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8/12/2019 Sukhjit
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8/12/2019 Sukhjit
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Safe Harbor
Some of the statements in this document that are nothistorical facts are forward-looking statements. Thesestatements entail risks and uncertainties that could cause
actual events to differ materially from these forward-lookingstatements. These risks include, but are not limited to, thelevel of market demand for our product, market situation forour key inputs, market conditions that could cause ourcustomers to reduce their spending for our products, ourability to create, acquire and build new businesses and togrow our existing businesses and other risks not specificallymentioned herein but those that are common to industry.The Company does not undertake to update thesestatements publicly to reflect changed eventualities.
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1. Business Overview2. Product overview
3. Management Vision and Ethics
4. Industry Dynamics
5. Financial Highlights
6. Strategic Outlook
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First entry mover advantages: One of oldest producer of Starchin India and third largest in India as per production.
Long lasting relationship with biggest brands and end users
Consistent expansion results in huge jump in capacity from 1800TPA in 1943 to over over 4 Lacs TPA in 2013-14
Diversification across customers and end-marketsEfficient working capital management: Low gearing with overalldebt
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1943 1944 1965 1967 1975 1980 1982 1985 86-92 1993 1996 2002 2007 2013
Companyestablished
its first facilitywith acapacity of1800 TPA atPhagwara(Punjab).
Cogoespublic
therebycreating awiderfinancialbase for itselfand at thesame timeopening upto newhorizons.
Starts
modernisationof phagwarafacility andexpandcapacity to12700 TPA.
CompanyCommissions
LiquidGlucose Plantat Phagwarawith 100%indigenoustechnology.
CompanyexpandsCrushing atPhagwara to36000 TPA.
Companyacquires VijoySteel andGeneral MillsCompanyLimited.
Companycommissions
Mono-HydrateDextrosePlant atPhagwarawith 100%IndigenousTechnoogy.
Company
venture outof Punjabandcommissionsthe secondgreenfieldfacility atNizambad(A.P.) toproduce cornstarch.
ConsolidationandExpansion ofCapacities at
both thefacilities inPunjab from36000TPA to54000 TPAand A.P. from12700 TPA to54000 TPA.
CompanyCommissions
Sorbitol 70%Sol. AtPhagwarawith 100%IndigenousTechnology
CompanyCommissions
AnhydrousDextroseplant atPhagwarawith 100%IndigenousTechnology.
Companycommissions
the Thirdgreenfieldfacility atMalda (WestBengal) toproducecorn starch.
Commissiongof HP Plant
Capacit
y ofMalda unittrebled withaddiional plantfor mfg.DextroseMonohydratecapacity 50 TPD.
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GrowthofMaizeStarchindustryhasdoubled
in the last 5 years in terms of grindingcapacityofMaize
North America is expected to lead theglobal modified starch market with shareof 39 percent followed by Asia-Pacific (29percent) and Europe (27 percent) in termsof consumption.
Due to opening up of the FDI in Retail sector,
more international players likely to penetrate
the Indian Market
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Change in Consumer Behaviour with respect to habits
patterns of food consumption.
Packaged ready to eat food is the order of the day due
to ready OTC availability.
Increase in requirements of modified and value-added
starch products i.e. its derivatives, in the packaged food
industry.
Malls / DepartmentalStores culture has taken over
age-old next-doorBaniyaa culture in India especially in
Tier1andTier2cities.
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High-fructose corn syrup, also high-fructose maize syrup in othercountriescomprises any of a group of corn syrups that hasundergone enzymatic processing to convert some of its glucose intofructose to produce a desired sweetness. HFCSmainlyusedinAerateddrinksworldover.InIndia,itissugar,duetocheappricingofsugar.
BeerindustrysubstitutedsugarwithHighMaltoseCornSyrup(HMCS)andDextrose, both derivates of Maize Starch. Government may earmark a
minimum%age of HFCS instead of sugar in themanufacture of Aerated
drinksandBeer.
ManufacturersofAeratedDrinksyettosubstitutesugarwithanalternative.
Enquiry made by manufacturers of Aerated Drinks and Beer, as to analternativeofsugarhasincreasedinlastfewyears Potential growth of use
of HFCS foreseen in immediate future.
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In USA China, 3-4 types of corn available i.e. industry-specific types
In India, Corn was Corn no such segregation done due to ignorance
on the part of farmers. Type of corn available was not standard on every
purchase, due to different types of hybrid seeds used for growing corn.
Profits of the Maize Starch Industry are expected to rise as reduction in
production costs due to better recovery by using industry-specific corn,
recently, as also by direct purchases from the farmers
Increase in consumption of Maize products can check on the pricing of
Sugar and Government may give incentives to starch industry in future
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Quality is the life line of every business and
Company committed to satisfy customers bymanufacturing & supplying quality productsto their entire satisfaction
Sukhjit is an innovation company : Products,
technologies, processes, business models andstrategies
Addressing new growth areas
Capable of identifying and usingbreakthrough innovations
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Sukhit believes that its products improve
the quality of peoples lives Respect for people and nature
Deeply committed to the social upliftmentand all round society welfare
Prevention of environment hazards alongwith the business/economic growth
Channelise youth energy for productiveuse
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Last decade Industry grew by 2 times of GDP : still huge gap in
global average and Indias consumption level
Industry growing at 20% rate: China consumption grew by 4times in last decade
Per capita consumption still very low: of the consumption ascomparison to china.
More than 1000 application in developed countries
Cargill India setting up a corn milling plant in Karnataka with aninitial investment of Rs 500 crore to tap the fast-growing market
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In cr 2013 2012 2011 2010 2009
Net
Profit
21.58 22.10 38.78 14.67 11.61
0
5
10
15
20
25
30
35
40
2009 2010 2011 2012 2013
Net Profit (In Cr)
Net Profit (In Cr)
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In cr 2013 2012 2011 2010 2009
Revenue(annual) 419.74 354.33 339.06 258.54 202.62
Revenue (in cr)
0
100
200
300
400
500
20092010
20112012
2013
Revenue (in cr)
Revenue (in cr)
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2009 2010 2011 2012 2013
NPM in % 5.14 6.24 11.44 5.68 5.73
OPM in % 12.25 12.36 18.60 12.98 12.23
0
2
4
6
8
10
12
1416
18
20
20092010
20112012
2013
NPM
OPM
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Modified starch market will grow from estimated $12.76 billionin 2012 to $15.23 billion by 2017 with 3.2 percent CAGR during
the same period.
Insomeproducts,theStatutorypermissiblelimitofusageofstarchisstillverylowinIndiacomparedtothepermissiblelimitsinotherAmericanandEuropeancountries.Governmentmayconsiderandtherebymakenecessaryamendmentsinthepermissiblelimits
Increase in consumption of Maize products can check on the pricing
of Sugar and Government may give incentives to starch industry in
future
4 industrial sectors ( Pharma, Food and Beverages, Textile &Paper) which are demand driver for the industry are doingextremely well & expected to continue the uptrend in 2014
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Reach us : Mr Rishi K, Senior DirectorReliant Investor Relations [email protected]+91 9582111450+91 75061 31222+91 11 2244 4422
mailto:[email protected]:[email protected]