Link sugar profitability to ethanol realisation and power atul chaturvedi all 4 gas giants names


Executive Chairman, Shree Renuka Sugars Ltd, Atul Chaturvedi, spoke about benefits of sops that were announced for the sugar industry, sugar price, plans for ethanol production and Brazilian operations among others during an interview hp gas with Swati Khandelwal of Zee Business. Will the announced government sops from the loan facility to sugar companies to ethanol production have any positive impact on your company?

It will have a positive impact on our company as we are quite active in ethanol, at present. In fact, we have also doubled our capacity in ethanol. We also produce power and have been active in the sugar sector. Thus, the announced sops, subsidy and incentive schemes, will benefit the sugar sector and have far-reaching effects. I feel, the sugar sector, which was suppressed from quite some time, will rebound and regain the strength. Can la gas prices map you quantify its effect majorly in terms of the top line and bottom line?

It is a right question, but I will not discuss the financials at present as March has not come to an end yet. But can assure that this year’s results will be far better than the last year. In fact, it was visible in the December quarter figures, which is available in the public domain, where we returned to profit after a gap of almost two years. I feel that it will have an impact on the year’s balance sheet. There is an increase in sugar prices, but the hike is not visible in the numbers. What can be the reason behind it? Also, talk about the levels to which the prices can reach?

As far as the domestic sugar price is concerned, then the sugar will be sold at the price that has been fixed by the government. After realisation, sugar prices were increased from Rs29 electricity related words to Rs31. There can be mills that are selling sugar below the price but by large it will be sold at Rs31. When it comes to a spike at sugar prices in India then I don’t think that it is going to happen at least as surplus sugar is available in the country. In fact, the surplus sugar will cap the price rise. Possibly, the sugar prices may go up in the international market just as the access sugar of the world is lying electricity symbols worksheet with India. There are talks that sugar production will decline by 2 million tonne in the European Union (EU) and 1 million tonne in Thailand. It may see, slight growth in Brazil, but the prices will not see a big jump across India. Interestingly, Sugar’s profitability is just not linked to its prices, but it is also linked with the realisation of ethanol and power that is being produced by the companies. Update us on your plans related to Ethanol and its production?

I think, sugar should gasco abu dhabi address be termed as energy sector instead of the sugar sector. The government has a special focus on this renewable fuel and that is why we have planned to double our production capacity from around 12 crore litre and I feel that we will be producing 24 crore litre by next sugar season. And, when it comes to production, we have a capacity of 12 crore litre and it is being fulfilled. This year’s sale will be 3-4 crore litre more than last year’s sale. Let us know about the investments that will be made for expansion purposes and how it will be made?

We have a plan to invest about Rs 400 crore for doubling our capacity. In fact, it has been financed. Renuka Sugars is a subsidiary of Wilmar Sugar, one of world’s largest player in the sugar sector. In addition, the banking sector has changed its attitude towards us. This change is an outcome of the management change. So, fundraising is not grade 9 electricity quiz an issue for us. Tell us about the performance of the Brazilian operations of the company and there is a buzz that you are planning to sell it off?

As far as our Brazilian operation is concerned, the company is in judicial protection at present. So, we are not paying any attention to it as we don’t have any control over it. It is under judicial protection. We don’t have anything new to say on it as there is no specific plan around it yet. But at the end hp electricity bill payment online of the day, we will have to remove it from our portfolio. Any timeline by which it will be removed from your portfolio?

See, sugar crushing season has come to an end. Practically, the crushing season is over in Karnataka, where our mills are concentrated. So, the sugar which was supposed to be processed has been processed and are lying in the inventory and its release mechanism is decided by the government. We release around gas after eating pasta 32,000 to 35,000 tonnes of sugar per month. So, we have a special focus on Madhur, which is a branded sugar developed by us. The remaining sugar is earmarked to MNCs like Nestle, Coca Cola and Pepsi. As far as pricing is concerned, the price is decided by the government and our prices revolve around the fixed prices. Government has mandated sugar exports of 5 million tonne of sugar. What are the present situation and talk about the export 1940 gas station photos realisation that has been reached?

See, we believe that about 1.5 million tonne of sugar has been exported physically from India. About 5-6 million tonne of sugar is lying at various stages of exports. I feel around 300-350 million tonne of sugar will be exported from India this year. In addition, certain developments at the global level are also good for India like US sanctions on Iran. The sanction will make Iran look towards India to fulfill its raw sugar needs, which means an additional 5-6 million tonne of sugar may be exported to Iran. Brazil and Sri Lanka have always been our primary customers and goods are being exported over there. As far as our export targets are concerned then we have fulfilled the quota. In fact, we have also bought the obligations of other players in the market and will be able to complete them too. Besides, we have special attention towards exports and our Kandla gas definition physics sugar refinery is completely dedicated for the purpose. Let us know about the debt situations of Shree Renuka Sugars and the mechanism that will be adopted to reduce it.