With the blessings of the Goddess Mahalaxmi and inspirations of H. H. Shahu Maharaj of Kolhapur, the fort Panhala, which is an eye witness of King Shivaji’s bravery, Gagan Bavada–filled with nature 's beauty, surrounded by karveer & Panhala taluka, there exists a Karkhana, which is a best example of consistent & coordinated efforts carried out by Hon. Late Shri D. C.Narke (popularly known as D. C. Saheb) and his colleagues.

The Name of Karkhana is derived from the name of two rivers Kumbhi and Kasari. The valley of these two rivers is fertile due to the presence of water flowing through these rivers throughout the year. The Karkhana is located some 12 k.m. away to the west of Kolhapur, on the boundary of the village – Kuditre , on Kolhapur - Gagan Bavada State Highway. D.C.Saheb and his colleagues have turned this de vasted area really into heaven.

After Independence like textile and sugar mills. In 1954 D.C.Saheb and his colleagues (promoters) proposed plan of a Sugar Mill. They aimed at uplifting the living standard of people in and around the functional areas of the Karkhana. Today, when we turn back, we see the sweet fruits of development and this is certainly a thing which we can say proudly about. It is certain that Karkhana has brought about miraculous changes in the social, political, economical and educational lifestyle of the people.

The promoters convinced the importance of Sugar Industry to the people and collected share capital. This shows their view to look at the social and economical development. After consistent and perpectual efforts of the promoters, the Karkhana was registered on 20th June, 1960.

Initial capacity was 1,000 M.T./ day. 1962-63 was the first trial season. The promoters motivated people to cultivate more sugarcane . This resulted in increased sugarcane production, and subsequently the licensing capacity was increased to 1,750 M.T./day. However, tremendous growth in sugarcane production compelled to increase the crushing capacity to 3,000 M.T./ day in 1980. Today we have the same crushing capacity, however with some updation and modification in existing machinery, we are able to crush at 5000-5200 M.T./ day.