About Us - Registration/Login - Contact Us - Message Board - Glossary - Features - B-School - Legal - Biz-End - Orange-GTM - WAP
	STOCK MARKETS COMPANIES SECTORS ECONOMY MUTUAL FUNDS ONLINE TRADING INVESTOR POINTS

Company Sector Stock Markets Mutual Funds Economy Legal Investor Point B-School Biz-End line About us     Disclaimer

Manufacturing process The molasses obtained from sugar industries are treated with acidified water. Fermenter is prepared using nutrients like urea and ammonium sulphate. This process requires 3-4 days. The molasses are then mixed with the fermenter. This results in the production of alcohol with 6-8% concentration and is collected through distillation. Pricing of molasses Year Rs/ton 1994-95 2190 1995-96 1320 1996-97 266 1997-98 560 The reduction in the prices of molasses has helped the manufacturers to improve the profitability to a large extent compared to the poor profits they registered immediately after the decontrol of molasses. Demand - Supply The total supply and pricing is completely dependent on the yield of sugar cane and molasses. The pricing mechanism depends on the freight costs and prevailing prices. The yield is totally dependent on the quality of molasses, which is often poor, as small producers usually save costs while storing molasses, leading to contamination. Grade of molasses Yield of alcohol A Grade 225-260 litre B Grade 225 litre C Grade 180 litre Outlook Rising imports and falling international prices in the last few years have started a wave of consolidation in the industry. Small players will find difficult to survive, as economies of scale will help large players having cheaper input costs and bargaining power in the markets. In the mid-nineties raw material costs, out of which molasses account for 20-25%, had risen steeply to 48%. This led to a severe pressure on the profitability of alcohol manufacturers. The sugar glut in the last two years has helped the industry reduce this proportion to 38%. End Use Pattern For Ethanol Users % share Formaldehyde 36 DMT 22 Pesticides 4 Pharma 11 Dyes and inter 6 Methylamines 4 Thinners 7 Others 10 Other sector reports Previous chapter Next chapter

Subscribe to IIL Newsletters Register now to subscribe for India Infoline Newsletter        Corporate Infoline * Information Base on 5000 Companies * Snapshot * Live Quotes * Share Price Charts * News Archives * Quotes Research Charts Snapshot News Enter Co. Name/First Few letters   Drop us a Line Drop us your queries & suggestions

5PAISA

PREMIUM CONTENT

ADVERTISE WITH US

FEEDBACK

DISCLAIMER

PRIVACY POLICY

JOBS

FAQS

SITE MAP

HELP