According to Claudiu Covrig, Founder of Covrig Analytics, the right moment for India to export might come around Q2 2025, when prices could stabilise above $550-$600 per tonne.

Speaking to CNBC-TV18’s Manisha Gupta, he noted that while Indian mills are eager to export due to large domestic stocks, the current global market conditions are unfavourable. With Brazil’s massive production, adding Indian sugar to the market could lead to a price collapse.

Covrig also praised India’s rapid advancements in the biofuels area, especially ethanol, noting that the country has achieved significant blending mandates by diverting about 2 million tonnes of sugar to ethanol production. “No country in the world did this in such a short time,” he remarked.

Covrig advocated for the introduction of flex-fuel cars in India, which could further boost ethanol demand and provide a flexible response to fluctuations in sugar and ethanol production.

Meanwhile, Somnath Chatterjee, Head of Procurement & Logistics at ITC highlighted that the Indian sugar consumption continues to grow at a healthy clip of around 4-5%. However, he pointed out that unofficial exports to neighbouring countries, particularly Bangladesh are adding to sugar demand.

Reflecting on the recent union budget, Chatterjee acknowledged its long-term strategic focus on agriculture. While immediate impacts might be limited, he pointed out that initiatives to improve the supply chain, preserve quality, and enhance cold storage facilities for horticultural crops are steps in the right direction.

Source – CNBC TV 18

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Indian Sugar Mills & Bio-Energy Manufacturers Association (Isma) on Tuesday released the preliminary estimates of sugar production for 2024-25 marketing year (October-September).

The estimate was released after comprehensive analysis of satellite imagery, field reports on expected yields, sugar recovery rates, drawal percentage, the impact of rainfall from previous and current years, water availability in reservoirs, and anticipated rainfall during the Southwest Monsoon 2024.

In its forecast, the association has pegged the country’s gross sugar production (without diversion for ethanol) at 33.310 mn tonnes for 2024-25, from an estimated 33.995 mn tonnes in the current 2023-24 marketing year.

Net sugar production is estimated at 31.965 mn tonnes for the current marketing year, taking into account 2.030 mn tonnes diversion for ethanol making.

Isma has projected an opening stock of 9.05 mn tonnes as on October 1, 2024, while the gross production during 2024-25 (without diversion for ethanol) has been pegged at 33.3 mn tonnes. So, the total availability of sugar would be 42.35 mn tonnes in 2024-25.

The domestic consumption is likely to be 29 mn tonnes in the next marketing year, leading the closing stock to 13.35 mn tonnes as on September 30, 2025.

The normative stock for two and half months has been kept at 5.5 mn tonnes. Therefore, the excess stock over and above normative stock is 7.85 mn tonnes. “… The excess stock of sugar will be sufficient to support both the unhindered Ethanol Blending Program in 2024-25 season and also exports in the current season leading to a balanced sugar market,” Isma said.

Source : Business Standard

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Stock under Rs 100: A sugar company, whose stock is trading under Rs 100 on BSE, is set to buyback its shares from the holders. Small cap company Dwarikesh Sugar Industries on Friday announced its stock repurchase plan approved by its board of directors.

Share or stock buyback is a corporate action in which a company decides to purchase their own shares from their existing shareholders either through a tender offer or through an open market. In such a situation, the price of concerning shares is generally more than the current market price.

Dwarikesh Sugar Share Buyback

The Board of Directors of Dwarikesh Sugar Industries has approved a buyback offer of 30,00,000 fully paid-up equity shares of face value Re 1 each by the company. This buyback represents 1.59 per cent of the total paid-up equity share capital of the company.

“The buyback will help the Company to distribute surplus funds to its shareholders holding equity shares broadly in proportion to their shareholding, thereby, enhancing the overall shareholder value,” it said.

Dwarikesh Sugar Share Buyback Size

The aggregate consideration of this proposed buyback is up to Rs 31.50 crore. This aggregate consideration represents 4.49 per cent of the aggregate of the fully paid-up Equity Share capital.

Dwarikesh Sugar Share Buyback Price

The sugar company will repurchase the stocks at a price of Rs 105 per Equity Share, which translates to a 30 per cent premium over the current market price of Rs 80.85.

Dwarikesh Sugar Share Buyback Record Date

To determine who will be eligible to participate, Dwarikesh Sugar Industries has fixed March 20 as the record date.

Key Details of Dwarikesh Sugar Industries Share Buyback

Number of shares – 30,00,000

Face value per share – Re 1

Buyback offer price – Rs 105 per equity share

Aggregate consideration – Up to Rs 31,50,00,000

Buyback size – 1.59 per cent of the total paid-up Equity Share Capital

Record date – 20th March 2024

Dwarikesh Sugar Industries Share Price History

Shares of the sugar company closed at Rs 80.85 apiece on BSE on Thursday, March 7. The sugar stock has more than doubled investors’ money in the last 3 years, rising 130 per cent, according to BSE analytics. In the last 5 years, the counter has rallied 165 per cent while zoomed 3297.06 per cent in the last 10 years.

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“The flexibility has been given to sugar mills for using both sugarcane juice and B-heavy within an overall cap of 17 lakh tonnes of diversion of sugar for making ethanol in the ongoing 2023-24 supply year (November-October),” Food Secretary Sanjeev Chopra told PTI. A committee of ministers took the decision during its meeting on Friday, he said. The decision has been taken amid representation received from the industry to review the December 7 order that banned use of cane juice and sugar syrup with immediate effect.

It, however, had allowed supply of ethanol from existing offers received by Oil Marketing Companies (OMCs) from B-heavy molasses. “We are working on modalities to decide on proportion of cane juice and B-heavy molasses to be used for making ethanol,” Chopra said. Already some quantity of ethanol has been produced using cane juice in the current supply year, he added.

Another food ministry official said about 6 lakh tonne of ethanol has already been produced using cane juice before the government issued the December 7 order. The government has estimated sugar production to decline to 32.3-33 million tonnes in the 2023-24 season (October-September), as against 37.3 million tonnes in the previous season.

“We were anticipating cane production to be low but didn’t anticipate it to go down further. The recent rain has brought the recovery per cent further down. The drought in Maharashtra and Karnataka is worrying,” Chopra had said recently.

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Dwarikesh Sugar Industries Ltd. key Products/Revenue Segments include Sugar, Ethanol, Power, Miscellaneous Sales, Molasses, Other Operating Revenue and Sanitizer for the year ending 31-Mar-2022.

Financials

For the quarter ended 30-09-2022, the company reported a Standalone Total Income of Rs 542.42 Crore, down -16.35 % from last quarter Total Income of Rs 648.42 Crore and up 7.16 % from last year same quarter Total Income of Rs 506.17 Crore. Company reported net profit after tax of Rs 7.84 Crore in latest quarter.

Promoter/FII Holdings

Promoters held 42.09 per cent stake in the company as of 31-Mar-2022, while FIIs owned 7.7 per cent, DIIs 3.25 per cent.

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Dwarikesh Sugar Industries Ltd (DSIL), a leading sugar producer in the country, has got upgraded credit rating from rating agency ICRA for its ₹ 599.99 crore Line of Credit.

The Rating Committee of ICRA, after due consideration has upgraded the long-term rating to [ICRA]A+ (pronounced ICRA A plus) from [ICRA]A- for the ₹ 599.99 crore Line of Credit of the company. The outlook on the long-term rating is stable.

According to ICRA rationale, “the rating upgrade factors in the better-than-anticipated operational and financial performance of DSIL in FY2017 as well as the fact that the bulk of its operational cash flows have been used to reduce debt levels and thereby, improve debt metrics.”

“This apart, ICRA has factored in the continued favourable outlook for its core sugar business in FY2018, supported by the recent hike in import duty and a tight domestic stock situation. This is likely to support the sugar prices in the near term, and is expected to result in healthy profits and accruals in FY2018 as well.”

“Consequently, ICRA expects DSIL to use these cash flows for further debt repayment and largely complete its long-term debt obligations by March 31, 2018. The ratings continue to factor in the company’s forward integration into cogeneration and distillery businesses, which provide alternate revenue streams and reduce the impact of the cyclicality of the sugar business to an extent.”

ICRA’s full report on DSIL and rationale on this credit rating can be accessed on the company’s website also. Here is the website link for full access of the rationale ICRA credit rating Rationale

About Dwarikesh Sugar Industries Ltd (NSE: DWARKESH; BSE: 532610)

Dwarikesh Sugar Industries Ltd is a leading sugar producer. The company has three fully automated and highly efficient sugar mills, located in Uttar Pradesh’s sugarcane-rich belt of Bijnor and Bareilly districts.

The company’s combined production capacity is 21,500 tonnes of sugarcane per day. Modern and technologically advanced units help the company to harness sugar by-products such as ethanol, industrial alcohol and bagasee-based power production as growth enabler.

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