TERM REPORT:

Topic:
Analysis of CSR activities of Sugar Industry
Submitted to:
Dr. Waris Ali
Submitted by:
M. Waqas (BBA-SH-13-02)
Ahsan Shafique (BBA-SH-13-22)
Ahsan Saleem Raza (BBA-SH-13-33)

Bahauddin Zakriya University Sub Campus

Sahiwal.

Abstract:
Corporate social responsibility is very important factor for the society as well as
corporation. Because the origination utilizes the resources like labor; land; and capital
for their own purpose so that in return the origination are responsible to give some
benefit to the society. This report is conduct to check the fulfillment of the corporate
social responsibilities from the origination. This research is conduct on the pesticide
industry. As we know that Pakistan is an agricultural land there are many local and
multinational companies are operating in Pakistan.

Introduction:
Sugar industry of Pakistan is the second largest industry after the textile industry. Sugar
industry is agro based industry which provides employment to rural population. At the
time of independence just two mini sugar mills were working and giving the production
of 10,000 tons sugar per year, but now there are 78 sugar mills are working and giving
the production capacity of 51 million metric tons per year.
The sugar industry has been facing a situation quite similar to the Textile industry
stemming out of unchecked growth of the sector because of project sanctioning on
political grounds without any consideration to raw material availability and market size.
1

Number of competitors:

The major number of competitors in sugar industry is Ittefaq Sugar Mills Limited, Hamza
Sugar Mills Limited, Baba Farid Sugar Mills Limited, Layyah Sugar Mills Limited, JDWIII Sugar Mills Limited (Ghotki) and Huda (Fauji) Sugar Mills Limited.

Key competitors:
The key competitors are kamalia Sugar Mills, Baba Farid Sugar Mills limited and Hamza
Sugar Mills Limited for the sugar industry.
2

International Trade:

In 2009/10 sugar imports are forecast at 730,000 metric tons, and in 2008/09 sugar
imports estimated at 700,000 metric tons. The government has traditionally imported
sugar through the Trading Corporation of Pakistan (TCP) in an effort to moderate sugar
prices.
Imports of raw sugar are subject to a 25 percent import duty, a 16 percent sales tax, a
10 percent regulatory duty, a 2 percent withholding tax, and a one percent central
excise duty (total tax = 54 percent).

1 http://www.psmacentre.com/sgindustry.php?sgid=3
2 http://www.agribusiness.com.pk/sugar-industry-in-pakistan/

Social issues:

Health Risks:
Bagasse dust, fly ash, high noise levels and hot working environment are major health
irritants in sugar mills. Excessive exposure to fly ash and bagasse dust may cause eye
soreness, asthma, and other respiratory diseases including bagassosis (a lung disease
caused by inhalation of bagasse dust). Dermatitis is a major health complaint resulting
from chemical burns, and contact with lime and sugar. Toxic gasses and caustic fumes
are released at various stages of the process and are severely hazardous to health.

Energy Issues:
Sugar industry is one of the major energy consumers amongst the industrial sectors of
Pakistan. The industry possesses considerable energy conservation potential. Huge
amount of finances could be saved annually by conserving energy alone through
adopting energy-efficient processes and practices. In case of thermal energy, for
instance, various improvements could be made particularly in steam distribution and
utilization systems. There has been a growing interest over the recent years amongst
sugar processing units to benefit from energy efficient solutions.
4

Ecological issues:

Wastewater:
The wastewater released by a sugar mill is mainly generated in its cooling pond, mill
and process house. The sources of wastewater are evaporators, cooling water
discharge, floor and vessels cleaning, leakage and spillage, and washing of filter cloths.
Major pollutants in the wastewater include Biochemical Oxygen Demand (BOD5),
Chemical Oxygen Demand (COD), Total Dissolved Solids (TDS), Suspended Solids
(SS), and Oil & Grease.
The volume of wastewater generated in the mill house is large and loaded with high
amount of oil and grease and sugar from spills and leaks, resulting into high (BOD5)
discharge. Fermentation of molasses and its subsequent distillation gives rise to a
heavily acidic effluent, high in BOD5 and COD. The contaminated water is, therefore,
seriously harmful to both humans and the aquatic life.

Air Emissions:
Boiler are the major source of air pollution in sugar mills. Boilers are operated under
three different conditions: fuel oil, bagasse or mixed fuel. The choice of fuel significantly
3 http://www.pisd.com.pk/sugar.php
4 http://www.pisd.com.pk/sugar.php

impacts the emission. Other gaseous emissions are hydrogen sulfide, sulfur dioxide,
oxides of nitrogen and carbon monoxide.
High concentration of these gases in the atmosphere could lead to various health
hazards and adverse environmental impacts.

CSR activities of sugar industries to solve issues:

CSR activities are divided into 4 major categories
1.
2.
3.
4.

Environmental related activities.

Communities related activities.
Employees related activities.
Product and service related activities.

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Conclusion:
On the basis of our research on sugar industry we conclude that there are many
issues that the industry is facing like, waste management, tree plantation, air
pollution, low medical facilities, health issues, and product & services issues. After
evaluating some companies we conclude that they are doing well in environment
control as well as they spends on charity and establishing schools.