Simbhaoli Sugars Limited Simbhaoli Sugars Limited Simbhaoli Sugars Limited Simbhaoli Sugars Limited Integrated Sugar Complexes Integrated Sugar Complexes Corporate and Sector Analysis MUMBAI INDIA JANUARY 28, 2010
Presentation contents Presentation contents Presentation contents Presentation contents • Company overview p y – Business overview – Financial overview • Q 1 FY10 update – Future growth Plans • Indian sugar scenario • Indian sugar scenario – Govt regulations – Sugar balancing Sugar balancing – Short term outlook • Global sugar scenario g – Demand and supply – Price trends
Corporate Announcement Corporate Announcement GREENFIELD 1000 TONES PER DAY WHITE SUGAR REFINERY AT KANDLA, GUJRAT, WEST COAST, INDIA COMMENCEMENT 2011
Sugar/ Refining Branding Agri Sugar and development Potable alcohol BUSINESS SSL SSL OVERVIEW Port based Alcohol/Ethanol refining Cogeneration of Cogeneration of Import/ Exports Import/ Exports power
The The Facilities The The Facilities Facilities/ Capacities Facilities/ / Capacities Capacities Capacities Simbhaoli Si bh li B ij Brijnathpur th Chil Chilwaria i Facilities (Western (Western (Eastern Total Brijnathpur UP) UP) UP) Simbhaoli Chilwaria Sugar from 20100 9500 4000 6600 Cane (TCD) Sugar from g 2000 2000 850 850 550 550 600 600 Raw (TPD) Alcohol/ 210 90 60 60 ethanol (KLD) ethanol (KLD) Surplus 34 18 16 Power (MWH) Organic 35 17 9 9 Manure (000’mt) • SSL integrated complexes 19 IMFL bottling tie ups in 11states apart from UP
Company Overview (1/2) Company Overview (1/2) Sugar and Sugarcane Complete sugarcane processor with de ‐ risked business profile l h d k d b f l • – white sugar from cane – raw refining from cane raw refining from cane – Setting up a port based 1000 TPD refinery Second largest sugar refining capabilities in India with 2000 TPD g g g p • capacity • Year round production of sugar Strong Agri linkages with over 130,000 sugarcane farmers • • Large institutional customer base, multiple brands in sugar First Sugar Co in India to receive all international quality • certifications (ISO 9000, 14001, HACCP). A Star Export House
Company Overview (2/2) Company Overview (2/2) Company Overview (2/2) Company Overview (2/2) By products By products • Present in all segments of alcohol Offering multiple brands in potable spirits in domestic (pan Offering multiple brands in potable spirits in domestic (pan • • India) as well as international markets • Export of surplus power to State grid Export of surplus power to State grid • Year round power generation capacity Other by products: CO 2 , methane gas, manure Other by products: CO 2 , methane gas, manure • Technology edge with an independent research and • consultancy subsidiary y y International trading business ‐ independent subsidiary •
Simbhaoli Sugars: Value Chain Simbhaoli Sugars: Value Chain Sugar Raw Raw � Value added exports p sugar of EC grade sugars Cane � Import of raw sugar for refining for domestic/ export Port Based Port Based market Technology � Export of ENA and � Potable alcohol standalone IMFL products Vertical (12 brands) refinery* � Industrial alcohol � ENA/ RS � Carbon dioxide Ca bo d o de Integrated sugar International complexes Market Alcohol/Ethanol (Molasses) (Molasses) Supplying white and speciality sugars including icing, breakfast, cubes, Sugar By products Bio-manure candy, pharma sugars ( (Press mud) ) Power co- Local Market generation with CDM benefits (Bagasse) (Bagasse) Institutional Retail Outlets Trade Buyers Trust brand has Trust brand has Clients include Coca Clients include Coca- significant share Cola, ITC, Heinz, PepsiCo, of North Indian & GlaxoSmithKline Consumers branded sugar market *project under implementation
Simbhaoli today has Simbhaoli today has • capabilities to carry out off ‐ season raw refining with minimum conversion losses (Already processed 63,000 mt raw in 2009/10 season. 260,000 mt in 2009 off crop) • effective cane development for increasing sugarcane availability and improving recoveries improving recoveries • value addition through innovation, branding and quality improvement improvement • utilisation of equipment and power generation round the year Business plan Off ‐ season Season plan Total Status (09 ‐ 10) Raw processing (MT) p g ( ) 160,000 200,000 360,000 Processed 80,000 mt Cane sugar (MT) Nil 170,000 160,000 During current season Power generation 11,000 90,000 101,000 Round the year generation, (MWH) (MWH) with bagasse and coal ith b d l Alcohol (KLD) 11,340 32,130 43,470 Tendering the ethanol to OMCs
Technology Edge Technology Edge Technology Edge Technology Edge • Technology business through company named gy g p y Integrated Casetech Consultants Pvt Ltd • Providing following services at national and g g international levels: – Technology Upgradation Technology Upgradation – Energy Management – Agri Development Agri Development – Maintenance and Support • Working on a large number of projects • Working on a large number of projects • Achieved a top line of Rs 20 mn in the current fiscal • Shall emerge as a ‘technology hub’ in the sugar space
Raw Refining Operations Raw Refining Operations • Season and off season raw refining capabilities with technical expertise • Imported/contracted 2.4 lakh mt raw for off crop period (already refined 0.08 mmt) • Plan to refine 3.6 to 4 lakh mt in 2009 ‐ 10 season in addition to sugar cane • Procured raw at an average price of US$ 525 pmt Simbhaoli Monthly Sugar Production Plan (cane and raw) 50,000 40,000 40,000 in MT 30,000 20,000 10,000 0 JULY JULY AUG AUG SEPT SEPT OCT OCT NOV NOV DEC DEC JAN JAN FEB FEB MAR MAR APR APR MAY MAY JUN JUN JUL JUL AUG AUG SEP SEP Off season July 2009 to Sept 2010 Off season
Typical cost sheet for Processing Raw and Cane Typical cost sheet for Processing Raw and Cane (per (per mt mt of white sugar) of white sugar) Particulars Raw (Rs) Cane (Rs) Industrial Recovery 96.50% 9.25% cost of raw /cane per ton 32200 2500 33368 33368 27027 27027 Cost of Raw Material 1700 1000 Internal Transportation Cost 2000 2000 3000 3000 Processing Cost Processing Cost 600 2100 Factory Cost and Overheads Total Total 37668 32727 115 2900 By products credit 37553 29827 Net Cost 42000 42000 37200 37200 E ti Estimated selling price t d lli i 4447 7373 EBIDTA Margins EBIDTA % 10.59% 19.8 SSL has purchased sugar at average rate of Rs 24,150 per mt so far and achieved An EBIDTA of over 20% on sugar operations for Q1 FY10
Agriculture Management Agriculture Management Pioneer in various cane development area • – Propagating high yield high sugar variety COJ 238, 239, 118 – Making available land preparation equipment, plants protection devices – Intensive and integrated pest management system – Demonstration farming, field trials and continuous training to farmers • Mechanisation of cane farming • Encouraging farmers for multi ‐ cropping with sugarcane Acting as facilitators for entire crop cycle for multiple crops – 2,000 hectares area in 2009 ‐ 10 (plan 5,000 hectares in three years) – Industrial yield of Simbhaoli plant vs Industry Average Industrial yield of Simbhaoli plant vs Industry Average 11 10 % Recovery 10 9 9 8 8 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 SSL Industry average
Brand Building Brand Building Sugar Alcohol • In consumer and institutional packs SSL spirits is producing brands in • whiskey, rum, vodka segments • Branded sugars under brand Trust. g Increasing its presence within India and • • Domestic sachets and cubes segment overseas growing over 30% annually Brands ‐ Brands Hunters/ Hunters/ Simbhaoli Simbhaoli XXX XXX • New markets in different geographical New markets in different geographical • • (Rum), Seven Knights (Whisky), Seven areas Knights Lemon flavor (Dry Gin), Xing • Tie up with modern retail chains (Vodka) and Ice Blue Tango (Pre mixed) ( ) g ( ) • C Created export market for branded d k f b d d Developed new brands after extensive • sugars. Africa, middle east and Canada research on product, packaging and are preferred destinations consumer preferences p • Constitute 8% of total segment sales Achieved 1 mn cases mark in 2008 ‐ 09. • (CAGR 15%). Target is to increase to Target for 2009 ‐ 10 at 2 mn cases 25% Only sugar company nurturing and investing in brand building
INDIAN SUGAR SUGAR INDUSTRY Sugar flows from the surplus to deficit states. Most of the imports from Gujarat, Tamil Nadu and West Bengal
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