The Indian sugar industry has an annual production capacity of over 30 million metric tons and is the second largest producer of sugar in the world after Brazil. EID Parry is a major Indian sugar company with sugar accounting for 72.9% of its total revenue. It operates sugar mills and distilleries at eight locations in India and produces raw sugar, refined sugar, and ethanol. EID Parry also has power generation, bi pesticide, and nutraceutical business segments. The Indian sugar industry is expected to reach 1,033.5 billion INR by 2020 and major players include EID Parry, Balrampur Chini, Bajaj Hind, Shree Renuka, and Sakthi.

1. Industry Scenario:
Indian Sugar Industry-
• Annual production capacity of over 30 million metric ton
(MMT).
• Indian Sugar Industry (ISI) is the second largest producer of
sugar in the world after Brazil.
• It is also the second largest agro-based industry in the country
after cotton.

2.  Sector:
 The sugar industry can be divided into two sectors:
organized and unorganized sector.
 Sugar factories belong to the
organized sector.
 Factories who produce traditional sweeteners fall
into unorganized sector.

3.  PERFORMANCE OF BUSINESS SEGMENTS:
 Sugar Accounted for 72.9% of total revenue for Eid-
parry.

4.  EID Parry’s Products-
 Raw sugar, Plantation white sugar and Refined sugar

5.  Power Segment:
 Power Co-generation plants at Nellikuppam,
Pugalur and Pudukottai continued to export power
under Short Term Open Access (STOA) during the
year.
 During the year, the company obtained
Environmental clearance for expansion of its Cogen
plant at Pudukottai from 15.5 MW to 19.5 MW.

6.  Sugar Plants and Distilleries:
 E.I.D-Parry has factories at eight locations.
 Distillery:
 The company produced 657.42 Lakh Litres of alcohol
during the year 15-16.
 An increase of 2% over the previous year
 During the year 15-16, the company has sold 130 Lakh
Litres of Ethanol.

7.  Bio-Pesticides:
 Parry’s is one among the few company in the world to have
successfully extracted Azadirachtin, (AZA) a key liminoid
from neem seeds.
 The ’Neemazal’ brand of products, using high purity AZA
technical pioneered a new concept in bio-pesticides.
 Domestic sales registered a growth of 15% over 2014-15
enabled by growth of Aza & Non Aza products.

8.  Nutraceuticals:
 Parry Nutraceuticals is one of your best sources of
micro-algal health supplements.
 The Nutraceuticals Division launched Organic Chlorella,
a dietary supplement which helps in Detoxification,
Tissue regeneration and Healthy ageing
 Parry’s is also the largest manufacturer of tomato
lycopene in India.

9.  Market Size:
 The Indian Sugar Industry accounted for more than 15% of
the total world sugar production in last 5 years .
 Around 700 sugar mills
installed. (530 operational)
 In last 5 years,
India has continuously produced
surplus sugar.

10.  Market Share by Revenue:
 “Shree Renuka Sugars” is one of the largest producer of sugar
in the country.

11.  Market Growth:
 The sugar industry in India is expected to reach INR
1,033.5 billion by FY’2020

12.  Key Players & Parry’s Major Competitors:
NAME LAST
PRICE
M-CAP NET
PROFIT
TOTAL
ASSET
EID Parry 250.85 4,411.72 -66.45 2,100.02
Balrampur
Chini
112.80 2,763.68 99.42 2,731.54
Bajaj Hind 14.45 1,637.99 -114.28 8,741.67
Shree
Renuka
13.40 1,244.61 -285.30 6,496.24
Sakthi 29.90 355.36 -55.07 1,178.06

13.  Factors affecting the Sugar Industry:
Environment:
 In order to reduce pollution hazards, industry is implementing
“Environment management system” (EMS) to improve economic
and environmental performance of sugar processing unit
Technology:
 Advanced technologies in Indian market made the sugar
production processes enhanced.
 R&D centers have been established for product innovation
Government:
 The industry operates under strict legal regulations.
 Although in some cases it affects the industry and producers.
Socio Economic:
 It includes Income levels of consumers.
 Purchasing power of people.
 Cost of plant setup.
 Industry wage rates