cost to Total Sale 57.98 45.40 38.61 48.69 67.95
Proceeds Ratio
OXALIC ACID
Gross Profit to Total Sale 08.88 12.70 04.19 09.18 11.03
Proceeds Ratio
Total Cost to Total Sale 91.12 87.30 95.81 90.82 88.97
Proceeds Ratio

136
 1 2 3 4 5 6
DIETHYL OXALATE
Gross Profit to Total Sale 14.36 05.24 01.02 01.19 00.39
Proceeds Ratio
Total Cost to Total Sale 85.64 94.76 98.98 98.81 99.61
Proceeds Ratio
ACETIC ACID
Gross Profit to Total Sale 05.60 08.02 08.04 15.48 12.92
Proceeds Ratio
Total Cost to Total Sale 94.40 91.98 91.96 84.52 87.08
Proceeds Ratio
ETHYL ACETATE
Gross Profit to Total Sale 06.58 07.20 05.19 10.34 14.11
Proceeds Ratio
Total Cost to Total Sale 93.42 92.80 94.81 89.66 85.89
Proceeds ratio
ACETIC ANHYDRIDE
Gross Profit to Total Sale 04.75 06.18 02.76 00.47 00.51
Proceeds Ratio
Total Cost to Total Sale 95.25 93.82 97.24 99.53 99.49
Proceeds Ratio

137
 PART - III

4.14 Consumption of Water and Electricity

Water and electricity are the important inputs of the chemical

projects. Large quantity of water and electricity are essential for the
manufacturing purposes. The Sanjivani Distillery and Chemical Units are
using water from canal and electricity from its own captive co-generation
scheme.

Table 4.13 furnishes the details of the water and electricity

consumption and the bills paid for them from 1997-98 to 2001-2002.

During the period 1997-98 the consumption of water was 1500000

liters per day and cost of water charges was Rs. 4500, at the rate of Rs. 30,
per 10000 liters, until 1999-2000, no change was noticed in the water
charges. But soon the severe drought conditions affected the water supply
and consequently lead to increase the water charges. In 2000-2001 and
2001-2002, Water charges increased to Rs. 75 per 10,000 liters and
thereafter, bill paid for water consumption also increased. During this period
the consumption of water per day was 15,00,000 liters and charges paid for
it were Rs. 11,250.

138
 Table 4.13

Water and electricity consumption and bill paid for them from 1997-98
to 2001-2002

Sr. Year Canal water Water Electricity Electricity

No. Consump- Charges paid Consump- Charges
tion (RS to Per tion paid
(Liters 10000 Liters) (In Lac (Rs in Lac)
Daily) Units)
1 2 3 4 5 6
4,500 (RS 30
1 1997-98 15,00,000 to Per 10000 94 365
Liters)
4,500 (RS 30
2 1998-99 15,00,000 to Per 10000 84 334
Liters)
4,500 (RS 30
3 1999-2000 15,00,000 to Per 10000 71 313
Liters)
11,250 (RS
4 2000-01 15,00,000 75 to Per 75 337
10000 Liters)
11,250 (RS
5 2001-02 15,00,000 75 to Per 76 329
10000 Liters)

Source : The office record of the Sanjivani Co-operative Sugar Factory.

139
 In 1997-98, the electricity consumption was 94 lac units and the bill
paid for it was Rs. 365 lac. After this year, the consumption of electricity
decreased. In 1998-99, the consumption of electricity was 84 lac units and
bill paid for it was Rs. 334 lac. In 1999-2000, the consumption of electricity
was 71 lac units and bill paid for it was Rs. 313 lac. In 2000-2001, the
electricity consumption was 75 lac units and bill paid for it was Rs. 337 lac.
In 2001-2002, the electricity consumption was 76 lac units and the bill paid
for it was Rs. 329 lac. The highest electricity consumption was recorded as
94 lac units and the bill paid for it was recorded as Rs. 365 lac. The lowest
electricity consumption was recorded as 71 lac Units and the bill paid for it
was recorded as Rs. 313 lac.

4.15 Excise Duty and other taxes paid by the Sugar Factory

Every sugar factory has to pay various types of taxes to the central
and state Governments, which are levied on the main product (sugar) and its
by-products. Heavy taxes are imposed on Acetate production, particularly
on Country Liquor and Foreign Liquor. The excise duty on Indian Made
Foreign Liquor is much higher than that of the Country Liquor.

Table 4.14 is a record of the taxes paid by the chemical and distillery
divisions of the Sanjivani Co-operative Sugar Factory from 1997-98 to
2001-2002

Table 4.14 indicates that in 1997-98 the total tax (Central and State
Sales tax and Excise duty) paid was Rs. 442 lac. Thereafter, the amount of
total tax increased to Rs. 518 lac in 1998-99. The lowest amount of total tax
was Rs. 418 lac in 1999-2000.

140
 Table 4.14

Excise duty and other taxes paid by the Distillery and Chemical
Division from 1997-98 to 2001-2002

Sr. Year Excise Duty Maharastra Central Total

No. Paid State Sales Sales Tax (3+4+5)
(Rs. in Lac) Tax Paid Paid Amount
(Rs. in Lac) (Rs. In Lac) Paid
(Rs. in Lac)
1 2 3 4 5 6
1 1997-98 431 9 2 442

2 1998-99 494 14 10 518

3 1999-2000 390 16 12 418

4 2000-2001 360 94 55 509

5 2001-2002 394 71 20 485

Source : The office record of the Chemical and Distillery Division of the
Sanjivani Co-operative Sugar Factory

The table illustrates that the Distillery and Chemical Division of the
sugar factory has been paying very large amount of taxes regularly since
their establishment. In 2000-2001, the amount of tax went on increasing
because of high production. If we calculate the total amount over the period
of five years, the average amount of tax comes to Rs. 474 lac. The
governments get a large amount of revenue from the taxes imposed on by-
products of the Sanjivani Sugar Factory.

141
 Based on the data presented in the above tables, we can conclude that
total cost of production of the molasses based by-products consists of
manufacturing cost and other costs. Manufacturing cost includes molasses
charges, labour charges, water charges, electricity charges, transport and
processing costs. Other cost includes duties and taxes and depreciation etc.

Table 4.15 explains the position of total sale proceeds. In 1997-98

total sale proceeds were Rs. 9110 lac. Thereafter, it decreased to Rs. 8910
lac in 1998-1999. In 2000-2001 the highest sale proceeds were recorded as
Rs. 9291 lac and it decreased to Rs. 9119 lac in 2001-2002. As regards the
growth rate of sales proceeds it can be said that the growth rate was ranging
from -3.14% to 7.66 % during the period under study.

The table indicates that the net profits were Rs. 744 lac in the year
1997-98. It increased to Rs. 964 lac in 2000-2001, which was recorded as
the highest profit during the period under study. The lowest profits were
recorded as Rs. 581 lac in 1999-2000. The growth rate of net profit shows a
decreasing trend except in the year 2000-2001.

If we consider the amount of earned by the other By-products units,

shown in Table 3.6, we find that the total amount of profits shows a huge
rise on account of the contribution of Sugar Complex.

Total sale proceeds, total costs, total duties and taxes and net profits
of the Sanjivani Distillery and Chemical Division from 1997-98 to 2001-
2002 are shown graphically.

142
 Table 4.15

Total sale proceeds, total costs, total duties and taxes, net profits,
growth rates and net profits ratio position of the Sanjivani Distillery
and Chemical Division from 1997-98 to 2001-2002

Year Total Sale Growth Total Total Net Profit Growth Net
proceeds rate of Costs Duties and (2-4+5=6) rate of Profit
(Rs. in Sales (Rs. in Taxes (Rs. in Net Ratio
Lac) proceeds Lac) (Rs. in Lac) profit
(%) Lac) (%)
/ 2 3 4 5 6 7 8
1997-
9,110 - 1,924 442 744 - 8.17
98

1998-
8,910 -11 7,659 518 733 -1.48 8.23
99

1999-
8,630 -3.14 7,631 418 581 -20.74 6.73
2000

2000-
9,291 7.66 7,818 509 964 65.92 10.38
2001

2001-
9,119 -1.85 7,939 485 695 -27.9 7.62
2002

143
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4.16 Contribution of By-products in generating income, employment

and in enhancing the efficiency of the sugar factory

A) INCOME

The sugar factory has profitably recycled and utilized a number of

waste products and has created more income, employment and improved
efficiency. It is observed that the by-products units have given more income
in the hands of the factory management. This has enabled the management
to pay more prices to cane growers. The advantages received by the people
in the area of operation, are transport and communication facilities, job
opportunities, medical and educational facilities, trade and commerce
facilities and loan facilities etc. In this way the factory has created sources
of income for the people. It has resulted in increasing standard of living of
the people in the area of operation of the sugar factory.

The table 4.16 clearly explains the extent of income that is

generated due to the by-product units of the Sanjivani Sugar Factory.

From the table 4.16 we can make following observations: In 1997-98,

consolidated total profits were recorded as Rs. 1186.87 lac. In the year
1998-99 and 1999-2000 consolidated profits were recorded as Rs. 1250.68
lac and Rs. 998.93 lac, respectively. Thereafter, it increased to Rs. 1472.7
lac in the year 2000-2001. Thus, it can be concluded that income generated
by the distillery and chemical division is satisfactory.

144
 Table 4.16

Consolidated profits position and percentage of profit of each product

to the total profit of all by-products (1997-98 to 2001-2002)

Particulars 1997-98 1998-99 1999-2000 2000-2001 2001-2002

Profit %of Profit %of Profit %of Profit %of Profit %of
profit profit profit profit profit
(Rs to (Rs to (Rs to (Rs to (Rs to
in total in total in total in total in total
Lac) profit Lac) profit Lac) profit Lac) profit Lac) profit
1 2 3 4 5 6 7 8 9 10 11
Distillery 17.18 200 16.96
324 27.30 318 25.43 127 12.71 253
Country 349 29.60
516 43.48 526 42.06 492 49.25 539 36.60
Liquor
Extra Neutral 266 22.55
78 6.57 133 10.63 150 15.02 247 16.77
Acetate
Fusel oil 2.50 0.21
1.87 0.16 3.68 0.29 4.93 0.50 4.70 0.32
Oxalic Acid 1.22 ~r 16 1.36
15 1.26 16 1.28 8 0.80 18
Diethyl 1 0.08
52 4.38 15 1.20 3 0.30 4 0.27
Oxalate
Acetic Acid
121 10.20 156 12.47 167 16.72 358 24.31 275 23.31
Ethyl Acetate 24 2.02 67 5.68
25 2.00 20 2.00 45 3.05
Acetic 4.63 27 0.27 3 0.25
55 58 4.64 2.70 4
Anhydride
Total
1186.87 100 1250.68 100 998.93 100 1472.7 100 1179.5 100

As regards the percentage of profit to total profit it is clear from the

table 4:15 that Country Liquor contributes 29.60 per cent, Distillery 16.96
per cent and Extra Neutral Acetate 22.55 per cent, Acetic Acid 23.31 per
cent whereas Ethyl Acetate Contributes 5.68 per cent, Oxalic Acid 1.36 per
cent. Diethyl Oxalate 0.08 per cent, Fusel Oil 0.21 per cent, and Acetic
Anhydride 0.25 per cent, in 2001-2002.

145
B) EMPLOYMENT

The distillery and chemical projects of the Sanjivani Sugar Factory

did not require foreign laboures for their smooth working because of the
availability of local skilled and competent laboures. At present, at the time
of recruitment, first preference is being given to the local employees.
Recruitment of the contract laboures is done through tender system. The
tenders are for the period of a year. As the by-product units are the sub units
of the Sanjivani Sugar Factory, the sugar factory provides some facilities
available at its disposal. For example, the time office of the sugar factory
works for the chemical and distillery division also. Thus, we can say that the
by-product units get the advantages of external economies. The
development and the growth of the by-product units have provided more
employment opportunities in the area of operation of the sugar factory. This
is shown in the table 4.17

Table 4.17 indicates that in 1997 the total number of workers

employed were 1511. Out of them 395 workers were in the distillery and
chemical division, 1102 workers in the sugar unit and 14 workers were
employed in Bio-gas and E T P. The total number of workers employed
increased to 1832 in 2002. Out of them 496 workers were in distillery and
chemical division, 1308 workers were in the sugar unit and 28 workers were
employed in the bio-gas and ETP.

146
 Table 4.17
Total employment generated by the Sanjivani Sugar Complex
(1997-98 to 2001-2002)

Year No. of No. of No. of Grand total

workers workers workers
employed in employed employed in
sugar unit of in the Bio- Chemical and
the Sanjivani gas/ E T P Distillery unit
S. IS. Iv. unit of the of the
Sanjivani Sanjivani
IS. IS. Jv. S. S. Iv.
1 2 3 4 5

1997 1,102 (73%) 14 (1%) 395 (26%) 1,511 (100%)

1998 1,116 (72%) 18 (1%) 416 (27%) 1,550 (100%)

1999 1,297 (74%) 25 (1%) 429 (25%) 1,751 (100%)

2000 1,338 (70%) 27 (1%) 559 (29%) 1,924 (100%)

2001 1,324 (70%) 25 (1%) 544 (29%) 1,893 (100%)

2002 1,308 (71%) 28 (2%) 496 (27%) 1,832 (100%)

Source:- The office record of the of the Sanjivani Co-operative Sugar

Factory.

Bracketed figures in the table 4:17 (column no 3, 4 and 5) indicate the

percentage share of the (column no 6) i. e. the total workers employed.

This is also shown with the help of a diagram.

147
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C) EFFICIENCY

The efficient working of any industry is mainly determined by its

utilization of installed capacity. Naturally under-utilization of capacity
results in reduction in production with increase in the cost which ultimately
reduces the profitability of the concerned units.

The economic efficiency also can be measured by the average cost of

production, recovery percentage of sugar, technical efficiency and
managerial policy. During the last 20 years, gradually, the sugar factory has
been adopting the latest technology in sugar plant and in by-product units.
The advanced technology has helped to improve the economic efficiency of
the main sugar unit and its by-product units. As a result, the sugar factory
could use its installed capacity to the fullest extent and successfully devised
various useful ways in which the waste products could be utilized for the
production of by-products, which in turn has reduced the cost of production
of by-products and sugar and promoted overall efficiency. As a result of
this from 1997-98 to 2001-2002 the chemical and distillery division of the
Sanjivani Sugar Factory earned net profit of Rs. 37,16,96,800. Further, the
excellent technical performance achieved by the sugar factory and acetate
based by-product units have won various awards. So it can be concluded
that the by-product units proved to be helpful factors in maximizing
efficiency of the sugar factory as well as its subsidiary occupations.

However, the recent information received from the official sources is

that these projects of acetate production in the State of Maharashtra shall
face huge difficulties due to the following factors:

149
a) Shortage of water.
b) Shortage of sugarcane supply due to (i) decrease in the area under
sugarcane crop, (ii) the disease like 'lokari mawa' and (iii) the
utilization of sugarcane as a fodder for cattle.
c) Under utilization of crushing capacity of the sugar factory and
decrease in the production of molasses.
d) Export of molasses to Japan during the period 2002-2003.
e) Rising prices of molasses.

The projects of acetate production are often in a greater need of

molasses. The projects of acetate, working under the sugar production unit,
comparatively face lesser difficulties than those projects which are entirely
dependant on the outside sources of molasses. From the very beginning of
the crushing season, the prices of molasses went on rising i.e. Rs. 4500 to
Rs.5000 per MT approximately. At present, there is not a single project
working efficiently in Ahmednagar district. 'Sommaya Organic' in Wari,
"Asavani project of Eestem Maharashtra Development Corporation' in
Chitali and a few other projects have been closed down on account of
shortage and rising prices of molasses. The projects in Sangamner and
Pravara have some- how managed to work with the old stock of molasses.
But, very soon they will also be in danger when the stock of molasses will
be over.

These projects can produce acetate instead of liquor. But the cost of
acetate production is Rs 22 per liter which is also not affordable. The
projects of acetate production can be in a better position only if the price of
molasses is about Rs. 1000 per tonne. But as the molasses is not easily
available even after paying higher price, majority of the projects will face

150
difficulties in coming 1.5 to 2 years. If this situation continues, it is possible
that the Sanjivani Co-operative Sugar Factory may also have to face same
difficulties in near future. Now, the projects of the Sanjivani Co-operative
Sugar Factory are functioning to some extent.'^

4.17 Possibility of production of etlianol and its effect

The Indian Government has announced a new energy policy with

effect from 2002. It traces the production of Ethanol from sugarcane by-
products through the use of bio-chemical technology. It wants to utilize that
ethanol to produce gasohol for part of domestic gasoline consumption. The
Government launched Gasohol programme making use of 5 per cent ethanol
doped petrol mandatory. Thus, this policy aims at an air pollution abatement
in urban area, decreasing imports of oil energy and dependence on foreign
suppliers, developing infrastructure and expanding employment in rural
area.

It is found that ethanol production is very feasible and profitable. For

promoting gasohol (Ethanol-blended gasoline) government aid such as tax
deduction for Ethanol is needed for making its production process more
economical, efficient and profitable for the sugar factory.

The Sanjivani Co-operative Sugar Factory has its own acetate project.
So it is very much possible to produce and promote gasohol. By converting
about 30 per cent of its molasses into anhydrous ethanol production, factory
can obtain the required amount of ethanol to produce gasohol.

If the acetate project makes an intelligent use of acetate for

manufacture of ethanol it can attain sustainable growth. It is observed that

151
this can be possible through change in its present product mix. As on date,
there is no ethanol-power complex and setting up of it will require the
modification of the process of sugar production, through nominal
investment, without affecting the economy of the sugar factory, but with just
a little fall in the amount of production of sugar.

If sugar factory produces sugar directly from primary juice and

diverts the secondary juice along with molasses obtained from processing
primary juice, for manufacture of ethanol, it will lead to the following:
1) Increase in gasohol production.
2) A little reduction in sugar and molasses production.
3) Reduction in steam consumption.
4) Reduction in power consumption.
5) Quality sugar production.
6) Reduction in the consumption of chemicals.
7) Bagasse saving.
8) Rise in power generation.

It can, therefore, be concluded from the above that through selective

use of secondary juice for manufacture of gasohol, the sugar production can
be adjusted to meet our needs. The diversion of secondary juice for
manufacture of gasohol and saving of steam and bagasse to produce
additional power will result in substantial addition to the annual revenue. In
addition, there shall be advantages like higher capacity utilization of the
existing sugar factory, without any change in sugar plantation. The existing
license system has to be widened to allow the utilization of sugarcane to
produce various other co-products like ethanol and other alternative
sweeteners. Therefore, sugarcane need not be exclusively used to produce
sugar only. ^^

152
 Thus, the future of production and use of ethanol is bright and full of
promise and hope. Timely and intelligent steps in the right direction will
lead to prosperity and progress of ethanol production. In order to make this
programme successful, Government should come forward by making
available funds for this purpose. We must draw important lessons from
Brazil in this regard.

===0===

153
 References

1. P. J. Manohar Rao (Chief Director (sugar) Rtd. Ministry of Food and

Civil Supplies, Government of India New Delhi and Managing
Director (Rtd) National Federation of Co-operative Sugar Factories
Ltd, New Delhi) : "Industrial Utilization of Sugarcane and its Co-
products", I.S.T.C.K. Publishers and Distributors, New Delhi, 1997,
p. 235.

2. R J. Manohar Rao, Ibid., p 270, 447, 448, 449.

3. A. P. Kanwade (1987) : "Economics of By-products of Cane sugar

Industry - A Case Study", A Dissertation submitted to the
Marathwada University, Aurangabad, p. 98.

4. Shri A. Ramaswamy (IAS Principal Secretary to Government of

Kamataka, Department of Co-operation Bangalore, India) : Silver
Jubilee Lecture of NHEC (Technical Society), Pune, I.S.T.C.K.
Publishers and Distributors, New Delhi, October 2004, p. 16.

5. R. S. Dubey and N. C. Varma (1979) : "Sugar By-products and

Subsidiary Industries", Deccan Sugar Institute, Pune, India, p. 42.

6. Dr. S. D. Tupe (December 1993) : "Maximizing the Efficiency of

Cane sugar Industry By Utilizing Waste Products In Maharashtra" A
Research Project In Economics Sponsored by University Grants
Commission, New Delhi, p. 52 and 53.

154
7. "Techo-Economic Feasibility Report For 30 KLPD ABSOLUTE
ACETATE PLANT By Dongarai- Sagareshwar Shetkari Sahakari
Sakhar Karkhana Ltd. Kadepur, Tq. Khanapur, Dist-Sangli, Prepared
by Vasantdada Sugar Institute, Manjari (BK), Pune Jan. 2002. p. 14
and 15.

8. Ibid., p. 14 and 15.

9. R. S. Dubey and N. C. Varma, Ibid., p 38.

10. R J. Manohar Rao, Ibid., p. 286.

11. R. S. Dubey and N. C. Varma, Ibid., p. 30 and 31.

12. http://www.Google.Com.

13. R. S. Dubey and N. C. Varma, Ibid., p. 52,53.

14. R J. Manohar Rao, Ibid., p. 271.

15. http://www.jtbaker.com/msds/englishhtml/e2850.htm. 10/20/2004.

MSDS (Material Safety Data Sheet) Number E2850, page no 1 to 7 of
8.

16. Office record of the Chemical Division of the Sanjivani Co-operative

Sugar Factory, Taluka Kopergaon, District Ahmednagar.

17. R. S. Dubey and N. C. Varma, Ibid., p. 53.

155
18. A. D. Antre, (Managing Director of the Sanjivani Co-operative Sugar
Factory): Article in 'Sakal' Newspaper dated 1^' June 2004, p. 9.

19. http://www.Google.Com. 2002 Fiscal year, Clean Development

Mechanism Project for Countering Global Warming Research on
Ethanol Fuel production from Molasses and Other Source in India
Overview, Nippon Mining Research and Technology.' Ltd.

156