Indian Sugar Industry

This publication has been discontinued on August 31, 2011.

Below is the updated product.

Introduction

Abstract

The report elucidates facts on the Indian Sugar industry, supplemented by the latest statistics.

Emphasis is laid on the following topics to accomplish the report.

• Evolution and Overview of the industry.
• Brief on peculiar characteristics of industry, types & applications of various types of sugar and a brief on sugar manufacturing process.
• Regulations governing the sugar industry elaborated with respect to policies related to sugarcane and sugar.
• Brief overview on demand and supply drivers and evaluation of demand-supply scenario in the country.
• Detailed analysis of top six sugar producing states in the country.
• Cost analysis of the industry analysing raw material cost and evaluation of the margins of the industry.
• A brief note on by-products of the industry and comprehensive analysis of different business models adopted by the industry.
• Evaluation of global demand-supply scenario covering eight-year trend of global sugar production, consumption, import and exports.
• Projections of sugar demand and supply situation in country for the next three sugar seasons and Outlook on the sugar prices.
• Company scan of four key companies with latest 3-years data on financial and operational parameters, revenue breakup, shareholding pattern, their strengths and company outlook.

Table of Contents

Executive Summary

CARE Research' s Outlook

Introduction

• Overview
  • Structure of Industry
  • Contribution to Indian Economy
  • Evolution

• Characteristics
  • Fragmented Industry
  • Regulated Industry
  • Raw Materials in Close Vicinity of Sugar Plants
  • Cyclical Industry
  • Seasonality
  • Working Capital Intensive
  • Geographical Spread

• Types of Sugar
  • Granulated Sugar
  • Brown Sugar
  • Liquid Sugar

Government Regulations and Incentives

• Policies related to Sugarcane
  • Sugarcane Pricing
  • Sugarcane Procurement

• Policies Related To Sugar
  • Domestic Sales
  • Exports
  • Imports

Demand & Supply

• Pre 1990 Era
• Post 1990s
  • Demand & supply scenario in SS 1990-91 to SS 2002 -2003Period
  • Demand & Supply Scenario in SS 2003-04
  • Demand & Supply Scenario in SS 2004-05
  • Demand & Supply Scenario in SS 2005-06
  • Demand & Supply Scenario in SS 2006-07
  • Demand & Supply Scenario in SS 2007-08
  • Demand & Supply Scenario in SS 2008-09

• Demand Drivers
  • Growing Population & Per Capita income
  • Lower Per Capita Consumption

• Supply Drivers
  • Sugarcane Availability
  • Drawal Rate
  • Recovery Rate
  • Political Factor

State-wise Scenario

• State-wise Analysis
  • Maharashtra
  • Uttar Pradesh (UP)
  • Karnataka
  • Tamil Nadu
  • Gujarat
  • Andhra Pradesh

Global Scenario

• The Brazil Impact

By-Products

• Bagasse
• Molasses
• Business Model Analysis

Cost & Margin Analysis

• Cost
  • Sugarcane Production
  • Sugarcane Pricing

• Margins

Sugar Prices

Company Profile

• Bajaj Hindusthan Ltd.
• Balrampur Chini
• Renuka Sugar Ltd.
• Triveni Engineering & Industries Ltd.

Annexures

• Monthly Sugar Production Trend
• Statewise Area under sugarcane in India
• Statewise Duration of Crushing Season
• Statewise Molasses Production Trend
• Statewise Number Factories in Operation
• Statewise Sugar Production Trend
• Statewise Sugar Recovery Rate
• Statewise Sugarcane Crushed by Sugar Mills
• Statewise Sugarcane Production Trend
• Statewise Sugarcane Yield
• Statewise Utilisation Trend

List of Tables

Introduction

• structure of the industry during SS2007-08
• Number of factories in operation and average capacity of mills
• Comparison of regulatory environment in top 4 sugar producing countries
• Top 5 Sugarcane and Sugar producing states in India in SS 2007-08

Government Regulations and Incentives

• Trend in Statutory Minimum Prices
• Trend in State Advised Prices
• Sugarcane pricing policy

Demand & Supply

• Statement showing area under sugar cane production, yield and sugar production
• Demand-Supply Trend
• Statement showing area under sugar cane production, yield and sugar production
• Demand - Supply Trend
• Yield rates in major sugar producing states
• drop in the sugarcane yields and increase in the utilisation of sugar for Gur and Khandsari
• Area under sugarcane cultivation in top 5 sugarcane producing states
• Comparison of SMP on Wheat and Sugarcane
• Sugarcane scenario: Top 5 states
• Steady growth in sugar consumption and population
• Trend in Recovery rate

State-wise Scenario

• Sugarcane & Sugar production trend of top 6 states
• Statement showing area under sugar cane production, yield and sugar production
• the capacity expansion of few UP based companies
• Statement showing area under sugar cane production, yield and sugar production in UP
• Statement showing area under sugar cane production, yield and sugar production
• Statement showing area under sugar cane production, yield and sugar production in TN
• Statement showing area under sugar cane production, yield and sugar production
• Statement showing area under sugar cane production, yield and sugar production in AP

Global Scenario

• Top 10 sugar producers in SS 2007-08
• Global Demand - Supply Trend
• Crushing update of Central-South region SS 2009-10

By-Products

• State-wise annual co-generation capacity in India
• ethanol requirement at 5% blending programme vs. 10% blending programme
• Non Integrated Model: Sugar +Molasses +Bagasse
• Partially Integrated Model: Sugar + Ethanol +Bagasse
• Partially Integrated Model: Sugar + Molasses +Power
• Fully Integrated Model: Sugar + Ethanol +Power

Cost & Margin Analysis

• Company-wise Raw material cost in FY 09
• major sugarcane producing states in tropical and sub-tropical regions
• Company-wise sugarcane cost

List of Figures

Introduction

• Domestic Demand and Supply trend
• Major Sugarcane and Sugar producing states in India in SS 2007-08
• Sugar production cycle
• Closing stock as percentage of domestic consumption
• Month-wise production trend of sugar
• Trend in Net working capital to Net sales Ratio of the sugar industry

Demand & Supply

• Sugar production trend in pre 1990 era
• Sugar production trend during 1991-2008
• Increase/Decrease in SMP prices of various crops
• Demand & Supply Scenario in 2008-09
• Steep fall in sugarcane acreage led to sugar crisis
• Consumption Pattern
• Per capita consumption of sugar
• Trend in drawal rate
• Monthly release order of non-levy sugar

State-wise Scenario

• Share of top 6 sugar producing states
• Sector wise distribution of sugar production capacity
• Trend of sugar crushing season
• Trend of recovery rate
• Sector wise distribution of sugar capacity
• trend of sugar crushing season in the state vis a vis all India crushing season
• Trend of recovery rate

Global Scenario

• Global Sugar Production Trend
• Top 5 sugar exporting countries in SS 2007-08
• Top 5 sugar importing countries in SS 2007-08
• International Raw sugar Prices
• Brazil- Sugarcane Production Trend
• Brazil- Sugar Production Trend
• Brazil-Sugar Exports trend

By-Products

• Fully/ Partially Integrated players vs Non integrated players

Cost & Margin Analysis

• Sugarcane Components
• Sugarcane production trend
• Trend of sugarcane arrears
• Trend of PBDIT and PAT Margin

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