Industry Outlook

Sakthi Sugars Limited is a business that produces soy products, industrial alcohol, sugar, and
electricity. The company's sugar business, which also generates byproducts including molasses,
bagasse, and press mud, is its main source of income. In 1972, Sakthi Sugars Limited expanded its
product line to include the production of industrial alcohol. For its sugar sector, the company has an
installed capacity of 19,000 tonnes. The corporation has a 10.45B revenue as of March 2024 and a
sales growth of 32.94%. Financial measures show a decline in the company's profitability during the
past several years.

Profile of the Company

A public limited company called Sakthi Sugars Limited is situated in Tamil Nadu's Erode
District. The business is a member of the Sakthi Group of Companies, which engages in several
operations in a variety of industries, including sugar, industrial ethanol, and soy products. Sugar,
Industrial alcohol, Power, and Soy products are among the business's segments. The company's main
line of business is sugar processing, although it also makes soy products, industrial alcohol, and
electricity. The firm has a 157.00 cr authorised share capital and a 170.00 cr paid-up capital. The
corporation has a 10.45B revenue as of March 2024 and a sales growth of 32.94%. The company's
sugar section is its main source of income, and it also makes byproducts including molasses, bagasse,
and press mud. The company's stock is traded on the Bombay Stock Exchange (BSE) and the National
Stock Exchange of India (NSE).

Vision & Mission

Sakthi Sugars Limited's actions and endeavours are guided by its vision and purpose. In a message,
the company's chairman emphasised the significance of corporate ethics and social responsibility as
the main drivers of the group's success. Under Dr. N. Mahalingam's direction, the company's social
responsibility charity purpose is to manage and maintain charitable organisations.

Growth of the Company

 Revenue Expansion: As of March 2024, Sakthi Sugars Limited achieved a revenue milestone
of ₹10.45 billion, marking a significant sales growth of 32.94%. This signals the company's
success in boosting its top-line earnings.
  Earnings Surge: The company has consistently recorded impressive earnings growth, boasting
an annual average of 64.4%. This growth rate surpasses the industry standard, which sees
earnings increase by an average of 16.6% annually. This indicates that Sakthi Sugars has
effectively increased its profitability.
 Stock Price Dynamics: The company's stock price has undergone fluctuations in recent years.
Nonetheless, certain projections foresee a sustained uptrend in the company's stock value,
indicating optimism and investor confidence in its future prospects.
 Revenue Composition: The company's primary revenue source stems from its sugar segment.
Furthermore, it engages in the production of by-products such as molasses, bagasse, and press
mud. This diversified revenue stream helps mitigate risks associated with fluctuating sugar
prices and demand.
 Sales Momentum: Although the company's sales growth appeared modest over the past three
years, it experienced robust growth in the most recent four quarters, exhibiting a noteworthy
increase of 133.32%. This suggests that Sakthi Sugars may be on an upward trajectory in
terms of sales.
 Quarterly Revenue: In the initial quarter of the fiscal year 2007-2008, the company witnessed
a slight decline of 4.59% in revenue compared to the corresponding period in the prior year,
with total revenue amounting to ₹284.78 crore. However, it is essential to highlight that the
company has consistently shown growth on a quarterly basis, demonstrating its resilience and
adaptability to market dynamics.

Milestone, Awards and Achievements

Sakthi Sugars Limited has an impressive history filled with significant milestones and commendable
achievements:

Milestones:

 Establishment: Founded in 1962, Sakthi Sugars Limited has steadily grown to become a
prominent sugar manufacturer in India, highlighting its enduring presence in the industry.
 Diversification: In 1972, the company diversified its operations by venturing into the
production of industrial alcohol, showcasing its adaptability and expansion into related
sectors.
 Sugar Production Capacity: With an impressive installed capacity of 19,000 tons in its sugar
division, the company is a major player in the sugar manufacturing sector.
 Business Expansion: Beyond sugar, the company has broadened its scope to encompass
additional sectors, including power generation and the production of soya products, indicating
its commitment to diversification and growth.
  Quality Certifications: Sakthi Sugars Limited has earned certifications for its quality
management systems, including ISO 9001:2015 and FSSC 22000:2018, underscoring its
dedication to maintaining high product and service standards.

Awards and Recognition:

 National Productivity Award: The company has received prestigious recognition in the form
of the National Productivity Award from the Government of India, acknowledging its
outstanding performance and contributions to the industry.
 Environmental Sustainability: Sakthi Sugars Limited has demonstrated its commitment to
environmental sustainability and responsible business practices, earning the Green Award
from the Tamil Nadu Pollution Control Board.
 Corporate Social Responsibility (CSR): The company's contributions to the community have
not gone unnoticed, as it has been honored with the Best Corporate Social Responsibility
Award by the Tamil Nadu Chamber of Commerce and Industry, showcasing its dedication to
making a positive societal impact.
 Safety: Safety is paramount, and the company's efforts in this area have been recognized with
the National Safety Award from the Ministry of Labour and Employment, Government of
India, reflecting its commitment to ensuring the well-being of its employees.
 Agriculture Sector Contribution: The company's contributions to the agriculture sector have
been acknowledged through the receipt of the Best Agro-Based Industry Award from the
Tamil Nadu Agricultural University, highlighting its role in supporting and advancing the
agricultural community.

In summary, Sakthi Sugars Limited has achieved numerous significant milestones and received
recognition for its diverse achievements. These include expanding its business operations, obtaining
quality certifications, and garnering awards for its exceptional performance, environmental
stewardship, corporate social responsibility, safety practices, and contributions to the agriculture
sector. These accomplishments underscore the company's commitment to excellence, sustainability,
and societal well-being.

Unique Selling Proposition

Sakthi Sugars Limited distinguishes itself in the market through a compelling Unique Selling
Proposition (USP) centered on delivering exceptional value to its customers. Here's an overview of its
key differentiators:
  Differentiated Products: The company offers products that stand out from those of its
competitors. This differentiation enables Sakthi Sugars to effectively target specific customer
segments, leveraging demographic factors such as income levels. This tailored approach
ensures that its offerings align with the unique needs and preferences of its customer base.

 Sugar Segment Revenue: The core revenue driver for Sakthi Sugars Limited is its sugar
segment. This segment encompasses both the manufacturing and trading of sugar and its
associated by-products. By focusing on this key sector, the company solidifies its position as a
leader in the sugar industry.

 Innovative Agricultural Practices: Sakthi Sugars has adopted innovative technologies and
practices in its operations. Notably, it has introduced mechanized sugarcane harvesting and
large-scale drip irrigation systems. These initiatives set the company apart from its peers
within the sugar manufacturing landscape. Such forward-thinking approaches enhance
efficiency, productivity, and sustainability in its agricultural processes.

In summary, Sakthi Sugars Limited's USP is rooted in its ability to offer an outstanding value
proposition to customers, underpinned by differentiated products and services. The company's
primary revenue source is its sugar segment, and its commitment to innovation, particularly in
agricultural practices, positions it as a pioneer among sugar factories in the country. These unique
attributes contribute to the company's competitive advantage and its ability to meet the diverse needs
of its target market.

Organization structure

Sakthi Sugars Limited operates within a structured organizational framework, which includes distinct
roles and responsibilities at various levels. Here's a concise breakdown of the company's
organizational structure:

Board of Directors:

 The board of directors plays a pivotal role in the company's governance, providing oversight
and making strategic decisions.
 It comprises multiple members, encompassing the chairman, independent directors, and non-
executive directors.

Executive Management:
  The executive management team is entrusted with the daily operations of the organization,
ensuring the implementation of strategic directives.
 This team comprises key executives, including the CEO, vice president, general manager, and
others.
 Mahalingam Manickam serves as the CEO since his appointment in June 2018.

Other Employees:

 Sakthi Sugars Limited boasts a workforce of 293 dedicated employees, whose roles span
various functions within the company.
 The company also features a fabrication division specializing in structural fabrication for civil
engineering projects.

In summary, Sakthi Sugars Limited maintains a hierarchical organizational structure encompassing

the board of directors, executive management, and a broader employee base. The board focuses on
strategic governance, while the executive management team oversees daily operations. Additionally,
the company's fabrication division contributes to its diverse range of capabilities.

Functions of Department

Sakthi Sugars Limited operates with a diverse range of departments, each contributing to the
company's seamless functioning. Here's an overview of the key functions of these departments:

Human Resources Department:

 Fosters positive industrial relations and maintains a harmonious atmosphere with employees
and unions.
 Assumes a pivotal role in managing and nurturing the company's workforce.

Industrial Alcohol Department:

 Expanded into the production of industrial alcohol in 1972.

 Manages the entire lifecycle of industrial alcohol, encompassing production and distribution.

Various Departments in Sugar Factory:

 The sugar factory encompasses several critical departments, including the Cane Department,
Sugar Department, Engineering Department, and Quality Control Department.
 Each department is responsible for distinct tasks such as overseeing sugarcane supply, sugar
processing, equipment maintenance, and ensuring stringent quality control standards.

Marketing Department:

 Holds the responsibility of cultivating meaningful customer relationships.

  Success in this department can influence purchasing costs and production continuity, making
it a key component of the company's success.

Corporate Treasury Department:

 Manages liquidity and mitigates financial risks.

 Ensures the company maintains adequate funds to meet its financial obligations, safeguarding
its financial stability.

In summary, Sakthi Sugars Limited operates with multiple specialized departments, each contributing
a unique set of functions to facilitate the company's efficient operation. These departments
collectively play an integral role in the company's success and ability to meet its operational and
strategic objectives.

Product Profile

Sakthi Sugars Limited boasts a diverse product portfolio across multiple segments. Here's an
overview of the company's product offerings:

Sugar:

High-Quality White Sugar

Raw Sugar
Refined Sugar

Industrial Alcohol:

Denatured Alcohol (Non-beverage)

Power:

Electricity

Soya Products:

The company operates an advanced soya processing unit, complete with a refinery complex located
near Pollachi. While specific soya products are not mentioned, it indicates a commitment to the soya
processing sector.

In summary, Sakthi Sugars Limited specializes in a range of products across the sugar, industrial
alcohol, and power segments. Their sugar products encompass high-quality white sugar, raw sugar,
and refined sugar. Additionally, the company produces denatured alcohol and electricity, showcasing
its diverse capabilities in various industries. Furthermore, the presence of a soya processing unit
underscores their commitment to expanding their product offerings.

New Product and Technology of the company

Sakthi Sugars Limited has embarked on several noteworthy projects and embraced innovative
technologies to enhance its operations. Here's an overview of the company's new projects and
technologies:

Co-generation Project:

 The company is actively implementing a co-generation project at its Sakthinagar Sugar Unit.
 This project involves the installation of a co-generation plant with a robust capacity of 35
MW, emphasizing the utilization of waste resources for power generation.

New Sugar Unit:

 Sakthi Sugars has established a brand-new sugar unit, located in Haripur Village within the
Dhenkanal District of Orissa State.
 This unit is designed with a capacity of 2500 TCD (Tons Crushed per Day) and optimizes the
utilization of molasses derived from the sugar unit.

Sugar Production Technologies:

 The company has embarked on a mission-mode project centered around sugar production
technologies.
  This initiative is geared towards achieving sharper and more focused technological
advancements within select sugar factories.

Cost-Efficient Product Launch:

 Sakthi Sugars Ltd. is actively capitalizing on the emerging trend of cost-effective product
launches.
 It achieves this through collaborations with third-party retail partners and dedicated social
networks, reflecting an innovative approach to product introductions.

High-Quality Sugar:

 Sakthi Sugars Limited maintains its commitment to producing an array of high-quality sugar
products.
 Their product portfolio encompasses high-quality white sugar, raw sugar, refined sugar, and
various other sugar-related products.

In summary, Sakthi Sugars Limited's proactive approach to new projects and technologies
demonstrates its commitment to advancing its operations, improving technological infrastructure, and
embracing innovative strategies in product launches. Additionally, the company continues to prioritize
the production of high-quality sugar across its range of products.
 Import and Export

Sakthi Sugars Limited engages in both import and export activities, and here are some key insights
into the company's import and export procedures:
Export Activities:

 Export Destinations:
The company primarily exports its products to the Philippines, with consignments typically
shipped to Manila.
 Export Documentation:
Import-export activities require meticulous documentation. This includes gathering precise
import-export data, product specifications, HS (Harmonized System) codes, and complying
with various regulatory requirements. HS codes are particularly important in categorizing and
identifying products for customs purposes.
 Product Categories:
For sugar and sugar confectionery exports, the company must prepare and submit several
essential documents to facilitate international trade.
 Export of Manures and Chemicals:
Sakthi Sugars Limited holds authorization to engage in the import, export, and trade of
manures, oil cakes, soil fertilizers, and chemicals used in hydroponics, gardening, crop
cultivation, and related activities.
 Export Release Orders (EROs):
To export sugar from India, the company follows a formal process. This involves registering
with the NSWS (National Sugar Workflow System) portal under the Investor login category.
Subsequently, the company obtains Export Release Orders (EROs), which are essential for the
export of sugar.
 Export Benefits:
Export benefits and incentives are typically accounted for in the year of actual exports. These
benefits may vary based on factors such as the quantity and type of sugar and molasses in
process that are exported.

It is important to acknowledge that the import and export procedures can be complex and subject to
change, depending on the specific product, destination, and evolving international trade regulations.
Therefore, Sakthi Sugars Limited must remain diligent in complying with all relevant regulations and
documentation requirements to facilitate its import and export activities successfully.

Strategy of each department

Each department within Sakthi Sugars Limited plays a critical role in contributing to the company's
overall success and achieving its goals. Here's a closer look at the key functions and responsibilities of
these departments:

Marketing Department:
  Engages in strategic planning solutions, including mission and vision analysis, SBU (Strategic
Business Unit) portfolio analysis using BCG Growth Share Matrix, and Ansoff Product
Market analysis.
 Conducts SWOT analysis to assess the company's strengths, weaknesses, opportunities, and
threats.
 Develops and executes marketing strategies to promote the company's products and services,
driving growth and market presence.

HR Department:

 Cultivates and maintains positive industrial relations with employees and labor unions,
fostering a harmonious work environment.
 Plays a pivotal role in shaping the company's work culture and career development
opportunities for employees.
 Manages recruitment, training, and employee engagement initiatives to attract and retain
talent.

Manufacturing Department:

 Engages in the manufacturing of various products, including sugar, industrial alcohol, power,
and soya products.
 Utilizes advanced technology and well-established processes to produce high-quality
plantation white sugar and refined sugar.
 Ensures efficient and sustainable production processes across different product lines.
Employee Relations Department:

 Focuses on addressing employee grievances and concerns, striving to create a positive and
cooperative work atmosphere.
 Aims to build strong relationships between employees and management to enhance overall
job satisfaction and productivity.
 Implements initiatives to promote employee well-being and engagement within the
organization.

It's important to note that the strategies and specific actions undertaken by each department may be
tailored to align with Sakthi Sugars Limited's unique goals and objectives. The overall success of the
company relies on the coordinated efforts of these departments, each contributing to different aspects
of the company's operations and organizational culture.

Customer/Client/Supplier details

 Customers List:
Sakthi Sugars Limited maintains a list of customers, but it is not publicly available on their
website. Access to this list typically requires a customer or supplier inquiry.
 Customer Feedback:
 The company provides a customer/supplier enquiry page on its website, allowing customers
to provide feedback or make inquiries regarding various divisions, including sugar, power,
distillery, soya, cane mechanization, and bulk grain handling.
 Customers and Suppliers:
According to en.abrams.wiki, Sakthi Sugars Limited has 30 customers and 9 suppliers.
 Company Profile:
The Dun & Bradstreet website offers a company profile of Sakthi Sugars Limited, which may
include information about competitors, financials, and contact details.
 Software Purchases and Digital Transformation Initiatives:
According to appsruntheworld.com, Sakthi Sugars Limited has undertaken software
purchases and digital transformation initiatives.

CSR (Corporate Social Responsibility)

Sakthi Sugars Limited demonstrates a strong commitment to corporate social responsibility (CSR)
through various initiatives and policies aimed at promoting sustainable economic development and
societal well-being. Here's an overview of the CSR efforts undertaken by the company:

1. Charity Contributions:

The company actively contributes to charitable initiatives, including support for the Mission Hospital
and Health Center, educational institutions such as schools and colleges, thereby investing in the
health and education sectors to benefit the community.

2. Green Belt Initiative:

Sakthi Sugars Limited is committed to environmental conservation through its green belt initiative.
The company has planted 300 trees, contributing to reforestation efforts and enhancing the local
ecosystem.

3. Literacy Mission:

The company's involvement in a literacy mission program reflects its dedication to women's
empowerment and health. Such programs can have a significant positive impact on the community by
improving education and healthcare access.

4. CSR Committee:

Sakthi Sugars Limited has established a dedicated CSR Committee, demonstrating its structured
approach to corporate social responsibility. This committee plays a vital role in overseeing and
implementing CSR initiatives effectively.

5. CSR Vision and Mission:

The company's CSR Policy is aligned with a vision and mission focused on serving the society in the
regions where it operates. This underscores its commitment to uplifting and contributing positively to
the communities it is a part of.

Overall, Sakthi Sugars Limited's CSR efforts underscore its commitment to responsible and
sustainable business practices, with a particular emphasis on community development, environmental
conservation, and healthcare and education initiatives. These efforts reflect the company's broader
commitment to societal well-being alongside its business operations.

Employee welfare measures

Sakthi Sugars Limited places a strong emphasis on employee welfare and satisfaction, as
evidenced by the implementation of several notable measures and initiatives. Here's a summary of
these employee welfare measures:

1. Canteen Facility:

The provision of a canteen facility for employees contributes to their well-being and satisfaction by
ensuring access to quality meals during working hours.

2. Grievance Handling:

The company has established effective grievance handling mechanisms, as indicated by a study that
found employees were satisfied with these measures. This highlights the company's commitment to
addressing and resolving employee concerns promptly.

3. Health and Safety Measures:

While specific details are not provided, health and safety measures are integral components of
employee welfare. These measures likely encompass initiatives aimed at promoting the well-being
and safety of the workforce.

4. Job Satisfaction:

Research on employee job satisfaction at Sakthi Sugar Limited demonstrates the company's interest in
understanding and enhancing employee satisfaction through welfare measures.

5. Meeting Employee Needs and Wants:

Welfare activities at Sakthi Sugars Limited are tailored to align with the needs and desires of
employees. This approach ensures that the provided initiatives resonate with the workforce,
contributing to their overall satisfaction and well-being.

In summary, Sakthi Sugars Limited's commitment to employee welfare is reflected in the

implementation of a range of measures that address employee needs, provide essential services, and
create a positive work environment. These initiatives contribute to the company's goal of ensuring the
well-being and satisfaction of its valuable workforce.

SWOT Analysis

The SWOT analysis for Sakthi Sugars Limited provides a snapshot of its internal strengths and
weaknesses and the external opportunities and threats it faces:

Strengths:

 Strong Momentum: The company's stock price demonstrates consistent performance,

surpassing short, medium, and long-term moving averages, indicating market confidence.
 Strong Annual EPS Growth: A history of robust annual earnings per share (EPS) growth
underscores the company's financial strength.
 Diversified Product Portfolio: Engagement in multiple sectors, including sugar, industrial
alcohol, power, and soya products, diversifies revenue streams and reduces dependency on a
single market.
 Strong Brand Image: Sakthi Sugars Limited enjoys a favorable brand reputation, potentially
enhancing customer loyalty and market positioning.
 Experienced Management Team: An experienced management team can provide effective
leadership and strategic direction.
 Strong Distribution Network: An extensive distribution network can facilitate market
penetration and product reach.

Weaknesses:

 High-Interest Expenses: Elevated interest expenses can impact profitability.

 Low Return on Equity: A low return on equity may indicate underutilized capital.
 High Debt to Equity Ratio: High leverage can pose financial risks.
 Low Dividend Yield: A low dividend yield may affect attractiveness to income-oriented
investors.
 Low Operating Margin: A narrow operating margin suggests cost challenges.

Opportunities:

 Growing Demand for Sugar and Sugar Products: Increasing demand, both domestically and
globally, presents revenue growth opportunities.
 Product Portfolio Expansion: Diversifying the product portfolio can capture emerging market
trends and consumer preferences.
 Focus on Renewable Energy and Co-generation Projects: An emphasis on renewable energy
aligns with sustainability goals and can enhance profitability.
  Ethanol and Biofuels Demand: The increasing demand for ethanol and biofuels can open new
revenue streams.
 CSR Initiatives: A focus on corporate social responsibility (CSR) can improve the company's
public image and community relations.

Threats:

 Fluctuations in Sugar Prices: Volatility in sugar prices can impact revenue and profitability.
 Competition: Competition from domestic and international players may affect market share.
 Regulatory Changes: Changes in government policies and regulations can influence
operations.
 Weather Dependency: The company's operations may be vulnerable to fluctuations in
monsoon and weather conditions.
 Commodity Market Volatility: Exposure to global commodity markets can pose risks.

Conclusion

As the company continues to focus on expanding its product offerings and meeting the
increasing demand for sugar and related products, it can further strengthen its market position.
Adapting to changing government policies and regulations will also be crucial to sustaining growth.

In conclusion, Sakthi Sugars Limited's strong foundation and strategic initiatives position it well for
future growth and profitability. Its ability to capitalize on opportunities while effectively addressing
challenges will determine its long-term success in the dynamic sugar industry.