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Indian Sugar Industry

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Thursday, March 26, 2015

Sugar is made from sugarcane, and was discovered thousands of years ago in New Guinea. And then the route was traced to India and Southeast Asia. India was the first to begin with the production of sugar following the process of pressing sugarcane to extract juice and boil it to get crystals.

Sugar consumption rate is highest in India as shown in the statistics received from USDA Foreign Agricultural Service.

India has been known as the original home of sugar and sugarcane. Indian mythology supports the above fact as it contains legends showing the origin of sugarcane. India is the second largest producer of sugarcane next to Brazil. Presently, about 4 million hectares of land is under sugarcane with an average yield of 70 tonnes per hectare.

In an era where there is a need for inclusive growth, the sugar industry is amongst the few industries that have successfully contributed to the rural economy. It has done so by commercially utilizing the rural resources to meet the large domestic demand for sugar and by generating surplus energy to meet the increasing energy needs of India. Prospects of growth in the Indian economy, and a growing population (about 1.8 percent per annum) would support growth in sugar consumption. Bulk consumers such as soft drink manufacturers, bakeries, confectionary, hotel and restaurant consumers account for 60 percent of milled sugar demand.

Manufacturing Process followed by the Sugar Industry:

1.                   Extracting juice by pressing sugarcane

2.                   Boiling the juice to obtain crystals

3.                   Creating raw sugar by spinning crystals in extractors

4.                   Taking raw sugar to a refinery for the process of filtering and washing to discard remaining non-sugar elements and hue

5.                   Crystallizing and drying sugar

6.                   Packaging the ready sugar

Demand :    Past & Future

Year                  mn MT

2000-01              17.18

2001-02              17.88

2002-03              19.88

2003-04              17.50

2004-05              18.50

2005-06              19.65

2006-07              22.70

2007-08              23.80

2008-09              24.95

2009-10              26.00

2010-11              27.20

2011-12              28.30

2012-13              29.45

2013-14              30.50

2014-15              31.70

2019-20              37.65

 

Market Segmentation

Company              Share (%)

North                       33

East                         15

West                        32

South                      20

Market Growth Rates

1990-91-1996-97                4.6%

1996-97-2001-02                4.6%

2001-02-2006-07                4.9%

2006-07-2011-12                4.5%

2011-12-2019-20                3.6%

 

Sensitivity Coefficient        9.4%

 

Major  Producers

Bannari Amnan Sugars

Shree Ambika Sugars

DCM Shriram Ind.

Andhra Sugars

Chammudeswari

Dharani Sugars

Eastern Sugar

Ponni Sugars

Pratappur Sugar

Prudential Mouli Sugar

Triveni Engg.

Balrampur Chini

EID Parry (India)

Bajaj Hindustan

Dhampur Sugar

Saraswati Sugar Mills

Mrwena Sugars

Simbhaoli Sugar

Oudh Sugar

Rana Sugars

Riga Sugar

Sakthi Sugar

Saraswati Industrial

Upper Ganges

Venus Sugar

Shree Renuka Sugar

Source: NPCS Team

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Introduction
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Market Study and Assessment
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Project at a Glance

Assumptions for Profitability workings
Plant Economics
Production Schedule
Land & Building
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Plant & Machinery
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Other Fixed Assets
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Working Capital Requirement Per Month
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Overheads Required Per Month And Per Annum
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Salary and Wages
Turnover Per Annum
Share Capital
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Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals
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Annexure 3 :: Assessment of Working Capital requirements
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Annexure 8 to 11:: Sensitivity Analysis-Price/Volume
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  • Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status
  • Equity Capital
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Annexure 13 :: Quantitative Details-Output/Sales/Stocks
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Annexure 14 :: Product wise domestic Sales Realisation
Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit
Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,
Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit
Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses
Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges
Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses
Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses
Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)
Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)
Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits
Annexure 35 ::Projected Pay-Back Period And IRR