Dhampur

Sugar Mills

Prepared By :
Swapnil Bhave
PGDM-2158
Batch F2
 Management Team
Sr.No Name Designation

1 Gautam Goel CEO/MD

2 VK Goel Chairman
3 AK Goel Vice Chairman
4 Gaurav Goel MD
5 Sandeep Kumar Sharma Whole Time Director
6 Mahendar Nominee Director
7 Harish Saluja, MP Mehrotra, Nandita Independent Director
Chaturvedi, AK Gupta, Priya Brat , Rahul
Bedi
8 Nalin Kumar Gupta Chief Financial Officer
9 Aparna Goel Secretary/Co-
Secretary/Compliance
Officer
 History
 Founder Of Dhampur Group – Lala Ram Narainji
 Dhampur Sugar Mills was established in 1933 and began its
operation in a small town called Dhampur located in the State of
Uttar Pradesh, India with a sugar mill having a crushing capacity of
300 tonnes of cane per day
 Lala Ram Narainji was also a 50% Partner in second sugar mill at
Bareily, in Uttar Pradesh
 He handcrafted the destiny of the corporate that today, directly and
indirectly provides employment and livelihood to a large number of
individuals & families of the rural India
 Background
 Dhampur Sugar Mills is one of the oldest leading integrated Sugarcane
processing companies in India
 Its Subsidiary Companies are :
1) Dhampur International
2) Ehaat Ltd.
 Dhampur owns and operates five integrated Sugarcane Crushing Complexes at
Asmoli, Dhampur, Mansurpur, Meerganj, Rajpura
 Highest Ethanol Manufacturing Capacity
 First and largest producer of refined sulphurless sugar in country
 Sugarcane co-generation capacity is one of the largest in the country
Shareholding of Promoter &
Promoter Group

38.47 49.09

7.73 4.72
Promoter FII/FPI DII Others
Listing in Stock Indices
Total Revenue of Dhampur Sugar

3400
3303.5
3300

3200

3100

3000

2900

2800 2771.54

2700

2600

2500
2018 2019
Total Revenue (cr)
Dhampur’s Revenue for past 10 years
Total Revenue(cr)
 We can see the revenue
generated for last 10
3303.5
years is not consistent
2771.54 rather erratic . As sugar
2559.09 is cyclic business a lot
2363.76
2207.44 depends on sugarcane
1828.66 1795.05
demand & supply and
1540.81 1488.61 government prices of
sugar

2011 2012 2013 2014 2015 2016 2017 2018 2019

 Net Profit & % change in Profit of
Dhampur Sugar
300

254.95
250

200

157.16
150

100

50

62.22%
0
2018 -33.08% 2019

-50
Net Profit % Change In Profit
 Total Assets & Total Liabilities of
Dhampur Sugar
4500

4000 3827.39 3827.39

3500
3122.61 3122.61
3000

2500

2000

1500

1000

500

0
Total Assets Total Liabilities
2018(cr) 2019(cr)
 Market Share Of Dhampur Sugar
Revenue(cr)
Market Share
3303.5
4.25%

The Annual
Turnover of the
Sugar Industry in
India was 81000
77696.5 crore For FY 18-19 95.75%

Dhampur Sugar Mills Ltd.

Dhampur Sugar Mills Ltd. Others Others
Market Capitalization of Dhampur Sugar

1200

1000 952.99

800

600

400

200

Market Capitalization (cr)

 Stock Performance of Dhampur Sugar

250 235.55
224.15

200

150

100

50

2.54%
0
Price Of Share
01-04-2017 31-03-2019 Simple Annualized Returns
 Sales
Trend Forecasting
Turnover 4000

(CR)
Year(X) (Y) 3500
y = 148.15x + 1312.8
1 (2010) 1537.35
3000
2 (2011) 2360.11
3 (2012) 1536.28 2500

4(2013) 1481.22
2000
5(2014) 1822.07
6(2015) 1788.95 1500

7(2016) 2183.39
1000
8(2017) 2534.03
9(2018) 3278.52 500

10(2019) 2754.46
0
11(2020) 2942.45 0 2 4 6 8 10 12 14 16

12(2021) 3090.60
 Summary Output
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.744852
R Square 0.554804
Adjusted R
Square 0.499154
Standard
Error 426.1809
Observatio
ns 10

ANOVA
df SS MS F Significance F
Regression 1 1810782 1810782 9.969612 0.013446
Residual 8 1453041 181630.1
Total 9 3263823

Coefficient
s Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 1312.805 291.137 4.509234 0.001978 641.4416 1984.168 641.4416 1984.168
Year(X) 148.1515 46.92097 3.157469 0.013446 39.95157 256.3515 39.95157 256.3515
 Interpretation of Alpha and Beta
 We Have used regression analysis for demand Forecasting for FY-20
and FY-21 and find out expected sales turnover for that year
 ALPHA for the Company is 1312.80 and BETA for the Company is
148.15
 The constant alpha=1312.80 (cr) is the intercept which gives the
total expected sales turnover at initial year (X=0)
 The constant beta=148.15 gives the coefficient – the slope of the
regression line
 It means that an increase in 1 year will bring an increase of
148.15(cr) in sales turnover
Comparative Analysis of Sales Turnover (cr)

8000
6,967.43
7000
5887.94
6000

5000 4470.3
3394.79
4000
3303.5 3219.18
3000 2771.54 2046.44
2115.02
2000 1486.32 1658.61
1132.66
1000

0
Dhampur Sugar Bannariamman EID Parry Shree Renuka Triveni Enginnering Bajaj Hindustan
Mills Ltd. Sugars Ltd. & Industries Ltd. Sugar Ltd.
2018 2019
 Comparative Analysis of Net profit/loss(cr) &
Percentage change in Net profit/loss

254.95 75.94 163.13

500 220.56
157.16 62.22 87.27 101.01 61.49 87.19 109.74 100.98 7.4
0
-12.98 -18.48
-500 -349.72
-381.9
-1000

-1500

-2000

-2500

-3000
-2982.14
-3500
Dhampur Sugar Bannariamman EID Parry Shree Renuka Triveni Engineering Bajaj Hindustan
Mills Ltd. Sugar Ltd. & Industries Ltd. Sugar Ltd
2018 2019 % change in profit/loss
Comparative Analysis of Total Assets
& Total Liabilities (cr)
16000 14405.7
14592.66
14000

12000

10000
6892.6
8000
6543.88
6000 3827.39
3912.61 3733.86
3122.61 4042.21
4000 2202.35 2966.74
1913.11
2000

0
Dhampur Sugar Bannariamman EID Parry Shree Renuka Triveni Bajaj Hindustan
Mills Ltd. Sugars Ltd. Engineering & Sugar Ltd.
Industries Ltd.
2018 2019
 Comparative Analysis of Market Share
By Revenue
3303.5
Market Share
Revenue(cr) 4.07% 1.83%
1486.32 2.61%
2115.02

5887.94 7.26%
3394.79 4.19%

6967.43 8.60%

71.44%
57845

Dhampur Sugar Mills Ltd. Bannariamman Sugars Ltd.

Dhampur Sugar Mills Ltd. Bannariamman Sugars Ltd.
EID Parry Shree Renuka
EID Parry Shree Renuka
Triveni Engineering & Industries Ltd Bajaj Hindustan Sugar Ltd
Triveni Engineering & Industries Ltd. Bajaj Hindustan Sugar Ltd.
Others
Others
 Comparative Analysis of Market
Capitalization
3000
2603.6
2500

2000

1500 1391.97 1331

1303.44

952.99
1000
591.72
500

0
Dhampur Sugar Bannariamman EID Parry Shree Renuka Triveni Engineering Bajaj Hindustan
Mills Ltd. Sugar Ltd & Industries Ltd. Sugar Ltd.
Current Market Capitalization (cr)
 Comparative Analysis of Stock
Performance
Dhampur Sugar Bannariamman Triveni Engineering Bajaj Hindustan
Mills Ltd. Sugars Ltd. EID Parry Shree Renuka & Industries Ltd. Sugar Ltd.
2500

2000.3
2000

1511.7
1500

1000

235.55 204.65
500 224.15 287.9
2.54%
93.0561.15
14.7510.15 13.7 7.9
0
-14.45% -15.59% -17.14% -21.16%
-12.21%
-500
01-04-2017 31-03-2019 Simple Annualized Returns
 Products of the Company

Sugar Power Chemicals Bio-Fertiliser

Refined Renewable Ethanol Bio-Compost
Sulphurless
White Ethyl Acetate Liquid
Retail Extra Neutral
Alcohol
Raw Other Allied
Products
 Market Analysis

 Sugar is a commodity product and there are about 500 sugar mills in the
country . So Dhampur Sugar falls in perfect competition
 Dhampure Brand is not so strong brand .
 Sugar Prices are controlled by government. Hence, they cannot command
higher Prices .
 Company is in process of transforming its brand image from a commodity
sugar manufacturer into a packaged brand .
 Technologies Used

Fibrizors
Pressure Feeders
Pressure Evaporation System (Falling Film Type)
Evaporator Bodies
Vertical Continuous Pans
105 ata bagasse fired boiler
 Technology

 Dhampur Sugar was the first sugar company in Uttar Pradesh to capitalise on
the Biofuel Policy and embark on the manufacture of ethanol through the B-
Heavy route
 This has provided them flexibility to manufacture either ethanol or sugar
based on realization.
 Company is continuously working on Cost Minimization by implementing
energy saving measures
 They have co-generation power plants for their captive use & surplus power
is sold to State Grid
 Union Budget

No special announcements were made during last 2

budget sessions for the Sugar Industry
Government of India announces policies like Minimum
Support Price, Stock Holding Limit on Regular Basis
throughout the year
 Contribution Of Sugar Sector To
India’s GDP at Constant Prices
Share%
Out of 14.39% contribution
14.39%
of Agriculture Sector in
Indian GDP 1% Is
contributed by Sugar
54.15%
31.46% Industry

Agriculture Sector Industry Sector Service Sector

 Industrial Policies for Sugar Industry taken
by Government in last one year
 Increase in import duty from 50% to 100%
 Removal of the 20% export duty
 Stock holding limit on sugar mills in Feb and Mar 2018
 Announcement of DFIA scheme and export quotas without subsidy
 Production subsidy on cane as part of FRP in 2017-18
 Max. monthly sugar sale quota for each mill fixed by Govt. since June ‘18
 Min. ex-mill sugar sale price fixed by Govt. at Rs 29/-kg since June’18
 Buffer stock subsidy for 30 lakh tons
 Production subsidy, transport subsidy and 50 lakh tons export quotas
 Employment Generation In Sugar Industry

Around half a million workers directly employed in sugar

mills
About 25-30 million sugarcane farmers employed
Effect Of Rupee Appreciation/Depreciation
on Export and Import Of Sugar Industry
Sugarcane is the raw
material for sugar which is
produced indigenously
Also India is a Net Exporter
Of the Sugar
Hence Rupee Depreciation
benefits the Industry
 FII Investment in Sugar Sector

FII Investment
4.72% 0.17% 6.28%

0.57%
4.22%
3.74%

80.30%

Dhampur Sugar Mills Ltd. Bannariamman Sugars Ltd. EID Parry

Shree Renuka Triveni Engineering & Industries Ltd. Bajaj Hindustan Sugar Ltd.
Others
Production Of Sugar and Internal Consumption
All India average ex-mill sugar price &
retail prices
Growth Rate of Sugar Sector By Production

350 325
307
300

250

200

150

100

50

0
2018 2019 -5.53%
-50
Sugar Production (lac tonnes) Growth Rate %
 Dhampur Sugar
Segmental REVENVUE (CR) Segmental EBIT (CR)
The revenue
219.73 30.67
generated from
power is based
440.47
on electricity
sold to State
241.42 185.89
Board . While
EBIT is based
2020.47
on Stand Alone
Performance

Sugar Chemicals&Distillery Power Sugar Chemicals& Distillery Power

 Revenue
SUGAR 75%
Chemicals 16%
Power 9%

EBIT
Sugar 7%
Chemicals 41%
Power 52%

 We can conclude from the slide that Revenue for sugar is highest and
for power it is lowest . But EBIT for Power is Highest and for Sugar It
is Lowest . We can say that even though revenue for sugar is highest it
is not Company’s main source of income
 Future Strategies & Announcement

 As we can see from above slides Sugar is not Their Main source of
Income Power is . They are planning for Relatively low Sugar
weightage In the Business Model
 High Distillery Role in Company’s Profitability
 Sugar progressively emerging as a byproduct
 High flexibility in moving from Sugar to Ethanol
 Across the next few years Dhampur Sugar expects to increase the
proportion of Packaged and Refined Sugar to 80% of its overall
sugar throughput
 Recommendation

 As sugar contributes to only 7% of net profit company should shift its focus
on manufacturing ethanol ,distilleries and speciality chemicals
 Dhampure is not house-hold sugar brand . So company should focus on
packaging business which has more realization of Rs 2-3 per kg and
aggressively market its brand
 Company should invest into co-generation which will generate steady revenue
 As company has repaid its long-term debt company should invest the surplus
cash in expanding its Chemicals & distillery business which has EBIT margin
of about 42.20%
 References
https://www.moneycontrol.com/
https://www.dhampur.com/
https://economictimes.indiatimes.com/dhampur-sugar-mills-
ltd/stocks/companyid-12782.cms
https://www.indiansugar.com/uploads/Niti_Aayog.pdf
https://www.dhampur.com/Main/Dhampur_INVESTOR%20DESK
http://statisticstimes.com/economy/sectorwise-gdp-contribution-of-
india.php
THANK YOU