m INDIA IS THE SECOND LARGEST COUNTRY IN

TERMS OF SUGARCANE PRODUCTION

m 30% OF THE TOTAL SUGAR PRODUCED
GOES FOR GUR AND KHANDARI , 45% GOES
FOR SUGAR PRODUCTION AND THE 25% FOR
ALCOHOL PRODUCTION (ETHANOL)
m 6 STATES CONTRIBUTE MORE THAN 85% OF
TOTAL SUGAR PRODUCED IN INDIA
m SWOT ANALYSIS
m IMPORT AND EXPORT
m INDIA PRODUCES 26 metric tones ON AN
AVERAGE BUT THE PRODUCTION FOR THE
FY09 IT IS EXPECTED TO GO BELOW BY 20%
m 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
m WORLD COUNSUMPTION OF SUGAR 150.3
MMT FOR 2007-2008, PROJECTED TO
BECOME 160.7 BY 2010
m THERE ARE 453 SUGAR MILLS IN THE
COUNTRY
m 252 ARE IN THE CO-OPERATIVE SECTOR
m 134 ARE IN THE PIVATE SECTOR
m 67 IN THE PUBLIC SECTOR
m 136 UNITS ARE IN THE IMPLEMANTATION
STAGES
m U.P PRODUCES 24% ALONE AND
MAHARSHATRA CONTRIBUTES 20%
m STATES AS TAMIL NADU, KARNATAKA,
GUJRAT, PUNJAB
m AND ALL THESE STATES CONTRIBUTE A
TOTAL OF 85%
m INDIA HAS AN AVERAGE EXPORTEABLE
SURPLUS OF 6.23 million tones EVERY YEAR
m THE PAST FIVE YEARS IT EXPORTED 4.07
million tones
m SINCE DOMESTIC PRICES ARE HIGHER THAN
INTERNATIONAL THE RATE OF EXPORT IS
EXPECTED TO COME DOWN
m THE MAJOR IMPORTING COUNTRIES OF
INDIA ARE BANGLADESH, PAKISTAN, U.K,
JAPAN,S.KOREA
m AND THE NEW ONES ARE KHAZAKISTAN &
IRAN
 STRENGTHS
m GLOBAL PRICES TO MOVE UP ±AN
INCREMENTAL POSITIVE
m THE DEMAND IS EVERLASTING
m ENVIRONMENTAL CONDITIONS SUITABLE
FOR THE GROWTH OF SUGAR CANE
m ABOUT 2.7% CULITVABLE LAND IS USED FOR
THE CANE PRODUCTION
m THE SUGAR INDUSTRY ALSO INCLUDES
ALCOHOL, GUR AN KHANDRI WHICH IS
MAINLY FOR THE DOMESTIC INDUSTRY
 WEAKNESS
m PRODUCTION TO DECLINE BY 20-25% IN
FY09
m SHIFT OF THE FARMER FROM CANE TO
PADDY, WHEAT, PULSES AND OIL SEEDS
m THE GREATER DIVERSION OF CANE TO UN-
ORGANISED SECTOR
m THE IGNORANCE IN THE RESIDUAL SUGAR
MARKET
m SOME OF THE GOVERNMENT POLICY THAT
ADHERE THE GROWTH OF THE SUGAR
INDUSTRY
m SHORTAGE IN SUGAR CANE SUPPLY
m OBSELETE TECHNOLOGY
 OPPRTUNITIES
m PRICES TO RISE BY 25% IN FY09 AND MORE
IN FY10E
m HIGHER MARGINS , LOWER CYCLICALITY
DRIVING SHIFT TOWERDS INTEGRATION
m THE ON GOING INCREASE IN DEMAND YEAR
AFTER YEAR
m THE SHIFT OF BRAZIL FROM WHITE SUGAR
TO PRODUCTION OF ETHANOL
 THREATS
m LESS RAINFALL IN THE HIGHEST
SUGARCANE CULTIVATING REGIONS
m DUE TO WATER SHORTAGE THE SHIFT OF
THE FARMERS TO MULTIPLE CROPS
CULTIVATION
m DUE TO GOVERNMENT POLICIES THE
SELLING OF SUGARCANE BY THE FARMERS
TO PRIVATE SECTORS
m SUGAR PRODUCTION BEING MORE
VOLATILE THAN CANE PRODUCTION
m DUE TO RISE IN DOMESTIC CONSUMTION
THE EXPORT IS LIKELY TO FALL
m BAJAJ HINDUSTAN LTD.
(ENTERPRISE VALUE: Rs mn 62,136)
m BALRAMPUR CHINNI MILLS LTD.
(ENTERPRISE VALUE: Rs mn 32,819)
m SHREE RENUKA SUGARS LTD.
(ENTERPRISE VALUE: Rs mn 43,283)
m INDIA IS LACKING DUE TO ITS
POLICY,METHODS,AND LACK OF
KNOWLEDGE FOR THIS ONLY GOVERNMENT
CAN MAKE A BIG CHANGE
m INDIA INCLUDES SUGAR AS AN ESSENTIAL
COMMODITY AN IT HAS BECOME MORE
LIBERAL IN THIS SECTOR
m INDIA HAS THE POTENTIAL TO BECOME THE
WORLDS BIGGEST EXPORTER BY REMOVING
THE MISSING LEADS.