The products processed in the company are interconnected so the efficiency of one product depends upon its parent product’s efficiency. Thus the company focuses on improving the overall as well as part wise efficiency of the whole production chain.
Company focusing on the geographical expansion at the places with high sugarcane cultivation and the areas where the yield is most compatible with the processing of the final and other by products.
Currently the company is only manufacturing bottled whisky but it plans to expand this segment of the industry by launching more IML products like Rum, Gin and Vodka. In order to increase the revenue percentage of IML products in the overall annual revenue.
To increase the liquidity in the balance sheets company aims to raise funds through this issue because the sugarcane industry is highly affected by the fund based factors such as high debts and advanced payments to farmers and harvesting and transportation agents.
|BID/OFFER OPENS ON||Sept 30,2019|
|ISSUE TYPE||Book Built Issue|
|BID/OFFER CLOSES ON||Oct 4,2019|
|ISSUE SIZE||Rs 60 Cr.|
|ISSUE PRICE||Rs55-Rs60 per Eq. Share|
|FACE VALUE||Rs 10 per Eq. Share|
|MARKET LOT||240 Shares|
|LISTING AT||BSE, NSE|
Top 10 Shareholder of the Company as on the date of this Red Herring Prospectus:
|Name of Shareholder||No. of Equity Shares||Percentage of pre-offer capital (%)|
INDIAN SUGAR INDUSTRY
India is going to record a bump in the Sugar production industry with 32-34 MMT production VS the consumption of 25-26 MMT in the very next season.
There is an expected rise of 4.2% in the production with Uttar Pradesh leading as the largest producer nationwide.
Statistics as on 15th December 2018, 462 sugar mills were crushing sugarcane all over the country. 70.52 lakh tons of Sugar produced which is 2.1% higher than that of the last sugar season. Also at the same time last year 476 mills were operating.
Forecast predicting the rise of 4.3% making a record production of 33.8 MMT which includes 0.56 MMT of a local type of low recovery sugar.
BAGASSE CO-GENERATION INDUSTRY IN INDIA
States which have taken leadership position in implementation of bagasse cogeneration projects are Andhra Pradesh, Tamil Nadu, Karnataka, Maharashtra and Uttar Pradesh.
INDIAN MADE FOREIGN LIQUOR (IMFC)
The Indian Liquor industry comprises the Indian made Foreign Liquor (IMFL), country liquor, foreign liquor bottled in origin (BIO), illicit alcohol, beer and wine segments.
The overall IML market is increasing at the rate of 9 to 10%.
The Indian liquor market is mainly concentrated in the southern part got the country. With the region accounting for about 60% of total IML sales and 45% of total beer sales. Andhra Pradesh is the largest consumer of the both while Karnataka and Maharashtra are second largest consumers of IML and beer respectively.
SUGAR BASED DISTILLERY/ETHANOL INDUSTRY
The most prominent key by-product of the sugar mill industry. India has almost 330 distilleries which can produce over 4 billion litres of rectified spirit (alcohole) per year, of these almost 162 distilleries have the capacity to distil over 200 Cr litres of conventional bio-ethanol. India produces conventional bio-ethanol mostly from sugar molasses & partly from grains.
(Amount in Rs.lakhs)
|As at March 31||Total Income||Total Expenses||Profit/(Loss) After Tax||Total Assets||Total Non Current Liabilities|
Total Income & Total Expenses
Profit/(Loss) After Tax
Total Non Current Liabilities
|Year||Earning/Loss per share"EPS"(In Rs.)||Return on Networth"RoNW"(In %)|
Earning/Loss per share"EPS"(In Rs.)
Return on Networth"RoNW"(In %)
Name of Company
|EPS [Rs.]||P/E ratio||RoNW [%]||NAV Per Share [Rs.]|
|Ugar Sugar Works Ltd.||0.39||33.08||8.05||4.54|
|Dwarikesh Sugar Industries Ltd.||5.05||4.45||20.51||24.62|
|Balrampur Chini Mills Ltd.||24.98||5.67||27.40||91.19|
|Dhampur Sugar Mill Ltd.||38.40||4.17||20.51||187.07|
|Vishwaraj Sugar Industries Ltd.||(5.10)||N.A||(8.33)||61.20|
NAV Per Share [Rs.]