The recent lifting of the ban on ethanol production from sugar marks a significant turning point for the sugar industry, presenting a ripe opportunity for growth. 🔄 India’s noteworthy position as one of the top three sugar producers globally amplifies the impact of this development.
Sugar plays a multifaceted role in daily life. 🍬 From sweetening soft drinks to being an essential ingredient in the iconic “Chai” (tea) and various delectable sweets, its influence is pervasive. Beyond the kitchen, sugar extends its utility into the realm of health, contributing to medicine coatings and offering remedies for hiccups and bee stings. 🏥🍯
In this article we will discuss about best sugar stocks in india. 🌱🏭
Table of Contents
Sugar Industry
- Sugar Industry Overview 🌾:
- The second-largest agro-based industry in India is the sugar sector.
- It supports around 50 million farmers.
- Employment Impact 💼:
- The sugar sector directly employs over 6 lakh people.
- It indirectly supports a significant number of additional jobs.
- Global Presence 🌍:
- India is the world’s second-largest sugar producer after Brazil.
- The nation produced a substantial 29 million metric tons of sugar.
- Top Producing States 🏞️:
- Maharashtra, Gujarat, Bihar, Andhra Pradesh, Haryana, Karnataka, Punjab, Uttar Pradesh, and Tamil Nadu are the top nine sugar-producing states in India.
- Leading Producer 🥇:
- Maharashtra holds the position of the leading sugar producer among these states.
- Raw Material Breakdown 🌿:
- 20% of sugar production comes from sugar beet.80% is extracted from sugarcane, which is the primary source of sugar in India.
- Price Dynamics 💹:The erratic nature of sugar output directly influences the price of sugar in the market.
Top 10 Sugar Stocks by Market Cap
Data is as on 22 Dec 23. source : screener.in
| Name | Market Cap(₹ in crore) | ROE | ROCE |
|---|---|---|---|
| Shree Renuka Sugars Ltd | ₹ 10,046 | — | 9.41 % |
| EID Parry (India) Ltd | ₹ 9,994 | 16.25 % | 27.36 % |
| Balrampur Chini Mills Ltd | ₹ 7,846 | 10.01 % | 10.42 % |
| Triveni Engineering and Industries Ltd | ₹ 7,248 | 23.28 % | 17.53 % |
| Bajaj Hindusthan Sugar Ltd | ₹ 3,563 | – 4.04 % | 0.91 % |
| Dalmia Bharat Sugar & Industries Ltd | ₹ 3,267 | 9.73 % | 12.17 % |
| Bannari Amman Sugars Ltd | ₹ 3,159 | 9.64 % | 11.93 % |
| Dhampur Sugar Mills Ltd | ₹ 1,660 | 16.64 % | 15.22 % |
| Dwarikesh Sugar Industries Ltd | ₹ 1,636 | 14.86 % | 15.46 % |
| Uttam Sugar Mills Ltd | ₹ 1,519 | 23.76 % | 19.11 % |
1. Shree Renuka Sugars Ltd
🏭🌾 Incorporated in 1995, Shree Renuka Sugars Ltd is passionately involved in the manufacturing and refining of sugar, ethyl alcohol, and ethanol. Additionally, the company actively contributes to the energy sector through the generation and sale of power. 🔄💡
KEY POINTS
- Business Overview: SRSL, a proud subsidiary of Wilmar Sugar Holdings Pte Limited—wholly-owned by the esteemed Wilmar International Limited—operates at the crossroads of Sugar, Ethanol, and Power. The company’s footprint spans integrated sugar mills and port-based refineries, solidifying its presence across diverse sectors. 🌐
- Product Profile:
- a) Sugar: Artfully crafting and presenting White/Refined Sugar, adorned with the distinguished brand name Madhur Sugars.
- b) Ethanol: Unleashing three distinct grades—Absolute Alcohol, Rectified Spirit, and Extra Neutral Alcohol—acclaimed across industries and embraced as a green bio-fuel. 🌿🚗
- c) Power: Championing the cause of renewable power production from sugarcane by-products, catering to both captive consumption and powering state grids. 🌱⚡
- d) Bhumadur Organic Manure: Cultivating organic goodness from sugarcane press mud and distillery spent wash, nurturing sustainable agriculture practices. 🌾🌿
- Export Countries: Extending its global embrace to Sudan, Ethiopia, Somalia, Bahrain, China, Afghanistan, UAE, Saudi Arabia, Malaysia, Nepal, Myanmar, Sri Lanka, Indonesia, Qatar, Tanzania, etc. 🌏✈️
2. EID Parry (India) Ltd
🏭🌱 EID Parry is a dynamic player engaged in the production of Sugar, Nutraceuticals, and ethanol. The company also holds a significant presence in the Farm Inputs business, specializing in Bio pesticides through its subsidiary, Coromandel International Limited. 💼🌾
KEY POINTS 🔑
- Business Segments & Revenue Split FY23:
- Sugar (~70%): Manufactures, sells, and markets sugar in various forms. Sales extend to trade, institutions, and consumers through retail channels.
- Distillery (22%): Engaged in the production and sale of distillery products such as R.S, E.N.A, Ethanol, etc.
- Cogeneration – Power (6%): Generates power through cogeneration, selling it to state government utilities, third parties, and electricity exchanges.
- Nutraceuticals (2%): Produces spirulina, a nutraceutical supplement rich in carotenoids, chlorophylls, micronutrients, and vitamins. 🌿💊
- Exports: Exports to 40 countries globally, contributing to ~6% of total revenues in FY23 (standalone).
3. Balrampur Chini Mills Ltd
Balrampur Chini Mills Limited Overview 🏭🌾
Founded in 1975, Balrampur Chini Mills Limited stands as one of India’s largest sugar manufacturing companies. Pioneering diversification, it was among the first in the country to expand its business scope from sugar to distillery and cogeneration.
Innovative Manufacturing Approach 🔄💡
Leveraging a deep sectorial understanding, the company’s innovative manufacturing approach has not only solidified its position in sugar production but also facilitated the creation of a diverse range of co-products. These include Molasses, Alcohol, Ethanol, and Bagasse, extending to Power Generation.
4. Triveni Engineering and Industries Ltd
Triveni Engineering and Industries Limited Overview
Home Businesses 🏠💼 LEADING CORPORATE 🌐 A diversified business conglomerate, Triveni Engineering and Industries Limited has proven its resilience in adapting to changing times and needs. As a fast-growing group, it is committed to delivering profitable growth and sustained value.
Principal Positioning 🌐📊
- Agriculture: Leading in sugar production, alcohol manufacturing, and power co-generation.
- Engineering: Excelling in water & wastewater treatment solutions, power transmission, and defense technologies.
Product Portfolio 🍚💎 comprehensive product portfolio that includes:
- Refined Sugar
- Multi-grade White Crystal Sugar
- Pharmaceutical Grade Sugar
- Potable Alcohol
- Fuel-Ethanol
- Power Generation from Bagasse
5. Bajaj Hindusthan Sugar Ltd
As India’s leading sugar and ethanol manufacturing powerhouse, Bajaj Hindusthan Sugar Ltd. (BHSL) plays a pivotal role in shaping the sweet and sustainable landscape of the nation. A key entity within the Bajaj Group, headquartered in Mumbai, Maharashtra.
Strategic Operations in Uttar Pradesh (UP) 🌐🏭 BHSL operates a network of 14 cutting-edge sugar plants exclusively in the northern Indian state of Uttar Pradesh (UP). Strategically positioned in key locations such as Gola Gokaran Nath, Palia Kalan, Khambharkhera, Barkhera, Kinauni, Gangnauli, Thanabhawan, Budhana, Bilai, Maqsoodapur, Pratappur, Rudauli, Kundarkhi, and Utraula, these plants form the backbone of its operations.
6. Dalmia Bharat Sugar & Industries Ltd
- Inception and Growth:Entered sugar business in mid-90s.First unit (2500 TCD) set up in Ramgarh, Uttar Pradesh, in 1994.
- Transformative Expansion (2006-2007):Established greenfield plants in Jawaharpur and Nigohi.Expanded facilities at the Ramgarh unit.
- Market Presence:High-quality sugar widely accepted in U.P. and Eastern India.Preferred supplier to industry giants like Coca-Cola, PepsiCo, Dabur.Exports to Indonesia, Malaysia, Bangladesh, Sri Lanka, and more.
7. Bannari Amman Sugars Ltd
🌾 Leading Sugar Manufacturer:Among the forefront sugar manufacturers in India.
🏭 State-of-the-Art Facilities:Operates three sugar factories with cogeneration plants in Tamil Nadu.Two sugar factories with co-generation plants in Karnataka.Two distillery units, one in Tamil Nadu and another in Karnataka.Granite processing unit in Tamil Nadu.
💨 Renewable Energy Ventures:Complements operations with windmills located in southern Tamil Nadu.
🌏 Geographical Presence: Strong foothold in both Tamil Nadu and Karnataka.
8. Dhampur Sugar Mills Ltd
🌾 Integrated Sugarcane Processing Pioneer: Leading the way in integrated sugarcane processing in India.
🔄 Diverse Portfolio Beyond Sugar: Expanding beyond sugar to include:
- Renewable power
- Fuel ethanol
- Alcohol
- Extra neutral alcohol
- Alcohol-based chemicals
- Bio-fertilizers.
Key Business Segments:
- 🍬 Sugar: Manufacture and sale of sugar and its byproducts.
- 🧪 Chemicals: Manufacturing and sale of Ethyl Acetate.
- 🌿 Ethanol: Production and sale of RS, ENA, and industrial alcohol.
- 🍶 Potable Spirits: Manufacture and sale of Country liquor.
- ⚡ Power: Co-generation and sale of power.
- 🛢️ Others: Sale of petrol and agricultural products.
Revenue Mix – FY23:
- 🍬 Sugar: 57%🍶 Potable Spirits: 17%🧪 Ethanol: 15%🌿 Chemicals: 8%⚡ Power: 1%
9. Dwarikesh Sugar Industries Ltd
🌾 Primary Engagements: Manufacturing sugar and allied products.
Key Product Portfolio:
- 🍬 Sugar: Core manufacturing focus.
- 🌱 Ethanol: And related products.
- ⚡ Power: Emphasizing sustainable energy
Revenue Mix – FY23:
🍬 Sugar: 72%⚡ Co-generation: 3%🧪 Distillery: 25%
Geographical Presence – FY23:
🏠 Domestic: 83%🌐 Overseas: 17%
10. Uttam Sugar Mills Ltd
- 🚀 Diverse Product Portfolio: Grown from Plantation white sugar to various forms.Offers Refined sugar, Liquid sugar, Specialty sugar, Pharmaceutical grade sugar.Proudly boasts 21 distinctive products.
- 🌏 Clients and Collaborations:Collaborations with leading Hotel chains (Taj, Lalit, Leela), retail giants (Amazon, Flipkart).Institutional partnerships with FMCG sector leaders: Rasna, Safal, Patanjali, Britannia, Cadbury, Heinz.
- 🌏 Widely Distributed Across India:Extensive distribution network covering Northern India, Central India, and parts of Western India (Rajasthan and Gujarat).Presence on shelves of major retail stores across the country.
Disclaimer
We are not Sebi registered advisor. This information is just for education and information purpose only. We do not claim the guarantee of returns. Please due research on your before investing in stocks. Stock are subject to market condition thus involves financial risks.
