India Sugar Market Research Report by Ken Research

Transcription

1 India Sugar Market Research Report by Ken Research (Trends, Growth, Share, Size and Future Outlook) Source: html

2 Key Topics Covered in the Sugar Report: Sugar Industry in India - Market Size by Revenue and Production Volume - Market Segmentation by o Region Wise Demand o By Utility o Types of Sugars o Types of Distribution Channel o By Organizational Structure - Trends and Development - Export and Import of Sugar - SWOT, Porter s Five Forces - Major Challenges - Government Regulations - Pricing Analysis - Growth Drivers - Cost of Setting up a Sugar Mill in India - India Sugarcane Industry - Competitive Landscape - Competition and Market Share - Future Outlook - Macro Economic Parameters

3 Companies Covered in the Report Balrampur Chini Mills Bajaj Hindusthan Ltd. Shree Renuka Sugars Triveni Engineering and Industries Source: html

4 India Sugar Market Introduction Sugar is derived from sugarcane which involves a lot of further processing in order to produce the final output that is sugar. It requires heavy machineries and substantial workforce to produce sugar from sugarcane. The sugar industry has been growing at a decent rate over the years with a CAGR of 5% for the period FY 2009-FY 2014 due to the rising sugarcane yield, rising exports, improving technological advancements. Other factors that are driving the sugar industry in India are the growing demand of Indian sugar along with better cyclicality management. The revenues generated by the sugar industry in India in FY 2009 was valued at INR ~ billion which later on grew at a rate of 25% with revenues generating at INR ~ billion in FY In FY 2014 the revenues generated by the sugar industry in India dropped to INR ~ billion as the average price dropped to INR ~/kg while sugar consumption was measured at ~ million tons. Source:

5 India Sugar Market Introduction This trend is the direct result of the increasing demand of the sugar produced in the country both domestically and internationally, continuous government support and rising expenditure on food and beverages by the people. Figure: India Sugar Industry by Revenue at INR Billion, FY 2009-FY 2018 India has the largest area under sugarcane cultivation but is a casualty of low yield due to lack of advanced technology and inefficiency in the production method. The sugar industry in India produced around ~ million tons of sugar in FY 2009 which increased to ~ million tons in FY 2010 at a growth rate of 28.8%. The production of sugar in the country in FY 2014 with the total output measured at ~ million tons with a negative growth of 5%. The CAGR for the period FY 2009-FY 2014 was measured at 10.9%.

6 India Sugar Market Segmentation Uttar Pradesh contributed ~% in sugarcane production in FY 2009 to ~% in FY 2014 of the total India sugar production with the total production standing to ~ million tons. Maharashtra is the second largest producer of sugarcane in India; the state accounts for only about ~ per cent of the production and almost the same percentage of the area of the country. Maharashtra contributed to ~% in FY 2009 to ~% in FY Karnataka is regarded as the third largest sugarcane producing state, with nearly 11% of sugarcane production and 8% of the available area for sugarcane cultivation in India. Karnataka contributed ~% in FY 2009 to ~% in FY 2014 of the total India sugar production with the production volume standing at ~ million tons in FY The other states in total accounted for about ~% of the total share. Source:

7 India Sugar Market Segmentation Figure: India Sugar Market Segmentation by Sugar Production in Major States on the basis of Contribution shares in Percentage (%), FY 2009-FY 2014

8 India Sugar Market Segmentation The organizational structure represents the ownership or the structure the sugar mill. There are more corporative mills in India than private and public with a total of ~ mills in India. The commercial sector contributed ~% of the revenue generated of the total sales of the sugar which stood up to INR ~ billion while the household sector only had a share of ~% with revenues generating at INR ~ billion in FY White sugar generates the maximum revenue in the India sugar industry with ~% contribution in the revenue with INR ~ billion followed by Refined and Raw sugar respectively. The commercial sector contributed ~% of the revenue generating sales of sugar worth INR ~ billion while the household sector only had a share of 32% generating at INR ~ billion in FY Table: India Sugar Industry Segmentation by Types of Sugar on the Basis of Revenue Generated in INR Billion, 2014 Types of Sugar White Sugar Refined Sugar Raw Sugar Total Revenue in INR Million, FY'2014

9 India Sugar Export Market The value generated by the exports of sugar in India has witnessed a lot of ups and downs over the years due to the ever rising domestic demand of the country. The economic slowdown had a major impact in FY 2010 as well as the total exports of India which declined by 3.5% in FY FY 2013 saw a slight decrease in the value generated by the export of sugar with revenues standing at INR ~ million at a negative growth of -1%. The value generated from the export of sugar in FY 2014 continued to decrease further with values estimated at INR ~ million. In FY 2014, there was a slight decline in the quantity exported with the quantity exported touching ~ million tons. Figure: India Sugar Exports by Value in INR Million, FY 2009-FY 2014

10 India Sugar Import Market Figure: India Sugar Imports by Value in INR Million, FY 2009-FY 2014 The sugar imports made by India in FY 2009 was worth INR ~ million which later on increased drastically to INR ~ million in the next year due to economic slowdown and levy on import duty. The import value decreased drastically in FY 2012 to INR ~ million which was considered as the lowest import by value in the past 5 years. The imports rose again in FY 2013 with the values estimated at INR ~ million which then later on decreased to INR ~ million in FY The sugar imports increased to ~ million tons in FY 2013 which later on decreased to ~ million tons in FY 2014 due to the good performance of the sugar industry in India as they were able to produce sugar in sufficient quantities.

11 Major Players Indian Sugar Industry The sugar industry is a highly fragmented industry with around 700 sugar mills operating in India. The revenue generated by the existing companies in the industry contributes significantly to the overall revenues generated by the industry. The revenues that contributed significantly to the industry revenue are scattered among many companies. Some of the main companies that had a major share in the contribution of the revenues include Balrampur Chini mills, Shree Renuka Sugars, Bajaj Hindusthan Limited which contributed ~%, ~% and ~% respectively to the revenue generated by India sugar industry. Balrampur Chini Mills Ltd is one of the largest integrated sugar manufacturing companies in India. Company has 11 sugar factories located in U.P. having an aggregate crushing capacity of ~ tons per day. The revenue generated by the company for FY 2009 was calculated at INR ~ million to reach INR ~ million in FY 2014 growing at a CAGR of 9% for the period FY 2009-FY 2014 Bajaj Hindusthan Limited is also one of the largest ethanol producers in the country. It is the pioneer of India's fuel ethanol program and has been producing 38 million liters of ethanol a year.

12 Major Players Indian Sugar Industry Table: Market Share of Major Players in India Sugar Industry on the Basis of Revenue Generated in INR Million, 2014

13 Key Factors Considered in the Report Comprehensive analysis of India Sugar industry and its segments Industry is presented by region wise demand; by utility, by organizational structure, by distribution channel and by types of sugar Listed major players and their positioning in the market Cost of setting up a sugar mill in India Identified major industry developments in last few years and assess the future growth of the industry Regulatory framework help to understand investment opportunities and complexity involved Source:

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