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Sugar Industry – India
October 2014

2
Executive Summary
Market
Drivers & Challenges
Competition
India’s sugar industry has exhibited a rapid growth and development over the past years
Estimated production a5 mn tonnes in 20-- - 20--, growing at a CAGR of y% from a1 mn tonnes in 20-- - 20--
Consumption volume has grown to b3 mn tonnes in 20-- - 20--
Drivers:
-Growing Population and Rise in Income
-High Demand from Food and Beverage Industry
-Opportunity from by-products
-Growing Pharmaceutical Market
-Untapped Market Potential
Government Initiatives
Remove the 10% levy sugar quota
Implement tax incentives
Cenvat Credit on Bagasse
Tax deduction under section 35 AD
Exemption from service tax
No VAT on sugar
Decontrol of the sugar sector
Challenges:
-Oversupply Situation and Rise in Sugarcane Prices
-Impact of Cyclicality
-Pricing Challenge
Major Players
Company 1
Company 2
Company 3
Company 4
Company 5
Company 6
SUGAR INDUSTRY IN INDIA 2014

3
•Macroeconomic Indicators
•Introduction
•Market Overview
•Regional Distribution
•Export-Import
•Drivers & Challenges
•Government Initiatives
•Competitive Landscape
•Strategic Recommendations
•Appendix

4
Economic Indicators (1/3)
11
12
13
14
15
INR tn
Q4
c4
b4
a4
Q3
c3
b3
a3
Q2
d2
c2
b2
a2
Q1
d1
c1
b1
a1
2010-11 2011-12 2012-13 2013-14
GDP at Factor Cost: Quarterly
Inflation Rate: Monthly
-2
-1
0
1
2
q
Aug 2013 - Sep 2013
r
Jul 2013 - Aug 2013 Sep 2013 - Oct 2013
p
Nov 2013 - Dec 2013
t
Oct 2013 - Nov 2013
%
s

5
Sugar industry in India, exhibiting rapid development with
annual double digit growth through 20-- - --
• India is the world’s second largest sugar producing
country, representing p% of the total sugar production,
after Brazil with q%
• Sugar production is expected to grow at a CAGR of y% to
reach a5 mn tonnes in 20-- - --
• It is also the biggest sugar consumer in the world, with
consumption growing at CAGR of x% to amount b5 mn
tonnes in 20-- - --
• India’s sugar consumption is expected to surpass the
total sugar production by 20-- - --
 Increasing GDP and changing lifestyle is expected to push up
the demand for sugar and processed foods
 However, in the long run, limited land availability for irrigation
is expected to hamper the country’s sugar production
• Indian sugar industry has facilitated the socio-economic
growth of the rural areas by mobilizing rural resources,
creating employment resulting in higher earnings along
with the development of the transportation and
communication facilities
Sugar Industry – Overview (1/2) Growth of Sugar Production
0
10
20
30
mn tonnes y%
20-- - --e
a5
20-- - --e
a4
20-- - --
a3
20-- - --
a2
20-- - --
a1
Growth of Sugar Consumption
0
5
10
15
20
25
30
35
mn tones
x%
20-- - --e
b5
20-- - --e
b4
20-- - --
b3
20-- - --
b2
20-- - --
b1

6
Sugar industry had generated INR t bn in revenue in 20-- - --
Sugar Industry – Overview (2/2)
• India is home to ~x% of the total sugar mills in the
world, contributing y% of the global sugar production
Growth of Sugar Factories
0
200
400
600
800
Units
a3
z%
20-- - -- 20-- - --
a2
20-- - --
a1
No. of Sugar
Mills
Installed Sugar
Production
Capacity
Sugarcane
Crushed
Sugar Production Industry Revenue Cane Payment
p
q mn
tonnes/year
r mn tonnes s mn tonnes INR t bn INR u bn
Sugar Industry Scenario – 2010-11
Sugar Industry
Segment 1 Segment 2
Example 1 Example 2

7
Growing cane production will support the consistent growth
in sugar output, benefiting the Indian sugar industry
• Indian sugar industry is dependent on the production of
sugarcane as it is the most vital raw material required
for manufacturing sugar
• Most of the sugar mills are usually located near the
important sugarcane production bases in India, such as
state 1, state 2, state 3, state 4, state 5 and state 6
• Following cotton textile industry, sugar industry ranks
second among the agro-based industries in the country
 Indian sugar industry supports the development of the rural
sector by engaging huge number of agricultural laborers in
sugarcane cultivation, harvesting, machine manufacturing
etc., representing ~z% of the rural population
• Some of the primary challenges faced by the sugarcane
farmers are shortage of land and water required for
cultivation resulting from soil and ground water
degradation without any construction of new irrigation
dams
Sugarcane – Overview Growth of Sugarcane Production
0
100
200
300
400
mn tonnes
x%
20-- - --e
a4
20-- - --
a3
20-- - --
a2
20-- - --
a1
Growth of Sugarcane Acreage
0
1,000
2,000
3,000
4,000
5,000
6,000
‘000 hectares
20-- - --
b1
y%
20-- - --e
b4
20-- - --
b3
20-- - --
b2

8
Sugar – Value Chain (1/2)
Step 1
Step 2
Step 3
Step 4
Syrup Boiling
Step 6
Step 7
Step 5
d
e
f
g
h
i
D
I
S
T
I
L
L
E
R
Y
z
x
y
u
a
b
c
COGENERATION
S
U
G
A
R
P
L
A
N
T

9
SAMPLE
Sugar – Value Chain (2/2)
Step 8
Step 9
Step 10
Syrup Boiling
Step 12
Step 13
Step 11
S
U
G
A
R
R
E
F
I
N
E
R
Y
Factory Raw Sugar
Imported Raw Sugar

10
Sugar industry in Maharashtra is one of the major and large-scale
sugar producing sector in India
• Maharashtra is India’s largest sugar producing state with
a total sugar output of x mn tonnes as of month x 20-- in
the current sugar year, up by y% y-o-y
 The recovery of sugar from cane has been z%
• It had produced x1mn tonnes of sugar in the sugar
season 20-- - --, up from x2 mn tonnes in 20-- - --
 However, water scarcity is likely to hit sugar production,
bringing down the state output by t% in 20-- - --, with a cane
acreage area of d hectares
Production Volume*
Major Players Sugarcane – Area and Production
Maharashtra – Overview
No. of
Factories
Sugar Production
( mn tonnes)
Avg. Sugarcane
Production
(mn tonnes)
u v w
Note: Sugar Season refers to Oct-Sep
Top Sugar Factories in 20-- - --
Sugarcane Crushed
(mn tonnes)
Sugar Production
(mn tonnes)
Company 1 a1 Company 4 b1
0
20
40
60
80
100
0
200
400
600
800
1,000
1,200
Area
‘000 hectares
Production
mn tonnes
20-- - --e
c6
d6
20-- - --
c5
d5
20-- - --
c4
d4
20-- - --
c3
d3
20-- - --
c2
d2
20-- - --
c1
d1
Production Area

11
Increasing sugarcane acreage has resulted in rising sugar
production…
Sugarcane – Area and Production
Haryana– Production Volume*
Gujarat – Production Volume*
No. of
Factories
Sugar Production
( mn tonnes)
Avg. Sugarcane
Production *
(mn tonnes)
u1 v1 w1 0
5
10
15
20
0
50
100
150
200
250
20-- - --e
a6
b6
20-- - --
a5
b5
20-- - --
a4
b4
20-- - --
a3
b3
20-- - --
a2
b2
20-- - --
a1
b1
Area
‘000 hectares
Production
mn tonnes
Production Area
Sugarcane – Area and Production
No. of
Factories
Sugar Production
( mn tonnes)
Avg. Sugarcane
Production *
(mn tonnes)
u2 v2 w2
0
2
4
6
8
10
0
50
100
150
d4
20-- - --
c3
d3
20-- - --
c2
d2
20-- - --
c1
d1
20-- - -- 20-- - --e
c5
d5
20-- - --
c6
d6
c4
Production
mn tonnes
Area
‘000 hectares
Production Area

12
Indian sugar industry has witnessed inconsistent trade
balance over the past years
Sugar Industry – Exports (Value-wise)
Sugar Industry – Imports (Value-wise)
0
20
40
60
80
x%
INR bn
20--
a4
20--
a3
20--
a2
20--
a1
Country-wise Exports (20--)
Country-wise Imports (20--)
1.1%
3.8%
6.2%
6.3%
68.2%
14.4%
Country 5
Country 4
Country 3
Country 2
Country 1
Others
0
20
40
60 y%
INR bn
20--
b4
20--
b3
20--
b2
20--
b1
3.2%
9.6%
4.3%
5.2%
9.2%
68.5%
Others
Country 5
Country 4
Country 3
Country 2
Country 1

13
Drivers & Challenges – Summary
Drivers
Growing Population and Rise in Income
High Demand from Food and Beverage Industry
Opportunity from by-products
Growing Pharmaceutical Market
Untapped Market Potential
Challenges
Oversupply Situation and Rise in Sugarcane Prices
Impact of Cyclicality
Pricing Challenge

14
Porter’s Five Forces Analysis
Competitive Rivalry
•Texttext texttext texttext texttext texttext texttext
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Threat of New Entrants
Impact
Low
Impact
Low
Impact
Low
Impact
Low
Impact
High

15
Competitive Benchmarking (1/5)
Public Trading Comparables (FY 2013) – Top 3 Companies
Company A
Company B
Company C
Market Capitalization (INR mn)
Share Price (INR)
EV/EBITDA (x)
EV/Revenue (x)
PE Ratio
Note: Top 3 Public companies based on the Market Capitalization, Share Price and PE ratio is as of --/--/----

16
SAMPLE Key Ratios of Top 3 Companies – Operational Basis (FY 20--) (1/3)
Competitive Benchmarking (1/4)
-30
-20
-10
0
10
%
Player C
q3
Player B
p2 q2
Player A
p1 q1
Operating Margin Net Margin
• X
• X

17
SAMPLE
Public: Domestic Company – Company 1 (1/4)
Key People
Products and Services
Company Information
Offices and Centres – India
Corporate Address
Address 400 0-- India
Tel No.
91-xx-yyyyyyyy
Fax No.
91-xx-yyyyyyyy
Website
www.xxx.com
Year of Incorporation
19--
Ticker Symbol
5000--
Stock Exchange
Bombay Stock Exchange (BSE)
Products
Product 1, product 2, product 3, product 4, product 5, product 6, product 7, product 8, product 9, product 10, product 11 and product 12
Name
Designation
Person 1
Executive Chairman
Person 2
Vice Chairman
Person 3
President
Person 4
Chief Finance Officer
Noida
Head Office
Mumbai
Lucknow
Other Offices

18
SAMPLE Financial Snapshot Key Ratios
Financial Summary
• The company incurred a net profit of INRx4 mn in FY 20--, as
compared to net profit of INR x3 mn in FY 20--
• The company reported total income of INR y4 mn in FY 20--
registering an increase of z% over FY 20--
• The company earned an operating margin of y% in FY 20--, an
increase of z1 percentage points over FY 20--
• The company reported debt to equity ratio of u in FY 2011, a
decrease of v1% over FY 2010
Key Financial Performance Indicators
Indicators Value (22/05/2012)
Market Capitalization (INR mn) a
Total Enterprise Value (INR mn) b
EPS (INR) c
PE Ratio (Abs) (30/05/2012) d
Particulars
y-o-y change
(2011-10)
2011 2010 2009 2008
Profitability Ratios
Operating Margin - - - - -
Net Margin - - - - -
Profit Before Tax Margin - - - - -
Return on Equity - - - - -
Return on Capital Employed - - - - -
Return on Working Capital - - - - -
Return on Assets - - - - -
Return on Fixed Assets - - - - -
Cost Ratios
Operating costs (% of Sales) - - - - -
Administration costs (% of
Sales)
- - - - -
Interest costs (% of Sales) - - - - -
Liquidity Ratios
Current Ratio - - - - -
Cash Ratio - - - - -
Leverage Ratios - - - - -
Debt to Equity Ratio - - - - -
Debt to Capital Ratio - - - - -
Interest Coverage Ratio - - - - -
Efficiency Ratios
Fixed Asset Turnover - - - - -
Asset Turnover - - - - -
Current Asset Turnover - - - - -
Working Capital Turnover - - - - -
Capital Employed Turnover - - - - -
Improved Decline
Total Income Net Profit/Loss
0
20000
40000
60000
-2,000
-1,000
0
1,000
INR mn INR mn
20--
x4
y4
20--
x3
y3
20--
x2
y2
x1
y1
20--

19
SAMPLE Key Business Segments Key Geographic Segments
Business Highlights
Description News
Overview
• Company 1 is a flagship of the famous Group 1, engaging primarily in the production of
sugar and ethanol
Crushing Capacity
• Company 1 owns x sugar plants in different parts of state 1 with an aggregate crushing
capacity of z TCD and a distillery capacity to produce y l of alcohol daily
Expansion Plans
• Company 1 is setting up t new coal based power plants of p MW each in state 1 with a
total investment of INR f bn
• It is also building u mega thermal power projects in state 1 with a power producing
capacity of g MW within a period of h years
80% 86% 86% 87%
5%
4% 4% 3%
1%
0%
50%
100%
20--
6% 4%
20--
5% 5%
20--
6% 4%
20--
14%
Segment 4
Segment 3
Segment 2
Segment 1
Others
0%
50%
100%
20--
100%
Country 1
Country 1 is the only
geographic segment in which
the company has been
operating for the last five years

20
Public: Domestic Company – Company 1 – SWOT Analysis (4/4)
•Texttext texttext texttext texttext texttext texttext texttext texttext texttext texttext texttext
T
O
W
S

21
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SEO-Optimized Title for Sugar Industry Document in India