628665 634243689071887500

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628665 634243689071887500

  1. 1. SHREE RENUKA SUGARS
  2. 2. COMPANY’s BRIEF <ul><li>SRS – largest sugar refining and ethanol producer in India </li></ul><ul><li>Founded in 1988, by IIM-A graduate Mr. Narendra Murkumbi </li></ul><ul><li>Installed production - 1.01 mn tonnes of sugar (2008-09) </li></ul><ul><li>Market Capitalization - Rs 4600 crore </li></ul>
  3. 3. INDIAN OPEATIONS <ul><li>Cane Crushing Operations- Karnataka & Maharastra </li></ul><ul><li>Refining capacity- 4000 tons per day (TPD) </li></ul><ul><li>Refineries Location - Coastal areas of Haldia </li></ul><ul><li>Largest ethanol producer - Contracting to supply upto 120 million tonnes of ethanol to OMC for 5% blending with petrol </li></ul>
  4. 4. COMPANY BRAZIL OPERATIONS <ul><li>SRS is the only Indian company to have international presence </li></ul><ul><li>Ventured in Brazil in 2009 by acquiring Vale Do Ivai S.A for EV of US $240 million. </li></ul><ul><li>The acquisition ensures company to procure annual 2 million tonnes (2010-11) onwards. </li></ul><ul><li>The acquisition gives company entry to the largest sugar and ethanol market in shortest possible time. </li></ul><ul><li>Recently acquired majority stake - Equipav </li></ul>
  5. 5. COUNTRIES OF OPERATION
  6. 6. INDIAN SUGAR MARKET <ul><li>Size – Rs 60,000 crore </li></ul><ul><li>Second largest global producer of sugar after Brazil </li></ul><ul><li>Largest sugar consumer of the world with sugar demand of 23 million tonnes </li></ul><ul><li>Major Cane States – U.P, Maharastra, Tamil Nadu </li></ul><ul><li>Almost all production is for self consumption. Last sugar exports in the country way back in 2006-07 </li></ul>
  7. 8. BRAZILIAN MARKET <ul><li>Brazil is the largest sugar producer in the world accounting for 20% of the world’s production </li></ul><ul><li>Sugar production has recorded CAGR of 5.7% in past 10 years. </li></ul><ul><li>Brazil also exports upto 60% of its production </li></ul><ul><li>Lowest cost raw sugar producer with the production cost of 15 cents/ pound of sugar </li></ul>
  8. 10. NEW DESTINATION - CHINA
  9. 11. CHINA ECONOMIC - OVERVIEW <ul><li>GDP ( Official Exchange rate) – U.S $4.909 trillion </li></ul><ul><li>GDP (PPP) – U.S $ 8.748 trillion </li></ul><ul><li>GDP( Real growth Rate) – 9.1% </li></ul><ul><li>GDP Per Capita - $6600 </li></ul><ul><li>Country’s Population – 1.3 billion people </li></ul><ul><li>Unemployment Rate – 4.3% </li></ul><ul><li>Population below poverty – 2.8% </li></ul><ul><li>Saving Rate – 54.8% </li></ul><ul><li>Inflation Rate - -0.7% </li></ul><ul><li>Commercial Bank Lending Rate – 5.58 % </li></ul><ul><li>Reserves of Foreign Exchange - $2.422 trillion </li></ul>
  10. 12. EXPLANING ECONOMIC DYNAMICS <ul><li>China GDP - U.S Dollar 4.909 trillion is the world second biggest economy in the world, next only to USA. </li></ul><ul><li>Country huge GDP can be attributed to year’s of economic expansion, wherein the nation has grown at CAGR of more than 10% in past 30 years. </li></ul>
  11. 13. <ul><li>The major contributor of this growth has been growth in industry and tertiary sector whose share (as % of GDP) has grown over the years, while that of primary sector has declined. </li></ul><ul><li>As on 2009- </li></ul><ul><li>Industry - 46.8% of GDP, Services - 42.6% of GDP Agriculture 10.6% of GDP </li></ul>
  12. 14. <ul><li>The growth of Chinese industry can be seen from Industrial production numbers issues by National Statistical Organization, China </li></ul>
  13. 15. <ul><li>The huge spurt in GDP has also raised GDP per capita of the nation to $ 6600 per person from $ 949 per person in 2000. </li></ul><ul><li>Growth however has been able to benefit a major section of society as can be seen from the reduction of population living below poverty line </li></ul>
  14. 16. CONCLUSION – WITH ECONOMICS <ul><li>Increasing GDP per capita + Domestic saving = Demand for discretionary expenditure </li></ul><ul><li>Food- manufacturing industry grew 15.7 percent in the first seven months of 2010 </li></ul><ul><li>The Beverage industry grew 13.6 percent in the same period compared with a year ago. </li></ul>
  15. 17. VERTICAL AND FOR FORWARD INTEGRATION <ul><li>BRAZIL – </li></ul><ul><li>Buy /Manufacture Sugar Lowest Cost Producer </li></ul><ul><li>INDIA – </li></ul><ul><li>Refine Sugar </li></ul><ul><li>Optimum Utilizations Of Refinery </li></ul><ul><li>China - </li></ul><ul><li>Sell Sugar- </li></ul><ul><li>Most Expensive Sugar Market </li></ul>
  16. 18. SUBMITTED BY: <ul><li>Vishal Singla </li></ul><ul><li>Navneet Behl </li></ul><ul><li>Saurabh Singh </li></ul><ul><li>Ankit Singhal </li></ul><ul><li>Shivani P. Upadhyaya </li></ul><ul><li>Jyoti Gautam </li></ul>

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