GREAT RECIPE FOR SWEET RETURNS
HERE IS WHY
Strong financials Strategic location of the plants Positive sector outlook
Dwarikesh Sugar Industries Limited (DSIL) is one of the major sugar producing industrial groups in India. In addition to sugar manufacturing, the company has diversified into other segments such as power and industrial alcohol production since its incorporation in 1993. The company's two plants are located in Bijnor district and one is located in Bareilly district of Uttar Pradesh, which is associated with highly fertile soil and high sugarcane production. The company has a combined capacity to crush 21,500 tonnes of sugarcane per day. As on March 31, 2017, the company generated a total of 86MW power and produced 30,000 LPD of alcohol.
The company is exploring new markets for its byproducts which get generated during sugar production as many industries use these byproducts as their raw materials. DSIL is planning to liquidate ₹145 crore of its long-term debt, automate its plants to enhance efficiency and seek attractive acquisition targets that could broaden its sugar and byproduct manufacturing capacity. INDUSTRY OVERVIEW: The Indian sugar industry provides intermittent but lucrative investment opportunities. India is the second largest producer of the agri-commodity sugar. With 642 operational sugar mills, Indian sugar industry has a total worth of ₹80,000 crore, second only to Brazil. The government has been acting as a catalyst in the industry’s growth story. In the short to medium term, the sugar and sugarcane prices are expected to be stable and improvement in stock-to-