A A

Presentation Presentation
on on
Indian Sugar Industry Indian Sugar Industry
Presented by
DUSHYANT PATEL [22] DUSHYANT PATEL [22]
FALGUN PATEL [23] FALGUN PATEL [23]
JAYESH PATEL [25] JAYESH PATEL [25]
INRODUCTION
INRODUCTION

Sugar industry cnstitut!s n! " t#! $st i$%rtant agr& Sugar industry cnstitut!s n! " t#! $st i$%rtant agr&
'as!d industri!s in (ndia) it start!d gr*ing in an rgani+!d 'as!d industri!s in (ndia) it start!d gr*ing in an rgani+!d
*ay during t#! *ay during t#! ,-3. ,-3. a"t!r intrductin " t#! sugar industry a"t!r intrductin " t#! sugar industry
%rt!ctin act in %rt!ctin act in ,-32) ,-32)

(ndia #as '!!n /n*n as t#! rigina0 #$! " sugar and (ndia #as '!!n /n*n as t#! rigina0 #$! " sugar and
sugarcan!) sugarcan!) (ndia (ndia is t#! is t#! s!cnd 0arg!st %rduc!r s!cnd 0arg!st %rduc!r " sugarcan! " sugarcan!
n!1t t 2ra+i0 ut " n!1t t 2ra+i0 ut " ,. 0arg!st ,. 0arg!st %rduc!r " sugar in t#! %rduc!r " sugar in t#!
*r0d) *r0d)

sugar industry is a $a3r "cus %int "r sci&!cn$ica0 sugar industry is a $a3r "cus %int "r sci&!cn$ica0
d!4!0%$!nt in t#! rura0 ar!a d!4!0%$!nt in t#! rura0 ar!a
Profile of Indian Sugar Industry
Profile of Indian Sugar Industry
T#!r! ar! T#!r! ar! 60 60 r!gist!r!d sugar "actri!s in t#! cuntry) r!gist!r!d sugar "actri!s in t#! cuntry)

!" #illion$%&"' !" #illion$%&"' " rura0 " rura0 (o(ulation (o(ulation !ngag!d as sugar can! !ngag!d as sugar can!
far#ers far#ers5 5 agricu0tura0 agricu0tura0 laborers and de(endents& laborers and de(endents&

E$%0ys .)5 $i00in s/i00!d 6 s!$i&s/i00!d *r/!rs E$%0ys .)5 $i00in s/i00!d 6 s!$i&s/i00!d *r/!rs

Area under sugar )ane Area under sugar )ane 7 7 !&" #illion !&" #illion #!ctar!s cu0ti4atin #!ctar!s cu0ti4atin

A*erage )a(a)ity of #ills+ A*erage )a(a)ity of #ills+ ,-00 tons ,-00 tons can! %!r day can! %!r day

Produ)tion of sugar Produ)tion of sugar 7 7 -0 #illion -0 #illion tns %a8rgani+!d s!ctr9 tns %a8rgani+!d s!ctr9
3 3
Se)tor Nu#ber
:&%!rati4! 3,;
Pri4at! 22-
Pu'0ic <2
Total 60
.a/or strategies and t0eir i#(a)t on
.a/or strategies and t0eir i#(a)t on
Indian sugar industry
Indian sugar industry

Sugar)ane (ri)ing (oli)y& Sugar)ane (ri)ing (oli)y&

G4!rn$!nt cntr0 n G4!rn$!nt cntr0 n sugar) sugar)

1o*ern#ent Poli)ies& 1o*ern#ent Poli)ies&

G4!rn$!nt =!0i!" t Sugar (ndustry and Sugarcan! G4!rn$!nt =!0i!" t Sugar (ndustry and Sugarcan!
Far$!rs) Far$!rs)

:!ntra0 G4!rn$!nt annunc!s su%%rt $!asur!s "r :!ntra0 G4!rn$!nt annunc!s su%%rt $!asur!s "r
sugar $i00s) sugar $i00s)
4 4
Profitability and gro2t0 of Indian
Profitability and gro2t0 of Indian
sugar industry
sugar industry

Sugar Area 3 Produ)tion Sugar Area 3 Produ)tion
4ear Area 5.illion
0e)tares6
Produ)tion
5.illion tons6
2..,&2..2 >)>, 2-;)2,
2..2&2..3 >)3< 2?,)5;
2..3&2..> 2..3&2..> 3)-- 23<),?
2..>&2..5 3);5 232)..
2..5&2..< >),> 2<;)..
2..<&2..; >)25 2?.)..
2..;&2..? >)5. 2-.)..
State 2ise situation in #a/or sugar
State 2ise situation in #a/or sugar
(rodu)ing states in India
(rodu)ing states in India
States States -00!$-00" -00!$-00" -00"$-006 -00"$-006 -006$-00% -006$-00%
Uttar Prad!s# Uttar Prad!s# 5)3?2 5)3?2 <)3 <)3 -)<5 -)<5
@a#aras#tra @a#aras#tra 2)2.5 2)2.5 5),-; 5),-; -)3 -)3
Aarnata/a Aarnata/a ,), ,), ,)-B ,)-B 2)> 2)>
Ta$i0 Nadu Ta$i0 Nadu ,), ,), ,)?5 ,)?5 2)< 2)<
And#ra Prad!s# And#ra Prad!s# .)-?2 .)-?2 ,)2 ,)2 ,)> ,)>
Gu3arat Gu3arat .);-; .);-; ,),<? ,),<? ,)> ,)>
Pun3a' Pun3a' .)3,5 .)3,5 .)33? .)33? .)5 .)5
@ad#ya Prad!s# @ad#ya Prad!s# . . .),,2 .),,2 .),5 .),5
States 2ise Per )a(ita
States 2ise Per )a(ita
)onsu#(tion of sugar
)onsu#(tion of sugar
State State 06$0% 06$0%
Uttar Prad!s# Uttar Prad!s# 35)2 35)2
@a#aras#tra @a#aras#tra >.)- >.)-
Aarnata/a Aarnata/a 23)3 23)3
Ta$i0 Nadu Ta$i0 Nadu 2-), 2-),
Gu3arat Gu3arat >.)- >.)-
Haryana Haryana <?)5 <?)5
Pun3a' Pun3a' ;,)5 ;,)5
T#! cnsu$%tin " *#it! sugar in (ndia is g!n!ra00y ur'an 'as!d5
in rura0 ar!as t#! a0t!rnat! s*!!t!n!rs Gur and /#andsari ar!
cnsu$!d %r!d$inat!0y) T#! %!r ca%ita sugar cnsu$%tin is
#ig# in t#! stat!s " Pun3a' "00*!d 'y Haryana and @a#aras#tra)
T#is is du! t #ig#!r GDP and #ig#!r inc$! 0!4!0 " t#at stat!s)
1lobal Situation
1lobal Situation

Sugar Prduc!d in ,22 :untri!s5 Sugar Prduc!d in ,22 :untri!s5

Cut " ,22 :untri!s <; %rduc! sugar "r$ can! and 55 Cut " ,22 :untri!s <; %rduc! sugar "r$ can! and 55
"r$ '!!t) "r$ '!!t)

;? %!r c!nt " t#! sugar %rduc!d in t#! *r0d is cr!at!d ;? %!r c!nt " t#! sugar %rduc!d in t#! *r0d is cr!at!d
"r$ sugarcan!5 *it# '!!t sugar accunting "r t#! r!st "r$ sugarcan!5 *it# '!!t sugar accunting "r t#! r!st. .

Sugar is a *id!0y trad!d c$$dity) Sugar is a *id!0y trad!d c$$dity)

7orld Sugar Produ)tion
7orld Sugar Produ)tion
Country8Region -00%$0 -006$0% -00"$06 -00!$0" -00,$0!
2ra+i0 3>)23 32)<> 32)<> 2;);3 2<),>
(ndia 2?)5 3.);; 2.)-> ,3)? ,>);>
EU ,;)>5 ,;)3? 2,).3 2,)-5 2.)2,
:#ina ,3)5- ,3).> -)5? -)?< ,.)-
USA ;)<< ;)<< <);, ;),5 ;)?5
T#ai0and ;)?- ;).3 5).? 5)>3 ;)2?
@!1ic 5)5? 5)5> 5)5 < 5)3<
Su'&tta0 T% ; ,,>)- ,,>).< ,.,)>? -,)-2 -2)>?
D " Tta0 Er0d <?)..D <?)3.D <;),.D <5),.D <>)3.D
Ct#!rs 53)-? 52)- >-);- >-),? 5,)2?
Er0d Tta0 ,<?)?; ,<<)-5 ,5,)2; ,>,).- ,>3);5
.t
Non$finan)ial Analysis of Indian
Non$finan)ial Analysis of Indian
sugar Industry
sugar Industry

S7OT Analysis S7OT Analysis

Porters fi*e for)es analysis Porters fi*e for)es analysis

S7OT Analysis
S7OT Analysis

Strengt0
Strengt0

(ndian Sugar (ndustry %r4id! an !ss!ntia0 (ndian Sugar (ndustry %r4id! an !ss!ntia0
c$$dity "r Trading 6 E1%rt c$$dity "r Trading 6 E1%rt. .

(ndian Sugar (ndustry #!0%s in sci&!cn$ic (ndian Sugar (ndustry #!0%s in sci&!cn$ic
d!4!0%$!nt in rura0 (ndia) d!4!0%$!nt in rura0 (ndia)

Di4!rsi"i!d cr%s and cr%%ing syst!$s Di4!rsi"i!d cr%s and cr%%ing syst!$s

(rrigatin Pt!ntia0ity (rrigatin Pt!ntia0ity

Strng g4!rn$!nt Su%%rt) Strng g4!rn$!nt Su%%rt)

7ea9nesses
7ea9nesses

C0d t!c#n0gy using C0d t!c#n0gy using

L* insta00!d %rductin ca%acity L* insta00!d %rductin ca%acity

Lac/ " %r"!ssina0is$ Lac/ " %r"!ssina0is$

Unr!0ia'0! *!at#!r Unr!0ia'0! *!at#!r

Lac/ " =6D Su%%rt and inad!Fuat! train!d Lac/ " =6D Su%%rt and inad!Fuat! train!d
#u$an r!surc! #u$an r!surc!

P#ysica0 in"rastructur! P#ysica0 in"rastructur!

O((ortunities
O((ortunities

T!c#n0gy u% gradatin5 n!* ad4anc!d T!c#n0gy u% gradatin5 n!* ad4anc!d

t!c#n0gy a4ai0a'0! "r t#! 'y%rduct t!c#n0gy a4ai0a'0! "r t#! 'y%rduct
uti0i+atin) uti0i+atin)

N!* 4ari!ty N!* 4ari!ty

T0reats
T0reats

Sugar s!ctr is 4u0n!ra'0! t %0itica0 int!r!st) Sugar s!ctr is 4u0n!ra'0! t %0itica0 int!r!st)

Grund *at!r a4ai0a'i0ity Grund *at!r a4ai0a'i0ity

Far$!rs ar! di4!rt!d in cr% *#ic# r!Fuir!d 0!ss Far$!rs ar! di4!rt!d in cr% *#ic# r!Fuir!d 0!ss
irrigatin irrigatin
Porter:s fi*e for)es analysis
Porter:s fi*e for)es analysis

T0reat of Substitutes
T0reat of Substitutes

L*

S#ar! " Tr!ac0! and /#andsari d!c0ining

;arriers to <ntry
;arriers to <ntry

@!diu$

T#! G4t) us!d t gi4! inc!nti4!s t s!t u% n!*

%0ants 'y granting #ig#!r "r!! sa0!s Futa "r t#!
"irst "i4! t !ig#t y!ars " %!ratins t#at #ad 0!d t
$us#r$ing " s$a00 units

;argaining Po2er of ;uyers

;argaining Po2er of ;uyers

Li$it!d

G4t) in"0u!nc!s distri'utin5 %urc#as! %ric! " 0!4y

sugar and t#! "r!! sa0! Futa r!0!as!s "r sugar

;argaining Po2er of Su((liers

;argaining Po2er of Su((liers

Hig#

As t#! G4t) a00cat!s t#! ar!a "r$ *#!r! t#!

sugarcan! can '! %rcur!d and annunc!s t#!
%urc#as! %ric! 8S@PGSAP95 it %rt!cts t#! int!r!st "
t#! sugar can! "ar$!rs

Inter =ir# Ri*alry

Inter =ir# Ri*alry

(nt!ns!
Con)lusion
Con)lusion

(n sugar (ndustry G4t #as %!r"r$ a $r! %art '!caus! G4t (n sugar (ndustry G4t #as %!r"r$ a $r! %art '!caus! G4t
cntr0 t#! (ndustry) cntr0 t#! (ndustry)

2ut t#!y ar! nt %r%!r "cus n t#!ir $anag!$!nt s '!caus! 2ut t#!y ar! nt %r%!r "cus n t#!ir $anag!$!nt s '!caus!
" t#is 0ts " $i00s ar! nt *r/ing5 " t#is 0ts " $i00s ar! nt *r/ing5

G4t #as "cus n nt a incr!as!d a N " $i00 'ut "cus n G4t #as "cus n nt a incr!as!d a N " $i00 'ut "cus n
t#!ir %rductin r ar!a) 2!caus! in india "!* stat!s ar! t#!ir %rductin r ar!a) 2!caus! in india "!* stat!s ar!
%rduc!d $r! sugar and t#!r stat!s cntri'utin is nt $r! %rduc!d $r! sugar and t#!r stat!s cntri'utin is nt $r!
s G4t #as try t incr!as!d t#!ir cntri'utin 0!4!0 "r sugar s G4t #as try t incr!as!d t#!ir cntri'utin 0!4!0 "r sugar
%rductin) %rductin)

Suc# "indings n "inancia0 ana0ysis *! cnc0ud! ass!ts is Suc# "indings n "inancia0 ana0ysis *! cnc0ud! ass!ts is
incr!as!d and (n4!st$!nt %!r"r$ a $r! %art "r it s incr!as!d and (n4!st$!nt %!r"r$ a $r! %art "r it s
industry us! t#is (n4!st$!nt in a %r%!r *ay industry us! t#is (n4!st$!nt in a %r%!r *ay

(ndustry #as try t d!cr!as!d t#!ir 0ia'i0iti!s "r gr*t# " (ndustry #as try t d!cr!as!d t#!ir 0ia'i0iti!s "r gr*t# "
industry and incr!as!d t#! %r"ita'i0ity) industry and incr!as!d t#! %r"ita'i0ity)

Suc# "indings n "inancia0 ana0ysis *! cnc0ud! ass!ts is Suc# "indings n "inancia0 ana0ysis *! cnc0ud! ass!ts is
incr!as!d and (n4!st$!nt %!r"r$ a $r! %art "r it s incr!as!d and (n4!st$!nt %!r"r$ a $r! %art "r it s
industry us! t#is (n4!st$!nt in a %r%!r *ay industry us! t#is (n4!st$!nt in a %r%!r *ay

Suc# "indings n "inancia0 ana0ysis *! cnc0ud! ass!ts is Suc# "indings n "inancia0 ana0ysis *! cnc0ud! ass!ts is
incr!as!d and (n4!st$!nt %!r"r$ a $r! %art "r it s incr!as!d and (n4!st$!nt %!r"r$ a $r! %art "r it s
industry us! t#is (n4!st$!nt in a %r%!r *ay industry us! t#is (n4!st$!nt in a %r%!r *ay

(ndustry #as try t d!cr!as!d t#!ir 0ia'i0iti!s "r gr*t# " (ndustry #as try t d!cr!as!d t#!ir 0ia'i0iti!s "r gr*t# "
industry and incr!as!d t#! %r"ita'i0ity) industry and incr!as!d t#! %r"ita'i0ity)

(n (ndustry "0* " cas# #ig# in %!rating is *!00 'ut a0s (n (ndustry "0* " cas# #ig# in %!rating is *!00 'ut a0s
(ndustry #as a0s "cus n (n4!st$!nt acti4ity and t#!ir (ndustry #as a0s "cus n (n4!st$!nt acti4ity and t#!ir
!1%ansin acti4ity) !1%ansin acti4ity)

(ndustry #as "cus n t#!ir industry rati '!caus! t#!y (ndustry #as "cus n t#!ir industry rati '!caus! t#!y
a""!ct n t#!ir gr*t#5 a""!ct n t#!ir gr*t#5

(ndustry #as try t *r/ "r t#!ir rat! " r!turn n t#!ir N!t (ndustry #as try t *r/ "r t#!ir rat! " r!turn n t#!ir N!t
*rt#5 ca%ita0 !$%0y!d5 and N!t tta0 ass!ts and a0s t#!ir *rt#5 ca%ita0 !$%0y!d5 and N!t tta0 ass!ts and a0s t#!ir
%r"ita'i0ity a0s) %r"ita'i0ity a0s)

(ndia is a s!cnd 0arg!st cuntry in t#! *r0d "r (ndia is a s!cnd 0arg!st cuntry in t#! *r0d "r
%rductin " sugar n0y 'ut t#!ir gr*t# is r!turn r %rductin " sugar n0y 'ut t#!ir gr*t# is r!turn r
%r"ita'i0ity is 0!ss as c$%ar! t t#!r cuntry) %r"ita'i0ity is 0!ss as c$%ar! t t#!r cuntry)

Thank you
Thank you