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Sugar Industry in India 2012

Sugar Industry in India 2012

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  • Jun 12, 2012
  • 59 pages
  • Netscribes

The Sugar Industry in India is part of Netscribes' Food & Beverage Series reports. The market will be boosted by the rapidly growing food and beverage industry with increasing production of confectionaries, resulting in increased demand for sugar.

The report begins with the market overview section, providing details on the domestic sugar production and consumption. India is the world's largest sugar consuming country and is also the second largest in terms of sugar production. The growth of sugar factories along with the sugar industry segments depicts the sugar industry scenario in India. The sugarcane overview section provides a clear idea about the linkage between the sugarcane farmers and millers, including growth of sugarcane production and cane acreage. This is followed by the sugar industry value chain, illustrating the structure and operational mechanism in the sugar plants and sugar refineries, including the distillery and cogeneration process.

The regional distribution section provides a vivid description of the sugar industry in the largest sugar producing states across the country, including Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, Andhra Pradesh, Gujarat, Haryana, Punjab and Bihar. This section provides state-wise information, such as no. of sugar factories, sugar production, average sugarcane production, sugarcane area and production.

Factors driving the growth of sugar industry in India are also explained in detail. Growing population coupled with rising income is providing impetus to the growth in the country's sugar consumption, benefiting the overall sugar industry. India is the world's second largest populated country, representing about 17.31% of the global population. Aggressive growth in the food and beverage industries will lead to the increasing demand for sugar. High sugar content in confectionaries, including chocolates, pastries and ice-creams, will drive the domestic demand for sugar. By-products, such as ethanol and power via cogeneration provides cross functional and cross business opportunities. Growing pharmaceutical market and low per capita sugar consumption in India provide opportunities for the players to capitalize upon. The challenges hindering the market are illustrated. Oversupply situation coupled with higher cane prices results in declining profit margin for the players in the sugar industry. Cyclical nature of the crop results in volatility in sugar production leading to high cane arrears. The present pricing policy is highly government regulated resulting in limited bargaining power of the sugar millers.

The government initiatives section provides a detailed description about the Pre-Budget Memorandum 2012-13, including removal of 10% levy sugar quota, implementation of tax incentives, Cenvat Credit on Bagasse, tax deduction under section 35 AD and exemption from both service tax and value-added tax. This is followed by the government's consideration to decontrol the sugar sector.

The competition section begins with the Porter's Five Forces analysis for the sugar market. It outlays the competitive landscape of the sugar market in India briefing about the domestic and foreign players existing in the market. This section provides a three dimensional analysis of domestic key players' revenues, profits and market capitalization. The report also features brief profiles of major domestic and foreign players in the market and a snapshot of their corporation, financial performance along with the key financial ratios, business highlights and their product portfolio providing an insight into the existing competitive scenario.

Some of the key statistics or factors impacting the sugar market in India covered in the report include growth of sugar production, consumption and no. of factories, sugar industry scenario in 2010-11, growth of sugarcane production and cane acreage, sugar-value chain, no. of factories (state-wise), sugar production (state-wise), Avg. sugarcane production (state-wise), sugarcane area and production (state-wise), major players in each state, export and import (value-wise), growing population, rise in per capita income, growing confectionary, chocolate and ice-cream market, potential alcohol demand, pharmaceutical market growth, annual per capita sugar consumption, state advised cane prices and induced cyclicality.

The report concludes with a section on strategic recommendations which comprises an analysis of the growth strategies of the sugar market in India.
Table of Contents
Page 1: Executive Summary
Market Overview
Page 2-3: Sugar Industry - Overview, Growth of Sugar Production, Growth of Sugar Consumption, Growth of Sugar Factories, Sugar Industry Scenario
Page 4: Sugarcane - Overview, Growth of Sugarcane Production, Growth of Sugarcane Acreage
Page 5-6: Sugar - Value Chain
Regional Distribution
Page 7-11: Maharashtra, Uttar Pradesh, Karnataka, Tamil Nadu, Andhra Pradesh - Overview, Production Volume, Sugarcane - Area and Production, Major Players
Page 12-13: Gujarat, Haryana, Punjab, Bihar - Production Volume, Sugarcane - Area and Production
Page 14: Sugar Industry - Exports (Value-wise), Country-wise Exports, Imports (Value-wise), Country-wise Imports
Drivers & Challenges
Page 15: Summary
Page 16: Growing Population and Rise in Income
Page 17-18: High Demand from Food and Beverage Industry
Page 19-20: Opportunity from by-products
Page 21: Growing Pharmaceutical Market and Untapped Market Potential
Page 22: Oversupply Situation and Rise in Sugarcane Prices
Page 23: Impact of Cyclicality
Page 24: Pricing Challenge
Government Initiatives
Page 25: Remove the 10% levy sugar quota and Implement tax incentives
Page 26: Cenvat Credit on Bagasse and Tax deduction under section 35 AD
Page 27: Exemption from Service Tax and No VAT on sugar
Page 28: Decontrol of the Sugar Sector
Page 29: Porter's Five Forces Analysis
Page 30: Major Public Companies - Summary
Page 31-58: Key Public Players - Company Information, Products and Services, Offices and Centres - India, Key People, Financial Snapshot, Financial Summary, Key Ratios, Key Business Segments, Key Geographic Segments and Key Recent Developments
Bajaj Hindusthan Limited
Balrampur Chini Mills Limited
Bannari Amman Sugars Limited
Dhampur Sugar Mills Limited
Dwarikesh Sugar Industries Limited
Rajshree Sugars & Chemicals Limited
Rana Sugars Limited
Shree Renuka Sugars Limited
Triveni Engineering & Industries Limited
Upper Ganges Sugar & Industries Limited
Strategic Recommendations
Page 59: Strategic Recommendations
List of Figures
Market Overview
1. Growth of Sugar Production (2008-09, 2009-10, 2010-11, 2011-12e and 2020-21e)
2. Growth of Sugar Consumption (2008-09, 2009-10, 2010-11, 2011-12e and 2020-21e)
3. Growth of Sugar Factories (2008-09, 2009-10 and 2010-11)
4. Sugar Industry Scenario (2010-11) - No. of Sugar Mills, Installed Sugar Production Capacity, Sugarcane Crushed, Sugar Production, Industry Revenue and Cane Payment
5. Growth of Sugarcane Production (2008-09, 2009-10, 2010-11 and 2011-12e)
6. Growth of Sugarcane Acreage (2008-09, 2009-10, 2010-11 and 2011-12e)
Regional Distribution
7. Key states - Production volume - No. of Factories (2012), Sugar Production (2012), Avg. Sugarcane Production (2009-10 to 2011-12), Sugarcane - Area and Production (2006-07, 2007-08, 2008-09, 2009-10, 2010-11 and 2011-12e), Major Players
Uttar Pradesh
Tamil Nadu
Andhra Pradesh
8. Sugar Industry - Exports (Value-wise) (2006,2007,2008, 2009 and 2010)
9. Country-wise Exports (2010)
10. Sugar Industry - Imports (Value-wise) (2006,2007,2008, 2009 and 2010)
11. Country-wise Imports (2010)
Drivers and Challenges
12. Growing Population (2005, 2010, 2015e, 2020e and 2030e)
13. Rise in Per Capita Income (2009-10, 2010-11 and 2011-12e)
14. Confectionary Market (2011,2012e, 2013e and 2014e)
15. Chocolate Market (2011,2012e, 2013e and 2014e)
16. Ice-cream Market (2011,2012e, 2013e and 2014e)
17. Potential Alcohol Demand (2017)
18. Annual Per Capita Sugar Consumption
19. Rise in Minimum State Advised Cane Price (2010-11 and 2011-12)
20. Bubble Chart for the Public Companies
21. Key Domestic Players - Growth in Total Income and Profit (2008,2009,2010 and 2011), Key Ratios(2008,2009,2010 and 2011), Key Business Segments (2008,2009,2010 and 2011), Key Geographic Segments (2008,2009,2010 and 2011)
Bajaj Hindusthan Limited
Balrampur Chini Mills Limited
Bannari Amman Sugars Limited
Dhampur Sugar Mills Limited
Dwarikesh Sugar Industries Limited
Rajshree Sugars & Chemicals Limited
Rana Sugars Limited
Shree Renuka Sugars Limited
Triveni Engineering & Industries Limited
Upper Ganges Sugar & Industries Limited
List of Tables
Companies Covered
1. Bajaj Hindusthan Limited
2. Balrampur Chini Mills Limited
3. Bannari Amman Sugars Limited
4. Dhampur Sugar Mills Limited
5. Dwarikesh Sugar Industries Limited
6. Rajshree Sugars & Chemicals Limited
7. Rana Sugars Limited
8. Shree Renuka Sugars Limited
9. Triveni Engineering & Industries Limited
10. Upper Ganges Sugar & Industries Limited