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SUGAR INDUSTRY

IN INDIA
Submitted To : Submitted By:
Ms. Dolly Pathak Sunita Dhankani
Sonal Khare
Takshi Lilaramani
INTRODUCTION
INDIA IS THE SECOND LARGEST COUNTRY
IN TERMS OF SUGARCANE PRODUCTION
30% OF THE TOTAL SUGAR PRODUCED

GOES FOR GUR AND KHANDARI , 45%


GOES FOR SUGAR PRODUCTION AND THE
25% FOR ALCOHOL PRODUCTION
(ETHANOL)
6 STATES CONTRIBUTE MORE THAN 85%
OF TOTAL SUGAR PRODUCED IN INDIA
SWOT ANALYSIS

IMPORT AND EXPORT


INDIAN & GLOBAL
SCENARIO
 INDIA PRODUCES 26 metric tones ON AN
AVERAGE BUT THE PRODUCTION FOR
THE FY09 IT IS EXPECTED TO GO BELOW
BY 20%
 GOLBAL CONTRIBUTION IS 3% BY INDIA,
BRAZIL ALONE DOES 36% AND OTHER
COUNTRIES GIVE A TOTAL OF 45% AND
THE REST IS DONE BY CHINA, CUBA ,
INDONEASIA, THILAND, U.K AND USA
 WORLD COUNSUMPTION OF SUGAR
150.3 MMT FOR 2007-2008, PROJECTED
TO BECOME 160.7 BY 2010
 THERE ARE 453 SUGAR MILLS IN THE
COUNTRY
 252 ARE IN THE CO-OPERATIVE SECTOR
 134 ARE IN THE PIVATE SECTOR
 67 IN THE PUBLIC SECTOR
 136 UNITS ARE IN THE
IMPLEMANTATION STAGES
 U.P PRODUCES 24% ALONE AND
MAHARSHATRA CONTRIBUTES 20%
 STATES AS TAMIL NADU, KARNATAKA,
GUJRAT, PUNJAB
 AND ALL THESE STATES CONTRIBUTE A
TOTAL OF 85%
SUGAR CONTRIBUTION
INDIAN VIEW
AN OVERVIEW
SUGAR EXPORT
 INDIA HAS AN AVERAGE EXPORTEABLE
SURPLUS OF 6.23 million tones EVERY
YEAR
 THE PAST FIVE YEARS IT EXPORTED 4.07
million tones
 SINCE DOMESTIC PRICES ARE HIGHER
THAN INTERNATIONAL THE RATE OF
EXPORT IS EXPECTED TO COME DOWN
 THE MAJOR IMPORTING COUNTRIES OF
INDIA ARE BANGLADESH, PAKISTAN,
U.K, JAPAN,S.KOREA
 AND THE NEW ONES ARE KHAZAKISTAN
& IRAN
SWOT ANALYSIS
STRENGTHS
 GLOBAL PRICES TO MOVE UP –AN
INCREMENTAL POSITIVE
 THE DEMAND IS EVERLASTING
 ENVIRONMENTAL CONDITIONS SUITABLE
FOR THE GROWTH OF SUGAR CANE
 ABOUT 2.7% CULITVABLE LAND IS USED
FOR THE CANE PRODUCTION
 THE SUGAR INDUSTRY ALSO INCLUDES
ALCOHOL, GUR AN KHANDRI WHICH IS
MAINLY FOR THE DOMESTIC INDUSTRY
WEAKNESS
 PRODUCTION TO DECLINE BY 20-25%
IN FY09
 SHIFT OF THE FARMER FROM CANE TO
PADDY, WHEAT, PULSES AND OIL
SEEDS
 THE GREATER DIVERSION OF CANE TO
UN-ORGANISED SECTOR
 THE IGNORANCE IN THE RESIDUAL
SUGAR MARKET
 SOME OF THE GOVERNMENT POLICY
THAT ADHERE THE GROWTH OF THE
SUGAR INDUSTRY
 SHORTAGE IN SUGAR CANE SUPPLY
 OBSELETE TECHNOLOGY
OPPRTUNITIES
 PRICES TO RISE BY 25% IN FY09 AND
MORE IN FY10E
 HIGHER MARGINS , LOWER CYCLICALITY
DRIVING SHIFT TOWERDS INTEGRATION
 THE ON GOING INCREASE IN DEMAND
YEAR AFTER YEAR
 THE SHIFT OF BRAZIL FROM WHITE
SUGAR TO PRODUCTION OF ETHANOL
THREATS
 LESS RAINFALL IN THE HIGHEST
SUGARCANE CULTIVATING REGIONS
 DUE TO WATER SHORTAGE THE SHIFT OF
THE FARMERS TO MULTIPLE CROPS
CULTIVATION
 DUE TO GOVERNMENT POLICIES THE
SELLING OF SUGARCANE BY THE
FARMERS TO PRIVATE SECTORS
 SUGAR PRODUCTION BEING MORE
VOLATILE THAN CANE PRODUCTION
 DUE TO RISE IN DOMESTIC CONSUMTION
THE EXPORT IS LIKELY TO FALL
THE KEY PLAYERS IN SUGAR
INDUSTRY
 BAJAJHINDUSTAN LTD.
(ENTERPRISE VALUE: Rs mn
62,136)
 BALRAMPUR CHINNI MILLS LTD.

(ENTERPRISE VALUE: Rs mn
32,819)
 SHREE RENUKA SUGARS LTD.

(ENTERPRISE VALUE: Rs mn
43,283)
CONCLUSION
 INDIA IS LACKING DUE TO ITS
POLICY,METHODS,AND LACK OF
KNOWLEDGE FOR THIS ONLY
GOVERNMENT CAN MAKE A BIG CHANGE
 INDIA INCLUDES SUGAR AS AN
ESSENTIAL COMMODITY AN IT HAS
BECOME MORE LIBERAL IN THIS SECTOR
 INDIA HAS THE POTENTIAL TO BECOME
THE WORLDS BIGGEST EXPORTER BY
REMOVING THE MISSING LEADS.
THANK YOU