SUGAR INDUSTRY : SUGAR INDUSTRY Submitted To : Submitted By:
Ms. Dolly Pathak Sunita Dhankani
Sonal Khare
Takshi Lilaramani In india
INTRODUCTION : 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 INDIAN & GLOBAL SCENARIO
Slide 4: 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 : SUGAR CONTRIBUTION
INDIAN VIEW : INDIAN VIEW
AN OVERVIEW : 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 SUGAR EXPORT
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 SWOT ANALYSIS
Slide 10: 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
Slide 11: 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
Slide 12: 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 : BAJAJ HINDUSTAN 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) THE KEY PLAYERS IN SUGAR INDUSTRY
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. CONCLUSION
THANK YOU : THANK YOU