What is the business model of the industry? farmers to millers to ? Where does money come from, size of pie?

Demand- 20m MT, export 10m MT, 50-100m$ sales Sector Company Growth Competition Product offering Commodity Large sugar companies have -ve ROIC

Saturated Low/No growth Intense

Potential of ethanol as alternative fuel

Industry NPM, ROE Industry threats Regulatory/Legal/Social/Environmental govt pricing, protect farmer interests, regulated at centre & state V Regional/Global Threat Brazil,S.E.Asian countries Cyclical/Non cyclical Cyclical Key differentiators None Resistance to: Technology Yes Fad/trends Yes gen economy Induced cyclicality Resales, repeat sales commodity, fmcg type Long tail? yes Comparison with developed economies World prodn stagnant at 150m MT, India 10% Brand/Niche none Hidden value (assets, network, cash, land) Moats(R&D, Network, Brands, Size) none Uses and markets catered to dairy, confectionary Degree of Leverage? Thorough News check on company/promoters Quality management Clean? Dividends Eq dilution Entry Barrier Competition Substitutes Pricing Power cane production heavy none

Threat of

T, 50-100m$ sales

Products/Services being offered Supplier power

Supplier

Farmers, many but high pricing power due to govt regulations No Substitutes

Input

sts, regulated at centre & state Supply Chain Analysis

Raw materials

Supplier/ Logistics

Mfg Distribution/Retai l process

Sugarcan e, water, electricit y commod ity price impact on margins?

Numero us farmers, pricing power due to govt support Transpor tation costs,shr inkage & perishabi lity

Impact of No gr8 distribution Technolo network gy/machi nery Pricing power of needed retailers to Who are the produce customers? output Where/how do Labor they buy? Pricing intensity power reqd, Collections period pricing pressure of labor unions Impact of new technolo gy on producti on process/ capital needed Linear scalabilit y on revenues /margins

Entry Criteria raw material impact Value Add substitutes

Sugarcane molasses,

Input

electricity, capital for machines

Process

convert input to sugar, ethanol etc

Type (B2C,B)

Output

Sugar, ethanol

Customer

No of customers, switching costs

Type (B2C,B) No of customers, switching costs

Brands Niche Point of sale/retail Prod'n Capacity Sales OM NM

Expansion plans Mgmt check Annual Report Mgmt holding Scalability

Dividend