shree_renuka_sugars ppt final

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Slide 1:

GROUP: 9

OVERVIEW:

OVERVIEW Founded by Narendra Murkumbi and Vidya Murkumbi in 1998. SRSL is one of the largest and fastest growing sugar company in India. SRSL has its corporate office in Mumbai and headquarters in Belgaum(Karnataka). SRSL is an integrated manufacturing company

PRODUCTS:

PRODUCTS PRODUCTS

OVERVIEW:

OVERVIEW SRSL possesses india’s largest sugar refining capacity(4000 tons per day ). SRSL is the fifth largest sugar manufacturer. SRSL accounts for 20% of India’s sugar exports. It is the leader in fuel ethanol with a 20% market share . Company’s current power and ethanol production is spread across various locations in Karnataka, Maharashtra and West Bengal.

KEY FACTS OF SUGAR INDUSTRY:

KEY FACTS OF SUGAR INDUSTRY The sugar industry is one of the largest sectors of the Indian economy. India is the second largest sugar manufacturer in the world after Brazil. Sugar industry is regulated by the government. License is required to manufacture sugar. The prices of sugar are increasing day by day.

KEY FACTS OF SUGAR INDUSTRY:

KEY FACTS OF SUGAR INDUSTRY Sugar prices have gone from Rs 18 a kg to Rs35-40 kg expected to hit around Rs 55 Kg. The Indian sugar industry is giving sleepless nights to the common man by increasing the domestic prices to a great extent.

VISION &STRATEGIES:

VISION &STRATEGIES The Company’s vision is to become the most efficient processor of sugar and the largest marketer of sugar and ethanol in the country. low Capex model - leased and owned plants that generate higher returns due to their strategic location in high recovery regions of Karnataka and Maharashtra. Reduced cost of production. Reduce price risk in sugar by hedging. Improve margins and reduce cyclicality of business Achieve greater raw material security. Develop newer technology for ethanol production Expand market for ethanol.

SRSL STRATEGIES & POLICIES:

SRSL STRATEGIES & POLICIES SRS is an integrated player Maintains good relation with farmers. Provide loan facilities SRS mainly focuses on corporate and industrial buyers Use of molasses for distillation - Do not purchase from other Sugar mills

COMPETITION:

COMPETITION Stiff regulations in sugarcane procurement - Industry is highly fragmented. Leading players do not control more than 4 percent production of sugar. Small mills make up bulk of the production of sugar.

COMPETITORS:

COMPETITORS EID Parry Balrampur Chini Triveni Engineering Bannari Amman Bajaj Hindusthan

MARKET SHARE:

MARKET SHARE

  FINANCIAL COMPARISON OF COMPETITORS -2009 :

FINANCIAL COMPARISON OF COMPETITORS -2009 Name Market Capitalization in Rs. Cr Sales Turnover in Rs. Cr Operating Margin Net Profit in Rs. Cr Shree Renuka Sugars 4537.90 2234.21 375.94 143.51 EID Parry 3450.81 1147.32 207.34 205.28 Balrampur Chini 2246.99 1680.15 448.19 226.51 Triveni Engg 2604.4 1907.77 436.30 169.78 Bannari Amman 984.96 884.44 400.00 143.63 Bajaj Hindustan 2301.07 1602.80 372.02 156.24

BUSINESS CYLE:

BUSINESS CYLE

EFFECT OF GOVT POLICIES:

EFFECT OF GOVT POLICIES SRS is not allowed to set up a mill within a 15 Km radius of an existing mill. Delay in ethanol blending program and the consequent fall in by-product revenues (10% ethanol blending rule in gasoline , due since Oct. 2008 is not implemented till now by government) At times blamed for being non farmer friendly.

Slide 15:

ANNUAL RESULTS IN BRIEF

NET PROFIT – YOY RESULTS (Rs. in Cr):

NET PROFIT – YOY RESULTS (Rs. in Cr)

NET SALES – YOY RESULTS (Rs. in Cr):

NET SALES – YOY RESULTS (Rs. in Cr)

DIVIDEND – YOY RESULTS:

DIVIDEND – YOY RESULTS

APPLICATION OF FUNDS:

APPLICATION OF FUNDS

BUSINESS SEGMENT - EARNINGS:

BUSINESS SEGMENT - EARNINGS Sugar Manufacturing (36.16% of the revenues and 38.58% of operating income) Trading (49.91% of the revenues and 45.93% of operating income) Distillery (5.6% of the revenues and 6.07% of operating income) Co-generation (8.7% of the revenues and 9.28% of operating income)

Slide 21:

RATIO ANALYSIS

DEBT/ EQUITY RATIO:

DEBT/ EQUITY RATIO

EARNING PER SHARE RATIO:

EARNING PER SHARE RATIO

SHARE PRICE FLUCTUATIONS:

SHARE PRICE FLUCTUATIONS

CSR ACTIVITIES:

CSR ACTIVITIES Company created Shree Renuka Sugars Development Foundation, a trust working in the field of education, healthcare and hygiene. Company created a trust called Shree Renuka Sugars Employee Welfare Trust to service education, health, recreation, financial and social requirements.

CSR ACTIVITIES:

CSR ACTIVITIES Education: The Company created schools for the children of cane harvesters who travel a long distance during the cane harvesting period. Scholarships are provided to deserving students, especially the girl child. Healthcare: Primary healthcare facilities were made available at all plant locations. Multi bed hospital in Belgaum.

MILESTONE:

MILESTONE Shree Renuka Sugars acquires Sugar and Ethanol Company with Sugarcane Plantations in Brazil – 2009 Commissioning of a cogeneration plant in Panchganga cooperative sugar mill – 2009 Commissioning of a 2,000 TPD port-based refinery at Haldia – 2008 Accquistion of KBK Chem Engineering Pvt. Ltd. – 2007 Acquisition of sugar mill in Sindhkheda and relocated to Havalga (Karnataka) – 2006 Acquisition of greenfield project at Athani (Karnataka) – 2005

FUTURE PROSPECTS:

FUTURE PROSPECTS Deregulation of sugar industry. Acquisition of sugar & ethanol company in Brazil will help to enter international market. Less dependence on Indian raw material Expanding capacity and scope of integrated sugar & ethanol plant with HPCL Export oriented unit benefits from zero % import duty.

FUTURE PROSPECTS:

FUTURE PROSPECTS 80% reduction in international freight cost will also see that revenue target will be met in future. Recently raised it’s stake in KBK Chem. engineering pvt . ltd to 80.28%, which provides ethanol distilling solution, i.e. Providing technology solution to rivals hence keeping a check in a sense over rivals.

CONCLUSION:

CONCLUSION Company is very well placed for future growth Need more effort to have its stakeholders (farmers) and own goals well aligned. Expand it’s footprint more in Brazil.

Slide 31:

Zinal Shah – 101 Shariq Khan – 102 Fahad Bilal – 103 Nishant Shah – 104 Hrishikesh – 105 GROUP: 9

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