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Shree Renuka Sugars Ltd Corporate Presentation Shree Renuka Sugars Ltd Corporate Presentation Presentation Transcript

  • power Shree Renuka Sugars Ltd Corporate Presentation ethanolsugar
  • sugar § About Shree Renuka Sugars Ltd • Background • Production and Refining Capacity § Indian Market • Indian Sugar Policy • Indian Fuel Ethanol • Ethanol Blending Program § Brazil Operations • Vale do Ivai • Renuka do Brasil S/A previously known as Equipav § Financial Results
  • sugar § About Shree Renuka Sugars Ltd • Background • Production and Refining Capacity § Indian Market • Indian Sugar Policy • Indian Fuel Ethanol • Ethanol Blending Program § Brazil Operations • Vale do Ivai • Renuka do Brasil S/A previously known as Equipav § Financial Results
  • About Shree Renuka Sugars Ltdo Transnational agribusiness & bio-energy corporationo 5th largest sugar producer in the world & one of the largest refiners globallyo Leading manufacturer of sugar in India, the world’s largest market • Operates 7 sugar mills with a total crushing capacity of 35,000 tons crushed per day • Two large port based sugar refineries with capacity 1.7 mn tons per annumo Significant presence in South Brazil, the most cost-efficient & scalable production area • Total cane crushing capacity of 14 mn tonso Market capitalization of 1,395 mn USD as on 15th Nov, 2010 Brazil India 4
  • Key Businesses Sugar Indian integrated Cane Ethanol Processing Power o India importing sugar : Import raw sugar, sell refined sugar locally India-based, Asian refining o India exporting sugar : Refine local raw sugar, sell internationally o Tolling operation : Import & re-export to capture white premium Sugar Brazil plantation and Integrated Ethanol processing Power 5
  • SRSL Production Capacities - India Cane Crushing Ethanol Sugar Refining Power 2010 35,000 (tcd) 930 KLPD 6,000 TPD 203MW (111MW 7.1 mn tons/yr Surplus) Cane Crushing Ethanol Sugar Refining Power 2011 35,000 (tcd) 1,200 KLPD 9,000 TPD 233MW (135MW 7.1 mn tons/yr Surplus) 6
  • Sugar Refining – Asia Wide Coverage Middle East Kandla Haldia East Africa West Coast South East Asia 7
  • sugar § About Shree Renuka Sugars Ltd • Background • Production and Refining Capacity § Indian Market • Indian Sugar Policy • Indian Fuel Ethanol • Ethanol Blending Program § Brazil Operations • Vale do Ivai • Renuka do Brasil S/A previously known as Equipav § Financial Results
  • Indian Sugar Policyo Indian Sugar Export Policy • Exports were restricted due to deficit in the past few years • Advanced License Scheme for G2G is allowed • Advanced License Scheme for T2T is allowed subject to timing & release ordero Open General License • Expected between 500,000 MT to 1,000,000 MT • Depends on Government policy based on actual production 9
  • Sugar Supply and Demand (Figures in mn tons) 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11E Opening Stock as on 1st Oct 8.50 4.60 4.00 10.60 10.20 4.20 5.60 Production during the Season 12.70 19.20 28.30 26.50 14.60 18.80 25.50 Imports 2.00 0.10 - - 2.60 4.10 -Total Availability 23.20 23.90 32.30 37.10 27.40 27.10 31.10Off-takeI) Internal Consumption 18.50 18.80 20.50 22.00 23.00 21.20* 23.00II)Exports 0.10 1.10 1.20 4.90 0.20 0.30 3.00Total offtake (I) + (II) 18.60 19.90 21.70 26.90 23.20 21.50 26.00Closing Stock as on 30th Sept. 4.60 4.00 10.60 10.20 4.20 5.60 5.10Months of Inventory 2.98 2.55 6.20 5.56 2.19 3.43 2.60 * despatched sugar quantity, variation due to squeezing of pipeline stocks 10
  • Sugar Price Comparison 4,000 World White Sugar Indian White Sugar World Raw Sugar 3,500 3,000in Rs. /Quintal 2,500 2,000 1,500 1,000 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 11
  • Indian Fuel Ethanolo Indian Fuel Ethanol Policy • Current gasoline blend prescribed is 5% but supply is a constraint • Technical clearance for a blend upto 10% in all existing vehicles • Ethanol price provisionally fixed at Rs. 27 per litre to start with • Price will be set by an independent expert committee thereon • Amount of Ethanol required for a 5% blend is 1,050 mn litres per annum growing at 10%+ • Long Term Bio-fuel policy - § 20% blending of Ethanol (E20) intended by 2017o Alcohol Markets in India (in mn litres) Sector 2009-10 2010-11 (E) Potable 1,100 1,200 Chemical 400 400 Fuel* 300 1,050 Total 1,800 2,650 * At 5% blend Source: Company Estimates 12
  • Ethanol Blending Program o EOI called to supply ethanol to 19 states @ 5% blend: Interim rate fixed ex-works Rs. 27/litre Quantity required 1,051 mn litres EOI period 1 year upto end of September, 2011 o Update on the EOI: Offered quantity from the suppliers 1,011 mn litres Quantity approved for blending 717 mn litres Orders placed 580 mn litres o Only indigenously manufactured ethanol was approved by OMCs o SRSL received LOI to supply 118 mn litres 13
  • sugar § About Shree Renuka Sugars Ltd • Background • Production and Refining Capacity § Indian Market • Indian Sugar Policy • Indian Fuel Ethanol • Ethanol Blending Program § Brazil Operations • Vale do Ivai • Renuka do Brasil S/A previously known as Equipav § Financial Results
  • Brazil Operationso Shree Renuka is the second largest buyer of raw sugar world-wide since 2009 and buys 100% of its requirements from Brazilo Shree Renuka has acquired two companies in Brazil • Vale do Ivai is a wholly owned subsidiary of SRSL • SRSL owns 50.34% of the Renuka do Brasil S/A • Combined crushing capacity of 14 mn Captioning image tons (under expansion to 15.5 mn mt)o Total inward investment in Brazil so far is USD 350 mn 15
  • SRSL Production Capacities - Brazil Cane Crushing Ethanol Raw Sugar Power 2010 59,520 (tcd) 5, 310 KLPD 4,315 TPD 221 MW (139 MW 13.6 mn tons/yr 1,062 mn litres/yr 863,000 tons/yr Surplus) Cane Crushing Ethanol Raw Sugar Power 2011 71,720 (tcd) 6,910 KLPD 5,750 TPD 313 MW (215 MW 15.5 mn tons/yr 1,382 mn litres/yr 1,150,000 tons/yr Surplus) 16
  • Synergy of Brazil Investment With Asiao Asian demand • India, South Asia and the Middle East emerging as the largest sugar import markets in the world with increasing challenges of land and water availabilityo Efficient farming and manufacturing in Brazil • Sugar/ ethanol sector in Brazil has low operating cost, high scalability and highly conducive climatic conditions • Ability to cultivate significant Captioning image portion of cane supply allows capture of value of the agricultural part of the business 17
  • Vale do Ivai Captioning image 18
  • About Vale do Ivaío Vale do Ivaí has two mills in the state of Parana, Brazil with surrounding cane plantationso Currently the company has an installed crushing capacity of 3.1 mn tons in two mills: São Pedro do Ivaí (PR) & Cambuí (PR)o The average distance between VDI processing plants and sugarcane farms is around 14 km, a decided logistics advantageo Vale do Ivaí is located close to ethanol distributors and the Port of Paranagua (551 km)o Vale do Ivaí owns equity in four logistics organizations that contribute to make it very competitive for export logistics 19
  • Operational Performance of Vale do Ivaí Particulars Jul-10 to Sep-10 Jul-09 to Sep-09 (%) Variation Sugarcane Crushed (tons) 676,865 465,869 45% ATR (kg/ tons) 135.90 124.90 9% Sugar produced (tons) 68,494 33,984 102% Ethanol Produced (m3) 16,788 15,093 11% Captioning image Molasses Produced (tons) 7,552 3,009 151%As of 10th Nov 2010: Cane Crushed(mn mt): 1.44, Sugar(mt): 126,424, Ethanol(m3)21,876, Molasses (mt): 13,182 Captioning image 20
  • Renuka do Brasil S/A Captioning image 21
  • About Renuka do Brasil S/Ao Shree Renuka Sugars Ltd has acquired a controlling equity stake of 50.34% in Renuka do Brasil S/A for an investment of R$ 450 mn (USD 250 mn)o Renuka do Brasil S/A is one of the largest sugar/ethanol companies in Sao Paulo state in Southeast Brazil with two very large and modern mills with integrated cogeneration capacityo Combined cane crushing capacity of 10.5 mn tons of cane per annum (44,400 tcd) & a co-generation capacity of 203 MW Revati Brejo Alegre - SPo The mills will be expanded to a combined capacity of 12.0 mn tons (56,600 tcd) per annum and 295 MW with a capital expenditure of R$ 218 mno Name of the Biopav mill has been changed to Revati 22
  • Operational Performance of Renuka do BrasilParticulars Jul-10 to Sep-10 Season till 30-Sep-2010Crushed (t) 3,165,870 6,325,072Sugar (t) 228,662 393,948VHP (t) 133,177 295,366White (t) 95,485 98,582Ethanol (m3) 139,139 258,639 Captioning imageHydrous 46,549 94,734Anhydrous 92,589 163,904Energy Exported (MWh) 138,735 257,174Yeast (t) 2,588 4,520ATR (Kg/t) 147.9 132.6As of 10th Nov 2010: Cane Crushed(mn mt): 7.44 , VHP Sugar(mt): 355,781, White Captioning imageSugar(mt): 107,001 Ethanol(m3): 308,453 23
  • Crushing Capacity ranking in BrazilCrushing Capacity (mmt) – 2009-10 60 23 other Cosan 60 50 companies with ETH + Brenco 37 crushing 40 capacity of 12 Louis Dreyfus 36 mmt to 4 mmt 30 Guarani 21 20 Usaacusar 17 Bunge 16 10 Renuka (post expansion) 15.5 0 Renuka (Current) 14 Coruripe Renuka (Current) Bunge Lincoln Junqueira Cosan Sao Martinho Guarani Renuka (post expansion) Usaacusar ETH + Brenco Louis Dreyfus Lincoln Junqueira 13 Sao Martinho 13 Coruripe 13 Source: Itau BBAShree Renuka Sugars is the seventh largest by crushing capacity in Brazil 24
  • sugar § About Shree Renuka Sugars Ltd • Background • Production and Refining Capacity § Indian Market • Indian Sugar Policy • Indian Fuel Ethanol • Ethanol Blending Program § Brazil Operations • Vale do Ivai • Renuka do Brasil S/A previously known as Equipav § Financial Results
  • Financial Results (Rs. in mn) EBITDA 80,000 Total Revenues FY06 1,664 FY07 1,496 for FY10 is 70,000 Rs. 78,639 mn FY08 2,678 FY09 4,721 60,000 FY10* 14,145 50,000 PAT 40,000 FY06 1,205 FY07 830 30,000 FY08 1,339 FY09 2,235 20,000 FY10* 6,922 10,000 TOTAL REVENUES 0 FY06 11,111 FY07 9,682 FY 06 FY 07 FY 08 FY 09 FY 10* FY08 21,295 FY09 28,225 EBITDA PAT Total Revenues FY10* 78,639Note: Financial Year: Oct-Sept * Unaudited Financial Results 26
  • Consolidated – P & L (Rs. in mn) FY 10* FY 09 FY 08 FY 07 FY 06 Total Revenues 78,639 28,225 21,295 9,682 11,111 EBITDA 14,145 4,721 2,678 1,496 1,664 Interest 2,870 1,077 701 180 188 Depreciation 2,586 676 369 249 89 PBT 8,689 2,968 1,608 1,066 1,388 PAT 6,922 2,235 1,339 830 1,205 EPS 10.66 7.80 4.31 33.01 51.34 Note: Financial Year: Oct-Sept Face Value Re.1 * Unaudited Financial Results Bloomberg Symbol- SHRS:IN Reuters Symbol - SRES.BO, SRES.NS NSE Symbol – RENUKA.NS BSE Symbol - 532670 27
  • Consolidated – Balance Sheet (Rs. in mn) FY 09 FY 08 FY 07 FY 06 SOURCES OF FUNDS Shareholders’ Funds Share capital 523 507 311 238 Reserves and surplus 14,779 7,829 4,128 2,782 Net Worth 15,301 8,336 4,439 3,020 Minority interests 147 533 – – Loan Funds (Secured & Unsecured) 13,427 8,595 6,470 3,711 Deferred Tax Liability 821 467 202 57 Total 29,697 17,931 11,111 6,788 APPLICATION OF FUNDS Net block (Fixed Assets) 14,149 7,516 5,623 1,194 Capital work-in-progress 2,585 5,212 2,087 3,323 Investments 477 310 161 - Net Current Assets 12,459 4,877 3,218 2,195 Other Expenditure 28 16 22 76 Total 29,697 17,931 11,111 6,788 * Unaudited Financial Results 28
  • Results for Q4FY10 – Consolidated (Rs. in mn) Year Ended Year Ended Quarter Ended Quarter Ended Particulars 30.09.2010 30.09.2009 30.09.2010 30.09.2009 (Unaudited) (Audited) Total income 25,712 10,876 78,639 28,225 Total expenditure 21,180 9,238 64,494 23,504 EBITDA 4,532 1,638 14,145 4,721 Interest 1,670 203 2,870 1,077 Depreciation 1,600 197 2,586 676 Profit before tax 1,262 1,238 8,689 2,968 Profit after tax 1,401 1,009 7,161 2,248 Profit after minority interest 1,171 1,020 6,924 2,243 Profit after prior period adjustments 1,169 1,012 6,922 2,235 Earnings per share (EPS) 1.75 3.41 10.66 7.80 29
  • Results for Quarter ended 30.9.2010 – VDI (Rs. in mn) Particulars Quarter Ended 30.09.2010 Total income 1,960 Total expenditure 1,161 EBITDA 799 Interest 222 Depreciation 311 Profit before tax 267 Profit after tax 229 30
  • Results for Quarter ended 30.9.2010 – Renuka do Brasil (formerly Equipav S/A) (Rs. in mn) Particulars Quarter Ended 30.09.2010 Total income 6,928 Total expenditure 4,297 EBITDA 2,631 Interest 1,155 Depreciation 1,046 Profit before tax 430 Profit after tax 471 Profit after minority Interest 237 Profit after prior period adjustments 237 31
  • Shareholding Pattern As on 30th September, 2010 (%) Founders 37.95 Foreign Institution Investors 25.34 Financial Institutions/Banks/ Mutual Funds 8.17 General Public 24.64 Development Foundation and Employees Trust 3.90 32
  • power Shree Renuka Sugars Ltd THANK YOU Corporate Office ethanol 7th Floor, Devchand House Shiv Sagar Estate, Dr. Annie Besant Road, Worli, Mumbai-400 018.sugar Tel: +91-22-2497 7744 / 4001 1400 Fax: +91-22-2497 7747 www.renukasugars.com