SHREE RENUKA SUGARSSHREE RENUKA SUGARS

COMPANY’s BRIEFCOMPANY’s BRIEF

SRS – largest sugar SRS – largest sugar refining and ethanol refining and ethanol producer in Indiaproducer in India

Founded in 1988, by Founded in 1988, by IIM-A graduate Mr. IIM-A graduate Mr. Narendra MurkumbiNarendra Murkumbi

Installed production - Installed production - 1.01 mn tonnes of 1.01 mn tonnes of sugar (2008-09)sugar (2008-09)

Market Capitalization Market Capitalization - Rs 4600 crore- Rs 4600 crore

INDIAN OPEATIONSINDIAN OPEATIONS

Cane Crushing Cane Crushing Operations- Karnataka Operations- Karnataka & Maharastra& Maharastra

Refining capacity- 4000 Refining capacity- 4000 tons per day (TPD)tons per day (TPD)

Refineries Location - Refineries Location - Coastal areas of HaldiaCoastal areas of Haldia

Largest ethanol Largest ethanol producer - Contracting producer - Contracting to supply upto 120 to supply upto 120 million tonnes of million tonnes of ethanol to OMC for 5% ethanol to OMC for 5% blending with petrolblending with petrol

COMPANY BRAZIL COMPANY BRAZIL OPERATIONSOPERATIONS

SRS is the only Indian company to have SRS is the only Indian company to have international presenceinternational presence

Ventured in Brazil in 2009 by acquiring Vale Ventured in Brazil in 2009 by acquiring Vale Do Ivai S.A for EV of US $240 million.Do Ivai S.A for EV of US $240 million.

The acquisition ensures company to procure The acquisition ensures company to procure annual 2 million tonnes (2010-11) onwards.annual 2 million tonnes (2010-11) onwards.

The acquisition gives company entry to the The acquisition gives company entry to the largest sugar and ethanol market in largest sugar and ethanol market in shortest possible time. shortest possible time.

Recently acquired majority stake - EquipavRecently acquired majority stake - Equipav

COUNTRIES OF OPERATIONCOUNTRIES OF OPERATION

INDIAN SUGAR MARKETINDIAN SUGAR MARKET

Size – Rs 60,000 croreSize – Rs 60,000 crore Second largest global producer of sugar Second largest global producer of sugar

after Brazil after Brazil Largest sugar consumer of the world with Largest sugar consumer of the world with

sugar demand of 23 million tonnessugar demand of 23 million tonnes Major Cane States – U.P, Maharastra, Tamil Major Cane States – U.P, Maharastra, Tamil

NaduNadu Almost all production is for self Almost all production is for self

consumption. Last sugar exports in the consumption. Last sugar exports in the country way back in 2006-07country way back in 2006-07

BRAZILIAN MARKETBRAZILIAN MARKET

Brazil is the largest sugar producer in the Brazil is the largest sugar producer in the world accounting for 20% of the world’s world accounting for 20% of the world’s productionproduction

Sugar production has recorded CAGR of Sugar production has recorded CAGR of 5.7% in past 10 years.5.7% in past 10 years.

Brazil also exports upto 60% of its Brazil also exports upto 60% of its productionproduction

Lowest cost raw sugar producer with the Lowest cost raw sugar producer with the production cost of 15 cents/ pound of production cost of 15 cents/ pound of sugarsugar

NEW DESTINATION - CHINANEW DESTINATION - CHINA

CHINA ECONOMIC - CHINA ECONOMIC - OVERVIEWOVERVIEW

GDP ( Official Exchange rate) – U.S $4.909 trillion GDP ( Official Exchange rate) – U.S $4.909 trillion GDP (PPP) – U.S $ 8.748 trillion GDP (PPP) – U.S $ 8.748 trillion GDP( Real growth Rate) – 9.1%GDP( Real growth Rate) – 9.1% GDP Per Capita - $6600 GDP Per Capita - $6600 Country’s Population – 1.3 billion peopleCountry’s Population – 1.3 billion people Unemployment Rate – 4.3% Unemployment Rate – 4.3% Population below poverty – 2.8%Population below poverty – 2.8% Saving Rate – 54.8% Saving Rate – 54.8% Inflation Rate - -0.7%Inflation Rate - -0.7% Commercial Bank Lending Rate – 5.58 %Commercial Bank Lending Rate – 5.58 % Reserves of Foreign Exchange - $2.422 trillion Reserves of Foreign Exchange - $2.422 trillion

EXPLANING ECONOMIC EXPLANING ECONOMIC DYNAMICSDYNAMICS

China GDP - U.S China GDP - U.S Dollar 4.909 trillion is Dollar 4.909 trillion is the world second the world second biggest economy in biggest economy in the world, next only to the world, next only to USA. USA.

Country huge GDP can Country huge GDP can be attributed to year’s be attributed to year’s of economic of economic expansion, wherein expansion, wherein the nation has grown the nation has grown at CAGR of more than at CAGR of more than 10% in past 30 years.10% in past 30 years.

The major contributor The major contributor of this growth has been of this growth has been growth in industry and growth in industry and tertiary sector whose tertiary sector whose share (as % of GDP) share (as % of GDP) has grown over the has grown over the years, while that of years, while that of primary sector has primary sector has declined. declined.

As on 2009- As on 2009- Industry - 46.8% of Industry - 46.8% of

GDP, Services - 42.6% GDP, Services - 42.6% of GDP Agriculture of GDP Agriculture 10.6% of GDP10.6% of GDP

The growth of Chinese industry can be seen from The growth of Chinese industry can be seen from Industrial production numbers issues by National Industrial production numbers issues by National Statistical Organization, ChinaStatistical Organization, China

The huge spurt in GDP The huge spurt in GDP has also raised GDP per has also raised GDP per capita of the nation to $ capita of the nation to $ 6600 per person from $ 6600 per person from $ 949 per person in 2000. 949 per person in 2000.

Growth however has Growth however has been able to benefit a been able to benefit a major section of society major section of society as can be seen from the as can be seen from the reduction of population reduction of population living below poverty lineliving below poverty line

CONCLUSION – WITH CONCLUSION – WITH ECONOMICSECONOMICS

Increasing GDP per Increasing GDP per capita + Domestic capita + Domestic saving = Demand for saving = Demand for discretionary discretionary expenditureexpenditure

Food- manufacturing Food- manufacturing industryindustry grew 15.7 grew 15.7 percent in the first percent in the first seven months of 2010 seven months of 2010

The Beverage The Beverage industryindustry grew 13.6 grew 13.6 percent in the same percent in the same period compared with a period compared with a year ago.year ago.

VERTICAL AND FOR FORWARD VERTICAL AND FOR FORWARD INTEGRATIONINTEGRATION

BRAZILBRAZIL – – Buy /Manufacture Buy /Manufacture

Sugar Lowest Cost Sugar Lowest Cost Producer Producer

INDIAINDIA – – Refine Sugar Refine Sugar Optimum Utilizations Optimum Utilizations

Of Refinery Of Refinery China China -- Sell Sugar- Sell Sugar- Most Expensive Sugar Most Expensive Sugar

Market Market

SUBMITTED BY:SUBMITTED BY:

Vishal SinglaVishal Singla Navneet BehlNavneet Behl Saurabh SinghSaurabh Singh Ankit SinghalAnkit Singhal Shivani P. Shivani P.

UpadhyayaUpadhyaya Jyoti GautamJyoti Gautam