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Global economy Overview

While the pandemic-induced headwinds have abated, the world economy continues to experience some turbulence in the form of inflation, social unrests, geopolitical conflicts. The threat of nuclear war and a food and energy crisis also looms large in different parts of the world due to the ongoing Russia-Ukraine conflict.

Global growth is anticipated to slow down to 2.8% in CY2023 from 3.4% in CY2022.1 Global inflation is also expected to decline from 8.7% in CY2022 to 7% in CY2023. Additionally, re-opening of the borders closed by China during COVID-19 crisis in China have slowed growth in CY2022, but the recent reopening has opened opportunities for a quicker-than-expected recovery.

Weather continues to affect the global agricultural crops. Lower stocks of commodities in Asia coupled with weather aberration have an affect on agriculture commodity prices.


Despite volatility, a robust labour market, rising household spending and an influx of foreign investment continues to support the global economy. Moreover, as inflationary pressures begin to ease and with a decline in the value of the US dollar, emerging and developing countries experienced some relief. With the recovery of emerging markets and their currencies, real income also rose, leading to somewhat softening of inflationary pressures.

Indian economy Overview

In FY22, the Indian economy demonstrated remarkable resilience as it replaced the UK as the fifth-largest economy in the world. According to the NSOs final estimates, Indias GDP grew by 7.2% during FY2023.2 However, the rapid tightening of monetary policy in advanced economies has resulted in higher interest rates though relative interest rate rise in India is lower. The World Bank predicts that India will rank among the top seven EMDEs (Emerging Market and Developing Economies).3 India is well on its way to becoming a USD 3 trillion economy by the end of FY23 and a USD 7 trillion economy in the next 7 years. Comparable to other emerging market economies, the Indian economy has proved its resilience in the face of external challenges, mostly on account of strong macroeconomic fundamentals. The PM Gati Shakti Mission, National Logistics Policy, development of the public digital platform, strong capital investment cycle, and robust credit disbursals are the main factors promoting the growth of the Indian economy.


The nation has also made notable strides toward the adoption of digital payments and the creation of sophisticated digital infrastructure for financial transactions. Despite the RBI increasing the repo rate to 6.5% and placing medium- to short-term liquidity pressure on the Indian economy, the environment is favourable for sizable investments because of strong credit growth, stable financial markets, and the ongoing focus of the government on infrastructure and capital spending.

Global sugar industry overview

The sugar industry plays a significant role in the agricultural sector and the global economy. Farmers of sugar cane and sugar beets, sugar mills and refineries, ethanol producers, sugar traders, and distributors make up the industry.

In 2022, 187 million tons of sugar was consumed worldwide. The consumption is anticipated to grow at a compound annual growth rate (CAGR) of 1.64% between 2023 and 2028, to touch 217.2 million tons.4 Over half of the worlds sugar is produced by the Asia-Pacific region, particularly India, China and Brazil remains the largest exporter of sugar as well as the leading producer of sugarcane in the world.

1 https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023

2 https://pib.gov.in/PressReleseDetailm.aspx?PRID=1928682

3 Economic Times Delhi 11/01/2023

4 https://www.imarcgroup.com/sugar-manufacturing-plant#:~:text=The%20global%20sugar%20market%20size,sugar%20cane%20and%20 sugar%20beet

Growth drivers for the sugar industry

The growth and expansion of the global sugar industry is fuelled by a number of factors. Due to the rapid growth of population and urbanisation in emerging economies, particularly those in Asia and Africa, sugar consumption continues to surge. As preference for sugary food and drinks increase, demand for sugar is also rising. Besides, sugar is being used by various industries such as pharmaceutical and cosmetics, along with the food and beverage sector.

The expansion of the global sugar industry is being fuelled by innovation and technological advancements. Precision farming is a cost-effective, and efficient method of production that has increased yield while lowering production costs. New sugarcane and sugar beet varieties that are more resilient to pests and diseases and ensure greater productivity have also been developed as a result of biotechnology and genetic engineering advancements. All these factors continue to introduce new opportunities for sugar producers to thrive in an evolving market.

Indias sugar industry overview

India is the worlds second-largest producer of sugar after Brazil, making it one of the biggest sugar industries worldwide. With millions of people employed and a significant impact on the GDP of India, the industry is vital to the countrys economy. Over 90% of Indias sugar production comes from sugarcane. The increasing demand for sugar from the food and beverage sector is one of the major growth drivers for the Indian sugar sector. Indias growing middle class has increased the consumption of processed foods and drinks, which often use huge amounts of sugar. This continues to increase the demand for sugar within the country. It is also anticipated that the industry will continue its growth trajectory as a result of the Indian governments focus on boosting sugarcane-based ethanol production.

According to Indian Sugar Mills Association (ISMA), the plantation of sugarcane in India has increased by 6% in FY22. After 45 lakh tonnes of cane juice, syrup, and B-molasses were diverted to the production of ethanol, 327 lakh tonnes of sugar was produced in 2022–2023.5 Moreover, despite difficulties related to fluctuating sugar prices, high production costs, and scarcity of water, the Indian sugar industry remains a crucial component of the nations economy and it is anticipated to experience significant growth in the coming years.

Global ethanol industry overview

The global ethanol market, which was estimated to be worth USD89.7 billion in 2022, is expected to grow at a CAGR of 5.5% from 2022 to 2030 to reach a revised size of USD137.8 billion.6 With growing awareness about climate change and the need to reduce greenhouse gas emissions, the demand for biofuels such as ethanol continue to increase. As more countries introduce policies related to the use of renewable fuel and implementation of carbon pricing mechanisms to reduce carbon emissions, this trend is likely to continue. On the other hand, the ethanol industry may experience difficulties that may cause supply chain disruptions due to extreme weather conditions, logistic hassles, and trade disputes. Other types of biofuels and alternative fuel technologies used in electric cars and hydrogen fuel cells, could also pose a threat to the industry.

Overall, a number of variables, including government regulations, technological advancements, and consumer preferences will influence the future of the ethanol industry. Nevertheless, the sector is expected to contribute to the worlds future energy mix, especially as nations work to lessen their reliance on fossil fuels and make the switch to a more sustainable energy system.

5 https://economictimes.indiatimes.com/news/economy/agriculture/isma-lowers-indias-2022-23-sugar-production-estimate-by-6-8/ articleshow/97490299.cms

6 https://finance.yahoo.com/news/global-ethanol-strategic-business-repor t-163800427.html?guccounter=1&guce_ referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAADHAiQZUz31AUk9yYVSvzmonhw3BLyCSNgEb7T6zyJe3Oo_ EMnuPXJ29GpnE2NzoPka76jkxJ1b18ZD46dFpaXRwKYX0Q5bDGhKOvKhkA0d1TZ9nLTfYvjesknXbUurkcwoED2GI7Pt8TN LDdSG9yPonjyCt_0RZk5hEDVJX055x

7 https://mopng.gov.in/files/uploads/BPCL_Ethanol_Booklet_2023.pdf

Indias ethanol industry overview

Indias ethanol supply was 433 million litres in ESY 2021-22 and reached blending of 10%. We are expected to reach to 12% in ESY 2022-23 and target is to achieve 20% ethanol blending by 2025, which will increase demand for ethanol in the nation, thus benefitting the sugar industry substantially.

Ethanol is the most feasible when it is made from B-heavy molasses, sugarcane juice, and damaged grains. Over the next few years, higher volumes of ethanol are expected to be produced from sugar surplus seasons and financial incentives are expected to be obtained for converting extra sugar into ethanol. The number of distilleries and consequently, the ethanol producing capacity has increased manifold in the last few years.7 The demand for ethanol will rise to 1016 crore litres by 2025 at a 20% blending level. As a result, from about H 9,000 crore to over H 50,000 crore, the industrys value is expected to increase by over 500%.8

(Figures in Crore Litres)

Company overview

Shree Renuka Sugars Limited is one of the biggest sugar producers in the country and is also one of the worlds largest sugar refiners. Headquartered in Mumbai, the Company has six mills with the capacity to co-generate power and also produce ethanol. It also has one of the first mills in India to fully integrate a distillery using molasses, a by-product of sugar production, and bagasse based power co-generation capacity.

"37,500 TCD crushing capacity across 6 units.

The Company primarily produces ethanol suitable for use in fuel blends with gasoline. The three locations in Karnataka has a combined capacity of 1,250 KLPD. The Company has a total cogeneration capacity of 259 MW and approximately 257 million units were sold to be grid.

In addition, the company is also engaged in sugar refining operations where raw sugar is processed into white sugar at its 2,500 TPD plant in Haldia, West Bengal, and its 3,000 TPD plant in Kandla, Gujarat.

Operational highlights Milling

The Company is currently operating six mills in the states of Karnataka and Maharashtra, collectively possessing a crushing capacity of 37,500 TCD of Cane per Day (TCD). During the year under review, the Companys cane crushing volume totalled 5.25 million metric tonnes (MT), reflecting a decline of approximately 7%. This reduction primarily resulted from the limited availability of cane. Consequently, the sugar production for the year decreased to 616,896 MT, including a sugar sacrifice of 183,809 MT, as opposed to the preceding years production of 668,674 MT.


The Company has two sugar refineries situated in Haldia and Kandla. The refining capacities of these refineries are 2,500 tonnes per day and 3,000 tonnes per day, respectively. Throughout the year, the Company successfully refined a total of 1,388,000 metric tonnes (MT) of raw sugar, representing a substantial increase of 46% compared to the previous year. The majority of the raw materials used for the refining process were procured from domestic sources.


During the year under review, the Company undertook a significant expansion of its ethanol production capacity, augmenting it from 720 Kilo litres per day (KLPD) to 1250 KLPD. Commercial production from this expanded capacity began in March 2023. The Company anticipates benefiting from this increased ethanol capacity in the forthcoming years. Additionally, during the same year, the Company achieved notable sales, amounting to 189 million litres of ethanol, marking a growth of approximately 20% compared to the previous year.

8 https://mopng.gov.in/files/uploads/BPCL_Ethanol_Booklet_2023.pdf

9 https://mopng.gov.in/files/uploads/BPCL_Ethanol_Booklet_2023.pdf


For internal use and sale to the Indian state grids, the Company engages in electricity generation using bagasse, a by-product derived from sugarcane. Bagasse serves as a renewable energy source that can be combusted to produce bioenergy, thereby substantially reducing greenhouse gas emissions. Throughout the course of FY2023, the Company successfully generated a total of 618 million units of power, of which approximately 257 million units were sold to the grid.


Madhur Sugar presently holds the distinction of being the best-selling sugar brand in India. The brand emphasises providing consumers with sugar of utmost purity and hygiene and deliver quality products to consumers nationwide. From local neighbourhood kirana shops to modern retail chains, Madhur has established a dominant presence in the majority of markets it operates in. Its popularity is particularly noteworthy in regions such as Gujarat, Maharashtra, Delhi, Rajasthan and Karnataka. In addition, the brand is steadily gaining traction in other states, including Haryana, Madhya Pradesh, Andhra Pradesh, Kerala, Punjab and Jammu and Kashmir.

Throughout FY23, Madhur maintained its growth trajectory, achieving remarkable sales figures amounting to 166,000 metric tonnes (MT), clocking an impressive growth rate of nearly 15%.

Financial overview Profit and loss statement

The Companys operating revenue stood at H 85,781 million, compared to H 61,259 million in FY 2021-22 (the previous year). This was mainly driven by a 49% growth in exports and a robust 26% growth in ethanol sales.

The Company generated EBITDA (excluding forex gain or loss) of H 7,197 million as compared to H 4,781 million last year. The increase is largely on account of strong growth in exports and ethanol sales and improved realisation in sugar exports.

The company recorded a loss (after tax) of H 1357 million as compared to net profit (after tax and exceptional item) of H 1131 million for the previous year, driven mainly by a sharp spike in interest costs.

Balance sheet

Net worth- The Companys net worth in FY 2023 to H 4,127 million as compared to H 5,470 million in FY 2021-22

Working capital management

Current assets: Current assets as of March 31, 2023, stood at H 28, 573 million as compared to H 26,126 million. The current ratio is 0.75 as of March 31, 2023.

Inventories increased by 12% from H 19,987 million in FY 2021-22 to H 22,370 million in FY 2022-23.

Risk management

Shree Renuka Sugars Limited has established a robust risk management framework that involves a systematic process of identifying and assessing risks to implement efficient strategies for risk mitigation. This framework enables the Company to proactively prepare for unforeseen contingencies and effectively manage operational challenges that may arise, potentially affecting its day-to-day operations. The Risk Management Committee, comprising the Chairman of the Audit Committee, the Executive Chairman, the Executive Director, and the Chief Financial Officer, assumes responsibility for overseeing the effective implementation of Risk Management Policies within the organisation.

Internal controls and their adequacy

The Company has implemented robust internal controls to ensure strict adherence to applicable laws and regulations, safeguard company assets, and ensure the accuracy of financial reporting. The establishment of effective internal controls is of utmost importance for any organisation, as it ensures efficient, effective and ethically sound business operations.

The Companys internal control framework comprises a comprehensive set of policies, procedures, and guidelines that provide adequate oversight over financial reporting and other critical aspects of the organisation. The organisational structure is well-defined, with clear delineation of roles and responsibilities, fostering accountability and transparency in decision-making processes.

A comprehensive system of internal controls safeguards the integrity of the Companys financial reporting process. This includes the segregation of duties, access restrictions, and regular review procedures as integral components of the control environment. The independent audit committee plays a pivotal role in monitoring internal control procedures and provides regular updates to the board of directors.

Human resources

At Shree Renuka Sugars, we acknowledge the valuable contributions of our employees in propelling our journey to greatness in the Sugar industry. Our core values revolve around cherishing our employees as the driving force behind our success. We take immense pride in our human resource policy, carefully crafted to cultivate a positive and thriving work environment that fuels employee engagement, fosters career growth, and sparks the flames of progression.

We know that a company is only as strong as its talent pool, and thats why we are wholeheartedly committed to building a team of exceptional individuals who share our passion for excellence. Our dedication to nurturing and retaining top talent shines through, our Employee Retention Approach which ensures Transparent and Effective Communication, Opportunities for Career Growth, Competitive Compensation and Benefits, Recognition and Rewards, Supportive Leadership that recognize and motivate outstanding performance and valuable experience.

At Shree Renuka Sugars, youll find more than just a workplace; youll become part of a family that celebrates your unique strengths and endeavours to unleash your true potential. We are a place to grow, learn, and excel as we embark on an exciting journey of innovation and success.

Technology transformation

We have established a strategic partnership with a leading HRMS provider, offering a comprehensive SaaS platform adopted by numerous top enterprises across multiple countries, with a digitally empowered seamless employee experience. This new HRMS has significantly streamlined and automated our processes, fostering an employee-centric workplace and driving business transformation through cutting-edge technology for all employees. This comprehensive system has brought about remarkable improvements across various crucial aspects of our organization: HRIS, Dashboards, PMS, L&D, Talent Management, Payroll, Asset Management, Contract Labour Management system and Compliances, powered by AI and ML chatbot technology.

With our new HRMS, we are confident that our organization will continue to thrive, through the significant advantages it brings to our workforce and business processes.

Employees engagement

The year 2022 – 2023, witnessed a multitude of engaging programmes for our employees. These initiatives are aimed at fostering a strong sense of community and happiness among our workforce. To celebrate the rich cultural diversity of India, we held festivities for prominent national and regional festivals. These festivities not only brought our employees together but also allowed them to immerse themselves in the vibrant traditions of their local communities. Apart from celebrating festivals, we took time to cherish our employees special moments by commemorating their birthdays, a small gesture of appreciation towards our valued employees. Our Sports and Wellness initiatives are another big Celebration that our employees look forward to every year, with activities like Cricket, Badminton, Volleyball, slow bike riding, tug of war etc. and many more Webinars on nourishing physical and mental health.

Additionally, we took pride in our employees active participation in community-based engagement programmes through our Corporate Social Responsibility (CSR) initiatives. By contributing their time and efforts to initiatives like tree planting drives, Swaccha Bharat Abhiyan, educational workshops for underprivileged children, Blood Donation Camps and support for local charitable organizations and Government Hospitals, our employees demonstrated their commitment to making a positive impact on society.

Learning & Development

Throughout the year, we have a well-structured Learning and Development calendar, diligently implemented by our dedicated team. Our focus on employee learning is comprehensive, encompassing both Classroom and On-the-Job training sessions. These programs cover various areas such as Safety, Soft Skills Building, and Technical Operations, all aimed at enhancing their skills and knowledge.

We conducted various webinars on essential topics like POSH, Code of Conduct, and Whistle Blower, ensuring adherence to ethical standards and compliance.

To strengthen Operational Excellence, we prioritize specialized training programs like Advanced Excel and Finance for non-finance employees. This empowers our workforce with essential tools to excel in their respective roles.

Wellness is a core aspect of our organization, and we celebrate Wellness Month annually, commencing with International Yoga Day. During this period, we conduct webinars that promote overall employee well-being and health.

Recognizing the importance of continuous learning, we have implemented our Learning Management System (LMS) through a reputable Online Training provider. This implementation enables access to valuable Online Modules covering a wide range of topics, including Soft Skills, Leadership, Finance, POSH, and Analytical Skills, further empowering our employees to grow and thrive in their professional journeys.

Health and safety

At SRSL, we deeply value our employees as our most valuable assets, and their health and safety are our top priorities. Our tailor-made programs reflect this commitment, starting with an annual health check-up for all employees, complemented by comprehensive Mediclaim, Personal Accident Insurance, Term Insurance and Workmens Compensation policies to ensure their well-being.

To further support their health journey, we conduct regular health Checkup Camps and webinars, keeping our workforce informed and empowered to make healthier choices. Safety is of paramount importance to us, and we organize ongoing safety training programs and conduct regular safety audits to maintain a secure working environment.

Moreover, we believe in fostering a stress-free work culture that promotes a healthy work-life balance, enabling our employees to thrive both personally and professionally. With these initiatives, we aim to create a workplace where our employees can flourish and achieve their full potential while prioritizing their health and well-being.

Environment, Social and Governance (ESG) Environment

The Company has implemented numerous initiatives and policies to minimise its environmental impact and promote sustainable development practices. Through the adoption of eco-friendly production processes, the Company has put in place a zero-liquid discharge policy. This entails the treatment, reuse and recycling of wastewater generated during sugar production, ensuring responsible water management.

Moreover, the Company encourages the use of renewable energy sources to curb its carbon footprint. By utilising bagasse, a by-product of sugar production, the Company generates its own electricity, contributing to a greener future.

In line with its commitment to environmental stewardship, the Company also endeavours to leverage by-products from its processes. The press-mud generated during sugar production and the ash resulting from bagasse combustion are both sold as fertilisers to farmers in the vicinity of the factory locations, promoting sustainable waste management.

During the year under review, the Company further demonstrated its dedication to environmental protection through various initiatives. Notably, the utilisation of concentrated spent wash as fuel and the installation of

Condenser Polishing Units resulted in a significant reduction in water consumption, amounting to approximately 146.47 million litres. Additionally, the Company effectively recycled around 1000.6 million litres of wastewater.

The Company engaged in reforestation efforts by planting 10,217 trees across its manufacturing locations till date, reaffirming its commitment to preserving the environment.


The Company is dedicated to supporting communities and is aware of its role as a responsible corporate citizen. It, therefore, aims to engage in social welfare initiatives and raise the standard of living of people through targeted community development programmes. Its corporate social responsibility programmes encompass the areas of healthcare, education and skill development to ensure the holistic growth of its local communities and the society at large.

During FY 2022-23, the Company pursued several initiatives to fulfil its social responsibilities, which include contributions to organisations that offer education to underprivileged communities, supporting the well-being of specially-abled children and contributing to the Armed Forces Flag Day Fund, which aids the welfare of the armed forces and their dependent family members. Additionally, the Company generously donated fully equipped ambulances to primary health care centres situated in the vicinity of its operational areas, thereby contributing to the enhancement of healthcare facilities in rural regions.

In total, the Companys benevolent endeavours amounted to a substantial sum during the reporting period. These philanthropic actions reflect the Companys commitment to making a meaningful impact on society.


The Company is dedicated to upholding the highest standards of business ethics and conduct. To ensure transparency, accountability and fairness in its operations, the Company has put in place a strong framework of governance policies and procedures, including the Code of Conduct and Ethics, internal controls and risk management systems, all while ensuring compliance with applicable laws and regulations.

The Companys Board of Directors comprises individuals with deep expertise in diverse areas, such as business, finance, accounts, law and agri-marketing. The Board and its committees meet multiple times a year.