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• Future Growth of India sugar market is expected to be led by increasing sugarcane yield, rising demand of sugar by the consumers and increasing sugar recovery rate. <br>• Shree Renuka Sugars is one of the largest producer of sugar in the country with rising demand from other countries competes with other players in the industry such as, Bajaj Hindusthan, Balrampur Chini Mills Ltd and Dhampur Sugar Mills<br>
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Sugar is also known as the common sweetener which is consumed in large quantities across the globe. It is one of the most essential ingredients in almost all bakery products, sweets and other snacks. Sugar is the generalized name for sweet, short- chain, soluble carbohydrates which are used in many food items. Sugars are present in the tissues of most plants but are largely extracted in sufficient quantities from sugarcane and sugar beet.
Sugar industry constitutes one of the most important agro based industries in India. Sugar industry is considered as one of the important agro-based industries. Sugar Industry has played a major role in creating significant impact on rural economy over the period FY’2010-FY’2015. This has had a substantial effect on overall Indian economy during the period. It employs a large number of people in our economy as farmers, manufacturers and other workers.
Sugar production in our country is massive as it comes behind Brazil in terms of production and also generates a substantial amount of revenue contribution to our GDP which gives a clear picture of the massiveness of the industry in our country. India has remained a key growth driver for world sugar over the past five years, growing above the Asian and world consumption growth average.
This has been mainly on the grounds of fundamental changes in the consumer profile and the demonstrated ability of the sector to continuously ensure availability of sugar for domestic consumption. Sugar industry in India has been highly regulated since being declared as an essential commodity during 1995
White sugar generates the maximum revenue in the India sugar industry with ~% contribution in the revenue with INR ~ billion in FY’2015. Refined sugar comes next in terms of revenue generated in the sugar industry in India with ~% of contribution generating revenues at INR ~ billion in FY’2015.
The sugarcane production in India is spread widely and many states are involved in the production of sugarcane in the country. Uttar Pradesh is the most sugarcane producing state in the country followed by Maharashtra. Karnataka, Tamil Nadu and Andhra Pradesh are the other states which are actively involved in the production of sugarcane in the country. The organizational structure represents the ownership or the structure the sugar mill. There are three identifiable structures present in the sugar Factories.
They are Co-operative, Private and Public. The private sugar factories captured nearly ~% of the total installed 703 sugar factories in FY’2015 followed by cooperative factories with a share of ~% in FY’2015. Remaining share of ~% has been captured by public factories in FY’2015. Industrial sector accounted for ~% of the total sugar consumption in the country during FY’2015. This has led the industrial sector to contribute ~% of the total domestic sales revenue.
Carbonated beverages category has been the most dominant segment in the industrial sector of the India sugar industry in FY’2015. Bakery segment contributed ~% to the domestic sales revenue in the industrial sector in FY’2015. Other food and beverages industries have accounted for the remaining revenue share of ~% in FY’2015. Restaurants/offices/canteens/caterers have contributed ~% of the domestic sales revenue in the small business sector in FY’2015.
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 Shree Renuka Sugars, Bajaj Hindustan Limited and Balrampur Chini Mills These companies have contributed significantly to the revenues generated by the India sugar industry over the period FY’2013-FY’2015. Shree Renuka Sugars has been the biggest contributor to the overall revenues of the Indian sugar industry over the period FY’2013-FY’2015.
It has accounted for a revenue share of more than ~% over the period FY’2013-FY’2015. Shree Renuka Sugars has been followed by Bajaj Hindustan Limited which has accounted for a revenue share of ~% during FY’2015. Dominance of Balrampur Chini Mills in Uttar Pradesh has allowed it to contribute ~% of the revenues to the sugar industry in FY’2015. The sugar produced in India for FY’2015 stood at ~ million tons in which many companies contributed.
However, due to lack of sufficient advanced technology, companies have been failing to yield better. The major companies which contributed heavily to the production of sugar in the country are Shree Renuka Sugars, Bajaj Hindustan Limited and Balrampur Chini Mills with ~%, ~% and ~% respectively to the total sugar produced in the country during FY’2015. The sugarcane crushing capacity in India’s sugar industry has consistently increased owing to rapid capacity expansion by major domestic players in the country.
Bajaj Hindusthan has dominated the entire sugar industry by commanding largest share in terms of production capacity during FY’2015. The company has marked ~% share in the country’s overall sugarcane crushing capacity and was evaluated at ~ TCD. On the other hand Balrampur Chini Mills, Triveni Engineering and Industries, Dhampur Sugar Mills and Shree Renuka Sugars accounted for ~%, ~%, ~% and ~% share respectively in terms of sugarcane crushing capacity during FY’2015.
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